Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-08-23
PLEAD FOR HIGHER RATES
SOUTHERN RAILWAY CoMPA.
MES JUSTIFY INCREASE.
Paper Filed Yesterday With Inter
state Commerce Commission in
Answer to Complaints.

With a demurrer to the jurisdiction, a
motion to strike out objectional para
graphs and a rather general denial of the
allegations and insistence upon the proof
the railroad companies operating in the
southeastern part of the country and
those which have been associated in the
complaints Herewith come back at the
interstate commerce commission in the
matter of the recent complaints filed
against them for raising their freight
rates.
They claim that the commission has
frequently ruled that it has no jurisdic
ton in cases involving a violation of the
Sherman antitrust law. and references
therefore in the complaints to such viola
ton are out of place and should be stricken
out. Furthermore they assert that the
Southeastern Freight Association and the
Southeastern Mississippi Valley Associa-
ton and like institutions which the COM
plainants says are organized to restrain
trade and unlawfully conspire against the
peace and welfare of the cOmpalinants are
really good things and promote both trade
and commerce, and are really necessary
for the prevention of undue discrimina-
ton among shippers.
Ownership and Control Discussed.
They deny the allegations as to the
ownership and control of other roads.
They admit that owing to dissatisfied ton
in 1904 the rates to Atlanta from the
Ohio and Mississippi river crossings were
lowered, because it was alleged that such
rates were out of relation to the rates
from those crossings to Birmingham and
montgomery, Ala, but they deny that the
rates as lowered were just. reasonable
and compensatory. but they were given to
put Atlanta on the same plane with Bir-
mingham and Montgomery
ntnxr
movement looking to an increase of the
rates on or about June !; that it was
necessary for the lines operating at the
crossings mentioned must unite with
them, and that in order to accomplish
their purpose that the Southeastern
Freight Association was either sought or
employed, or that any agreement to in
crease rates was filed with the associa-
ton by the roads charged Herewith.
They admit that some of the defend.
ants did file such declarations of separate
intention and that the information was
communicated TO each of the members of
the freight association in the form of
a circular, but insist that there was no
systems of railway which suppressed
competition or forced connecting car
riers to concur therein or give up the
traffic. and aver that no competition was
suppressed but that the same COMPETE
ton exists as before the increase.
Claims Concurrence Was Proper.
The only concurrence they claim was
such as is required by acts of Congress
or the rules of the interstate commerce
commission, and in the manner and form
prescribed thereby.
They admit that the advance in rates
was made upon the commodities charged
in the complaint. the produce, merchan-
disc and articles that form the prime
necessaries of life, yet they deny that
such commodities are entitled to any low
Ell rates than other commodities.
They claim that the new rates are just
and reasonably low rates, and Il mat
ter of fact do not amount to a sufficiently
compensatory charge to fairly meet the
cost and value of the service performed.
They deny that the reduction of the At
lanta rates and their maintenance to Au-
gust l, 1908, is an admission that they
were just, reasonable and compensatory
under even normal conditions. They ad-
nit doing we'll under the old rates until
the financial depression last fall, but aver
that it was in spite of the lOwneSs of the
rate and because of the immense volume
Of business, which with many has since
fallen off until now both net and gross
earnings show big diminution.
They deny taking advantage of alb
normal conditions to raise the rates, but
plead that wages are high. the cost of
equipment and maintenance has in
creased, that the public are demanding
better facilities and equipment and more
efficient service and therefore the de-
PENDANTS have the right to raise their
ditions.
The issue is joined, as doubtless it
will be in the other cases now pending
within short while, and the hearing may
take place In September, as announced by
Chairman Knapp of the interstate COM
merce commission before he left the city