The Portland daily press., 1898-10-25
AGAINST JOINT TRAFFIC ASSN.
United States supreme Court Declares
Organization Illegal

Washington, October 24.-The United
States Supreme court today decided the
Joint traffic association railroad case in
favor of the United States against the
railroads
The case Is considered one of the most
important that has ever come before the
Supreme court, not only to the railroad
but to the general public and because of
the vast railway properties represented by
the Traffic association. The association
was formed on November 10. 1895, by 81
railroads representing the great tr unk
lines and their network OF branohes.
The purpose of the association, as stated
in the articles of agreement were TO es-
tablish and maintain reasonable ana just
rates, fares, rules and regulations on state
and intersta traffic.
. A similar association on smaller scale
was established among southwestern
roads, known as the Trans Missouri as
ISOLATION. The association was soon at
tackled in the courts on the grounds that
il was in violation of the Sherman anti
trust law and also of the Interstate COM
merce law. The Trans Missouri first
reaohed2the United States Supreme court,
where In a notable opinion the court held
that the association was illegal being in
effect combination in restraint OF trade
and commerce, and therefore violative of
the trust law. This opinion was by
a divided bench the division being very
close, viz: Cl ief Justice Fuller and
Justices HsrlaDd, Brewer SsBrown and
Peckham holding the Traffic association
illegal, while Justices Field, Gray, Shiras
and White fled a dissenting opinion, up
holding the association. Soon after this
decision Justice Field gave place to JUS
tice McKenna.
Although the Missouri case was oonsid-
cred somew at of test yet the Joint
Traffic association prepared to make
stubborn contest in support OF its exist
ence. The case against 1t was begun on
January IL, 1896, in the United States
CircIit court, which went against the
government and was affirmed by the court
4heaUnited States Supreme court. An
exceptionally brilliant array of counsel
appeared, including Ex-senator Edmunds,
J James G. Carter and E. j. Phelps. Solic.
itor General Richards fled the brief Tor
the government. The main contention
OF the government WAS that the traff1c
agreement is combination to prevent
competition, thus constituting contract
in restraint of trade or commerce. The
answer of the association maintained the
legality Of the agreement, on the ground
that the vast needs of commerce require
joint action and that such action insured
uniform and just rates and prevents
sooret and unjust discrimination. Justice
lckham announced the decision. He
said that the court could distinguish no
difference between the case and that Of
the Trans Missouri case decided year
ago which was decided against sthe rail
roads. He said the only new point in
volyed was as to the constitutionality OF
the antitrust act. The court had reached
the conclusion that as railroad corpora
tions performed duties of semi-public
character, it was within the constitu-
tionai power of Congress to regulate them
as provided By the antitrust act. The
only question then was as to the policy Of
Congress in adopting such a measure, and
as to the questions Of policy the court, he
said, had nothing to do
The opinion, which was very brief, was
concurred in by Chief Justice Fuller and
Jutsicss Harlan, Brewer. Brown and
Peckhsm. Three justices dissented,
namely Justices Gray, Shiras and White
Justice Mckenna took no part in the case
as the prosecution of the Joint Traffic
association was begun while he was at
torney.
Justice Peokham of the Supreme court
of the United States today announced the
courts opinion in cases against the Kan.
sas City Livestock Exchange operating in
Eastern Missouri and Kansas City. The
government rosscuted under the anti
trust law. The Supreme court holds that
the association does not come under the
antitrust law. Justice Harlan in q dis.
senting opinion declare that such COM
binations were rings or syndicates which
II extended to oil, sugar, salt, lumber and
other staples would place the commerce Of
the country under control of few ringe
and syndicates.