Los Angeles herald., 1892-04-26
THE SANTA FE WINS,
Judge Ross Decides Against
San BernardinO.
Los Angeles Is Entitled to Terminal
Point Rates.
The Features of the Decision Rendered.
Yesterday by Judge EOss-Some
Interesting Points-A Very
Learned Judgment.


Interesting Points-A Very
Learned Judgment.
Judge Ross OF the United States cir.
cult court yesterday handed down an
opinion disposing OF the suit of the
Interstate Commerce Commission
against the Atchison, Topeka and Santa
Fe Railroad ct al. The plaintiff party
to the proceeding was the city of San
Bernardino, and the point involved was
to compel the defendant company to
carry freight from eastern points to the
city Of San Bernardino as cheaply as to
Los Angeles.
The learned Judge in a lengthy and
exhaustive opinion decides adversely to
the city of San Bernardino, holding
that Los Angeles is competitive point
and therefore the road was entitled to
make competitive rates. In substance
Judge Ross says that this is a proceed
ing instituted to enforce an order made
by the interstate commerce commission
that the defendant companies cease
from charging any greater compensation
in the aggregate for the transportation
in carload lots of commodities from
Kansas City, st. Louis, Detroit, Gin
ciunati or New York, or from cores
ponding points for the shorter distance
to San BernaYdino, than the longer dis
tance on the same line to Los Angeles.
A demurrer was filed by one of the
defendant companies, and the commits
sion held the complaint was sufficient
to put the carriers to proof that the
services were rendered under such
dissmilar circumstances as to
justify the greater charge for the
shorter haul; and after hearing
evidence found certain facts, which are
set out in its report and opinion, hold
ing the greater charge for the shorter
haul was not justified by the facts found.
The order was entered, which this court
is now asked to enforce. After recital
of the corporate status OF the defendant
company in any answer comes also the
additional element that owing to ocean
competition the conditions of San Ber-
nardino and Los Angeles were dissimilar
"a most substantial element of compe-
tition that is actual, present and in
CTSdSluSs IL was lUlIuCI 6AOWu bAou
there are four competitive lines Of COM
munication with the east that reach Los
Angeles.
After giving synopsis of the legal
issues presented, Judge Ross says:
The real question, therefore, for the
decision of the court is whether or not
the case shows tina, the circumstances
and conditions existing at Los Angeles
and San Bernardino respecting the
transportation OF the commodities are
substantially dissimilar and this is
mixed question of law and fact. 1t is
said for the defendant companies that
the facts in regard to that question were
not fully presented to the interstate
commission when the matter was there
considered, and attention is called to
the fact that the commission itself has
since held, in the case of Rice Va. Atchi-
son, Topeka and Santa Fe Railway
company, that Los Angeles is terminal
and competitive point in respect to Pc
troleum and its products-the traffic
there involved-and that the Atchison,
Topeka and Santa + e company was iusti-
fed by the existence of substantially
dissimilar circumstances in making
lower rates on that traffic to Los Angeles
tu6H W polutS.
The learned judge then quotes COM
mission regarding the difference in situ
alton between Los Angeles and San
Francisco, Sacramento, Stockton, Marys-
vile, Oakland, San Diego, and then con-
tinues as follows: 1.-The common carrier
cannot be required to ignore or over
come existing differences in the trans.
portation facilities OF different localities,
created, not by its own arbitrary action,
but by nature or by enterprises beyond
his control.
"San Bernardino is situated in one of
the most fertile and productive valleys
in the world, and is thriving and pros
porous city; but it has not the trans
portation facilities that Los Angeles has.
1t is sixty miles distant and further
inland. By reason of it's nearness to
Los Angeles, it receives the benefit OF
the competitive rates to that terminal in
proportion to its proximity thereto.
Butnot being competitive point, it
does not get terminal rates. The proof
shows, what is also matter of common
knowledge, that railroad companies do
not make terminal rates unless COM
PEELED to do SO by competition.
If, therefore, Los Angeles can be Justly
regarded as a competitive point in re-
spect to the transportation OF the COM
modities here in question, there is such
dissimilarity OF circumstances and con-
ditions between it and the intermediate
point of San Bernardino as to make the
long and short haul clause of the inter-
state commerce act inapplicable."
The decision then quotes from the re-
port Of the commission, showing that
Los Angeles and San Diego are the only
points between San francisco and the
southern boundary of California which
are terminal points, showing the small
amounts of articles named in the COM
plant which were shipped from the
east by the sea, showing that practically
no water competition exists from the
Missouri and Mississippi rivers and in
terror cities to this coast. After out.
lining the various railroads connecting
Los Angeles with the seacoast. the de-
cision continues as follows:
Los Angeles is city of about 10000
people, and because of its location in
respect to transportation facilities, and
because it is the most important point
in Southern California, it was made one
of the terminal points of the Pacific
coast by the transportation companies.
The evidence shows that large num-
ber of the mercantile firms OF San Fran
cisco, dealing in some or all of the COM
modities mentioned in the petition.
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