The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-09-07
Passenger and Freight AssOcia-
lions May BE Dissolved.
Southwestern PassengerMen Be-
Iieve Their Organization Illegal.
DISCUSS DISARMAMENT
Central Freight Association Nay
Be Example to Test Question.
Gossip and Matters Of Interest
in Railroad Circles.

Passenger associations and similar
bodies formed by railroad men to facili-
tate the transaction OF their business
must go out Of existence, according to
the belief of some of the members of the
Southeastern Passenger association now
in session in Chicago. In fact, one of the
subjects before the association for dis
cussion is whether it must disband to
comply with the new rate law.
1t is understood that some Of the mem
bers of the association have been in
formed by their attorneys that it is
illegal for them to participate in the as
ISOLATION, and that they favor the dis
solution OF the body. Others believe
that the association, and others of
kindred nature, come within the spirit
and intent Of the law as interpreted by
the interstate commerce commission.
Whether such organizations as the
Central Western, Southeastern and
Transcontinental Passenger associations
and the Trunk Line, Central Freight.
and Western Trunk Line Freight as
sociations are legal has been q. much
mooted question. Some railroad men
have long doubted their legality, but 50
far the interstate commerce commission
has failed to order their dissolution.
When the commission was holding its
inquiry into the relations between the
Standard Oil company and the railroads
mere last april, commissioner EiOOby
examined Joseph Tucker, chairman OF
the Central Freight association, to learn
what method was followed by the as
ISOLATION in fixing rates. At that time
the commissioner indicated that ne
doubted the legality of the body, and
was quoted as intimating that action
might be taken against it.
Despite the denial of railroad men.
I 1t is declared that the associations ac-
tualIy do make rates, which is con-
trary to the interstate commerce law
Rates are usually fixed in this way
Some member of the association pro-
poses a certain rate and the associa-
ton promulgates this to the other in
terested lines If these lines want to
put in the rate they vote affirmatively
and the rate is formally made II they
vote negatively the rate Is not put in
| independently.
It is upon this right of any line to
take independent action that the asso-
/ Citations assert that they are within
/ the law But they have nothing to
say about the rates that are made by
4 general consent or upon the PROPOSE
/ lions that fall after being negatived-
The Central Freight associa ton, be-
! cause of its peculiar formation, is or
/ ten mentioned as the most -prQFntp eni
example of an association that might
be held outside Of the law The faci
/ that two systems, the Vanderbilt and
Pennsylvania, practically control the
association makes its legality question
able, it is declared. In this body the
| Vanderbilt lines have four votes ant
the Pennsylvania three, making II
most instances a majority OF th'
/ whole.
The attitude of most railroad Off
Gals toward the traffic associations i
that they will continue their connec
ton with them until the interstate
commerce commission decides tina
they are Illegal. If this is done, tn
officials say they will willingly aban
don them and will comply with tn
law and the commissions orders.