New-York tribune., 1908-08-23
aRA[LR0ADSMAkE REPLY
MIST INCREASE RATES.
oou nanies IN Southeastern Territory
l4nsrcer Com plants.

-
-.,, products from Ohio River crossings TO the
Southeast
motion and demurrer TO strike out of the
-.--,la,uts certain allegations with regard 10
-. southeastern Freight Association and sim
associations being combinations in restraint
!, .-s5e and in violation Of the Sherman ami
s-,st law The grounds Cor this motion are,
e. that the Interstate Commerce Commission
-, .,eorently ruled that il has no Jurisdiction
= .6-,inister the Sherman antitrust law. that
,.r being solely a matter for the action of the
.o-,s and. second. that the Interstate Com
-oe Commission has ruled that rate may be
-..s,,ablv low. or. indeed, unreasonably low,
=, Enough il be the result OF an illegal COM
stnstion-
-,is ruling - is stated. has been made in sew
80 cases. notably in that of the China and
-,ns, Trading Company. involving rates on cot
,on piece goods from this country 10 China and
r.nan IN that case II is charged that the ocean
x-sa-nship lines operating through the suez
r,ol ard known as the Suez route, combined
-4-h Western railroads TO make rate from this
,-,--v 10 the Orient in competition with the
.ss-,stiu lines and railroads. this rate being SO
,,r mat Il was question whether or not II
aid the cost Of transportation over the 1900
gss involved So the commission held that
.-e, II the rate had been made by an illegal
,-hiration which was beyond its jurisdiction
- determine nevertheless II was perhaps an
uureasouaby low rate.
DO NOT SUPPRESS TRADE.
On this ground the railroad companies in their
answer have moved 10 strike from the COM
r1ai-t IN the pending cases all allegations
against the Southeastern Freight Association
-ber take the position that the Southeastern
al ,-Fa.f.
A. not suppress trade, but in fact promote il,
xnd are essential 10 the orderly conduct OF trade
sna commerce
The railroads aIIege IN the present instance
that. while the order Of Judge Emory Speer OF
Georgia. 4vas in force from August l TO August
& giving Z lower rate 10 shippers in Georgia
than 10 those in any other state in the South
eastern territory the effect was TO demoralize
snd d9sorganize trade and commerce. and that
merchants in Louisville Cincinnati and else
where could OF would make no sales owing TO
the generalization caused by the order. The
railroad companies take the position that this
Is demonstration OF the fact that such asso-
cations as the Southeastern Freight Associa-
ton are absolutely necessary 20 prevent dernor-
sh-atiou Of commerce. and that they promote
trade instead Of retarding IL.
The defendant railroads allege that in 1904
dissatisfaction -as expressed bz shippers at At
sa-fz as 70 rates 10 that point from the Ohio
and Mississippi river crossings, il being alleged
that the rates to Atlanta from such crossings
were out Of relation 10 rates TO Birmingham and
Noatcu-re-v Ala As the result Of conferences
held az that time the rates from Ohio and MIS-
sissppi river crossings 20 Atlanta were reduced.
but the defendants deny that the reduced rates
were lust OF reasonable or comp the re-
duction being made solely with the view Of put
GIN ffa- r
although not the same as. the basis Of Birming-
ham and Moutgonerv. These reduced rates
went into erect on February l. 1905 The de-
fendants aIlege that their recent increase Of
rates has not suppressed competition, and that
the same competition exists as heretofore. They
DENY that the territory north OF the Ohio and
west Of the Mississippi River is dominated by
any traffic association which fixes or maintains
freight rates or suppresses competition OF re-
strains interstate trade.
ADVANCE SMALL AND RIGHT
The railroads deny that the commodities in
VOWED in their increase Of rates are entitled TO
lower rates than other commodities that the
advance was other than small and right, and de-
clare that the Increase VIII not disturb trade re-
lations OF inture the consuming public. They
deny that the margin OF profit obtained by the
dealer viii not permit him TO absorb the entire
advance in rates OF that the consuming pubic
ViL be forced 70 bear any portion Of the addl-
tOnal charge represented by an increase IN the
price Even should the consuming public be
compelled 70 pay some portion of the additional
charge the whole Of il. they declare that the
amount 50 paid viii be infnitesimal and thar
the public viii not feel if or be injured by 1t IN
any way They deny that the advance com
platned Of would represent a charge or tax TO
the ispEa ar,I IiC Georgia OF anything
Ike as much as 200 annually. or that the
same is a tax TO any extent
Tie railroads deny that the increase will re-
strict the volume Of traffic and declare that IL
E not even a sufficient compensatory charge
iairly 70 meet the cost on value OF the service
Performed by them They assert that while the
net rates OF some OF the roads have In recent
months shown some advance, yet. taking All
tne months together, the net as well as gross
earnings have shown large dimtnution since
February / 1905 They declare that the wages
o. their employees have been increased. ana
that prices Of all articles for the maintenance
and equipment OF their lines are higher; that
the demand of the public for efficiency of ser
vice has become more and more exacting, as well
S the demand for quicker transit, better ter
Nina facilities dePots and stations, larger ana
more expensive cars. heavier engines, stronger
brloges, heavier rails and in all other respects
that they have been compelled 10 meet an in
creased and most costly demand for SAFE
Prompt and efficient service The large volume
OF traffic enabled them IN some measure TO keep
pace with these extra expenses but since NO
Fen1ber. 1907 the traffic has decreased, reducing
eeir gross revenues enormously, while tney
nave been obliged TO continue their high scale
u wages and 10 pay high prices for all materials
and Supplies
The railroads aver that there is no alternative
1e't 10 them except 10 advance their rates IN