The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-08-29
CON NTRARY TOLAW
Jobbing Rates and Missouri
River Tariffs Illegal.
So Says NJ. A. Low, General At.
tOrney Rock Island.
A SIGNIFICANT LETTER
Admission Made to State Board
Railroad Commissioners.
In the Reply to Complaint Filed
by Turon Firm.

In significant letter to the state
board of railroad commissioners. M A
Low of the Rock Island, one OF the lead
ing railroad attorneys of the country.
intimates that in his opinion all OF the
so-called ''jobbing rates. Missouri
river tariffs" and other special advan-
tages enjoyed by jobbing centers, are
contrary to law.
Such an admission, coming from such
an authority on railroad law as NJ A.
Low, is likely to have considerable in
fuence on the future attitude of the
state board of railroad commissioners
1t may have some influence in deter
mining the policy of the board in the
numerous jobbing rate cases which are
pending. One of these cases is for a
complete readjustment of the present
Missouri river tariffs which are now
arranged for the exclusive benefit of
Jobbers having their headquarters at
missouri river towns. Another is the
Hockaday Hardware company case
from Wichita, which is of a similar ma
ture to the Missouri river case.
Mr.. Lows letter questioning the va
lidity of all "jobbing rates. was written
to the state board in response to a COM
plant filed by Lowman & Thompson of
Turon, Kan, asking that Turon be
given special jobbing rates as a distrib-
uting center for soda water and pop.
Mr.. Low says:
Whether the special privileges grant
ed jobbing centers by order of the board
| of railroad commissioners from time to
| time are legal, is a matter upon which
have frequently expressed grave
doubts. If they are illegal with respect
to the shipments complained of, they
are illegal with respect to a great many
other shipments. They can only be JUS
| titled on the ground that the circum-
| stances are dissimilar. 1 assume that
| the board in making such orders has
done SO under the belief that the condi-
| tions were so disSimilar as to justify the
apparent discrimination. Unless the
| commission is prerarcd to revoke all
these orders, 1 think the existing con-
ditions as respects Turon should not be
changed. There is certainly not enough
business at Turon to Justify the order
ing In of jobbers' rates'.
When man of NJ A. Lows well known
caution and breadth Of mind makes the
assertion that there is grave doubt
/ about the legality of a certain action, it
can be taken assured that the man has
practically settled the question In his own
| If the railroad attorneys are all of the
same mind with Mr.. Low 1t means that
be complete readjustment of railroad
| rates in the state of Kansas and probably
| the substitution of d strict distance tar
| iff'' for all existing '-jobber's rates
| Carr Taylor, attorney for the state board
OF railroad commissioners Is COHuuSuS
| that the tobbers' rates are invalid and
! that the railroads and manufacturers will
| all have to submit to a complete read5ust-
ment.
4 'HThe commodity rate case and the hard
| ware rate case which have been started
| before this board, together with the re-
| Gently instituted coal rate case,'' said MT.
/ Taylor today. ARE three suits which are
| leveled against this form of rate manipu-
| lation which Mr.. Low says Is of doubt
| full legality I believe that the hearing of
| these three suits will result in complete
1 readjustment of the rate situation in
| Kansas. and that the so-calIed jobbers'
| rates will cease to exist.
| "As a matter Of fact under the new
Kansas railroad law there can be no rates
limited exclusively to jobbers. The rail-
roads must put this tariff into effect the
same as any other tariff. and IL you or I
have load of sugar to ship we can
ship it at the jobberS' rate if one is in ef-
feet. But the whole theory of giving one
town the advantage over another is not
right. For instance, Lynn, Mass, is able
to ship shoes out here and supply this
market because it gets such low rates that
it drives out competition If the Lynn
nanufa cturers were Obliged to operate uTl-
der a distance tariff the result would be
! tories would spring up all over this west
ern country. 1t is the same with all kinds
| of manufactures and wholeSaIing. Tie
abolition of jobbing rates will Of course be
resisted by the jObbing concerns, but it
would be a move for the betterment OF
| can have, the better. 1t would not increase
the cost of products, because competition
| would exist just the same. Each factory
| would have its own sphere of influence
. and each sphere would serve as a check
, on adjoining spheres.