The daily morning journal and courier., 1907-11-14
BIG RAILWAYS ACCUSED.
Alleged Combination to Fix Rates on
 Forest Products.

Washington, Nov 1S-Allegations of serious importance were made in a con plaint filed to-day with the Interstate Commerce commission. They involve charges of unfair discrimination, illeg- al concert of action as to rates and suppression of competition, against practically all the important North western railroad companies.
 The complaint was filed by the Ore gon and Washington Lurpber Manufac- turers' association and several other North Pacific lumber organizations, against the Union Pacific Railroad company and other Western and Northwestern lines. It is asserted by the complaint that the ,defendants, by concJrrenece aud concert of action, ab- soiutely fix and maintsin rates on all forest products from points of origin in the Pacific Northwest to points of des- tinationTin the Eastern States. It is alleged that the Great Northern Rail- way company and the Northern Pacific Railway companies dominate and con trol defendant, the Chicago Burlington and Quincy Railroad company, through the ownership of It's capital stock; that the defendant, Union Pacific Railroad company, dominates and controls the defendants, the oregon Railroad and Navigation company, the Oregon Short Line Railroad company and the South ern Pacific company by virtue of the ownership of the majority of the capi- tai stock of said companies and by other devices and arrangefnents so that tnere is no competition between these lines; that the Southern Pacific con- pany dominates and controls defend ants, the Oregon and California Rail- road company and the Corvallis and Eastern Railroad company, through ownership of the majority of the capi- tal stock or by lease or otherwise"
 It is asserted that the defendants act in concert as to rates through the Transcontinental freight bureau; that they have made an advance of from five to ten cents per 100 pounds, No Nennber 1, on all forest products; that tlie rates are excessive, extortionate, Drohibltive and discriminatory; and liidt II SAdClSu lIOHl uIlG compartments the lumber industry of the northwest will be seriously injured, if not abso- lutely destroyed. The complainants aver that they have $60,O00000 capi- tai invested in their industries; that they employ 10000 people; that their annual payroll aggregates $20, 900. .000 and that they pay in freight $12,0O0,- 900 annually for SO,OOO carloads of forest products
 It further is asserted by the com plainants that the capital stock of each of the defendant companies grossly exceeds, as basis of rates, the actual value of the construction and equipment of the lines, and that the value of all their property devoted to public use and the bonded indebt- edness of each of the defendants grossly exceed a fair value of the property of the defendants, and that it is therefore unjust and unreason- able to impose the proposed increase in rates as an additional burden on shippers to pay dividends on excessive stock and bond issues
 The commission is asked to adjust the rates on a fair and equitable basis and in full light of the fair value of the property of the transportation company.