The Washington herald., 1908-08-23

The railroad companies operating in the
Southeast yesterday fled their answer be-
fore the T. .ers'ate Commerce Commission
TO the COZ IpI~ Is which have been brought
agairs. II .dvance in rates on grain
and era.A products from Ohio River
crossings 10 the Southeast
In injection with this answer the rail-
road have fled motion and demurrer
20 strike out Of the complaint certain ale
cations with regard 10 the Southeastern
Freight Association and similar associa-
tions being combinations IN restraint OF
trade and in violation Of the Sherman
antitrust law.
Tie grounds for this motion are. first,
that the Interstate Commerce Commis-
sion has frequently ruled that il has no
jurisdiction 10 administer the Sherman
antitrust law. that law being solely
matter for the courts 10 take cog
nizance Of
An Important Ground.
The second ground IS Of great interest
and Importance. and has likewise been
ruled upon by the Interstate Commerce
Commission
Much has been said throughout the
country on the subject Of suppression Of
competition by these freight associations
II seems that the Interstate Commerce
Commission has ruled that a rate may be
reasonably low or UnreasOnably low. even
thOagn il be the result Of an Illegal com
b.narion.
This ruling OF the commission has been
made in several cases in The past and
notably in the case Of the China and
japan Trading Company, involving rates
Z on cotton piece goods from this country
{ 10 China and Japan
In that case il was charged that the
/ ocean steamship lines operating through
the Isthmus Of Suez Canal and known
! as the Suez route combined with Western
( railways 10 make a rate from this country
% the Orient in competition with tn=
steamship lines and railways operating IN
{ the Pacific Ocean This rate was SO low.
Z owing 10 the competition by way Of the
f Pacific Ocean, that Il was questionable
+ whether OF not L actually paid the cost
E Of transportation over the 800 miles in
. v0Ived-
I SO the commission held that. even II
{ the -a-e had been made oE an Illegal
I combination, which was beyond t-e.-
I Jurisdiction 20 determine. nevertheless IL
/ was. perhaps. an uureasol1biy l1w rate
I The commission pointed out that a rate
B. might be the result OF an Illegal cc-l1-la-
J.oa, and yet be al U1reas0Ea5ly low
. rate
on this ground the railway companies
/ have moved 20 strike from the complaint
I il the pending cases all allegations made
against the Southeastern Freight zssO-
CiatiCu. They take the position II the
. first place that the SOu-LeaS-ern Freight
association and all Other similar ass0C-a-
tons do not suppress trade but. II fact.
promote trade and commerce, and are
essential 10 che orderly conduct 1f trade
} and commerce
II the present instance while the order
Z OF Judge Speer was IN force from August
I ! 20 August >. giving @ lower rate TO
I shippers in Georgia than 70 any other
3 shippers II any other state iu South
eastern territory. the effect was 20 &C.
rnorallze and d.sorEarize trade and com
I UerCe. and merchants n. Louis he Gin
I CinEaci. and elsewhere could or would
make no sales. owing 10 The de-0rsliza-
ton caused by the order Of Judge Sp-er
and thus their trade and commerce was
curbed and destroyed 10 that extent
Railroads Positions.
! The railway companies take the position
that this is a demonstration OF the fact
that such associations as the Southeast
eru Freight Association are absolutely
I necessary 70 prevent deDoraliza-5on o.
I commerce. and that such organizations
I actually promote trade instead Of pre-
venting IL