Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-08-23
EXPLAIN NEW RATES
Railroads File Answer With
Commerce Commission.
GRAIN ONLY IS AFFECTED
Territory Included Is Southeast
From Ohio.
IF A TRUST, WHAT OF IT?
Commission, It Is Held, Cannot Ad-
minister Sherman Antitrust
Law Under Own Ruling.
GRAIN ONLY is AFFECTED
F A TRUST, WHAT OF IT?

/ The railroad companies operating in the
southeastern territory yesterday filed their
answer before the interstate commerce
commission to complaints which have been
brought against the advance in rates on
grain and grain products from Ohio river
crossings to the southeast.
In connection with this answer the rail-
roads filed a motion and demurrer to
strike out of the complaints certain al
legations with regard to the Southeastern
Freight Association and similar assOcia-
tions being combinations in restraint of
trade and in violation of the Sherman
antitrust law
The grounds for this motion are, first,
that the interstate commerce commission
has frequently ruled that 1t has no juris-
diction to administer the Sherman anti
trust law, that law being solely a mat
ter for the action of the courts. Second
that the interstate commerce commission
has ruled that rate may be reasonably
low or, indeed, unreasonably low. ever
though it be the result of an illegal COM
binatiOn.
This ruling, it is stated, has been made
in several cases, notably in that of the
China and Japan Trading Company, In
volving rates on cotton piece goods from
this country to China and Japan. In that
case it is charged that the ocean steam
ship lines operating through the Suez
canal and known as the Suez route COM
bined with western railways to make
rate from this country to the orient In
competition with the steamship lines and
railways, this rate being so low that 1t
was questionable whether or not 1t paid
the cost of transportation over the 1?,W!
miles involved. So. the commission held
that even II the rate had been made by
an illegal combination. which was be-
yond their jurisdiction to determine, new
ertheless, it was perhaps an unreason-
ably low rate.
Railroads Contention.
On this ground the railway companies
in their answer have moved to strike
from the complaint in the pending cases
all allegations against the Southeastern
Freight Association. They take the po-
sition that the Southeastern Freight AS
ISOLATION and all similar associations do
not suppress trade. but. in fact. promote
it, and are essential to the orderly con-
duct of trade and commerce.
The railroads allege in the present in
stance that, while the order of Judge
Emory Speer of Georgia was In force
from August l to August ). 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 COM
merce. and that merchants in Louisville
Cincinnati and elsewhere could or would
make no sales owing to the demorallza-
ton caused by the order. The railway
companies take the position that this is a
demonstration of the fact that such as
sociations as the Southeastern Freight
Association are absolutely necessary to
prevent decentralization uf commerce and
that they promote trade instead of re-
tarding it,
Shippers Dissatisfied.
The defendant railroads allege that dur
ing the year 1904 dissatisfaction was ex-
pressed by shippers at Atlanta as to
rates to that point from the Ohio and
Mississippi river crossings, it being al
legged that the rates to Atlanta from such
crossings were out of relation to rates to
Birmingham and Montgomery, Ala.
IS the result of conferences held at that
time the rates from Ohio and Mississippi
river crossings to Atlanta were reduced
but the defendants deny that the reduced
rates were just or reasonable or COM
pensatOry, the reduction being made sole
ly with the view Of putting Alabama upon
basis more nearly similar. although not
the same as the basis of Birmingham and
Montgomery. These reduced rates went
into effect February !, 1905. The defend
ants 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 traffic
association which fixes or maintains
freight rates or suppresses competition or
restraints interstate trade.
Won't Disturb Trade.
The railroads deny that the commodi-
ties involved in their increase of rates are
entitled to lower rates than other COM
modities or that the advance was other
than small and reasonable and declare