The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-06-18
SOUTHERN GUILTY
OF A CONSPIRACY
Facts as to Yellow Pine
Transportation.
CLEAR CASE Is MADE
White House Conference AZ To the
Course TO BE Pursued-Whether
TO Prosecute Grimm ally or
for Penalties or to Pro-
coed on Both Lines

for Penalties or to Pro-
coed on Both Lines.
b. THOMAS j. PENCE.
Washington. D. c., June Is
Among rhe important antitrust cases
considered at the recent White House
conference, and which are now be-
fore the Department OF Justice Is one
involving practically all the railroads
south OF the Ohio river and east or
the Mississippi. included in the mem
bership CT the Southeastern Freight
Association and the Southeastern Mis-
sissippi Valley Association.
In a sense h representatives or
most of these roads have already been
declared guilty of a conspiracy in re-
straint of trade and have been enjoin-
ed from carrying out the agreement
into which they entered to raise the
rate on yellow pine lumber from the
South to territory north OF the Ohio
river. For over four years this case
was fought in thee ourts and before
the Interstate Commerce Commission
the Supreme court entering its final
decision on May IT.
1t was learned at the Department
Of Justice today that Attorney General
Bonapartc had these cases, which are
known as The Yellow Pine Cases.
before him at the present time. II
was also learned that they were talk
ed of at the conference of n presi-
dent. the cabinet and the members OF
the Interstate Commerc Commission a
few days ago. when the general sub
Ject OF antitrust prosecutions was
considered. The attention OF the De-
partment of Justice was called first
to the time Judge Speer, of Georgia,
rendered his decision in June, 1905,
sustaining the order of the commission
against the advance in the lumber
vote and holding that it had been
brought about by a conspiracy OF the
railroad representatives.
Owing to the fact, however, that an
appeal had been taken, both from his
decision and hat of the United States
Circuit court for the eastern district
of Louisiana, the Department of Jus
tice decided to await the final dispo-
sition of the matter by the Supreme
court. The case in the Louisiana
court was brought by the lumbermen
Of eastern louisiana, Mississippi and
Alabama and involved practically the
same issue as the Georgia case and
was decided along h same lines.
At the Department of Justice 1t was
admitted today that the case as de-
veIoped by the commission and the
courts was a strong one and that 1t
was purely a matter Of administrative
policy whether criminal or civil pro-
ceedings would be begun against the
railroads and their agents acting for
them as members of the two freight
associations. Under the conspiracy
provision of the antitrust law, both a
fine and Imprisonment penalty can be
imposed.
1t is understood that the
attorneys regard the case as developed
In the above suits as especially strong
Of the fact that the conspiracy
feature has been already so firmly es-
tablished and there is possibility that
proceedings may be begun under the
general statutes against conspiracy to
violate a law. 1t was on this theory
that the two men, ThomaS n Tas-
CART, of Kansas City, were convicted
and sentenced to fines and imprison-
ment for conspiracy to secure rebates.
Involved in this litigation was the
legality of an advance of two cents
per hundred on the rate on yellow pine
lumber from the South. It was
shown in the hearings before the COM
mission that this was the re-
suit of al agreement between all the
railroads comprising the Southeastern
Freight Association and the South
G istern Mississippi Valley Association.
In declaring the increased rate illegal
and unreasonable the commission
held:
THE proof shows conclusively that
the was the outcome Of con-
cert of action and previous under
standing between the companies.
Through their authorized official rep
reSentatlVes they conferred with
each other repeatedly as to the
making of the advance, recognized
the fact that because of competition
in common markets between lumber
producing districts served by them.
the advance should be from all those
districts or none. and finally they all
promulgated the "a to TAX e effect
at exactly the same date and exactly
Or n co rnn a ~ ~
In rendering his decision sustain
ing the order Of the commission
against this advanced rate. Judge
Speer, in the Circuit Court of the
United States for the southern dis
trict of Georgia, cited this part of the
commissions decision and said:
I'm h absence Of legitimate COM
destroyed by obvi-
ously illegal. the commission presume s
that the advance in rates are higher
than legitimate competition would
produce. On the contrary. it was ar
bitrary exactioi imposed by a combi-
nation Of railroad agents made in re-
straint OF the natural movement of
the product Of the lumber trade. This
or concert of action on
plainly violative Of that provision of
the interstate law. which
forbids pooling"
In considering the arguments Of the
attorneys that the traffic as
were not combination in re-
straint Of trade because the members
could at will withdraw from them
Judge Speer says:
view seems wholly
1t IS merely a recitation OF a privilege
winch any party to any unlawful en-
terprise inherently enjoys. Confed-
crates or c~onspirators who unite to do
an unlawful act or to do a lawful act
IN an unlawful way, may Jointly or
severeIiy abandon the project. The
law affords them the locus p~enitentfae
II, however. the object Of the con-
sp1racy IS accomplished it's character
is not to be determined in view of he
consideration that the conspirators
may nave repented. but with an eve
single to the fact that they did not re-
pent- Besides, 1t is indisputable that
the agreements Of the association were
maze to be kept and not to be broken
5000 faith betWeen the members not
70 mention a powerful compulsory
Iorce behind them, obliged that the
agreement be kept. and the fact is as
the commission finds, they were kent"
ms opinion was affirmed by the
United States Circuit Court of An
peals and later by the Supreme conrt
AFTER a long and SHriauS oo,s;de-oo-