Los Angeles herald., 1910-06-01
INJUNCTION HALTS
A GENERAL RAISE
IN FREIGHT RATES
Government Charges rs Roads
with Conspiracy and Vio-
Iating Antitrust Law
COMPLAINT is STARTLING
Temporary Order Blocks Increase
Which Was to Have Been
Effective at Midnight
IAssocinted Press1


TAssociated Press1
" ANNIBAL, Mo-, May 31.-Twenty-
five western railroads were tenn
81 porarily restrained tonight by
United States District Judge Dyer from
enforcing or making a general advance
in interstate freight rates.
The injunction was granted on pc
tition filed by the government on the
allegation that the advances in rates
were arrived at by the defendants by
a agreement in violation of the Sherman
antitrust act.
The petition says that unless such
restraining order were issued the in
creases would become effective at mid
night tonight, to the grave injury of
the people of the United States.
The petition on which the in1unc-
tion was issued was presented to Judge
Dyer by Edward p. Grosvenor of
washington, special assistant to the
attorney general, and by Frederick M;
Judson of st. Louis, acting as special
counsel 1t was signed by George W.
Wickersham, attorney general; VIII
liam S. Kenyon, assistant to the at
torney general, and Charles A. Houts,
United States district attorney.
The roads restrained are:
Missouri Pacific.
Chicago e. Northwestern.
Chicago, Burlington & Quincy.
Chicago Rock Island & Pacihc.
Wabash.
Chicago, Milwaukee & st. Paul.
Chicago Indiana & Southern
Illinois Central.
Chicago Alton.
Atchison, Topeka & Santa Fe'
Chicago & Great Western.
Missouri Kansas & Texas.
ST Louis e. San Francisco.
Quincy, Omaha & Kansas City
ST Paul &, Des Moines.
MINNEAPOLIS & st. Louis.
Iowa Central.
Fort Dodge, Des Moines & Southern
| Chicago. St Paul. Minneapolis & Omaha'
Flgin, Joliet & Eastern.
! Chicago, Peoria St. Louis
| chicago, Milwaukee & Gary. -,
| NJirneanolis St Paul G. Sault Ste. Marie
| Kansas City Southern. a.,
| Tho Western Trunk Line committee.
The restraining order declared 1t was
,ssued unon complaint of counsel fol
the government that they would a,
once file a certificate under the act OF
| Tebruarv II, 1903 providing for
speedy termination of the issues.
CONSPIRACY CHARGED
The title of the suit is THE United
! states. complainant, VS.. the twenty
FIVE Defendants, restrained IN inJunc-
tion." ,-,.r... o,,d
conspiracy"
The petition says the railroads, gen
orally speaking. are the only ones 1oi
| the transportation Of freight and pas
senger traffic for the states or MlssouIl
Iowa. Minnesota, Kansas. Nebraska
South Dakota, North Dakota, Wyom-
ing and parts of Montana, Michigan
Wisconsin. Illinois and Tennessee.
| Referring to the unlawful comblna'
tions and conspiracy alleged, the petl-
tion says:
| "Rut for the conspiracy, understand
ings and agreements between the olt
| ferent railroads, the defendants woulo
have continued in the said interstate
trade and commerce, in competitor
with each other, as to rates and charges
to he collected for the interstate trans
portation of freight and passengers
| and as the facilities and advantages &c
be offered to the travelling public ano
| to shippers of commodities IN inter
state commerce, and would now pe
competing in said interstate transporta-
ton, trade and commerce"
UNLAWFUL AGREEMENT MADE
The second part of the petition states
that on December 6, 1906, the defend
ants, with the exception of five roads
! named
usual rates and charges for which they
were accustomed to carry freight, but
intending to monopolize the transpor-
tation. traffic, trade and commerce be-
! tween the different states, "d1d COM
bine. conspire, confederate and unlaW-
| fully agre to organize and become
members in the Western Trunk Line
committee, with the object of using
said trunk line as a means of suppress
! hafwaAn de-
PENDANTS, in the said interstate trans
portation, trade and commerce."
Continuing, the petition says that
since the date mentioned, the Western
Trunk Line committee, unincorporated,
with headquarters In Chicago, is the
instrument by means of which freight
rates have been fixed, and that the
charges now being imposed are the
same by all the defendants and are
so made by agreement.
METHODS OF FIXING RATES
The following is the method by
which the petition alleges rates are
| fixed by the western trunk Line coih-
mittee:
Zach of the defendants is member
of the Western Trunk Line committee.
There is a freight committee composed
of the freight traffic managers or gen
eral freight agents of each of the de-
PENDANTS. This committee meets once
every month. Whenever any defend
! ant contemplates a change in any
rates. rules or regulations, the officer
or official representing such defendant
on such committee suggests such
| change to the chairman of the COM
mittee, who then dockets the same for
consideration and discussion at the
next meeting Of the freight committee.
At that meeting the matter is brought
up for consideration. If all agree, the
proposed change is made by all roads.
the defendants herein. Unless there
is a unanimous agreement, the sugges-
tion is rejected and no road adopts the
proposed change of rates"
The petition says there is an agree
ment between the defendants to the
effect that no rates will be advanced OF
reduced except with the concurrence Of
the entire body, with simultaneous
advance or reduction by all the Others
agreed upon at meeting of the freight
committee. Further it is claimed by
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