Waterbury evening Democrat., 1907-12-06
RATES AND REGULATIONS.
Important Matter Now Before Inter-

Washington, D. C., Dec. GA question vital to the authority of the interstate commerce commission in many important cases is now being considered by the commission. In effect, and briefly, it involves the right of the commission to pass upon rates and regulations applying to American goods exported from points in the interior of the United States. This right is denied in way to in duce serious reflection.
 The case in which the question arose is one of more than ordinary importance. Several months ago the Cosmopolitan Steamship Co, all American corporation, whose home office is in Philadelphia, instituted a complaint before the interstate coEl- merce commission against the Ham, burg-American line, the North Ger man Lloyd Steamship line and two or three other foreign transatlantic lines, alleging that they had formed conspiracy with certain railway lines in this country through which they were able to control practically all of the European export trade of the United States and by which they were able to eliminate all competi- tion. The Cosmopolitan Go is inter- ested particularly, because 1t is en. gagged in the transatlantic trade. Its petition set forth. however, that it's business was greatly impaired by the carrying into effect of tue rate arrangements and regulations estab- lished through the alleged conspiracy and by the formation of what is known as the Baltic pool" which substantially forces the export of American goods to Europe Dy the lines of the defendants in the action brought by the Cosmopolitan Co.
 Many serious allegations were made in the complaint against the defendants and their practices were declared to be illegal and especially in contravention of the interstate commerce law.
 It happens that all of the defend ant steamship lines are foreign cor porations. The filing of the case against them was a surprise not only to the companies themselves, but also to their governments, by which all of them. to a greater or less ex- tent, are subsidized, thus placing them, in a measure, under govern ment control. The result primarily was to cause some anxious inquiries by the governments through their diplomatic representatives in this country of the state department as to the nature of the action brought against the companies. The govern ments did not want, of course, the companies to be thrown out of Amer ican business incontinently. Assured that such action was in no wise like ly, the companies were directed to defend their rights as best they might.
 They proceeded immediately to en- gage the best of legal talent to de- fend them. Their array of counsel is headed by former United States Senator John c. Spooner. They have attacked the authority of the inter- state commerce commission to hear such a case as las been brought against them by the Cosmopolitan Co. In a demurrer to the suit, Sen ator Spooner and his associate eOun- sel assert that the commission has nn power under the law to compel the defendants to make answer 10 the al- legations contained in the complaint. Tn effect, they assert that it is none of the commissions business, be- cause the complaint relates to mat ters over which the commission has no jurisdiction.
 The commission itself thinks diff ferently. but it nevertheless is giving the subject grave consideration. ba. cause it knows that the case will b5 carried to the highest court of the land. It means much to the com mission and to the people. because unless the authority of the eommis- sion be sustained in this case, Il will be possible fin the future for all export trade from the United States to be controlled absolutely by foreign steamship lines. without reference tn the points of origin in this cOuntry of the goods to De exported. Tn other words, the rates of the railways i'd this country on goods intended fo7 export Will be dictated by foreigners without reference to the interstatz commerce commission. The matter is of such serioIs importance that fl fs likely to create a deal of comment o1 hofh sides nF the Atlantic before