Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-01-20
CANNOT GIVE PREFERENCE,
Unlawful to Permit n Monopoly to One
of Competing Markets.

The interstate commerce commission yes
terday, in an opinion by Commissioner
Clements, announced its decision of the
case of the Savannah bureau of freight and
transportation and others against the
Louisville and Nashville Railroad Company
and others.
The carriers rates on sugar and other
commodities from New York to Chipley and
various other stations in Florida and their
rates on bacon and other commodities from
Savannah to such stations in Florida are
not found to be unlawful. The carriers
rate on uncompressed cotton from Chipley
and other stations in Florida on the Louis
vile and Nashville railroad to Savannah
vas S2-15 per bale at the time of the hear
ing, when complaint was filed, and for some
years prior thereto, but subsequent to the
nearing this rate was Increased % cents, to
81 30 per bale. The rates to Mobile and New
and $3.50 per bale.
The commission holds that the rate of
S2I6 to Savannah was rot unlawful but
that the whole advance of 55 cents per bale
was unlawful. and that any higher rate on
such cotton to Savannah than the former
difference of % cents per bale above the
rate In force from the same stations to New
Orleans Is in violation of the statute.
The commission further rules that car
rier cannot lawfully esta blish and maintain
ar adjustment of rates which in practice
prevents shippers on its line from awaiting
themselves of principal market, which
they have long been using, and confers a
substantial monopoly upon a new market
in which. for reasons of it's own, it has
greater interest.
Another ruling is that when carrier
makes rates to two competing markets
which give the one practical monopoly
over the other because ii can secure re-
shipments from the favored locality and
none from the other. it goes beyond serving
ftIiy if,f.r .y,1 1t,r A. =
tory requirement of relative equality as be-
tween persons, localities and particular de-
scriptions of traffic.
After laying down these principles the
commission finds that the Louisville and
Nashville makes certain local rates on
rosin and turpentine from stations on it,;
Pensacola and Atlantic division in Florida
to Pensacola, Fla, and that it joins with
connecting carriers in making certain
through rates from the same stations to
Savannah, Ga. For it's service to the juno
ton point the Louisville and Nashville ex-
acts shares Of the through joint rates to
Savannah. which greatly exceed its purely
local rates for like distances to Pensacola,
while the shares accepted by its connecting
carriers are reasonably low.
The commission decides that the shares of
the Louisville and Nashville in the through
rates to Savannah are unreasonable and
unjust and operate to make the entire
through rates unlawful, under sections /
and of the act, In comparison with the
| rates to Pensacola.
The decision also provides for an order
requiring the Louisville and Nashville to
cease and desist from exacting shares of
the through rate to Savannah which are
in excess of it's local rates to Pensacola for
like distances, but it is provided that on
shipments Of turpentine from some of the
most easterly stations the Louisville and
Nashville shall have more than its local
| rate for the like distances to Pensacola.
and to such shipments a differential is
found proper. The commission says this
remedy which is based upon the relation Of
rates to the two competing markets. will
| cradle the Louisville and Nashville to in
| crease the rates to Pensacola, or in con-
| junction with its connections, reduce the
rates to Savannah, or to use both means in
| conforming to the adjustment required by
the facts in the case