The independent., 1905-07-27

turerS, and JODDorS nave Jnelf aSSO-
Citations. Since the rate legislation
controversy has sprung up these as
sociations have formed sort of mu-
tual alliance to Offset the combina-
tiOn of the railroads. These assOcia-
tions act in concert in seeking re-
forms and aid each other to get re-
lief from rate discrimination.
The Southeastern Freight associa-
tion is an alliance of all the south
eastern roads, by means of which the
rates to and from all points in the
southeastern territory are arbitrarily
fixed for all roads. 1t has It's counter
part, however, in the western trunk
line freight committee, and the Cen
trail Freight association. and others.
Railroads Ordered to Refund
It was against the southeastern
roads and the Southeastern Freight
association that the decision of Judge
Speei was directed. Because the rail-
roads in this association had contin-
ued to charge the increase of 2 cents
hundred on lumber from southeast
ern points, which was put into effect
in 1903, in defiance or the mandate OF
the interstate &C mmerce commission
that such increase was unwarranted
and excessive, Judge Speer ha de-
creed that the roads must return to
the shippers sum approximating
$25O,O00 or $300,000 In his decision
he says:
"The Southeastern Freight assOcia-
tion is combination of common car
riers. In the preamble of it's organic
agreement it is stated that its pur-
poses are set forth In the following
articles A careful scrutiny of the
articles will disclose its machinery,
but we fail to discover any express
statement of its purpose. 1t is, how
ever plainly enough to fix and control
the rates to be charged by each and
all of the embers for the railway
| TRANSPORT lation of freight. In a ter
ritory vaster than many empires of
which we have an account, as regards
every interest dependent upon the
! Transportation and commodities, the
action of the association is more au-
thoritative than the firman of the sui
tan or the ukase of the car.
/
"In the absence of legitimate COM
petition, destroyed, as we shall pres
emily see, by methods obviously Illegal,
the commission presumes that the ad-
vanced rates are higher than legit-
innate competition would produce. It
was an arbitrary eXactiOn, imposed
by combination of railroad agents,
and in restraint of the natural move
ment of the lumber trade. This COM
bination or concert on the part of the
respondent railroads is plainly VIOLA
tive Of that provision of the inter
state commerce law which forbids
pooling.
Cardinal Error of the Railroads
"The cardinal error to which the
railroads have been committed in
this important controversy is the ap-
parent belief that they have the right
by arbitrarily increasing freight rates
to divert at any time to their own
treasures a share Of the profits of
: successful industries or occupations.
But the courts have more than once
decisively corrected this assumption
on the part of railway officials. In
deed, to concede the principle for the
fixation of rates upon which the rail
roads through the medium of the
Southeastern Freight association have
acted in this case, would concede their
I power to levy for no better service
: augmentation Of tolls for every in
! crease of profit in every line of en-
, deavor won by the enterprise, sa
gacity, and industry of the American
l people,"