Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1900-04-28
IRON COMPANY WINS.
Secures More Favorable Adjustment
OF Freight Rates TO the Coast.

VI Aflkut iNNAfN W Ailf AINiHAs
The Denver Post says that the Col
orado Fuel & Iron company has a last
scored a victory over the railroads.
Eight years ago the company appealed
10 the interstate commerce commission
for freight rates on iron and steel
products from Pueblo 20 the Pacific
coast which would permit competition
with Chicago manufacturers I'M Pacific
coast and oriental trade. The commits
sion ordered the Southern Pacific conf
pany, which was the principal defend
ant. 20 put ~ effect rates which should
not be In excess Of 70 per cent of the
rate from Chicago Co San Francisco.
Where hitherto the Pueblo iron manu-
facturers had been enduring a rate
from that city TO the coast OF 800 per
100 pounds. the new rates ordered by
the commission were ln figures 80 cents
per 100 pounds on steel rails and 3li4
cents on merchant iron steel, pipe,
etc. The Southern Pacific company
for two years obeyed the commissions
order and during this period the fuel
and iron company built up an extensive
trade westward. Suddenly the carriers
withdrew the commissions rates and
offered a CO and 75-cent rate respective.
ly on the articles named An appeal
20 the United States court by the Color
ado Fuel & Iron company resulted IN
the issuance Of an injunction. restrain
ing the Southern Pacific from violating
the interstate commissions order. At
the same time the court refused TO al
low the fuel and iron company 500 600
damages sued for under complaint
that the violation Of the commission g
order by the Southern Pacific company
deprived the iron company Of the coast
trade which had been built up.
Appeals were made by each party the
Fuel & Iron company excepting to the
lower courts adverse ruling on It's
claim for damages, and the Southern
Pacific excepting to the ruling Of the
lower court on the rate question. In
Vulnerable delays I'm the proceedings
followed, the railroad companies resort
ing 20 dllatory tactics. The cases were
argued IN 81. Louis before the United
States court OF appeals last January.
In the meantime other cases involving
similar contentious OF shippers had
been decided by the United States
courts in the East and Southeast ad-
yerseiy 10 the railroads.
Recently the United States court OF
appeals rendered a decision IN ST. Louis
holding that the interstate commerce
commission erred in fixing the rates
from Pueblo TO the Pacific coast az a.
and S7ia cents per 100 pounds respec-
lively because this act was inconsist-
ent with decisions OF the United States
Supreme court on the long and short
haul clause Of the interstate commerce
act. namely that the rate Tor a short
haul shall not be greater than the rate
for a longer haul that the act does not
say that the rate Tor the shorter haul
shall be less.
The commission had made II less from
Pueblo to San Francisco than from
Chicago 90 that city. The court OF
appeals held that the commission has
the right 10 order a 75-cent rate. which
is the same as that enjoyed by Chicago
manufacturers OF iron and steel TO the
coast. and the Colorado Fuel & Iron
company Is now permanently on that
basis Of westward shipping privileges.
The railroads must also extend the
same rates TO all manufacturers OF
similar products IN Pueblo
The court Of appeals denied the Fuel
& Iron company's claim for damages,
and held that the restraining order
granted by Judge Hallett against the
railroad company Is erroneous. The
decision on the main question Is re-
gardcd as another great step accom-
plished toward Dcnver's enjoyment OF
the same transcontinental rates that
are allowed Chicago and Missouri river
points by the railroads.
This IL the main contention In the
Klndel case heard lately in Denver
by the interstate commerce COM
mission