Evening star., 1939-10-25
Antitrust Suit
Against Railroad
Association Filed
Justice Department
Charges Attempt to
Block Truck Competition

Charging that the Nations rail-
roads are attempting to stif1e truck
competition. the Department of JUS
tice today filed an antitrust suit in
District Court. designed to break up
an agreement under which it is
contended that the lines have "com-
blned to restrain trade" by agreeing
not to extend to motor carriers the
same cooperation in the carriage
OF freight and passengers which
they customarily extend to each
other.
Alleging violation of the Sherman
Antitrust Act, the suit was directed
against the Association of American
Railroads. its officers and directors
and 236 member railroad companies
The Government action was an
nounced in statement by Attorney
General Murphy, who said it was
alleged that the railroads have
jointly refused to establish rates on
loaded trucks, trailers and truck
bodies, all commodity rates, con-
tainer and similar rates. and have
jointly refused to establish through
rates, joint rates and fares, and
joint billing arrangements with
motor carriers in order to eliminate
competition"
Murphy Cites Resolution.
The Attorney General said the
agreement which Is alleged to con-
travene the antitrust laws con-
sisted of resolutions passed by the
Association of American Railroads.
The existence of these resolu-
tions,' it was said, were revealed
to the Department of Justice some
time ago. but due to limitation of
personnel it has been impossible for
the department to investigate and
take action. The agreement thus
continued with the full knowledge
of the department.
Moreover, the defendants in this
action have co-operated fully with
the department in the investigation
that preceded the filing of this case
by providing 1t with complete in
formation as to conditions surround
ing the agreement and other fac
tors involved in the situation.
I'm view of these circumstances
and in view of the fact that a civil
suit will adequately present the is
sues involved, the department be-
lieves that a criminal action is in
appropriate. II the court ultimately
determines that the defendants
agreements contravene the anti
trust laws and cancels them, and
these remedies should then prove
insufficient, the way will be still open
for the institution of criminal pro-
ceedings, but it is not proposed to
resort to these unless the civil suit
should prove inadequate"
Charge Barrier Raised.
The statement pointed out that
through routes, joint rates and ar
rangements for joint billing and
other through transportation prac-
tices are indispensable factors "in
the development and operation of
any transportation system not based
upon State ownership or private
monopoly under unified control"
The motor carriers provide these
facilities as between each other, it
continued, but, according to the
Governments charges, the rail-
roads have conspired to block such
agreements with the motor carriers
by individual rail lines.
IAN artificial barrier has thus
been erected to prevent the inter-
change and continuous movement
of traffic between railroads and
motor carriers" the statement
added.
If the restraint upon trade,
charged in the complaint is found
to exist" it continued, this suit
should restore to the individual
railroads freedom of action to enter
into through transportation ar
rangements with motor carriers.
Beyond this, the purpose of the
department does not extend"