The evening times., 1898-12-22
Letter Sent to the Interstate
Commerce Commission.
CUTTING OF TRAFFIC RATES
AIiege Secret Cutting Among North
ern Carriers.
Ask Tint Facts He Fully Ascertain.
ed and the Unfair COmpcti-
ton Stepped.

! The Interstate Commerce Commission
has received a significant letter from john
X. Cowen and Oscar G. Murray, receivers
of the Baltimore and Ohio Railroad Com
! pany.
For some time, it is said by railroad
men, rates have been getting lower and
| lower and the receivers of this road be-
| lieve that some way should be devised to
stop this. 1t is said that it appears 10
be impossible for the railroad companies
J to come to a satisfactory agreement and
| that as economy in operation has almost
reached the point where il is impossible
| to lessen the cost of transportation with
out cutting wages. Messrs. Cowen and
Murray feel that radical steps should be
taken in this matter. The letter follows:
Within the territory rorth Of the Ohio River and
east Of the Mississippi, the railroad carriers are
transporting the larger part Of the interstate
traffic at rates less than those which by
| statue the only lawful rates.
Willie this condition continues there viii exist
the unjust Determinations, and the unjust pref
erences and advantages between persons, lOcali-
ties, and particular descriptions OF traffic, the
prevention cf which is the main object OF the act
Of Congress establishing your commission Only
| by securing the uHiform charging of the pub
ished rates, can the just equality Of service ana
of charge required by law be secured either be-
tween persons OF between localities.
Heretofore the Baltimore ard Ohio Railroad
, Company and its competitors within the terri
; tory above mentioned have maintained joint
agencies cf associations under various agree
ments nteEd@d 10 act as a restraint upon each
carrier and TO prevent the secret cutting Of rates
on competitive traffic. 1t has been the practice
for each carrier 10 report 10 the joint agency
or association any depaI ture fr published rates
by competing carrie, 10 the end that the facts
might BE fully asceriained and the unfair
petition stopped.
The Supreme Court Of the United States has
now finally determined that the so-cajcd anti
trust act applies to railroad carriers and in legal
effect prohibits any agreement between them
~hlch reSttalns competition III any degree. even
though such agreement goes further THAI
secure the Observance of the restants Imposed
by the act to regU.a,e commerce Il Is therefore
no longer lawful, fer The carries to create by
agreements between them joint agencies or asso-
cations aS formerly, TO prevent the cutting Of
rates, however unlawful. Without some impair
tisl body TO investigate the complaints OF one
competing carrier against another and 10 check
Illegal rate cutting il found 10 exist, il VIII be
practically impossible for the railroad carrier
alone TO prevent that form of conpetion between
them. however earnest the great majority Of tine
carriers may be TO stop il.
The Interstate Commerce Conmission not only
commands the respect cf the railroad carriers for
ITS impartia!ity, but also in its powers to iveti-
gate complaints OF illegal rate cutting and to put
stop 10 all Illegal practices far surpa=scs any
asSociaticH which tire carriers have created
I by agreements between thtns.elvCs.
We see No reason Why the commission should
refuse its aid to the carriers in an effort 10 pre-
vent competition from taking the form OF Illegal
/ concessions through secret rates. drawbacks re-
! bates, ard other devices; and see no reason
why the carriers should not seek the aid of the
commission IN such an effort by reporting to the
! commission any departure from published rates
to the end that tae facts may be fully asceriained
| and the Illegal Practice stoppN.
! lac receivers Of the Baltimore and Ohio Rail
/ road Company VIII maintain, on and after Jan
! uaTy !, 1892 upon the lTs-s operated by them
the rates, fares, and charges shown on the tariff
/ published and hied with the commission as re-
! quired by law.
We believe that all or nearly al Of the railroad
! carriers within the territory above mentioned
viii likewise maintain their published tariff rates
| irom that date. To prevent a relapse however
10 the conditions now existing. il is n5ccssary y
that TO important carrier shall long depart from
the publ htd tariff q rates. should such de-
/ paTture occur TO the detrinent Of the Interests
/ in our charge we shall invoke the aid OF the
( commission to stop il We hope and believe that
! many ether carriers will do the same In the an
t'cpSt'on that the other railroad carriers form
! er!y associated with the Baltimore ard Ohio
Railroad Company in traffic associations will
! adopt the course decided on by us and above ont
| lined. We have taken the liberty of transmitting
! TO each such carrier copy OF this letter