The Washington herald., 1907-09-18
AT ISSUE WITH KNAPP
Judge Clements Against All
Railroad Pools.
ANTITRUST LAW IS UPHELD
Member of Commerce Commission
Believes Restraint May BE Taken
from Carriers When Millennium
Comes - Defends Competition as
Life OF Business.

/ JuuSou (. Clements, a member OF tht
/ Interstate Commerce Commission, take.
/ issue with Chairman Martin A. Knapp
who, in an interview in Chicago Monday
declared that the Sherman antitrust Law
in its application to railroads, and the
interstate commerce act, was utterly in.
/ consistent
Chairman Knapp made it plain also
that he believed that the time had come
in the management OF railroads, when
/ cooperation should supplant competition
In commenting upon the observations
of the head OF the Federal commission
Judge Clements said:
without discussing the ACCESSIBILITY OF
permitting carriers to enter anto certain
agreements. which are now supposed to
be forbidden by the antitrust act, have
never Yet been able 10 see why the car
! riers cannot obey both the interstate
commerce act and the antitrust act. or
the necessity they are alleged to be
under, that 20 comply with the one they
must violate the other. The antl-pooIigg
provision Of the Interstate commerce act
is in perfect accord with the purposes
and principles OF the antitrust act.
IF the public could at all times be as
sured Of just. reasonable. and non-dis-
criminatory rates, there would. of course,
be no necessity for either Of these acts
as applied 10 the carriers. Neither could
there, N such a case. be objection TO COM
bination. so sften designated by the
milder term Of Cooperation
Restraint IL Necessary.
We might go one step further and say
that If the actions of all men were
squared by the golden rule, we would
have no need Of these or any other laws.
or court houses or Jails, but unfortu-
nately, the community as represented by
the government has always found re-
straint necessary IN order to protect the
individual IN his rights.
1t might sound well in Sunday school
10 say that cooperation is better than
competition or business warfare. But the
experience Of the world does not prove
that Il is safe 10 construct laws upon the
theory that no harm VIII come 70 the
consumers Of any article because Of the
pacific cooperation between the producers
OF the same. whereby competition among
themselves is destroyed or limited.
The people who manage railroads are
not essentially different in their nature
from other classes Of people. They de-
sire 10 make all they can out of the busl-
ness, just as other people do IN their lines
Of business. What they can get when
competition is eliminated may be more
than is just and reasonable.
Natural Laws Needed.
Hence there is not only necessity for
maintaining. as far as possible. the nat
urai laws Of commerce lard business In
their full vigor as a preventive OF IN
just and unreasonable rates. for II VIII
never be possible for any public tribunal
10 correct on the spot Immediately all
unjust rates which may be put into ef-
feet, especially under a system OF com
bination where competition Is eliminated
II Is better that the public should De
able TO rely, as far as possible. upon
natural laws Of trade. unrestricted. for
protection against extortion. rather than
10 be at all times dependent alone upon
the action Of any governmental tribunal
which. Of necessity in every case. must
take the time necessary 10 hear coutro-
versieS before II can decide them. Pre-
ventiOn is better than cure"
Does Not Approve Pooling.
In discussing the proposal Of President
Roosevelt and Chairman Kna2p that
'pooling" be Iegalzed. thus excepting
railroadsfrom the application Of the anti
trust act Judge lands said:
I do not believe in anything else m
der another name which is equivalent 10
it"
Judge Clements attention was called Ia
a report that the commission would not
reduce basic rates. and that. as a rule. a
conservative enforcement Of the railroad
rate act would prevail
There is no authority for any state
ment as TO what the commission will do
respecting basic rates" he said. In ali
pending before II. the com
mission will proceed under the law. upon
fun hearing. TO determine each case upon
its merits and make an order accord
ingly"