The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-12-23

increased to- the public the cost of
"S When the owner of the car be-
comes a dealer in the commodity
transported, the fact of ownership
gives him an important advantage
over his competitor
"A. When the owner of the car is
also the owner of the commodity
transported, an excessive rental for the
car may amount to a preference in the
freight rate, as against the shipper
who does not own his car.
Instances of rebates granted by car
companies from the icing or refrigera-
ton charges on fruits are mentioned 1t
is claimed that these icing charges,
whether made by the carrier or by the
private car company, are compensation
for private service, not part of the
transportation service performed by the
common carrier, that they are therefore
not required to be published, and are
not subject to regulation under the
statute. Practically the icing charge IS
part of the shippers cost of transpor-
tation. The fruit shipper must use the
railroad, he must use the refrigerator
car and the car must be iced. The eff
fact upon the shipper of fruit is exactly
the same if his competitor receives a
concession in the icing charge as it is if
he receives a corresponding preference in
the freight rate
How private cars work in the fruit
report in the following words: by con-
solidation of various companies, the Ar
mour car lines now appear, with some
exceptions, to have a practical monopo-
ly of fruit in large quantities in most
sections of this country. That company
only permits it's cars to move fruits i'll
large quantities under an exclusive con-
tract. 1t provides the necessary num-
Der of cars for a fixed mileage, the rail
roads agreeing that no other cars shall
be used for the purpose. The Armour
company furnishes the refrigeration, for
which it makes a specified charge The
result is good service and adequate car
supply, but an enormous ana unreaSon-
able increase in refrigeration charges.
Examples are given of increases from
$40 to SIS per car from Michigan to
Boston. from SO to $3.50 per car from
Michigan to Dubuque and from $3.50 10
$45 per car from Michigan to Duluth.
The charge per car on pIneappleS- from
Moline to Cincinnati, under an exclusive
contract with the Armour company, is
$45, while on another road which FUR
nishes its own cars, the icing charge on
pineapples from New Orleans to Cincln-
natl is $12.5O."
When the owner of private cars IS
also shipper, to whatever extent the
amount paid by the railroad for the
use of the car exceeds reasonable COM
pensatiOn, the owner of the car is pre-
ferred in the matter of the freight rate
over the shipper of the same commod1-
tv who owns no cars, and this point is
discussed at some length in the re-
port.
The commission has held that these
exclusive contracts, when they result
in unreasonable icing charges, are I'M
lawful and that the failure of the car
riers to publish such charges is also a
violation of the statute. I'VE feel rea-
sonabl certain" say the commission
ers that these holdings are correct,
and will be finally sustained. The pri-
railroad COM
panies earnestly insist, however, that
the icing is a private service, over
which the commission has no Jurlsdlc-
ton under the present law, and II II
wears of litigation that our opinion Is
wrong, the shipper Will be entirely
without remedy. There can be no
doubt that great good would be &C
comnlished by such legislation as
would leave no room for such conten-
lions and provide more adequate and
certain RENEE ieS for the suppression OF
these abuses. The only way in which
comD1ete remedy can be afforded is by
investing this commission, or some
other tribunal, with power to inquire
whether these charges sre reasonable,
and to make them reasonable If found
unreasonable. This can De, accom-
pIished in two ways;
- BY making the common carriers
responsible in the matter of this spe-
cial equipment and refrigeration serV-
ice if they are not now responsible
%. By bringing the car line COM
panies which provide this refrigeration
for interstate shipments under the
jurisdiction of the act to regulate COM
merce, and making their charges sub
iect to the determination of this COM
mission.
The terminal railroad owned or con-
trolIed by shippers is believed by the
commission to be a most dangerous
means of giving preference to -favored
persons. The case of the Illinois
Northern railroad company. located at
chicago. and used principally to move
traffic to and from the works of the
Mccormick Harvester company, cor
poration subsidiary to the Interna-
tional Harvester company, is cited in
the report as an example The LIMOS
Northern up to 1904 performed the
switching service to and from connect
ing main lines of railroad for from Il
to $3.50 per car. On traffic to the Mis-
souri, river the main line roads granted
during the present year maximum
allowance of 20 per cent. of the rate to
the Illinois Northern. On farm ma
chinery this allowance or division
70 nar- car m stead of the