The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-04-24
Twenty Cent Tariff From
Chicago to New York Is
Said to Be Unreasonable
Action Will Be Taken to
Compel Roads to Reduce
Rates.

-rious articles between Chicago and
New York, and in the case of Proctor
& Gamble against the Cincinnati, Ham
ilton & Dayton railroad, involving the
classification of common soap.
The proposed advances in freight
rates affected iron articles, dressed
beef, packing house products, grain
and grain products, and have been un-
der consideration by the commission
all winter. The commissions decision
IS that the proposed advances in the
gate on grain and grain products are
not justified.
The finding says the proceeding in
this case was in the form of a general
investigation and that no order can be
made, therefore, on the record, but that
further proceedings will be commenced,
unless the respondent carriers readjust
their rates on grain and grain products,
on or before May Is, in accordance
with the views expressed in the de-
cision.
The chief points of the decision are
as follows:
AN increase which results solely
from the Withdrawals of a lower ex-
port rate, or from the maintenance of
published tariff, cannot ordinarily be
condemned as unlawful. Railways are
entitled to share in the general pros
perity Of the country; they have suf-
fered severely in the past and should
be allowed to recuperate, while that
prosperity continues; but but it does
not follow that they are entitled to ad-
vance former rates, which were not
reduced on account of the financial de-
preston
Not Unremunerative.
Under the competitive conditions
which heretofore prevailed, tariff rates
on grain and grain products from Chi
cago to New York have not exceeded
171a cents during the last four years,
except for a brief period, while the ac-
tual rates have been materially and
sometimes greatly below that figure.
"a rate of 171a cents on grain and
grain products from Chicago to New
York is not shown, as alleged by the
carriers, to be unremunerative or dis
prOportionate as compared with other
rates. Whether tested by cost of move
ment, by what the carriers have vol
unfairly accepted in the past, or by
comparison with rates on somewhat
similar kinds of traffic, 1t is not I'M
profitable, nor unreasonably low. 1t is
from 2 to cents-10 to 40 per cent
in recent years, and nothing appears
in the financial condition of the car
riers to justify a greater advance.
Upon all the facts and the condi-
tons now appearing, held, that as
rates on articles were formerly re-
duced on account of commercial con-
ditions, the advances in those rates
may have been proper, owing to a sub
seQuent change in such conditions;
hn no a1H IN ln ,.ofa aly
ing house products. which was made
by withdrawing a lower export rate,
Is not properly an advance; that the
advance in rates on dressed meats
ought not to be condemned under the
peculiar circumstances surrounding
that traffic; that the advance in the
domestic rate on grain and grain
products from II 10 to 20 cents per
hundred pounds from Chicago and the
other advances made in consequence
of the increased rate from Chicago to
New York, the same being an adj
vance over the highest published rate
in effect for most of the four years
previous, and a great advance over ac-
tual rates received for the last fifteen
years, are not justified.
Proceeding Elk Parte.
''This proceeding is in the form of a
general investigation, and the proceed
ing is in manner eX parte, and facts
not brought out in this inquiry, with
further discussion of the subject, might
lead to a different conclusion No
order therefore, can be made upon
this record, but further proceedings
Will be commenced unless the respond
ent carriers readjust their rates on
grain and grain products in accord
ance with the views herein expressed
on or before May Is, 1903"
The following railroad corporations
were represented by counsel at the
hearing of this case: Michigan Cen
Ial railroad company, Lake Shore &
Michigan Southern Railway company
ERIE Railroad company, Baltimore &,
ONO Railroad company Pennsylvania
wabash, New York Central & Hudson
River railroad company Delaware
LackaWanna & Western Railroad COM
pany, Lehigh Valley Railroad company,
Southern Railway company. Norfolk &
Western Railway company, Chesa-
peake e Ohio Railway company, and
Cleveland, Cincinnati, Chicago & st.
Louis Railroad company
The Soap Rate.
The substance of the decision in the
Proctor & Gamble case is as follows:
The presumption as to the reason
abIeness of rates long kept in effect by
carriers, as a voluntary act on their
part, does not attach in a case where
such facts have been established by
III SOlilpIldHCG WITH q Qecl-
sion and order Of the commission.
Profits secured by complainant from
the operation of a railway connecting
with the defendant lines and from
other special advantages tending to
diminish the amount of its transporta-
ton expenses would have very ma
terial bearing if the sole question in
VOWED were the reasonableness of
rates charged to complainant or if
the rates eXacted from it We're drawn
into comparison with those charged
TO competing soap manufa cturers: but
whereas in this case the chief cues
ton as to the justice of a charge in
the classification of soap not only as
regards complainant but as affecting
all soap shippers in the classification
territory, no order could be made re-
specting such change in favor of com
plalnant which would not apply with
equal force on shipments of other soap
manufacturers in that territory: and
as the case mainly involves the gem
eral question of classification. it must
De decided in accordance with the
principles which properly govern the
classification of freight articles.
Not Unlawful.
ne action of the defendants in
placing soap in carloads with common
grades OF grocery and other general
mere in