The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-12-31
Griggs Says He Can Do Nothing For
Shippers.
Companies May Make Unreasonable
Rates, Discriminate Among Ship
pers and Charge More For Short
Than Long Haul, Without Vic
lating the Law-only Remedy
Lies In Action By the Interstate
Commerce Commission.

terState commerce commission the
transcript of the evidence taken at a
hearing before the commission last
week in the matter of the new freight
classification with a view to action by
the attorney general under the anti
trust law if. in his Judgment, it should
warrant the same. In his letter to the
commission referring to the demand of
the shippers that legal action against
the railroads be taken, the attorney
general says:
You express no opinion on the mat
ter, but properly leave me to deter
me in applying foran injunction to re-
strain the operation of the new class
ification on the ground that in adopt
ing it the railroad companies violated
the antitrust law
Discussing the methods of the rail-
roads in establishing a common class
ification, the attorney general says:
There is an official classification
committee composed of some fourteen
railroad officers from different sections.
This committee meets on the call of its
chairman and upon the request of
three members. At its meetings sug
gested changes are considered. Such
changes as the. committee, with SUBJ
stantial unanimity, recommends, are
noted by the chairman and Incorporate
ed into new official classification,
which is then submitted to each COM
pany for its individual action.
How Classification Is Made.
"Some sixty railroad companies thus
independently pass upon the ciassifi-
60 49,
the chairman, who, after the official
classification has been thus adopted,
files it with the Interstate commerce
commission in compliance with the law.
Continuing Attorney General Griggs
says that the legality of the method of
preparing, adopting and filing this Off
cial classification has never before been
questioned. In fact he says the ques-
ton Of legality was not raised in this
case until after the railroad officials
had refused during the course of the
hearing before the Interstate commerce
commission, TO postpone tine time for
the new classification to take effect for
sixty days. Furthermore says the at
torney general, it is apparent from the
protests originally fled that it is the
changes made and not the method of
making them which is complained of.
Taking up this question of the reason
No Violation of Law.
"a railroad company may raise its
rates to an unreasonable point. it may
discriminate among its shippers, ii may
charge more for a short than a long
haul, but none of these acts, however
unjust or wrongful, amounts to a vio-
lation of the antitrust law. To au-
thorize the attorney general to direct
an injunction proceeding under this
law it must be shown that there is a
contract, combination or conspiracy in
restraint of trade or commerce among
the several states.
In the first place there is no con-
tract, combination or conspiracy shown.
There is consultation by representative
railroad men in committee respecting
suggested changes in classification.
There is subsequent independent action
by railroad companies in the adoption
Of the new classification recommended
by the committee.
THE testimony taken does rot show
that any railroad acted under compul-
sion of combination, in adopting the
official classification. 1t must be con-
coded that common classification by
railroad companies operating in the
same territory is a desirable thing. Will
ii be insisted that railroads cannot
consult respecting freight classification
or that because that one railway COM
pany adopts a certain classification, an
either cannot? The antitrust law says
there must be a contract, or combina-
ton or conspiracy. This must be
Shown And it must be shown to re-
strain individual action. This is not
shown in the testimony submitted.
Must Be Combine.
Moreover, there must not only be
80 l..
but it must be in restraint of interstate
commerce. As applied to carriers. this
means combination to suppress COM
petition II il only by suppressing COM
petition and arbitrarily fixing rates
that restraint can be put upon inter-
state commerce.
The filing of an official classification
does not fix the rates. 1t places arti-
cles in. certain classes, but the rates
for the classes are determined by the
railroad companies outside the CLASH
hcation. If a railroad company MAIN
talns the existing rates, the change of
an article from a lower to a higher
class will increase the rate, but from
aught that appears in this testimony.
every railroad company using the class
ltcation is at liberty at any time to
change the existing rates upon giving
the notice required by the interstate
commerce act Moreover, each rail-
road company is free to take any ar
ticle out Of the existing classification
by making commodity rate. In other
words. no suppression of competition.
no arbitrary fixing of rates, no re-
straint of interstate commerce is
shown.
Was Not Precedent.
1.-THE trans Missouri and Joint Traf- |
&c association cases afford no prece-
lent for the action requested in this
Ease. Each of those associations was |
formed by a contract, under which the |
selected a central authority |
20 fix and maintain rates. There was |
IN absolute suppression of competition. |
The power of independent action was |
destroyed No company could change |
l rate fixed by the managers of the |
association without subjecting itself to |
, penalty.
IF the testimony submitted showed |
combination among the railroad COM |
,anies to restrain commerce among
he several states. ]. would not hesitate I
o invoke the remedy provided by the
Inti-trust law. but to take such action |
Ipon the faith of the facts submitted |