Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-08-10
UP TO ATTORNEY GENERAL
Complaint Of Texas and Oklahoma
Railway Commissions.
DISAGREEMENT OF MAaNATEs
Companies Say Greater Charges Are
Needed to Pay Salaries and
Maintain Equipment.

freight rate schedule which becomes
operative on southwestern railroads to
points in Texas and Oklahoma today
seems to be the first move to inject this
subject into the field of politics and
make it a factor in the presidential
campaign.
The President. Immediately upon the
receipt of Senator Culberson's telegram
denOuncfng the proposed increase in the
freight rates to be illegal and demand
ing that the Attorney General be d.
rected to take immediate steps to en-
force the Sherman antitrust law, is
said to have replied that the senator's
telegram had been referred to the At
torney General. who is considering the
whole matter"
Awaiting Formal Complaint.
The interstate commerce commission,
which was appealed to last week by
member Of the railroad commissions of
Texas and Oklahoma and the assistant
attorney general of Texas, after a con-
ference extending over several days
virtually closed the discussion by the
decision that it had no Jurisdiction In
the matter, or at least only q Ques-
ttonable one. until a formal complaint
had been filed with it in the usual man
ner prescribed by law and its own reg
ulations
Whereupon Allison Mayfeld and ]. E.
Love, chairmen Of the railroad commits
sions of Texas and Oklahoma, respective
ly, with the assistance Of Assistant At
torney General Claude Pollard Of Texas,
for the commission. Inasmuch, however.
as the railroads will be allowed twenty
days after the\complaints have been rlied
to prepare and submit their answer. in
the meanwhile exacting the increased
freight charges under the tariff, which
becomes operative today under the re-
cent decision OF Judge Pardee Of the
United States circuit court in the Georgia
cases, Senator Culberson. who had been
invited and was expected to attend the
conference with the Interstate commerce.
commission Friday and Saturday. at
which Chairman Knapp and Commission
er Clements represented the commission.
has apparently put the case up to the
action along criminal lines under the
Sherman antitrust law.
Formal Protest Filed.
The railroad commission of Texas, by
Allison Mayfield. its chairman. with r. v.
Davidson, attorney general, and Claude
Pollard, assistant attorney general of
Texas, countersigning. filed formal pro-
test with the interstate commerce COM
mission this morning against the Atchison
Topeka and Santa Fe Railway Company
and sixty-six other carriers, including the
Mallory Steamship Company. and two re-
ceivers of railroads involved, averring, on
information and belief. a conspiracy on
the part of the defendants. through the
suppression of competition and in re-
straint trade in the recent action In
creasing freight rates to points in Texas.
An unusual element is injected into the
present case by the fact that the COM
plant undertakes to compare the alleged
cost Of maintenance and operation Of the
railroads with the actual cost, and the
ciaimeu Indebtedness. which Is supposed
to justify, the increase. with the actual
Indebtedness. The railroad commission Of
Texas. 1t appears. has appraised the cost
of construction and operation of the roads
as well as the actual Indebtedness upon
which, the rates may be fairly based.
Eight freight schedules which have re-
made the basis of the complaint. and all
are claimed to have been brought about
by an unlawful agreement between the
defendant carriers and the Southwestern
Traffic Association. Of which they are
members, or whose members represent,
through power of attorney those who are
not.
1t declares that the increased rates will
fall principally upon the commodities OF
prime utility and daily necessity: that they
ing loss to shippers and the consuming
public, and that the increased tax. so far
as Texas alone Is concerned, will amount
to s.. GOO. 900 a year.
past that the roads are not getting enough
money to enable them to pay present sal
aries, keep UP the standard of their equip
ment, provide new transportation facili-
ties to meet increased demands: and Al
the same time pay a fair rate Of interest
on the money invested by their stock
holders.
The star, July 10. published interviews
with Chairman Knapp and Commissioner
Clements Of the interstate commerce COM
mission which seemed to indicate divided
views in the commission as to the Justice
Of an increase In freight rates. Chair
man Knapp appeared to vavor the rail-
roads. because OF the increased cost OF
sioner Clements said: when practically
all the eastern roads. and. for that mat
ter. the roads Of the country. by a mutual
agreement raise rates it Is. to my mind.
clause of the antitrust law which pre-
vents pooling and illegal combinations
Railway Magnates Disagree:
Just the day before, the New York Her.
aid, referring to the meeting of the presi-
dents of the great eastern railway sys
TENS at the Trunk Line Associations
Omce8 In that CITY, OeCidIeu tnat radical
split in opinions developed as to the ad-
visibility Of an increase in freight rates
and. TO the surprise of many important
railroad interests, there was manifested
Mt the meeting a sentiment Of strong op-
position to freight rate increase. It
further declared that results Of the SEES
sion were indeterminate and the meeting
closed with the matter still unadjusted.
but il was announced that the railroad
presidents would hold another meeting
some time before the beginning Of October
in an endeavor to reach some agreement
as to the question of freight rates.
Thus the matter stands The railroads
complain Of having serious difficulties
which can be remedied only by an in
crease OF rates. while. on the other hand.
there 10 scarcely a day that the inter-
state commerce commission, by its rulings
in individual cases. does not demonstrate
that the tendency Of the roads In many
instances Is to be unfair and discrimi-
natory.
Some Railway Practices.
In many instances increases in rate aee
declared to be improper. refunds are or
dered and the railroads directed to return
to their former tariffs.
In some cases 1t appears that even
trickery is resorted to by the specific rail-
roads affected whereby shipments are sent
the longest way around to their destina-
ton in order to justify greatly increased
charges for Transportation. In others.