The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-07-08
Have the Railroads OF This sG,,i0a
Formed . Compress Trust

tOrmed Compress Trust
A dispatch from Washington states
that charges have been filed with the
department of justice and with the
interstate commerce commission to
the effect that "the railroads of the
south have completed a monopoIy
which threatens to control absouteIy>-
the cotton market Of the country and
dictate cotton prices both at homo
and abroad" This looks like an ex-
treme statement which is not likely
70 be sustained by the actual charges,
the text OF which is not given; but
certain facts are stated on the author
'ty OF some Of the complainantnr
which, II authentic, would indicate q
combination in restraint OF trade and
one would think that by this time the.
railroads would be chary OF entering
into any such arrangements. They
nave no right to complain Of "hos-
tility" and legal restrictions 20 long
as they persist in violating or evaa-
ing the law which forbids discrimina-
ton.
The substance Of the statement II
that 'the railroads''-what partieu-
lar railroads are not specified-have-
gained control Of q chain Of cotton.
congresses running through the
principal centers Of the cotton grow
Ing States from Georgia to Oklahoma,
through the Atlantic Compress Com,
pany. whose stock they are said to
own. This is said to have a capitai
Of $1.000,000 and to control 81 com
presses. having forced the smaller
competitive plants into bankruptcy
and then leased or destroyed thenx.
Another charge is that they take cot
ton free to their own compresses.
charge 1-2 cents a hundred pounds
for compressing 1t in the bales for theS
market, and include that charge In
the rate for carrying to the seaboard.
This charge being made a part OF tina
carrying rate. 1t must be paid by the
planter or owner Of the cotton. even
II 1t Is compressed at an independent
plant, besides which cars will not be-
promptly or regularly supplied at the
plants Of independent concerns The
result is to freeze out these concerns
and monopolize the business OF COM
pressing thus practically controlling
the marketing Of the cotton crop.
If this kind Of combination had
gone to the extent described. more
would surely have been heard OF It.
but charges would hardly be filed
now II there was not some substantial
ground for them. It is said that the
Independent interests apparently
including some railroads not In the
compress combine" are to attack
| the alleged combination along three
separate lines. one by complaint to
the interstate commerce commission
under the commodity clause" one
by petition to the attorney general
under the antitrust law and one hy
prosecution in the State courts. Al
the railroads are not alleged to buy
or own the cotton. we do not buy o.
own the cotton. we do not see how
the COMMODITY clause" has any appsa-
cation. but II the facts are as stated
they may be construed a. proving
restraint of interstate trade. Wheth-
er prosecution in State court WIZ
avail depends upon State law and il,
administration. - ~
In any case. II the statements publ
lished are true in substance. the rail-
roads Of the South have adopted .
very foolish course in thus provoking
| renewed attack which will be sure OF
popular sympathy and support. Per-
! haps they may have denials or e1-.
plantations that will put . differsnk
aspect upon the matter, but untsss
they have they would be wise To-
| withdraw from the cotton compress
business and cease discriminating
among shippers Of cotton both to
and from the compresses.-New York,
Journal Of Commerce. ,.~EE
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