New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-04-18
NEW RAILROAD GOSPEL
THEIR AGREEMENTS SAID
TO BE LEGAL.
" nde II. Ellis. Assistant attorney
General. 4sserts Traffic Pools
ShOuId Be Permitted

Wade Ellis Special Assistant Attorney
General Of the United states. N Z speech before
the Wes-chester County Bar Association at Del
n2onico's last night said that there vas no rea-
son phy- the antitrust act should apply 70 rail
roads The power 10 control prices Is the
wrong which all antitrust statutes seek 70 pre-
vent" said Mr. Ellis. Continuing. he said
with respect 70 gigantic combinations Of cap
ital engaged in 2 purely public service, like tbs
whatever upOn their righ- 70 make mutual
agreements Why? Because such agreements
Do not and cannot control prices, since the
charges imposed for the service are contrc!!able
by the state or by the nation itself There
fore there IS no reason Why the antitrust act
should apply TO railroads al all They are out
side the reason fer the law. and ought not 70 be
within it's terms
The public interest may be securely and COM
rletely guarded through the interstate commerce
act and the administration OF the Interstate
Commerce Commission, and any additional leg
isation with respect 70 the supervision OF rai!-
roads. the issuance Of stocks and bonds for pei
ter-nents and extensions and the Ike. should be
adopted as amendments TO that Law
The railroads must be encouraged 10 keep
pace with the Industry OF the counrry- Il IS g
larnentable fact that railroad facilities in recent
years have not responded TO the commercial
growth OF the country. with the estimated need
of 81 600 oooo 900 or $1,000 900 within the next
twenty years for railroad building IN this coun-
Try, no policy must be adopted which WI; retsro
the natural development Of transportation IA
cities-the first and foremost essential of eh
business prosperity.
While il IS true. however. that traffic agree
rraents and pools between railroads now for
bidden by the antitrust act ought not 70 be
forbidden, il is not true that a necessary con
dition 10 railroad improvement IS that al gov
ernnentaI supervision shall cease
In nv Judgment, he is likely to be disappoint
ed who predicts retreat along the line OF raii-
road supervision by the government. and he is
mistaken who asserts that the issuance Of rail
road securities IS none Of the peoples business
The railroads are not engaged in private busi-
ness They are public servants. The adequacy
of their service, the fair return upon the money
invested, the safety and compensation Of their
EMPLOYEES and the honest management of the
business are matters of public concern and the
sooner this is realized the sooner will the rail
roads receive that measure Of public support
and protection which comes from public con
fdence
Ny Ellis submitted these Ave propositions
that should be kept mind in any amendment
OF the Sherman act:
That the meaning of the law must be made
That the only real evil is the power tn con
troll prices
THAT no combination Of capital should be con-
demned unless the intent is to control prices.
That the mere size of a corporation ought not
to make Il an outlaw
That private business so far it is con-
sistent with public welfare, ought to be left in
private hands.
He said that nobody had better stated the
general principles that should be kept in mind
n
strafnt of trade than President Taft when r.
Cincinnati Judge. Mr.. Wade said that he spoke
not as an official of the government. but as
lawyer TO lawyers. -......
rftter sneakers were Federal Judge Charles
NJ Hough Richard l. Hand. who made Gov
ernor Hughes's investigation Of the charges
against District Attorney Jerome; J. Adam
Bede. ex-Congressman from Minnesota; Judge
Martin J. Keogh and ]. Addison Young, who
presided
Prominent members and guests present we're
Frederick H Allen chairman of the Demo-
cratic County Committee; ex-Mayor Michael }.
Walsh of Yonkers, John J. Sinnott, ex-chalrman
If the Board of Supervisors; Frank NJ Back
civ Clerk Of Mount Vernon; William Archer.
treasurer of the Republican County Committee;
Leslie Sutherland, ex-Mayor of Yonkers. and
Jerome A. Peck. of Port Chester.
Henry A. Wise, United States District Attor-
ney. and ex-senator spooner, Of Wisconsin VINO
we're scheduled to speak. were unable to be