The San Francisco call., 1899-12-31
RAILWAYS MAY
CLASSIFY RATES
Attorney General GriggS'
Opinion.
ADVERSE TO THE SHIPPERS
NEW FREIGHT SCHEDULE NOT
ILLEGAL.
Chief Counsel of the Government
Holds That No Conspiracy to
Restrain Commercs Has
Been Proved.
NEW FREIGHT SCHEDULE NOT
ILLEGAL.
Special Dispatch to The Call.


WASHINGTON. Dec. so - Attorney
General Griggs to-day returned to the In
| terstate Commerce Commission the trans
/ cript Of the evidence taken at a hearing
\ before the commission last week in the
matter OF the new freight classification.
with view to action by the Attorney
| General under the antitrust law, IL his
! judgment should warrant IT, In his let
| ter 10 the commission. referring to the
demand OF the shippers that legal action
| against the railroads be taken, the At
torney General says:
You express opinion on the matter. but
| properly leave me to determine whether the
| tacts shown warrant me in applying for an in
junction TO restrain the operation OF the new
classification, on the ground that in adopting II
the railroad companies violated the antitrust
law.
Discussing the methods of the railroads
in establishing a common classification,
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 re-
gested changes are considered. Such changes
as the committee. with substantial unanimity.
recommends are noted by the chairman and in
corporated into a new official classification,
which is then submitted 10 each company for
its individual action. Some sixty railroad com
panies thus independently pass upon the classi-
fcation. They signify their adoption TO the
chairman who. after the ofncial elasslhGation
has been thus adopted files IT with the Inter
state 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-
tion 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 Commis-
sion. 10 postpone the time for the new
classification to take effect for sixty TO
ninety days. Furthermore, says the At
tcrney General, IL is apparent from the
protests originally filed with the commits
the method OF making them which is
complained of.
Taking up this question of reasonable
ness of the rates. Mr.. Griggs says:
a railroad company may raise its rates TO an
unreasonable point; 1t may discriminate among
its shippers; II may charge more for a short
than for a long haul; but none OF these acts,
however unjust and wrongful. amount TO a
violation of the antitrust law. To authorize
the Attorney General TO direct injunction
proceeding under this law IL 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 contract 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 recon-
mended by the committee. The testimony
taken does not show that any railroad acted
under compulsion OF a combination I'm adopt
ing the official classification. II must be con-
ceded that common classification by railroad
companies operating In the territory is "A
desirable thing. VIII IL be insisted that rail-
roads cannot consult respecting freight classif-
tion? Or. because one railroad company adopts
a certain classification another cannot? The
antitrust law says there must be contract.
or combination, or conspiracy. This must be
shown. And IL must be shown 10 restrain in
dividual action. This is not shown In the testi-
mony submitted.
Moreover there must not only be a contract
combination or conspiracy. but II must he in
restraint of interstate commerce. AS applied
10 carriers this means a combination TO sup
press competition. II is only by suppressing
competition and arbitrarily fixing rates that
a restraint be put upon interstate COM
merce The filrg OF official classification
does rot fix the rates. II places articles In
certain classes. but the rates for the classes
are determined by tie railroad companies out
side the classification. II a railroad company
maintains the existing rates. the change II 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 classification IL at liberty at any
time TO change the existing rates upon giving
the notice required by the Interstate commerce
act. Moreover. each railroad company is free