The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-06-05

owing event of Wall Streets business
week. the controversy between the
Government and the railways of the
Western trunk line committee over
freight rate advances, IS Of epoch
making Importance It is difficult 10
place an accurate appraisal upon de-
velopment Of this nature at the time OF
its immediate occurrence; but, while
the outcome Of the issue remains unde-
termined, no one who realizes what Is
involved .. the action OF the Depart
ment o. ], tce in suing out writ Of
injunction against the corporations
which ,a,sed their rates can doubt the
grave and serious import and far
reaching effect of the proceeding.
In the heavy liquidation and violent
price declines which characterized deal
ings on the stock exchange from Tues
say TO Saturday, the security market
took a preliminary measurement OF the
disturbing development. The total deal
ings Of the week ran UP 10 400, 40
shares. as against aggregate sales OF
| .. 023, 80 shares in the preceding week
Prices all but collapsed. The active list
at Saturdays close showed such losses
during the interval as 81 points in
Reading, pa In Union Pacific. 50 IN
/ Southern Pacific, 12}z I'm St Paul. % III
! Amcicamated Copper. and in United
States steel common. The bear party
. vas assuredly active in working Tor
lover prices, but such declines as oc-
curred reflect a serious shock 10 con-
fdance That is the worst feature OF
the entire performance. Wall Streets is
probably not the final appraisal Of the
event. however. for thus far nothing
can be determined of the vast influence
the Governments action must exert on
general trade and industry and upon
sentiment here and abroad
I Market Opinions Revised
So far as Wall Street is concerned a
new and powerful factor has been IN
jected into the situation: one which
overshadows in importance, for the time
being at least. all other problems which
the financial market has been consider
/ Ing. serious as some Of these problems
are. Naturally the introduction Of
new force. disturbing in itself and
frauEht With possibilities Of still greater
disturbance, has forced a revision Of
opinion upon the part Of very many in
fuential persons Men who. throughout
all the recent period Of depression in
wall Street remained hopeful. conh-
dent in their belief that given good crops
there was enough that was favorable IN
the situation 10 turn the market ~
ward. seemed to abandon all hope Of a
bull market in the near future. as a re-
suit Of the Government interference in
the railway rate matter.
In the present attitude Or the security
market. il would serve 10 very good
purpose 20 attempt 10 minimize the force
and effect Of the Injunction secured by
the Department Of Justice against the
Western railways which fled their
schedules Of uniform freight rate ad-
vances simultaneously. through a COM
mon medium. and thus, rendered them
selves liable TO proceedings under the
Supreme Courts Interpretation Of the
Sherman antitrust act, as laid down by
that body in the famous Trans-Missouri
case
As is now well understood. the .aues-
ton Of the reasonableness or the I'M
reasoua bleneSs Of the rate alliances,
does not at this time enter into the
case at all. II is not necessary that
they should to constitute a prima facie
{ case for the Government. For as the SUI
preme Court interpreted the conspiracy
clause Of the sherman act IN The North
ern Securities case II practically upheld
Attorney General Knox's contention in
his bill of complaint. that even If the
company did not establish common rates
in the Great Northern. Northern Pacific.
and Burlington territory. vet possessed
the power 10 do so. that fact alone rem
dered IL a combination in restraint Of
trade.
Why Railways Filed Uniform Schedules.
How it has come about that with
a full knowledge Of the Supreme
Courts decisions in the transmits
souri, and the Northern Securities
cases, the railroads in the Western
Trunk Line territory, and later on the
railroads in the Central Freight As
ISOLATION territory. fled uniform
schedules OF advances through COM
mon medium. and thus invited pro-
ceedings from the Government the
moment some disEruntled shipper
carried his complaint TO the Attorney
General, as was done in the case Of
the Western trunk line roads, and
as II is feared-may be done with
the other combina tons, remains very
much a mystery. Immediately fol-
lowing the court decision in the trans
Missouri case. the great railway traf-
| fc associations of the country changed
their character entirely, and whereas
before the decision they we're domi-
nant factors in promulgating rate
changes. not until the present instance
from that date have any Of them fig
ured in a rate-making OF rate-ad-
visiug capacity.
Possibly, as is suggested in some
quarters, the railroads argued that if
| they proceeded in the matter in COM
binatiou the force of numbers might
deter action BY the Government in
| the same way that Mr.. Hill argued
with his associates who urged him
! against forming the Northern Securi-
/ ties Company, that the combination
was so big that the Government would
I not care TO interfere with it Posi-
| bly, the railroads felt that thew could
/ proceed safely in the matter. in view
| of the sentiments favorab Bile to pooling
| Roosevelt and President Taft and
| which found expression in the Repub-
! liCan party platform, and in President
! TRfts messages, and which was
| drafted as one of the sections of the
! Administration railway bill But
| these express -ons OF opinion BY Presi-
| dents, these euunciations of a prin-
/ ciple in tie party platform, or the
| section dated for the railroad bill
lido not constitute law, and the anti
trust Law rs interpreted by the Su-
preme Court, prohibits united action
BIc0RD'S VITAL