The news & observer., 1904-08-05
Corporation Commission
Denies Petition.
THE LONG HAUL RULE
The Commission May Grant Roads
Permission to Charge Less for Long
Than Short Haul, But Cannot
Force Them to That Freight
Rate Concession.

TUlUC bEClu W l tildL ISiJhe
Rate Concession.
The Corporation Commission yeSter-
dav made an order refusing the petl-
ton in the matter of the complaint OF
the Charlotte Shippers Association VS..
Seaboard Air Line Railway as to alleg-
ed burdensome freight rates between
Wilmington and Charlotte, the COM
plainants seeking to have the same
rate per ton per mile established be-
tween those points as that in vogue
over the same line of road between
Charlotte and Portsmouth.
The distance between Charlotte and
Wilmington is 1877 miles; between
Charlotte and Wilmington, BAT miles.
The commission holds that 1t has
not been established, that the rates
complained of are unreasonable ana
oppressive and, that, while the com
mission may, on request of railroad
authorize a lower rate per Ton per
mile for a long or short haul, IL mas
no power to require that this be done.
The case was one of considerable
importance, testimony having been
taken last fall The decision was de-
ferred to permit the attorneys to hle
their briefs. In full the order IS as
follows:
North Carolina Corporation commas
sion.
Raleigh, n. c., Aug. 3, 1904.
Charlotte Shippers Association, Com
plainants,
Seaboard Air Line Railway, Defendant.
This is a petition by complainants
against defendant asking that rates OF
freight on all property transported
from wilmington to Charlotte be re-
duced to the same rate per ION per
mile as the average per ton per mlle
now established by defendant between
Portsmouth and Charlotte.
The hearings in this case were had
in Charlotte at the request ana Tor
the convenience of the parties. The
taking of testimony was concluded NO
vember 14th, 1908. The consideration
Of the matter was deferred at request
of counsel, so that they might pre-
pare and submit briefs.
Upon consideration of petition, an
swer. evidence and arguments of coun-
sci, we are OF the opinion that COM
plainants are not entitled to the re-
lief they seek.
1t appears that defendant among
other lines OWNS and operates lines OF
railroad between Portsmouth and
Charlotte, a distance of 347 miles. The
rate of hrst-class freight between these
points is 6S cents per hundred pounds,
or an average OF 80 cents per ton per
mile: and rates on other classes OF
freight are in the same proportion.
Defendant also owns and operates
a railroad between Wilmington and
Charlotte, a distance of 1S7 miles, and
the rate on first-class freight between
these points is 62 cents per hundred
pounds or an average of ca cents per
ton per mile; and the rates on other
classes of freight arc in the same pro-
portion.
The rate from Portsmouth to Char
lotte is operated at some profit. We
40 not think that this establishes the
contention either that the rates from
Wilmington Charlotte are unjust and
unreasonable in and of themselves or
are oppressively high with reference
to rates over lines of the same railway
and with reference, to rates charged
for similar services by other railways.
The average rate per ton per mile,
as a rule, is greater under all tariffs
for shorter than for longer distances.
In order to compare the average rate
per ton per mile of the Portsmouth
Charlotte rate with rate from Will
mington, some point 347 miles from
Wilmington should be chosen. Under
rates established in this State, the av-
erage rate per ton per mile from Will
mington to any point on the Seaboard
Air Line Railway 347 miles from Will
mington, first-class freight is 4.45 cents
per ton per mile. 1t was conceded that
the rate from Portsmouth to Char
lotte was based on the rate from
Lynchburg to Charlotte, which latter
rate was made and is maintained by
the Southern Railway, the distance
from Lynchburg to Charlotte being 207
miles.
1t appears that the rates established
over the Seaboard Air Line Railway
in North Carolina are less for the dis
tance of 1877 miles than in any other
State in which it operates.
The contention of complainantS that
the commission has the power to re-
uuire defendant to transport freight
from Wilmington to Charlotte at a
less rate than to intermediate points
cannot be sustained. In special cases
upon the application OF railroad COM
pany, the commission can authorize
the railroad company to charge less for
longer than for shorter hauls, but in
| no case can the commission require
| the carrier to do this. See Acts 1899
! Chapter 164, Section H.
Much of the evidence offered in this
| case tended to show discrimination il
rates from western points in favor o1
Virginia cities against Charlotte. If il
were in our power, we would be glao
| to relieve against this grievance. The
| only thing that we can do in this di-
| rection would be to call the grievance
t to the attention OF the Interstate
! Commerce Commission, but the evi.
dence discloses the fact that this ha.
been done by complainants themselve,
and that the questions involved are
row under consideration by that tri
i bunal.
This petition is dismissed
(Signed) FRANKLIN MCNEIL,
Chairman
HOgshead Classification.