Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-06-06
Commissioner Lane Lays Down Law
on Point for Railroads.
SUM OF LOCALS AT SHIPPING DATE
Rate Cannot he Made Retroactive
and Through billing IL Evidence
of Through Route Regardless
of Joint Rate.
tFrom a star Consequently

Ion OF the Hepburp n holds that
practically all % .eSs> roads in the
United states a. ~ parts of through
routes over ~ rough rates exist,
even wher rate has been estab-
lished. II on deals with the move
ment of 10 90 pounds Of sugar held
in storage at Omaha which was brought
into that city before the existing tariff out
of Omaha and to the east went into effect.
The question raised was whether or not
the Chicago. Burlington & Quincy Railway
company might allow sugar stored in
Omaha TO go forward under tariff put into
effect after such sugar was stored in
Omaha. Commissioner Lane, dealing with
this question, says:
:, That sugar which moved from Longmont,
sterling, Brush, Fort Morgan and Love-
land prior to the going into effect of this
tarin cannot be moved out of Omaha under
i, us provisions and upon the rate fixed
therein. A proportional rate is through
rate, and can be applied only to trafic
moving hereunder from point of origin to
destination. AT the time the sugar moved
from the originating points named this
tarin was not in effect. and the local rate
paid into Omaha cannot be treated as an
which was not in effect at the time OF origin
of movement.
Only One Through Rate.
There can be but one through rate in
NAANSt btNWttu any TWO points at given
time. and this rate may be a Joint rate or
a. combination of rates applicable on
through business. Where no joint through
rate is In effect a combination through rate
over through route may be made up of
any rates applicable on through transporta-
tlon-the sum of locals, or a proportional
more proportionals, or any other lawfully
established rates which may be Joined to-
gether to make a rate over the through
route; but such combination through rate
must be treated as a unit from the date
OF original shipment to the date of arrival
az destination and the rtae applied must
be the combination of rates which exist
upon the date of original shipment Tariffs
cannot be given retroactive effect they
tSnnot ttaI per oe made 10 apply to conditions other
such tariffs become effective. A combina-
tion through rate is as binding. definite
and absolute as Joint through rate: and
all OF the conditions, regulations and privi-
leges obtaining as to any factor In such
combination rate for through shipment at
combination through rate must be adhered
TO and cannot be varied as to that shin
ment during the period OF transportation
OF such shipment to its final destination. A
local or proportional rate "In" cannot be
absorbed. diminished or affected by any
the traf,c nnovah nOS n & eIreet at the time when
portlonal rate.
Sum of the Locals.
A further question decided In the same
case is that as to the rate that should gov
efn over al through route when a through
rate charged Is made up of the sum Of
the locals. Commissioner Lane holds that
the rate that should be applied is a COM
bination through rate made up of the sum
Of the locals or other lawfully established
rates applicable on through business at the
time when the shipment originates. There
may be through routes without Joint rates.
A joint rate is simply through rate every
no = Of IL NNn1.
agreement between the carriers making the
through route. The joint rate is rate
over through route; but 1t is not the only
through rate recognized by the act and
the decisions.
Among the important amendments made
in 1905 to the interstate commerce act was
tnat which makes It the duty of every
carrier subject to the act ''to establish
through routes and just and reasonable
rates applicable thereto" (section II. II is
not necessary here to attempt to discover
the full force OF these words Their sig
nihcance is not to be grasped without CON
sideration of the later portion of the act
(section 81, which expressly recognizes the
possibility of through route without a
joint rate, and which, after directing the
publication and filing of local rates and
OF joint rates, provides for still other rates
III the fOllOWlns language:
If no Joint rate over. the through route
mas been established. the several carriers
IN such through route shall file. print and
keep open to public inspection, as afore-
sai9' S' the separately stablished rates, fares
anu charges applied to the through trans-
portation.'
Reasons for the Rule.
The reasons for this rule ore at least two.
Q) The policy OF the law that every route
and every service SHAH have a published
rate equally known and
TO all patrons Of the carriers, and C2) the
pohcy or the law that carriers not other
tieipatng In interstate business subject To
the act to regulate commerce
througn route is continuous line of
railway formed by an arrangement, express
or implied, between connecting carriers m
must nave a rate for every service and
as the route is new unit-one line formed
OF TWO or more connecting lines-so lis
rate for every service is a unit ever
though 1t be divided between the several
carriers arranging themselves into the
Through carriage implies a through rate
Ihis Is equally true whether the through
rate be published as a whole by the ioint
action OF the connecting carriers or IN
the absence of Joint arrangement be pub
lshed IN portions by the several carriers.
over it is a contract for a single service
all the terms of which must be fixed at
one and the same time; that is, at the
time of the making o fthe contract for the
service. phe rate is either a Joint through
rate made by arrangement by the paTtiss
20 tho through route, or II is a combination
through rate consisting OF the separately
established rates fare and charges APPLIED
20 the through transportation This sum
however Is single rate for a single
service.
In answering the question as to the ex.
istenee Of through route ali the incidents
and circumstances OF the shipment must
be taken into account. Carriers arranginar
for through route, and also for a foin1
rate, must give notice 10 the world OF such
arrangement by publication Carriers form
ing throvgh routes without joint rates. how
ever, may publish and file only the seDa
rately established rates, fares and charges
applied TO the through transportation. As
matter OF fact most II not ali, carriers
subject TO the act use their local rates as
through rates where no joint rate Is estap
llshed. II vs. therefore evident that such
incidents as the billing the collection ana
division OF charges, the use OF a proper
tional rate 10 or from Junction points or
basing points, and other local Incidents OF
the transaction may properly be depended
upon Tor guidance as 10 the existence OF a
through route. A through bill OF ladinR
as to the carriers recognising Il has been
held by the supreme court to be Conclusive
evidence OF the existence OF a through
route