Show RAILWAYS BUYS FILE FILET T THEIR ANSWER Southeastern Roads Deny Jur Jurisdiction Jurisdiction of Interstate Com Commerce Commerce Commerce merce Commission RATE INCREASE NECESSARY BUSINESS POOR AND HIGH WAGES PAID Washington Aug Aub 22 The railroad companies operating In the southeast southeastern southeastern ern territory today filed their answer before the interstate commerce commission com commission commission mission to complaints which have been brought against the advance in Jn rates on grain and grain products from Ohio river crossing to the th southeast In connection with this answer the railroads tiled flied a motion and demurrer to strike out of oC the complaints certain allegations with regard to the South Southeastern Southeastern Southeastern eastern Freight association and sim similar simIlar ilar associations being a combination in restraint of oC trade and in violation of oC the Sherman antitrust law The Th grounds for this motion are first that the Interstate commerce commer e commission has frequently ruled that it has no ju jurisdiction jurisdiction to administer the Sherman antitrust law that the law being solely a matter for the action of ot the th courts Second that the interstate commerce commission has ruled that a arate arate arate rate may be reasonably low or indeed unreasonably low even even though it be bethe bethe bethe the result of oC an illegal combination Disorganized n Commerce The railroads allege In ht the present instance that while the order of ot Judge Emory Speer Speer ot of Georgia was Vas in force from Crom Aug 1 to Aug 5 giving a lower rate to shippers in Georgia than to those in any other state in the south southeastern southeastern eastern territory the effect was to de Ie demoralize demoralize moralize and disorganize trade and an commerce The railway companies take the position that this is a demon demonstration demonstration demonstration of the fact tact that such associations associations associations as the Southeastern Freight as aa association a are absolutely necessary to prevent demoralization of commerce and that they promote trade instead of oC retarding It The defendants d allege that their recent Increase of rates has hab not suppressed competition and that thai the same competition exists as here heretofore heretofore heretofore They deny den that th t the territory north of or the Ohio and west of the Mis Mississippi Mississippi MIssissippi river Is dominated by any traffic traffic traffic fic association which fixes or main maintains maintains maintains freight rates or suppresses com competition competition com competition petition or restrains interstate trade Not Entitled to Lower Rates The railroads deny that commodities involved in their increase of or rates are entitled to lower rates than other commodities or that the advance was other than small and reasonable and declare that the increase will not seriously se seriously seriously or at all disturb existing trade relations or Injure the consuming consumIng consuming ing public They deny that the margin of profit obtained by the dealer will not permit him to absorb the entire ad advance advance advance vance in rates or that the consuming public will be forced to bear any por portion portion portion tion of the additional charge represented represented represented by b an increase in the price The directors deny den that the Increase will restrict the volume of traffic and declare that it ft is 15 not even cven a sufficient compensatory charge to fairly meet the cost in value of the service performed by b them They The claim that while the thenet thenet thenet net rates of or some of the roads have in recent months shown some advance yet taking all ail of the months together the net earnings as well as gross earnings have shown a very large di diminution diminution diminution since Feb eb 1 1905 Wages Increased They declare de lare that the wages of oC their have been heen Increased and that prices of all articles necessary for the maintenance and equipment of or their lines are higher that the demand of o othe the public for tor efficiency of service has become more and more exacting and an l that they have been compelled to meet an increased and most costly demand i ifor for safe sate prompt and efficient service Since November 1907 the traffic has decreased decre sed decreasing their gross rev revenues re revenues enormously while they have been obliged to continue their high scale of wages and to 0 pay high prices for all material and supplies The railroads aver that there Is no e left to them except to ad advance advance vance ance their rates In ig order to Ito pay their thel I empl es They say MY the development i of or the south depends upon an Increase I rather than a decrease of their effi em efficiency efficiency I clency 1 |