The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-07-19
MAYBZPROSECU7ED.
If INCREASE Rates.
Judge Clements Of Opinion That
Such Increase as Proposed
Violates Sherman Law.
% NOT EXPECT ADVANCE.
Interstate Commerce Commission
Doubts That the Railroads
Will Really Act.
DO NOT EXPECT ADVANCE.
Times Dispatch Bureau,
if7s7 ~ l4Qs 49,. -, ff,,t1x q :, -

Times Dispatch Bureau,
Munsey Building,
Warrington. d. c., July 49,.
It 3is probable that IL the railroads
undertake to make a general advance
In freight rates, prosecution under the
Sherman antitrust law will be under
taken by the government. Judge
Clements. chairman OF the Interstate
Commerce Commission. Is Of the opin-
ion that such general increase agreed
upon by an association of railways
would come within the purvicw OF the
Sherman antitrust law for the pre-
vention OF combinations in restraint Of
trade. Judge Clements does not ex-
press this opinion as member Of the
Interstate Commerce Commission, but
as lawyer.
It may be stated that the Interstate
Commerce Commission does not believe
that there will be an increase In rates
at this time, despite the action OF the
Southeastern Freight Association and
the Southeastern Mississippi Valley AS
ISOLATION at Louisville yesterday, which
action provided for an'increase of from
a to 10 cents hundred in rates on,
roads south! Of the Ohio and east OF
the mississippi. Nor Is 1t believed
that the Eastern roads Will put up
rates, although no less an authority
than James j. Hill Is responsible for
increase Is open to the roads.
The roads may increase their freight
rates, but the Interstate Commerce
Commission will be much sur
5prised If this course is taken. And
IL such increase Is made through
agreement OF railway associations, IT
is extremely probable that efforts VIII
be made to have the government instl-
tute prosecution under the Sherman
antitrust act.
Powers OF Commission.
In speaking OF the powers OF the
Interstate Commerce Commission in the
case where an advance In freight rates
has been made by the railroads. Chair
man Knapp, OF the Commission, said
to-day:
"The railroads must file their tar
ifs with the commission with thirty
days notice Of q contemplated change.
Changes In rates between competitive
points must be made simultaneously
by all the roads operating between
these points. This, IN measure pro-
tects the shipper. When a railroad
files notice Of an increase in Its freight
rates, the commission can, on its own
motion, make an investigation as to
reasonableness OF the advance.
TN the case where the commission
acts on its own motion. however. 1t
cannot issue an order. If. a shipper
makes complaint to the commission
against railroad, charging an unjust
Increase in rates. each side is given
q hearing and the commission can then
issue an order based on its decision In
the case.
Should 1t develop that the increase
was made through concerted action,
the commission would very likely re-
fer the matter to the Attorney Gem
eral. The Department. Of Justice can
also call upon the commission to In
vestigate as to reasonableness of an
increase in rates.
1.-THE commission would base its In
IYestigation on the conditions existing
on the roads making the increases.
considering each case separately. It
may be found that sthe roads in the
South would be justified In increas-
Ing their rates, while the roads In the
Trunk Line Association would not have
sufficient grounds for doing so. In
eoch case the railroads would be given
every opportunity to present their case.
While the commission Is an admins
Itratiye body.its duties are very analog-
Gus to those Of judicial body, and
the same form is used-a complaint,
an answer and hearing.
classification Tor Increase.
Classification for increase in freight
rates, II there is to be such an increase,
may be found, il at all. only in the fact
1 that increased cost OF operation and
maintenance fof railroads has reached a
point where reasona BILE profit on money
invested in them Is not possible from
the revenue they. now receive.
I'm determining whether rates are
reasonable. careful consideration is neces-
sary Of three factors-that good wages
be paid railroad employees; that present
transportation facilities be kept to a
satisfactory standard, and that new faci-
Titles be provided to meet ever increasing
demand for them. si;