Evening journal., 1910-05-30
PLAN TO BALK
MORGAN COUP
Representative Of ManufaCt-
urerS Association ASSailS
the Railroads

BY United Press Leased specia, Wire.
WASHINGTON, May se-ro fight
against an impeding billion dollar
coup" by }. p. Morgan and the allied
interests. representatives of a score
or more Of the biggest mid-western
shippers associations to-day gathered
in this city to demand that Attorney
General Wickersham proceed against
Railroad traffic associations as monop-
olies in restraint Of trade and violaters
Of the Sherman antitrust law"
"A gigantic attempt to pull off a
coup on Wall street that will net the
interests a round billion" is the way
John M. Glenn. chief Of the transporta-
ito ndepartment of the Illinois Manu-
facturets' Association, to-day summed
up the sudden movement of the rail-
roads throughout the country to boost
freight rates up to 20 to so per cent.
I'VE are here to demand that the
attorney general set the machinery OF
tho Department Of Justice in operation
against the traffic associations" said
Glenn to-day to a representative of
the United Press.
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 also far has
been overlooked. And that is the traf-
fic association-these organizations
that meet and fiv freight rates which
the railroads adopt
To See Wickersham.
Notice already has been given that
an increase in rates is proposed in
the western classification territory. Co.
incident with that comes the news that
20 per cent, boost is due in the
eastern territory likewise. We will ask
Attorney General Wickersham to pro-
ceed against the western association
as a trust in restraint Of trade and a
conspiracy.
"When the railroad bill was intro
duced in Congress it contained a pro-
vision placing traffic associations with
out the scope of the Sherman law. AT
that very time the railroads were Sc
cretly getting together for the coup,
On April 5th, at the Railway Ex-
change in Chicago there was a secret
meeting of the presidents of a score
or more of the big railroads. on May
23rd, in the Offices Of the Trunk Line
Associations on Liberty street in New
York there was another such gathering
-. Pierpont Morgan an dthe others of
the allied interests dictated the course.
In brief the scheme was to boost prices
all over the nation and thereby create
larger dividends, increasing the value Of
securities in Wall street. And when the
securities had properly scared these on
the inside Of the deal would pocket the
proceeds.
But the tariff agreement section was
defeated in the railroad bill by the in
surgents in congress and 10 this extent
the frame up did not go through as per
schedule. But unless something is done. IL
will be pulled of, in just as pleasing a way
to the railroad interests,
The railroads have broken faith with
the shippers. Some time ago the railroads
agreed with the Illinois Manufacturers
Association-or a COMMITTEES OF that or.
ganization-to call them in Cor a confer.
ence in the cae Of a "re-ad ustment" be
ing contemplated for existing rates. We
knew nothing about this scheme which
has just come 10 light. They broke faith
with us.
And not long ago, about the time
Of that meeting in Chicago after the
railroad presidents. met friend OF
mine, who is at the head Of a big line
and he said 10 me:
well damn you, you thought you'd
put us in a hole with that corporations
tax proposition, and now, you'll find
yourselves in a hole
THE idea now is to raise the rates
to the sky, and then, If they are fore
ed down, it will be TO compromise
figure which will be higher than the
present ones"