Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-03
A Curious Situation Has De-
veloped.
TEXAS COMMISSION
HAS MADE DECISION INCREAS
ING THE TARIFF ON CORN.
Interstate Commerce Commission Says
This Increase is Unreasonab1e-
May Come Before Congress.

matter Of the control exercised over rail-
roads by the Interstate commerce commits
sion and by the railroad commission OF
Texas. It has resulted from the decision
OF the interstate commerce commission IN
the case entitled "In the matter OF rates on
corn and corn products from Missouri river
points to points in Texas" 1t Is claimed
on the part OF the railroads that they fear
to carry out the instructions OF the inter-
safe commerce commission because OF the
danger Of inviting an unfavorable decision
from the railroad commission OF Texas.
The Texas Commission.
1t is quite general for railroads Of the
country to grant lower rate on grain
than on the products Of grain. There has
been complaint from the millers Of the
northwest that the roads haul grain to the
Atlantic seaboard at rates that allow 1t to
be delivered to European ports cheaper
than 1t Is possible to deliver flour. The re-
suit Of such rate fixing. 1t has been claimed
by the millers. is to injure the milling In
dustry of this country. Following that prac-
tice, the railroads hauling cornmeal to
Texas points charged cents per hundred
pounds more on cornmeal than on corn. AS
the cost of milling the corn Is cent hum
dred pounds, the iifferential tended to give
the millerS of Texas an advantage over the
millers of the Missouri river points.
But while that advantage existed in favor
of the Texas millers 1t was not sufficient to
give them anything like monopoly of the
corn meal industry Of the state. The rail-
roads in general way claim to justify this
preferential rate on corn as against corn
produc p. because Of the cheapness in haul
ing corn. They claimed that in one way
or another they could transport corn cheap
er than they could transport cornmeal.
A General Readjustment.
But the Texas millers wished to secure
still greater preferential rate on corn so
that practically they would be able to
grind all the cornmeal used in the state OF
Texas. Their proceeding was based on
their right to have the Texas commission
so fix the rates as to build up the milling
business of that state. On February 10 Of
this year they secured from the Texas COM
mission decision that the roads from MIS-
souri, river points to Texas should advance
the differential against cornmeal to from
to 9La cents. On April 10 there was
general reimbursement and uniform dr.
ferential of B cents was put in operation.
1t is claimed that the railroads were led to
increase this differential by being given to
understand that unless they did so the
Texas commission would order a general
and sweeping reduction of all the rates on
grain and grain products within the state
of Texas, although the commission had no
jurisdiction beyond the boundary of Texas
Those who opposed the action of the Texas
commission claimed that in effect that COM
mission usurped the constitutional function
of Congress and forced a readjustment OF
interstate rates.
Interstate Commerce Commission.
The interstate commerce commission af-
ter a full hearing of the case has decided
that the increased differential is unreason-
able and that the 3-cent differental that
had been in effect before the interference
Of the Texas commission was just ana rea-
sonable and should be restored.
1t is said the railroads would be very
glad to restore that 3cent differential IL
It were not for their fear that If they do
so they may be brought to face an order
from the Texas commission reducing all
the Texas rates on grain and grain pro-
ducts within the state. That the commits
sion would have full power to do. Be-
cause of this fear it is said the roads seri-
ously consider declining to comply with
the decision of the interstate commerce
commission, leaving the matter go into the
courts for final adjudication. In that event
they could only comply In case the court
of last resort should order the change in
the rates.
May Come Before Congress.
This case involves conditions that have
been pointed to in testimony taken before
the Senate committee on interstate COM
merce. Before that committee it was
claimed that there was a tendency of state
railroad commissions to so fix rates as to
benefit state industries giving to those rates
the same effect that would follow a Gus
toms duty on imports into the state. A
railroad commissioner of Georgia has an
nounced that he believed In protecting the
industries Of his state by that method.
and his statement has caused widespread
comment. Now that a somewhat similar
case seems to have been developed in
Texas it is likely that this phase of the
work of state railroad commissions will
come before Congress in a prominent way
next winter when the subject of railroad
rates comes UP in connection with the dis
cussion of the Esch-Townsend BILL