Omaha daily bee., 1905-06-16
ANoTHER RAILWAr coMBlNArtoy

ANOTHER RAILWAF COMBINA TION
An association Of receivers and ship
pers at Cincinnati has petltioned the
Department of Justice to institute pro-
ceedings under the antitrust law
against the Southern Railway company
and the Atlantic Coast Line company,
which are alleged to exercise von-
trolling ownership over competing rail
roads in their territory and to be work
ing together under classification and
rate agreement. 1t is urged by the peti-
TONERS that this brings them under the
ruling judicially laid down in the North
ern Securities case. While the cases
are not identical there is certainly some
analogy between them. The petition
declares that combination owning or
controlling railroads leading from all
the principal gateways, and from all
directions of the compass, into a com
mon territory of destination, has the
power to restrain trade as effectually as
does combination which consists of
two parallel and competing roads, and
it asks that proceedings be taken for in
functions against the designated rail-
way companies, forbidding them to ac-
quire further stock in railroads in south
ern territory or to vote that which they
now hold or in any way to exercise con-
troll, direction, supervision or influence
over the subsidiary companies. Other
combinations or agreements are alleged
and it is complained that in these there
is discrimination against the northern
and western states and in favor of the
eastern states in their trade relations
with the southern states, to the serious
damage of the commercial interests of
the first named states
The allegations and arguments of the
petition appear plausible, but according
to the view of some If the request of
the petitioners should be carried out the
result would be revolutionary, a familiar
objection to every effort to put an end
to railroad combinations and the conse-
quent suppression of competition. As
soon as a movement of this character is
started cry is raised that the whole
railway system of the country is threat
ened with decentralization and disorgan-
ization and that the inevitable result
must be disaster to the business inter-
ests of the country. This was so when
proceedings were instituted against the
transmissouri and the joint traffic as
sociations and again in the Northern
Securities. In all these cases it was
urged that if the decisions were adverse
to the agreements there would ensue
conditions that would bring hardship
to every industrial and commercial in
terest. Experience has shown the fall
lacy of such predictions.
The combination or agreement of the
southeastern roads, according. to the
facts and statements set forth in the
Cincinnati petition, appears to be
plainly in violation of the antitrust law.
Assuming the allegations made to be
correct, the combination of the railroads !
referred to is clearly in restraint of |
trade and commerce among the states |
and is subject to the same rule that |
was applied against the transInissouri |
and joint traffic agreements. 'There is
also involved in it unlawful discrimina-
tion. The matter is manifestly impor-
tant and calls for careful investigation |
on the part of the federal authorities, |
which it is safe to say will be given il. |
As now presented the country has |
known no railway combination more |
or dangerous than this.