The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-06-06
TO THE SUPREME COURT.
That Is Where the Long and Short
Haul Question May Go.

The Decision a Disastrous One for the
Railroads If Sustained-It Would
Enforce a Schedule of Rates Which
Would Almost Amount to a Confs-
cation of Property-Stockhold ers
Have the Right of Appeal to the
Federal Courts Against the Rates
Fixed by the Commission.
The question of railroad rates is said
now TO be the biggest question in the
commercial circles of the United States,
and so numerous and varied are it's
phases that it takes a traffic manager
years to become thoroughly familiar with
the situation.
The recent decision Of the United
States court of appeals enforcing the long
and short haul clause of the interstate
commerce law in its applicat ton to the
suit brought for violation against the
Cincinnati Southern, Western and At
lantic and Georgia railroads has elected
much attention, and brings up question
with regard to railroad rates, which, in
its final determination. will have. a seri-
Gus bearing on the railroad situation in
all parts of the country.
The railroads will never allow it to
rest there, " said a man interested in rail
road tariffs yesterday, land / am in
cllned to think the decision in it's applica-
ton TO that particular case will meet
with reversal before the United States
supreme court
WANT A LIBERAL CONSTRUCTION.
at may be noted that the law prohibits
| a greater change for a short haul than
for longer, when the former is included
in the latter, is over the same line in the
same direction and under similar condi-
| lions and circumstances. Now il is on
| that last clause that the railroads largely
rely, and if the supreme court will
place upon 1t as liberal a construction as
did Senator Cullom, chairman of the
Senate committee which prepared the
bill, the railroads will have no trouble in
carrying their point. He stated before
the committee that where The more dis
tant point was competitive as between
several transportation lines, and the
nearer point was not dissimilar condi-
| lions were created and the clause did not
apply.
80 it was with the Social Circle case.
The rate on buggies to Social Circle from
| Cincinnati was the rate to Atlanta, a
competitive point, plus the local rate
from Atlanta to Social Circle, while the
rate to Augusta was a separate and dis
tinct one. that being also a competitive
point. The interstate commerce com
mission held, however, that the fact that
Augusta was competitive point did not
create dissimilar circumstances and con-
ditions. OF course it would be folly to
argue that question with a railroad man
who knows otherwise.
WOULD BE DISASTROUS FOR THE ROADS.
IF the decision were sustained, the
railroads yyOnlG hava h,lt OLE
to Increase the rates at the competitive
point But that would be disastrous to
them in larger measure. as a much
larger share of the business would go to
the river steamers, which do not come
under the operations of the interstate
commerce law.
''Or, if on the other hand they arranged
to have prorated the rate to a competi-
tive point on the traffic for a local point.
it would be no better for them, and per
haps worse. For example If the rate
from Cincinnati on certain freight to At
lanta was 81 per hundred, and to Augusta.
also competitive point, 81 per hundred
and the local rate from At
lanta to Social Circle was 80 cents,
then if the decision were enforced the
rate to Social Circle might be made the
same as to Augusta andnthis rate pro-
rated between the Georgia railroad and
the other roads interested. But in that
case, as the rate to Atlanta is 81, the
Georgia roads share would be, for ex-
ample, 10 or 10 cents instead
Of 80 cents, which is, for example,
the local rate allowed by
the commission from Atlanta to
Augusta. At this rate the Georgia road
would never be able to pay its rental,
which it can hardly do as il is now.
MEANS MUCH TO THE RAILROADS,
THE question means much to the rail
roads. II is the rates made by railroad
commissions that have brought many of
them to bankruptcy When rates are car
ried down to that point it amounts
to practical conhscation of prop
erty. The money invested in
the railroads is doing no good;
it is inert, and there is no doubt but that
rates forced down to point where the
invested money can earn nothing accom-
plishes more harm than good for a com
munity.
The supreme court of the United
States has taken a broad view of the mat
ter in the case of Texas railroads, where
the state commission put rates down
TO basis which was non-pay-
ing for the capital invested. 1t gives the
stakeholder living in another state the
right of appeal to the federal courts,
where rates are put so low as to be OPP
| pressive to the capital invested. and
practically prohibits railroad commits
| slons in any state from enforcing
| schedules of rates which are arbitrary
in their nature, and which by reason of
thor low basis result practically in a
contiscation of property, as the capital in
vested is prevented from earning any
dividend whatever, and too often termi-