The Birmingham age-herald., 1908-08-23
RAILROADS SAY THAT PROPOSED INCREASE
 OF RATES IS RIGHT
Argument Is Presented To Commission Showing That Roads Have Lost Business and Rates Must
 Be Raised In Self
 Defense.

Washington, August 22.-The railroad companies operating in the southern ter ritory today filed their answer before the interstate commerce commission to eom- plaints which have been brought against the advance in rates grain and grain products from Ohio river crossings to the southeast.
 In connection with this, the railroads filed a motion and demurrer to strike out of the complaints certain allegations with regard to the southeastern freight asso- citation and similar associations being combinations in restraint of trade and vlo- lations of the Sherman antitrust law.
 The grounds for this motion are, alrst, that the interstate commerce commission has frequently ruled that it has no Jufis- diction to administer the Sherman anu trust law, that law being solely a matter for the action of the courts. Second, what the interstate commerce commission mas ruled that rate may be reasonably loW' or indeed unreasonably low, even though it be the result of an illegal eomplhatioh. This ruling, it is stated has been made in several eases and notably in that ol the China and Japanese Trading COIL many. involving rates on cotton piece goods from this country to China and Ja- nan. In that case it is charged that ine ocean steamship lines operating through the suez canal, and known as the suez route combined with WesternS railways ,o make rate from ti,is seg5satrK tos tue orient in competition wIfiftife steamship
 h being so LOW that it was questionable whether or nor if maid the cost of transportation over ehe IF ooo miles involved. So the commission held that even if the rate had oeen ine'oo bv an illegal combination, whieh was oe yond their jurisdiction to deteriiii"e' nevertheless it was perhaps an uhreasoh- ably low rate
 Promotion of Trade.
 on tbis ground the railway compahles .x 4ho,r answer have moved to strike rom ,ba complaint in the pending cases all al locations against the Southeastern Freight association. They take the position that inc Southeastern Freight association ana oil similar associatlnos do not suppress trade hut. in fact promote 1t and are es- saotial to the orderly conduct of trade and commerce. + ;,, stance that while the order of Judge Elm orv Speer of Georgia was in force rom anonst 1 to August 5, giving lower rate to shippers in Georgia than to those Ill anv other state in the southeastern terrl- tory, the effect was to demoranze ana us organize trade and commerce, anu that merchants in Louisville, Cincinnau ana elsewhere could, or would, make no saie' ou,ine to the demoralizatlon caused py the
 rTl,a rail cOmDdnleS take tn6 noe;tion that this is a demonstration or inc fact that such associations as the Southeastern Freight association are ao- solrtely necessary to prevent demoralza- tion of commerce and that they promote trade instead of retarding 1t.
 Rates Reduced.
 The railroad companies say that dur Ing the year 1904 dissatisfaction WAS expressed by the shippers or Atianta as to rates to that point from the ono and Mississippi river crossings, It pelnS a1leped that the rates to Atlanta from such crossings were out of relation to rates to Birmingham and Montgomery As the result of conferences held at that time, the rates from Ohlo anu Mississippi river crossings to Atlanta were reduced, but the defendants Aeny that the reduced rates were Just or reasonable or compensatory, the re- auction being made solely with the view of putting Atlanta upon basis more nearly similar, although not the same as the basis of Birmingham asd Montgomery. The reduced rates went into effect February 1, 1905. The de- fendants allege that the recent in- crease of rates has not suppressed com petition and that the same competition exists as heretofore. They deny that the territory north of the Ohio and west of the Mississippi river is dominated by any traffic association which fixes or maintains freight rates or suppresses competition or restraints interstate trade.
 Increase Not Serious.
 The railroads deny that commodities 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 de- clare that the increase will not serious ly-or at all-disturb existing trade relations or injure the consuming pub lie. They deny that the margin of profit obtained by the dealer will not permit him to absorb the entire ad- vance in rates or that the consuming public will be forced to bear any DOT tion of the additional charge represent cd by an increase in the price. Even should the consuming public be com pelled to pay some portion of the ad- ditional charge, or the whole of 1t, they declare that the amount so paid will be infinitesimal and the public will not feel 1t, or in any way be injured by it. They deny that the advance complained of would represent a charge or tax to the dealers and public In Georgia of anything like as much as $500, 00O an nually, or that the same is tax to any extent.