Daily press. [volume] (Newport News, Va.) 1896-current, 1908-08-23
DECLARE THEY ARE losIuG MONEY
In Lengthy Response to Commerce
Commission Roads Declare They
Have Increased Freight Rates to be
Able to Pay Their Employes-oe.
veIopment of South Demands II.
(By Associated Pressl.

\.
The railroad companies operating in
he SuUt h"astern territory today filed
their answer before the Interstate
Commerce Commission 10 complaints
which have been filed against the
advance In rates on grain and grain
products from Ohio river crossings
20 the Southeast. In connection with
this answer the railroads filed mo
ton and demurrer TO strike out CIR
tain complaints, certain allegations
with regard to the Southeastern
Freight Association and similar as
social ions being combinations In re,
strant of trade and In violation OF
, the Sherman antitrust law.
The grounds for this motion are.
first, that the Interstate Commerce
Commis sion has frequently ruled that
it has no jurisdiction to administer
the Sherman antitrust law, that law
being solely a matter for the action
Of the courts: second. that the In
tcrstatc Commerce Commission has
ruled that a rate may be reasonably
low or unreasonably low even though
II be the result of an alleged COM
bination. This ruling, 1t Is stated
has been made in several cases. not
ably in that Of the China 4 japan
Trading Company. involving rates on
cotton piece goods from this country
: to China and japan. In that case
| II is charged that the ocean steam
ship lines operating through the Suez
canal and known as The SueZ route
combined with western railways 10
make n rate from this country TO the
! Orient in competition with the steam
| shin lines and railways. this rate
hrinp so low that il was questionaDie
Ivhcthrr or not It paid the cost o!
TRANSPORTATION over the $4,000 miles
involved So tn. commission held
thar even If the rate had been maze
J. y an Illegal combination. which was
bevond their Jurisdiction 10 deter
mine. nevertheless 1t was perhaps an
urrcasonably low rate.
. On this ground the railway compa
MES. in their answer have moved u
strike from the complaint in the
rcndipy cases all allegations agains'
! tho Southeastern Freight Associa
ton. They take the position that IN,
IS F. & a. and all similar as3octa
lions do not suppress trade, hut u
tfact promote it and are essential tt
The orderly conduct OF trade ar
! commerce. The railroads aiieee "
the present instance that whlie u''
order OF Judge Emory SPeer, OF GeoF
pia was in force from August l Il
! August :, giving a lower rate TO snip
pers In Georgia than TO these In an,
other state in the Southeastern ter
ritorv the effect was TO defnoSalize
land disorganize trade and commerce
| and that merchants in LOUISVILLE
Cincinnati and elsewhere could OF
would make no sales owing 10 I'M
decentralization cause! by the of1si
Tho railway companies iak" .h'
positicn that this is demohs'ra'i"'
Of commerce and that they proih"''
trade instead Of TctaTiinS II.
The dcfrnGan; railroads aiiese INA
during The year 1904 dissatisfaction
was Expressed by shippers AZ A'iahI
AZ to rates to that point from '"'
ohio and Mississippi river CROSSINGS
! il being alleged that the rates u
| Atlanta from such crossings wef'
ont of relation to rates 10 Birmihs
ham and Mont Comrcy. Ala :,
Az .hc result Of conferences hei
a: that time nc TaltS I'pib '"'D
| Eississippi river crossings To atiah
! nor. raducri. bTt the defendants nc
ny that the reduced rates were Jus
. mr. r~.snnabIc or compensatory. ,h'
rc,;uctiou bcinS made solely With I'M
} yicx Of pHif!nE atlanta HPon ia, "
moro nearly similar although Hct u"'
,anc As the basis al birmingham ahr
| Mont geometry. Th"s" reduced rae
vcp, into effect February ]. 1sM.
Tn. defendants ancg" that thri'
-cccn, Increase of rates has ~ sap
! rr,ss.d competition and that TN
! same cJmpctiion exists az het''o
fore They deny that north IT oniC
and Mississippi Is dominated ny an,
Inn associaiion which fS"s fr''sh
/ -a,cs or supprcsscS comP''''''H v
/ -csirains Interstate trade.
The railroads deny that IN" com
: ,,rditios involved in their incrcaS'
| ~ r,trs arc criiiIrd 10 lower rave
Than Other commodities or That IN
I ,J,,urc vas Other thar small am
/ -, srnal,Ic and declare that the ~
r-ras, will not scriI'Siy or al Al
. ,3sturb cSis,ing trad" rClairns o.
;,irrc tho consuming public. tn
: drry that :hc margin n. profit "3
O. lin, 4 bv :bC dealer all Bot permit
I