Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-11-29
DENIED A REHEARING.
Interstate Comm issiOn's Decision In
the DanYilIe CaSe

The Interstate commerce commission, in
an opinion by Commissioner Prouty, has
announced its decision upon the petition of
the Southern Railroad Company for rehear-
ing in the case of the city of Danvile, Va,
against that railway company and others,
decided by the commission against the rail-
way companies in February last
The commission in it's original decision
held that freight rates between the west
and Danville should not be more than fif-
teen per cent above the rates to Lynchburg,
and that freight rates from northern and
eastern cities. and rates on certain COM
modities from New Orleans to Danville.
should not exceed those to Lynchburg by
more than ten per cent Danville is an in
termediate point to Lynchburg for such
traffic by the Southern railway.
The Southern railway claimed in its petit
ton for rehearing, that to obey the de-
cision of the commission would subject 1t
to over SIG, 900 loss at Danville, and by rea-
son of necessary changes at other points,
to total loss Of over s433, 600 per annum.
In computing this amount. the railway
company considered that changes in rate
would be rendered necessary at 80 other
points by the change at DanVflle.
The commission holds that proper inter-
probation of its decision does not involve
this result, and that the changes at other
points would be comparatively few in num-
Der and insignificant in amount. 1t says,
however that If competitive conditions
should require more reductions than 1t Is
believed would follow, 1t would have power
to prevent any oppressive of unexpected
result from it's order by modifying at any
time the order itself.
With respect to the alleged diminution IN
revenue at Danvlle, it is said that this
amount is apparently reached by casting
upon the Southern company the entire loss
from the point of origin. This was not the
intent of the original order, which said
that the connections Of the Southern should
be compelled to participate in the reduc-
lions, and the commission declares that II
those connections decline to do so, and
cannot under the law be compelled to, the
Southern railway will not be required to
maintain the rates suggested. Attention is
called to the fact that while the loss or
revenue estimated to occur at Danvllle
does not correctly show what the Southern
must lose, it does nevertheless indicate
what Danville is paying over and above
just and lawful transportation charges.
1t is said that these figures fairly show
that the city of Danvile, with a popula-
ton of only about 10000 is paying at least
600 per year more for railway trans
portation than the city Of Lynchburg, only
Sixty-Six miles distant, would pay Tor the
same amount of transportation, and 1t
concludes that under these circumstances
there can be no continued competition be-
tween these cities.
Referring to the claim of the company
that it's $40, 600 of common stock paid
no dividend in 1899, and that the order OF
the commission would deprive the owners
of the stock Of their property without due
process of law. the commission says that
the stock was issued part of the reor-
ganization scheme under which the com.
pany came into existence, and 1t does not
appear in testimony that anything was ever
paid for it..
The commission rules that something
moro is needed in such a case than setting
nm tho existence and amount Of capitall-
zation; that it does not rest in the whim OF
a REORGANIZATION committee in Wall street
to impose a tax upon that whole southern
country: that the property OF the railway
company should be most carefully protect
ed. but the property Of the citizens OF Dan
vile is just as sacred as are the securities
of the railway company.
The petition for rehearing is dismissed.