The Washington times., 1910-05-30
Proposed Increase In FreiIE
Rates Expected to Net
Billion Dollars.
GOVERNMENT ASKED
TO PREVENT ACTION
Score Of Mid-Western Associations
Send Delegates 10
Hearing.

To fight against an impending billion
dollar coup by J P Morgan and the
allied interests. Representatives OF a
score or more Of the biggest mid
Western shippers associations today
gathered in this city 70 demand that
Attorney General Wickersham proceed
against the railroad traffic associations
as monOpOlies in restraint Of trade and
violatOrs Of the Sherman antitrust law
a gigantic attempt TO pull on a coup
on Wall Street that will net the in
terests a round billion" is the way
John NJ Glenn, chief Of the trauspor-
tation department Of the Illinois Man
ufactUrers' Association, sums I'D the
sudden movement OF the railroads
throughout the country TO boost freight
rates Up 20 70 80 per cent.
We are here 10 demand that the At
tOrney General set the machinery OF
the Department Of Justice il operation
against the traffic associations said
Glenn today 10 a reporter.
He has served notice against the big
industrial corporations. he has hinted At
proceedings against labor unions. but
the biggest trust-the most nefarious
combine Of aIl-las 50 FAR been over
looked And that Is the traffic associa-
tiOns-the organizations that meet and
TX freight rates which the railroads
adoDt
Another Proposed Increase.
Notice has already been given that
an increase in rates Is proposed in the
Western classification territory. Coin
cicent with that comes the news that 2 .
per cent boost IS due in the Eastern
. territory likewise. We viU ask Attor-
I
against the Western association as q
trust IN restraint Of trade and q con
spiracy.
Here IS the history Of this deal
When the railroad bill was Introduce
/ ed In Congress il contained ? provision
placing traffic associations without rhe
scope of the Sherman law AT that very
time the railroads were secretly getting
. together for the coup On April 5, a.
/ the Railway Exchange in Chicago. there
was a secret meeting Of the presidents
f Of a score or more Of the big railroads
On May =. in the offices OF the Trunz
( Line Associations, on Liberty street, ia
+ New York, there was another such
gathering.
y. Pierpont Morgan and others Of the
4 allied interests dictated the course IN
+ brief, the scheme was 10 boost freight
prices all over the nation and thereby
I create larger dividends, increasing the
I value Of securities in Wall street. AnI
when the securities had been properly
szied. the ones on the inside OF the deal
would pocket the proceeds
Defeated in Bill.
The the traffic agreement section
was defeated in the railroad bill. and 10
this extent the frame-up didn't 60
through as per schedule. But unless
h IL
in just as pleasing a way 10 the rail-
road interests as il was before.
The railroads have broken faith with
the shippers.
Some time ago the railroads agreed
with the Illinois Manufacturers AssO-
ciation-Or q committee OF that orsani-
zatiOn-to call them in Tor confer
/ ence in the case that a resdjustmenr
was contemplated Of the existing rates
E We knew nothing about this scheme,
. which has just come 10 light They
broke faith with Is.
/ And not long ago, about the time OF
that meeting in Chicago OF - railroad
presidents, I met q friend OF mine who
Is at the head CT big line, and he said
10 me, We'll, you thought you'd put
US in a hole with that corporation tax
proposition, and now you'll find your
selves IN a hole
VIII Cost a Million
1T viii cost the allied interests some
thing like Sl0Ogs400 10 agitate and spread
the news that the increases in cost of
uaintenanCe-in labor. and all that
makes the higher rates imperative, II
the railroads are 70 make a fair profit.
IL viii cost q million, but the ones be
hind the scheme Will pocket a cool
billion
The idea now is 10 raise the rates
70 the sky. and then, If they are forced
down, II VIII be 10 compromise figure,
which viii be higher than the present
ones.
proper that name increases in rates.
There IS another way Of doing it-and
this through The so-calleG classification
o organizations They can change the
freight class OF shipments Take chairs.
the fifth claSs-the classification experts
can decide that they ought 10 be hrst-
ClaSS-and the rate is OF course higher
on that division There isn't really any
necessity for increasing the rates when
this scheme can be pulled or
Hearing This Afternoon.
ARRANGEMENTS were made for a
hearing this afternoon of the repre-
sentatives before the Attorney Gen
eraI. Among those who are here now
are:
H J. krake. Commercial Club. ST.
Joseph. No. c J. Zielke. CT MiiEau-
kee. H g. Wilson and o. Y. Wilson.
OF the Kansas City Commercial
. Club; J. f. Beck, Of the ST Paul
JObbers' Association. T. J. McVann.
Omaha Commercial Club: W F.
Trickett, Minneapolis Merchants
Traffic Association A. T. Clarke.
counsel for the Minneapolis Merchants
Traffic Association: T. s Pool. Of Min
neaPolis: A r Ebl, Of Deere & Co.
Moline. H.; ". J. Evans. secretary OF
the National Agricultural Implement
and Vehicle Manufacturers AssOCia o.
ton, William Duff Hayuie general
counsel, Illinois Manufacturers Asso-