The Washington times., 1908-05-21
Antitrust Laws VIII Pre-
vent Concerted Action
by Railroads.
hudson Z. CLEMENT
MAKES STATEMENT
SAYS Interstate Commission Has
Approved No Plan for Pro-
posed Changes.

The railroads. n they persist in their
plan OF making a general advance Of
rates as they have announced IS their
purpose, are much more likely to find
themselves confronted with the penal
7ries OF the. Sherman antitrust law. as
construed In the traffic association
cases. than 10 be granted any assurance
OF immunity and the approval of the
Interstate Commerce Commission.
This IS the intimatiOn vigorously ad-
Vanced by Judson &. Clement. member
of the Interst ate Commerce Commission,
IN an interview which he gave out to-
day. Mr.. Clements declares positively
that the commission has not approved
any plan Tor increase OF rates.
rs it true, as has been stated in
the press and otherwise lately, that tho
INTERSTATE Commerce Commission has
approved a general increase Of freight
rates?'' was asked
1T IS not true. There is absolutely
no authority for any statement to the
effect that the commission has approved
auy' contemplated increase of transpOr-
tadOu charges. 1t is not within its
province to do so. II has no authority
10 increase rates. neither can Il reduce
them except upon complaint and full
hearing Carriers axe by the law per
united In the drst instance to estab-
dish their rates. They are not required
TO consult the commission either in re-
sEpect 10 their establishment or altera-
Eion.
Could Avoid Trouble.
If the law could be SO amended as
to empower the commission 10 hold in
abeyance. any proposed increase of i'm
pOTtanCe- until its reasonableness could
be inquired into and determined, many
complications would be avoided. IRE
parable wrong necessarily follows from
the eXacUon OF an unjust rate, because
when the traffic has been once unduly
burdened with it. affecting the price Of
the commodity, the injury reaches
much further than can any possible
reparation. Prevention Of the unjust
eXRCtion is the only adequate mode of
protection Of the public fl its right 10
snip al just ana II asUnabIe rates. But
there is now no power in the commits
mess OF any increase which The carriers
undertake 10 make, pending inVesuga-
lion as 10 its reasOnableness.
In this state of the law il would be
olLhculL, IN my estimation, 10 think OF
grosser breach OF official duty than
Tor the commission TO assume 10 give
advance approval of any increase in
rates The mind OF the commission,
Ike any other tribunal charged wiki
the hearing and determination of con-
IrOversies. must be open and unembar-
raised by previous commitment, SO that
II may approach the hearing and de-
Termination OF controversies submitted
10 II, each on its own merits, with COM
spleLe freedom and impartiality."
RumoTs Of Action.
''Do you credit the current rumors OF
concerted and combined action of the
carriers throughout the country TO in
crease rates generally In the near fu-
ture, apparently In disregard OF the
sherman antitrust law as construed by
THE Supreme COurJ?' ne vas asked.
II nave heard such Tumors: also II
some vigorous protests by shippers and
commercial organizations. But to me Il
seems incredible that the carriers would
by such methods take the hazard of lhe
penalties and triple damages OF this
law, 6TSt having provoked the public
f-WTath by this method OF procedure.
For Congress to modify the law so as
TO permit concert Of action and con-
tracts by competing carriers under con-
ditions Of open publicity and subject 10
authorized public approval is one thing;
FOR carriers 10 DEFY existing law is an
other