The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1906-03-03
CANNOT EvAOE
RATE PROVISION
Railroads Must Receive Full
Tariff for Carrying
Commodities
ATTEMPT TO NUlLlFY THE LAW
New York, New Haven and Hartford
Company Bought Coal at the Mines
and Sold II at Destination lrrespect-
I've OF Charges.

Washington special: Justice White
Monday delivered the opinion OF the
supreme court OF the United States in
the cases OF New York, New Haven
and Hartford Railroad company VS..
the Interstate Commerce Commission
and the Interstate Commerce Commits
sion VS.. the Chesapeake and Ohio
Railroad company. Affirming the decis-
ion OF the United States circuit court
for the western district OF Virginia.
The cases involved the question OF
discrimination in freight rates on coal
by the Chesapeake and Ohio in favor
of the New York. New Haven and
Hartford road as against other ship
pers. The decision was against the
railroad company.
Decides Question OF Rates.
Putting aside for the time all other
| questions, Justice White took up the
case as It appears under the Interstate
commerce law and stated the question
10 be decided 10 be the following
Has a carrier engaged In interstate
commerce the power 10 contract 10
sell and transport In completion OF
the contract the commodity sold when
the price stipulated IN the contract
does not pay the cost OF purchase. the
cost OF delivery and the published
| freight rates?"
Violates Second Section.
Justice White said there were prac.
tcally no previous decisions OF the
| court 10 quote as presidents.
IL cannot, he said. "be challenged
that the great purpose OF the act TO
regulate commerce. while seeking 10
! prevent unjust and unreasonable
rates. was TO secure equality OF rates
as TO all and 10 destroy favortism.
Now In view OF the positive command
OF the second section OF the act, that
no departure from the published rate
shall be made, directly or indirectly,
how can IT in reason be held that a
carrier may take itself from out the
| statute In every case simply by elect.
| Ing TO be dealer and transport a
commodity in that character"
Would Nullify the Law.
The Judge added: Nov. II by the
mere fact OF purchasing and selling
merchandise TO be transported car.
rier is endowed with the power OF dis.
regarding the published rate II be.
comes apparent that the carrier pos.
sesscs the right TO treat the owners OF
like commodities by entirely different
rules Thus the statute. while subject.
ing the public TO the prohibitions.
would exempt the carrier and would
thereby enormously increase the op-
| portunities OF the latter to do the
wrongs which the statute was enacted
to prevent.
Strengthens injunction.
Coming 60 the consideration Of the
| case AT issue, Justice White said the
court thought It established beyond
doubt that, desiring 10 stimulate the
production Of coal along its line the
Chesapeake and Ohio bought and sold
the coal without reference To whether
! the net result 10 II would realize IT.
published rates
The cross appeal OF the interstate
commerce commission was considered
briefly and the general conclusion
reached that the injunction below
should be modified aud enlarged by
| perpetually enioinlng the Chesapeake
and Ohio from taking less than the
rates fixed in it's published tariff OF
freight rates by means OF dealing in
the purchase and sale of coal And.
as thus modified. the decree below is
affirmed 4"