The San Francisco call., 1896-01-12
Exception TO a Sweeping Ruling
of the Interstate Commerce
Commission.
A LEGAL BATTLE IN PROSPECT.
What Was Brought as Test Case
Proved Most Destructive
Boomerang.

There is now every probability that the
recent decision of the Interstate Commerce
Commission in the case of the Colorado
Fuel and Iron Company of Pueblo, Colo,
against the Southern Pacific Company
and other railroads engaged in interstate
commerce west Of Pueblo is likely to pre-
cipitate great legal battle between the
Southern Pacific Company and some of
the other Western roads involved on one
side and the Interstate Commerce Com
mission on the other.
When the decision was rendered q very
brief synopsis Of it was telegraphed to this
City-no sufficient for the railroad peo-
pie to determine the full scope and effect
of It-and the entire text was expected
with much interest and anxiety. This has
now come to hand and proves to be a most
serious blow at the lines affected.
1t not alone orders a reduction of rates
between Pueblo and San Francisco on iron
and steel and goods manufactured from
these materials, but also between all inter-
mediate points.
In its decisions the commission does not
decide principles so much as it does cases,
ana therefore its decision in this matter
only bears upon the commodities in ques-
ton. But q most vital principle is in
volved and it is expected that a decision
Will shortly be rendered that will cover
rates in the territory mentioned on all
classes of freight and all commodities.
An adherence to the ruling of the COM
mission means decided decrease in the
freight revenues of the companies con-
cerned, as it involved heavy reductions.
All the lines have until January 10 to COM
ply with the order. The only road lat
has thus far announced reductions in ac-
cOrdance with the decision is the Santa
Fe.
At the offices of the Southern Pacific
Company 1t was stated yesterday that he
order OF the commission would in all prob
ability be dISObeyed, or rather ignored. 1t
is expected that charges will then be made
against the company, when the whole
matter will be taken into court. There IS
no appeal, technically speaking, from the
decisions Otthe Interstate Commerce Com
mission, the only remedy lying in a dis
obedience and consequent trial before
judicial tribunal.
The complainant is engaged in mining
coal and iron ore and In manufacturing
coke steel rails, railroad fastenings, mer-
chant bar iron and steel at Pueblo, Colo.
and complained that the defendant rail-
road companies publish a rate between
Pueblo and San Francisco on steel rails
and other articles of iron and steel of 81 so
per hundred pounds while they are parties
TO tariff rates on the same articles to San
Francisco from Chicago OF 90 cents, and
that the rate on said commodities from
certain Atlantic points is as low and some
times lower than from Chicago. 1t was
then charged that these rates uniustlv
discriminate against Pueblo and are in
violation Of the fourth section of the act
to regulate interstate commerce: that
complainant's business of supplying fuel
to Colorado industries and other products
Z n r1Oi7ta in California . of
by these unjust rates and that they had
been deprived of large and valuable
business in the past.
The prayer was that the defendants be
ordered to haul iron and steel and ali
other articles from Pueblo to San Fran
cisco at rates that will pay them relatively
the same profit as was derived from trans
porting similar commodities from the At
lantic seaboard or Chicago to San Fran
( cisco.
In the consideration of the case Com
missioner Clements, who heard it, said:
1t was insisted on behalf OF the complainant
I at the hearing that the rates from Pueblo TO
san Francisco should not exceed 40 cents on
steel rails and SO cents on bar iron, and most
OF the defendants concerned in the transporta-
ton of freight originating at Pueblo and des-
tined westward by their representatives indi-
Gated willingness to concede such rates 10
complainant on condition that the commission
would construe the long and short haul rule
make
such rates the maximum from Pueblo TO points
on their lines between Pueblo and San Fran
cisco. Under such ruling or order all the de-
PENDANTS seem agreed that rates to San Fran
cisco might, on occasion, be made less from
Pueblo than from The East.
This offer to reduce the rates from Pueblo to
San Francisco, on condition that they should
not be applied as maximum rates to inter-
mediate points, is not an application for relief
from the operation of the fourth section of the
law.
Upon the request Of complainant hearing
was had only in respect to that part of the
complaint relating TO rates on steel rails, rail-
road fastenings, bar iron, castiron water-pipes,
pig iron and other iron AMI steel commodities
which take similar rates, those complained of
on other goods being involved in another case
In coming to this conclusion. the COM
missioner said:
This case rests upon broader grounds than
possible availability of competition by rail and
water routes. The disparity between higher
rates for short hauis and lower ones on long
hauls the latter involving greater service and
expense on the part of the carrier, is usually
defended upon the ground, where competition
of other carriers is set up that unless the lower
rate is made, the traffic will not move by the
defendants line, but will be secured by his
competitors. Whatever may be the merits OF
this defense, it would seem that better cause
exists for lower rates where. under higher ones,
the traffic is subjected TO such disadvantage or
prejudice that IL will not move at ALL Such is the
situation deYeloped in the case under cOnsid-