Bismarck weekly tribune., 1888-09-21
The Interstate Commerce Commits
sion Files an Exhaustive Report
Concerning the Action of
The st. Paul & Kansas City-The Lat
ter's Explanation of Its Course
Declared Insufficient.
An Order to be Entered Compelling
the Road to Cease Its Pres
ent Illegal Charges.
The Argument In Detail.

The Argument In Detail.
WASHINGTON, D. c., September 19.-The
interstate commerce commission today
through Chairman Cooley filed an opinion
in the matter of the Chicago, st. Paul g.
Kansas City Railroad company. This
company in June last notified the COM
mission that owing to the action of COM
peting lines covering rates between G hi
cago and st. Paul and Minneapolis, it had
been obliged to reduce it's own rates be-
tween these points below the rates which
it could afford to accept to intermediate
points; so that upon its line there would
be greater charges made on shorter hauls
than on longer in the same direction, and
it stated that if complaints should be made
OF this it would undertake to justify its
action under the interstate commerce law.
The principal question raised before the
commission was whether it had the power
to compel the Burlington & North
ern to increase rates to remun-
erative point il they were found
to be below that point. The commission
disclalms any such power. 1t holds that
congress in the provision requiring that
all rates be reasonable and just was legis-
lating for the
PROTECTION OF THE GENERAL PUBLIC. II
and not for the protection of railroad COM
panies against the action of their own
managers or against the unreasonable COM
petition of roads and that it was never in
of congress that it should
be within the power of the commission to
order an increase in rates, which in its
opinion ought to have been made higher
than they were. In this respect it was
supposed the railroad companies had an
ample remedy in their own hands in the
authority which they possessed to make
rates, and that the protection needed
from the government was the protection Of
those who would be compelled to pay the
rates that should thus be made. The
further question was discussed whether
the fact that the Burlington & Northern
made rates which were unreasonably low
made out the dissimilar circumstances and
conditions under the fourth section of the
act which would entitle the respondent
company to make a greater charge on the
short haul. The respondent contended
that it the commission could not control the
AAUAAhS VI INV LIQUID GllC COlu-
petition Of the railroads which were sub
ject to the act to regulate commerce was
JUST AS HARMFUL
as was the competition OF vessels or the
competition Of railroads not subject to the
act, and therefore the competition of the
Burlington & Northern at the terminal
points of the respondent had established
such dissimilar circumstances and condi-
tions as justified its charging less at such
terminal points than at intermediate sta
tions. The commission does not assent to
this view. The showing Of respondent is
merely that a perverse rival makes unrea-
sonably low rates to the terminal of it's
road, but if this makes out the dissimiiar
circumstances and conditions intended by
the fourth section of the act, then any one
railroad manager in the northwest may at
pleasure by a foolish tariff sheet give to
one or more points of railroad competition
and this would defeat one of the leading
purposes had in view in adopting the act,
which was to put an end to the discrimina-
tlOnS Which before were SO common be-
tween different localities. The act itself
would therefore, as to one OF its leading
purposes, be dependent upon the will of
ANY SINGLE RAILROAD MANAGER
who from policy or perversity might see
fit to nullify it. The effect of the doctrine
contended for on the part of the respond
ent would be that railroad companies if
they choose to do so may at will build up
a single point in the northwest to pre-
ponderating and conclusive ascendancy at
the expense of all others, giving it rates
which ir proportion would be mere frac-
tion of what other localities must pay, and
might fix its ascendency with little regard
to natural or other advantages. 1t will not
do to say that the rates to intermediate
stations are just and fair in any of them
selves. The question of what are just
ana fair rates is always relative. Low
rates to one place may not be just and fair
if still lower rates are given to rivals. The
commission therefore finds and adjudges
that the transportation of freights by re-
sp0ndent upon its road from Chicago to
st. Paul, Minneapolis and Minnesota
Transfer and from such northern termi-
nus to Chicago is made under substantially
similar circumstances and conditions to
those under which like freights are trans
ported on the same line from the same ini-
tial point or points in the same direction
the case, that the greater charges which
respondent makes to such intermediate
stations are illegal. An order will be en-
tered that respondent cease and desist
from making such illegal charges.