Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-11-18
LONG HAUL TARIFFS.
Knotty Points in the Interstate
Commerce Law Made Plain by
4 DECISION BY GENERAL vEAZEY.
The Rights Of Carriers to Make Joint Fate
Sheets Considered,
SEVERAL SOUTHERN CASES SETTLED

commerce COMMISSION to-day IN an opinion
by Commissioner Veazey announced its de-
cision in the cases brought by the Georgia
Railroad Commission against the Cincin-
natl, New Orleans and Texas Pacific Rail-
way Company, the Louisville and Nash
Vile Railway Company and other railroad
and steamship lines, involving rates for
longer and shorter hauls from Cincinnati
and other Ohio river points, and from New
York and other North Atlantic ports to
points in southern territory. The main
points decided are as follows:
First-The fact of a receivership for de-
fendant carrier subsequent to complaint
should not interfere with the progress OF
proceeding brought merely for the purpose
of frailway regulation.
Second-The phrase 'common control
management or arrangement for continuous
carriage 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 The receipt success sively by two
or more carriers for transportation OF trafhc
shipped under through bills for continuous
carriage over their lines is assent to COM
mon arrangement for such continuous car
rfage or shipment, and previous formal ar
rangement between them is not necessary
to bring such transportation under the
terms OF the law.
The Total Rate Over Combined Lines.
Third-The total rate for through car
rage over two or more lines, whether made
by the addition OF establisne locals, or of
through and local rates, or upon a less pro-
portionate basis is TIL through rate that is
subject to scrutiny by the regulating
authority. How the rate is made is only ma
terial as bearing upon the legality of the ag-
tan nl1o,r HON Nv
be accomplished is a matter for the carriers
to determine among themselves.
Fourth-The second, third and fourth Sec
tions OF the act to regulate commerce are
compared with provisions in English stat
utes. English decisions are examined, and
the frequent citation of such decisions to in
duence cases brought under greatly dissimi-
lar statutory provisions in this country,
without regard to differences in fact, time,
extent of country and methods of trade and
transportation, are considered and criti-
cised.
Fifth-The fourth section of the act to
regulate commerce is construed and the
vile and Nashville Railroad Company, ], 1nts.
Com. Rep, ,27s; !, I.C.C. Rep, 81, are reaffirmed
except the ruling therein whereby car
riers were permitted to judge forthemselves
IN the first instance OF what constitutes
rare and peculiar competition between
railroads which are subject to the statute
when strict application of the general rule
of the statute would be destructive of legiti-
mate competition" which is overrued.
Competition Is Not to Be Considered.
Si1th-The competition of carriers subject
to the act to regulate commerce does not
create circumstances and conditions which
the carriers can take into account in de-
termining for themselves in the first in
stance whether they are justified under the
fourth section in charging more for shorter
than for longer distances over their lines.
Seventh-The competition of markets on
different lines for the sale Of commodities
at given point served Ov both lines does
not create circumstances and conditions
which the carriers can take into account in
determining for themselves in the first
instance whether they are justified under
the first section in charging more for shorter
than for longer distances over their lines.
To determine the iorce and effect of such
competition involves consideration of COM
mercial questions peculiar to the business
OF shippers, such as advantage OF business
location, comparative economy of produc-
t1on, com parative quality and market value
of commodities, all of which are entirely
disconnected from circumstances and con-
ditions under which TRANSPORTATION is con-
Quoted. Carriers cannot create abnormal
situations by making rates which equalize
advantages al. disadvantages of localities
and thereupon claim justification for
greater charges on shorter hauls on the
ground that the lesser long haul charges,
which accomplish such equalization, are
necessary to secure increase in traffic over
their lines.
Where Carriers Have Discretionary Powers.
ElInUn-lD6 CdTrler mas CQ0 uQ8e
In the first instance whether it is justified
In making the greater charge for the shorter
distance under the fourth section in all
cases where the circumstances and condi-
tions arise wholly upon its own line or
through competition for the same traffic
with carriers not subject to regulation un-
der the act to regulate commerce. In other
cases under the fourth section the circum-
stances and conditions are not pre-
sumptively dissimilar anG carriers must not
charge less for the longer distance except
upon the order of this commission.
Ninth-When q carrier, on complaint un-
der the fourth section, AYERS substantial
dissimilarity in circumstances and con-
ditions as justifying its greater charge Tor
shorter hauls, it is concluded by its plead
ing and must affirmatively show, that the
circumstances and conditions of which it is
entitled to judge in the first instance are in
fact, substantially dissimilar: but upon an
application for relief under the fourth Sec
tion the carrier is not limited by
such rule of evidence, and may present
to the commission every material reason for |
an order in its favor. There seems to be no |
limitation upon the power of the commits
sion to grant relief under that proyiso
IS satisfied that the interests of commerce |
and common fairness to the carriers req uire |
that an exception be made.
Tenth-The complaints in cases No. 324 |
and No. 325 dismissed. In cases Nos
3l4, 3l5, 3l6 3l7 and S26 the defendants are |
more to shorter than to longer distance
points entioned in the complaints, or file |
applications for relief under the provision
clause OF the fourth section, and show cause |
thereon within a time specified.