Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-04-16
Railway Investigation by In
terstate Commission.
INTEREST AROUSED
MAY RESULT IN LEGAL PRO
CEEDINGS
Complaint Made That the Lines Are
Operated to tho Restraint
- ~ Of Trade. ~.


meet in New York Tuesday morning to be
gin an investigation into the facts in re-
lation to the coal railroads to determine
whether they are violating the interstate
commerce law. This action has been
brought about by a complaint. of citizen
of New York alleging that these roads
ing in restraint of trade. II it should
be found that their operations are In re-
straint of trade the facts will be placed
in the hands Of the Department Of JUS
tice for such legal action against the roads
as the Attorney General may deem proper.
In view OF the recent decision In the mer-
ger case, sustaining the power of the law to
prevent such combinations in restraint OF
trade. this investigation is looked forward
to by the commission with the greatest In
terest. ...,
The investigation recently made by a COM
mission into the conduct, Of affairs in the
anthracite region preceding and resulting
from the great strike OF the miners Of
course took cognizance only Of questions re-
ferring directly to that controversy and
threw no light ON the effect Of combinations
or agreements among the railroad on the
free conduct of trade.
Officers to Be Summoned.
1t is expected that the Investigation Of
the interstate commerce commission can be
completed in a week or two with sufficient
thoroughness to reasonably establish the
facts that 1t Is sought to bring out. The
officers of all the coal railroads will be
summoned before the commission. There
will be quite a number of other witnesses
to testify to facts bearing on the case.
1t Is understood that this investigation
has added to the indignation Of the Wall
street element Of New York. Such an in
n md
might be regarded with practical indiffer
ence. In the past there have been many
Investigations of-this same general charac-
ter. but the fact that the commission was
cisions and as they were to a large extent
of an academic nature SO far as their eff
feet was concerned. made the parties in
volved quite Indifferent to them.
But with the merger case decision fresh
In the minds of every one, and IN view of
the known policy of the administra ton to
enforce the interstate commerce law the
whole matter is placed on a very different
footing from that which 1t has occupied In
the past.
Effect on the Market.
Not little Of the interest in this con-
nection centers about the conditions in the
stock market. 1t is believed that a very
considerable drop in a long line of stocks
would have taken place last Monday had
not the market been protected by heavy
purchases, and since that time there has
been constant fear on the part Of the
bulls that the bears would get the upper
hand and bring about a heavy tumble in
stocks.
The investigation to begin in New York
next Tuesday will effect quite a number
of important railroads. Their stock Is sub
ject to the raids of the bears and the bears
Will be ready to use everything within
their control to influence the result
In financial circles it is accepted as
matter of course that if the findings of
the commission contain evidence that
combination in restraint of trade among
coal railroads actually exists the at
torney will promptly bring suits If the
enforcement of judgments against the
on coal to give the people of the country
anthracite coal at lower prices it would
OF course reduce the earnings of the roads
to such an extent as to affect the value
of their stock. the effect Of which in the
market would probably be in excess Of the
mere loss in earnings.
Brought Out by Gray Commission.
While the coal strike commission In Its
investigation did not develop facts show
ing restraint of trade in the opera tons
or the coal roads, the information brought
out during that investigation showed much
that tended in that direction The relations
'Ns"SSh VIC Sodi TOduS anu the SO-Calied
independent operators showed that while
during ordinary times those operators sold
their product to the railroads for sale and
distribution, yet as soon as the roads agreed
10 sen coal at the price which had pre-
vailed the Independents were not found
turning coal over to them.
They then sold it Independently and at
extorlonate prices. 1t was never fully de-
termlned whether the roads could have
prevented that condition had they insisted
upon handling the traffic as they had done
formerly. 1t was understood that they had
no power under their contracts to do So
IL was questionable also whether the coal
or the companies to be sold at the lower
price was moved as readily as was the coal
OF the independents that brought a higher
price.
All these matters will be brought out in
the investigation to begin next Tuesday as
bearing on the subject OF the competition
existing In the handling of coal In the an
thracite regions.
The commission upon completing its work
IN New York will go to louisville, KY.
where 1t WHY hear evidence in the case
brought by the railroad commission of
tEat state against the Louisville and Nash
vile Railroad Company. Under this case
1t has been charged that when John w
Gates purchased the Louisville and Nash
Vile railroad it entered into relations with
OTHER roads for the handling of freight
and passengers in violation of the inter-
state commerce law.