The Washington times., 1910-05-30

citation: p. NJ Hansen. St. Louis. and
JChn NJ Glenn. Illinois Manufacturers
Association, Chicago. 4 number of
others are coming in later in the day.
The scheme works both ways for the
allied interests" explained one of the
representatives here.
If this coup can be executed, and
the prices on the Street boosted. they
UNLOAD the stock on the investing pub
lie and make money. If IL fails, stocks
drop. the investing public gets into a
panic and sells at ridiculous figures,
while the big ones in the deal buy in
the stock at low water mark figures.
Its heads they win, tails We lose"
Have No Solution. y
Just what the shippers may be able to
accomplish in the way of stopping the
proposed increase in freight rates to
Missouri river points Is not clear.
They did not inform the Attorney Cen
eral in advance Of the line their argu-
ment would take, the arrangement for
today's conference having been made
by Representatives from the States in
terested. 1t is understood. however.
that they will charge that the practice
of railroad representatives in assembling
and fixing. from time to time. the
ratef that should prevail in certain
territory constitutes collision, prevents
EOIlUtLltaOlls dLG Is IN restraint Ol lEdlGs
and is, therefore, ViolatiVe Of the Sher-
man antitrust law. Whether this con-
tention can be maintained will be, Of
course, dependent upon the state of
- facts disclosed.
Chairman Knapp. of the Interstate
Commerce Commission, speaking gen.
orally upon the subject, expressed the
opinion today that the traffic associa-
tons were Of as much value 10 the
shipper as to the railroads and that the
simmer flx~ interested ( the
roads in having a thorough understand
ing among the carriers as to what the
rates should be.
There is also a question OF public
policy that might be involved" said he
suppose a certain road acting indie
pendently should decide to reduce its
rates Other roads operating in the
same territory would probably have to
reduce their rates In like proportion, or
a rate war might develop.
To Have Understanding.
ION TIE other hand, suppose the road
proposed TO increase its rates, it would
probably not do so unless there was a
pretty good understanding that the other
roads would follow suit Now il is lust
as important to the shipper that such
an understanding should exist as il is
to the roads themselves.
We will say. for example, that A is
manufacturing center with a big mar
nected by three or four lines Of rail-
road. All the manufacturers at A are
supposed, Of course, TO be competing
az B. and at first sight il might seem
mat they would be all upOn an
equal transportation footing. But ia
many cases this would not be so, be-
cause OF different terminal and switch
Ing facilities, or of more or less ad-
Nantageous location of the factories.
Consequently il is more advantageous.
perhaps, for one shipper TO use one of
the lines of road while his competitor
prefers another.
Now, If Road No. ] should reduce its
rates and Road Ne. did not, YOU can
see that the shipper over the latter
would be placed at a disadvantage. and
would in the end be driven out OF bust
ness. So the traffic associations do an
important work for both shipper and
carrier. and when IL is done properly.
without lndue determinations, 1t is OF
value 10 both sides"