The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-08-23
RAIL WAYS FILE
THEIR ANSWER
Southeastern Roads Deny Jur-
isdicti0n of Interstate Com
merCe Commission.
RATE INCREASE NECESSARY
BUSINESS POOR AND HIGH
WAGES PAID.

Washington, Aug. 22-The railroad
companies operating in the southeast
ern territory today filed their answer
before the interstate commerce COM
mission to complaints which have
been brought against the advance in
rates on grain and grain products from
ONO river crossing to the southeast.
In connection with this answer the
railroads filed a motion and demurrer
TO strike out of the complaints certain
allegations with regard to- the South
eastern Freight association and SIM
liar associations being a combination
in restraint of trade and in violation
of the Sherman antitrust law. Th-
grounds for this motion are, first, that
the interstate commerce commission
has frequently ruled that it has no jul
risdiction to administer the Sherman
antitrust law, that the law being
solely a matter for the action of the
courts. Second, that the interstate
commerce commission has ruled that a
rate may be reasonably low or. indeed,
unreasonably low, even though it be
the result of an illegal combination.
Disorganized Commerce.
The railroads allege in the present
instance that while the order of Judge
Emory Speer of Georgia was in force
from Aug. l to Aug 5. giving a lower
rate to shippers in Georgia than to
those in any other state in the south
eastern territory. the effect was to de-
moralize and disorganize trade and
commerce. The railway companies
take the position that this is a demon
stration of the fact that such associa-
tons as the Southeastern Freight az
ISOLATION are absolutely necessary TO
prevent Generalization of commerce
and that they promote trade instead of
retarding it. The defendants allege
that their recent increase of rates has
not suppressed competition and that
the same competition exists as here
tofore. They deny that the territory
north of the Ohio and west of the Mis-
sissippi river is dominated by any traf-
f1c association which fixes or main
tains freight rates or suppresses COM
petition or restraints interstate trade.
Not Entitled to Lower Rates.
The railroads deny that commodities
involved in their increase of rates are
entitled to lower rates than other
commodities or that the advance was
other than small and reasonable, and
declare that the increase will not Sc
riously. or at all. disturb existing
trade relations or injure the consum-
of profit obtained by the dealer will not
permit him to absorb the entire adj
vance in rates or that the consuming
public will be forced to bear any por-
ton of the additional charge repre-
scented by an increase in the price.
The directors deny that the increas
will restrict the volume of traffic, and
declare that ii is not even sufficient
compensatory charge to fairly meet the
cost in value of the service performed
by them. They claim that while the
net rates of some of the roads have in
recent months shown some advance.
yet taking all of the months together
the net earnings, as well as gross
earnings, have shown very large d.
minution since Feb. l. 1905.
Wages Increased.
They declare that the wages of their
employees have been increased and that
prices of all articles necessary for the
maintenance and equipment of their
lines are higher. that the demand OF
the public for efficiency of service has
become more and more eXacting and
that they have been compelled to meet
an increased and most costly demand
for safe. prompt and efficient service.
Since November. 1907. the traffic has
decreased, decreasing their gross rev.
enues enormously, while they have
been Obliged to continue their high
scale of wages and to pay high prices
for all material and supplies.
The railroads aver that there is no