The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-11-18
REGULATION OF RAILROADS.
The Decision in the Gases Brought by
the Georgia Road

! the Georgia Road.
/ WASHINGTON, Nov. 1.-THE Interstate
commerce commission to-day announced its
decision Of the important cases brought by
the Georgia railroad commission against the
Cincinnati, New Orleans and Texas Pacific
Railway Company. Louisville and Nash
vile Railroad Company and other railroad
ana steamship lines, seven cases in all, in
/ volvlng rates for longer and shorter hauls
from Cincinnati and other Ohio river
/ points, and from New York and other North
I Atlantic ports to points In the southern ter
rltory. The long aud short haul clause Of
| the interstate commerce law is construed by
the commission in the light of more than
I i've years operation of the law, and the
decisions heretofore rendered by the com
missions and courts.
EFFECTS OF RECEIvERsHIPs.
The main points decided are as follows:
The fact Of a receiverShip for a defendant
carrier subsequent TO complaint should not
| interfere with the progress of proceedings
| brought merely for the purpose Of railway
regulation. This is important to the Rich
nond Terminal Georgia Pacific and other
tied-up roads.
| The phrase common control. manage
rnent or arrangement for continuous car
rage or shipment" in the first section Of the
act to regulate commerce was intended to
cover all interstate traffic carried through
over all rail or part water and part rail
lines.
WHAT CONSTITUTES ASSENT.
The receipt successfully of two or more
carriers for transportation OF traffic shipped
under through bills for continuous carriage
over their lines is assent to a common ar
ranRement for such continuous carriage or
| shipment, and previous formal arrange
ment letWAnn fhon IL
essary to bring such trans
portRtion under the terms Of the law. The
total rate for through carriage over two or
more lines, whether made by the addition
OF established locals or Of through and local
rates, or upon less proporticnate basis, is
the through rate that lie subject to scrutiny
By the regulating authority how the rate
is made is only material as bearing upon the
legality Of the aggregate CHARGE and how
any reduction may be accomplished is a
matter for the carriers to determine among
themselves.
COMPETITION NOT THE BASIS.
The competition OF carriers subject to the
interstate commerce act does not create cir
cumstances and conditions which carriers
can take into account In determining for
themselves in the first instance whether they
are justified in charging more for a shorter
than for longer distance over their lines
nor does competition Of markets on differ
ent lines for the sale Of commodities at a
given point served by both lines. To deter
mine the force and effect of such oompeti-
ton involves consideration of commercial
questions peculiar to the business OF ship
pers. such as advantage OF business location,
comparative economy Of production, COM
parative quality and market value Of COM
mcdities, all of which are entirely discon-
nected from the circumstances and oondi-
lions under which transportation is con-
Quoted.
ABNORMAL SITUATIONS.
Carriers cannot create abnormal situa-
tons by making rates which eQualize adj
vantages and disadvantages of localities,
and thereupon claim Justification for greater
charges on shorter hauls on the ground that
Lesser long haul charges which accomplish
such equalization are necessary to secure an
increase in traffic over their lines. A car
rier has the right TO judge In the first In
stance, whether it Is justified In making a
greater charge for a shorter distance in
all cases where the circumstances and
conditions arise wholly upon its own line,
or through competition for the same traffic
with carriers not subject to regulation I'M
der the interstate commerce act In other
cases circumstances and conditions are not
presumptively dissimilar, and carriers must
not charge less for a longer distance ex-
cept upon order Of this commission, and the
proof will De put on the carrier.
Upon application for relief under the 4th
section proviso of the interstate act, a
carrier is not limited by the rule of evil
dence, aud may present to the commission
every material reason for an order in its
favor.
THE POWER TO GRANT RELIEF.
There seems to be no Limitation upon the
power of the commission to grant relief IN
der that proviso, when, after investigation,
the commission is satisfied that the interests
of commerce and common fairness 90 car
riers require that exception should be made.
Cases No. 924 and 1926 are dismissed.
In cases Nos. 3l4, 9l5, 316, SIT and 1926
the defendants are ordered to cease and de-
sist from charging more to the shorter than
to the longer distance points mentioned in
the complaints, or file applications for relief
and show cause thereon, within the time
specified.
The decision is IN the line of more COM
plete control by the commission over the
long and short haul clause of the act, and
TO make the commission and not the rail-
roads arbiters In cases alleged to Justify ex-
captions to the general rule that roads must
not charge more for a short than long
haul.