The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-03-31
WILL AFFECT TRADE cENTERS.
INTERSTATE COMMERCE DECISION
IN THE SOCIAL CIRCLE CASE.

May Result in Important Changes In
Railroad Tariffs 81 the Commission
Adheres 10 Its Former Policy ON
the Long and short Haul Clause.
savannah's Rates Governed by
Water Competition, But Interior
Points May suffer.
The Morning News dispatches this
morning announce the decision Of the su-
preme court in the now famous Social Cir
Gle case. The decision appears 10 be equal
~ divided between the people and the rail-
roads, the right Of the commission TO make
rates being denied and its right TO enforce
the long and short haur' clause being
sustained. This clause briefly means that
a railroad or any number of connecting
railroads shall not charge a higher rate
for shorter distance than for a longer
distance over the same route.
The power. if extensively applied by the
commission, is like to play havoc with
some trade centers in this section. Savan-
nah would not be affected so much as the
interior centers. on account of her rates
being controlled by water competition. To
Offset this the railroads may be compelled
to grant a diffcrential on carload lots as
compared with smaller quantities. some
thing which has been contended for by the
wholesale merchants for some time.
The Social Circle case became famous
because Il was the first instance in this
section which the commission undertook
to enforce the long and short haul clause
and the length of the time which the case
has been in the court shows how closely
it has been contested. On this account a
review of the case will be Of interest. 49,
1t was a complaint filed in Oct. is, 1889,
by the James a Meyer Buggy Company
of Cincinnati, o., against the Cincinnati,
New Orleans and Texas Pacific Railroad
Company, Western and Atlantic Railroad
Company and the Georgia railroad for
charging sl.37 per 100 pounds on buggiesl
etc, to Social Circle, Ga, against SLY
per 100 pounds to Augusta, Ga, the longer
haul, in violation of section four of acts
creating interstate commerce commission,
known as the long and short haul
clause" After very exhaustive hear
ing the commission, on June -, 1891, de-
cided the complaint was well taken, anu
the railroads appealed to the courts, with
result adverse to them.
From the telegraphic account received
Of the decision, it seems the commission
is sustained in every point except that
Of an attempt to make rates. 1t clearly
exceeded its powers in this particular, ac-
cording to authorities here, as there does
not appear anywhere in the original act
and amendments any language clothing
IL Win the power OF rate making.
Some of the later rulings of the commits
sion have not been in line with this decis-
ion, notably in the complaints filed by the
trade bodies of Chicago and Cincinnati
against the whole railroad system of
the south and their steamship line.
In the Social Circle case the water COM
petition of the Ocean Steamship and Clyde
lines was ruled out as having a bearing in
fixing the rate to Social Circle. In the
cases of Chicago and Cincinnati a lower
rate was permitted to be charged to Macon
from Chicago and Cincinnati than 10
GAINESVILLE and Forsyth. In this the rate
TO Macon and Atlanta was the same. just
as in the Social Circle case the rates were
the same 10 Atlanta and Augusta, but
higher to intermediate points. If the
commission should return to its ruling in
the Social Circle case, now affirmed by the
United States supreme court, there will be
a need for new freight tariffs, and rail-
roads like the Louisville and Nashville
that have heretofore defed the rulings of
the commission will hereafter bow TO its
power as now pronounced by the supreme
court.
The settlement Of this case is looked up
on as better for the railroads as well as the
people. Both now have bounds set to their
power and hereafter there will be less at
tempt al trade center building, and
more equal and just rates will prevail.