The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-01-05
MORTON TO TESTIFY.
Secretary Has Made No Statements
About Alleged Santa Fe Rebates.

Washington, Jan. 5.-Secretary
Morton has consistently refused to be
quoted regarding the recent investi-
cation of the interstate commerce
commission in Chicago into the re-
bates alleged to have been made by
the Atchison, Topeka & Santa F'e rail-
road, of which Mr.. Morton was vice
president, to certain coal companies.
What Mr.. Morton has to say on this
subject will be said to the interstate
commerce commission direct. 1t is
understood the secretary will appear
before that commission when the
case comes up and, it is reported, will
tell certain interesting facts of which
the public as yet knows nothing.
Legalized Pooling Talked OF.
New York, Jan. 5.-The World says
that there are reports in financial cir
cles that endeavors are being made to
bring about a compromise between
the government and the railroads in
regard to interstate traffic on a basis
OF legalized pooling The railroad in
terests, it is said would submit to
some more strict form of control by
the interstate commerce commission,
provided they are allowed to form
selves to control and divide traffic
Ihe president of great railroad
system, whose name for obvious rea-
sons cannot be used, said yesterday:
THE government is finding that the
railroads are pretty strong themselves,
and are entitled to the same fair con-
sideration given individuals. There
has been a disposition for every gov
ernment official to jump on the rail-
roads as good game to attack.
would not be surprised to see a set
tlement of some Sort
It has been announced that Paul
Morton, formerly vice president of the
Santa F'e system. remains in Presi-
dent ROOsevelt's cabinet chiefly to ad-
wise the president in railway matters.
Mr.. Morton is one of the foremost
nf a r-fe r,d
repeatedly has urged that it be made
legal.
The greatest pool of railroads was
known as the Joint Traffic association
It was formed in 1895. 1t included
practically all the northern roads east
of the Mississippi river. and handled
IS per cent of the entire freight ton
mage of the United States. The rail-
roads combined on freight business,
agreeing to main lin rates and to APP
portion shipments Af1 a certain ratio
among themselves Headquarters
were established in New York. with
George r. Blanchard as commission
er, with nine managers representing
the various companies There were
thirty-two railroads in this pool at
first, and afterWard the Canadian Pa
cific and Grand Trunk lines joined.
For three years this pool absolutely
controlled traffic in the United States.
Then the supreme court rendered a de-
cision that dissolved it under the
just as the Northern Securities COM
pany was dissolved last year.
Railroad companies want pool tn
prevent active competition and rate
cutting. They want to be able to bind
each other in strict combination, so
that each one will charge and main
tain the same rate and divide up bus
mess pro rata. For example, they
lines between New York and Chicago
throw all their freight business into
a common pool and its shipment par
celed out by a common manager. The
would be entirely at the mercy
of the combination, as all competition
would be ended.
On the other hand, the railroad man
ayers maintain that this pooling ar
putting all shippers on exactly the
same plane, and would do away with
all determinations in the form of re-
bates and drawbacks.
Secretary Morton, when vice presi
dent of the Santa Fe system, told the
industrial commission:
"Legalized pooling will come nearer
creating stability in rates than any
thing yet proposed.
@'Legalized pooling will come nearer
insuring the small shipper and the
small town a fair deal all around.
'Legalized pooling will afford protec-
ton to the railroad inventor.
''Legalized pooling among railroads is
not in restraint of trade.
s'Legalized pooling will stop unre-
stricted and disastrous competition"
As opposed to Mr.. Morton's conten
tions. the United State supreme court
in it's decision dissolvingthe Joint Traf-
fic association, said:
IAN agreement of the nature of this
one, which directly and effectually sti-
hes competition, must be regarded un-
der the statute as one in restraint of
trade"
To Iegalize pooling the Sherman law,
which blocked the Northern Securities
merger and many attempted combines. i
will have to be amended and weakened. !
DIED AT THE HOSPITAL.