The Minneapolis journal., 1906-07-08

Work Gut Out for the Commits
sion Under the ia Toilette
Resolution.

~ w. jerr,ane.

Washington, July TIT is becoming
apparent that the relations sustained
by the railroads to many Of the grain
and elevator companies along their
oording to the terms of the new rate
law. and all the facts. are to be de-
veloped by the investigation the inter
state commerce commission will make
under the La Toilette resolution Of the
elevator business in the wheat states
and at the principal terminal points.
Meanwhile, the, great elevator compa-
MES Of the middle west, which own eie-
yators along the lines Of all the rail
ways piercing the wheat fields, are be-
ginning to sac that the new law will
perhaps make necessary q complete re-
organization of their methods of doing
The Interstate commerce commission
has already had several phases of the
| situation laid before it. New litigation
are promised, and amid the hubub that
has been up, one may hear the rail-
| roads inuuiring just what their status
will be under the law and the reply OF
the commission that the question cannot
be answered offhand, but will require
careful study, Independent grain buy,
ers hope that the new conditions will
improve their Opportunities of doing
| business: rs 80 5ns<z, ~
Case of the Missouri Pacific. ~
The Missouri Pacific railway, which
admits that it owns lines OF elevators
to a Kansas City firm, which operates
them: has asked the Interstate commerce
commission if such an arrangement Is
in violation Of the commodity clause OF
the new law. That clause contains
new definition Of the word "transpor
tation," which. makes it include tn.
elevation - storing and cleaning o.
Grain. The Missouri Pacific wants tx
know if it will have to sell these ele
i notors ~ If Il can continue the pres
ent arrangement, - -,
one. and at present the commission doe
not know what position it will ult1
mately take, or what position tn
courts will take on n~appeal. In
Missouri Pacific is directly intereste
in the success Of the elevators it owns
and it is just possible that. that inter
est has frozen out all indepenaen
elevator companies along It's r1gnt o
way. .s r:.qfT z.+.a}I s,| *,
l : The decision cannot be made unit
the facts have all been developed. Th
p RAILWAYS admission Of ownership Q
these elevators seems to Justify in pal
the suspicious of Senator La Fol!ett
as embodied in, his resolution OF Il
vestigation. ;.aa .E;:. -- --,.. .s.>:.-
Peavey Company and the U. P.
But these are, not all the cases. LEI
than two wears ago the interstate cor
l. merce commission started big cat
Il against the Peavey Grain compan,
s. which operatest.,a "a huge terminal el
r. vator at Council Bluffs, the. caste!
l. terminus of the Union Pacific. II
r Peavey company takes in, cleans, stor
" and ultimately reships all grain on II
y line, Of the Union Pacific. The railw;
g. company gives 1t monopoly Of t.
n business and In cents a. Ibushel.
a. As the tPeawev company owns the Ii
k, of elevators Ialong the Union Pacif
r this arrangemen swasI strongly su
1t gestive Of ayaebateso Other railwa
~ and other grain concerns protested, a.
st.: the commission held a longsiny estia
r tion. 1T finally decided that hthe /
S rangement was bad, but there was
- law to stop it. = ~.
ss Now comes President A. B. Stickn
81 of the Chicago Great Western, &
ne nouncing that he will at once ha
et this old case reopened. He has sent
: LAWYER to learn about the procedy
~ ~ necessary, and thinks that under t
Liss new law he can win the case this tir
~ If he does, it will mean a revolutit
an an ary change in the elevator busin
an .+s generally. !. .'. .@s'..
rs rs All these and numerous other gu
10 tions must be decided before the fl
~ 'n of September, when the new rate |
~ ~ goes into effect. ATTORNEYS for
20. 20. railroads in the wheat section Of
." country are studying the new law W
view to making early suggesti
about the elevator business, and
,ds attorneys for elevator companies
~" ;o. doing likewise. 49, r7.