New-York tribune., 1907-04-19
REBATE TO ELEVATORS.
Commerce Commission Decides
PeaUey Case against u. p.

Washington, April 1s-In what Is known as the
Peavey elevator case, the Interstate Commerce
Commission to-day announced its decision against
the Union Pacific Railroad Company. The com
mission holds that the arrangement between the
Union Pacific and the Peavey elevators was unlaw-
ful as 1t was in excess Of the actual cost OF the
elevation Of the grain and. therefore rebate. The
decision was prepared by Commissioner Harlan.
ana his opinion was cOncurred in by a majority OF
the commission Commissioners Clements and
lane. however filed dissenting opinions.
The proceeding entitled In the matter Of
allowances to elevators by the Union Pacific Rail
road Company" 1t was subject Of investigation
by the commission on its own motion prior to
June 25 1904 which date the commission. on the
evidence then before it. decided that there had
been no violation Of law In July, 1906 on petition
or certain railroads interested in the grain traffic
OF the Northwest. the case was reOpened and much
additional testimony was taken. 1t then was
argued at great length before the commission, and
briefs We're filed by counsel representing all parties
In interest. Upon this record and that OF the
vious proceeding the commissions decision is
based The opinion of Commissioner Harlan Is
summarized fellows:
Elevation is defined as unloading grain from cars
~ Si@h carrying vessels into grain elevator ana
IoaGns Il out again after period of not TO eX-
tention in an ievtor oSSpps SapYpnns Ten sdsvs becames
storage and Is not part of the service OF eleva-
ton as that word is used in the statute.
The law clearly recognized elevation as a facility
which the carrier may provide and this authorizes
the carrier to grant grain elevation at destination
or While the traffic IS in transit subject only to
iiie restriction imposed by the act that elevation,
ike any other service offered by the carrier TO
Shippers, must be open to all on equal and reason
aple terms Since carrier, subject to the act TO
regulate commerce is entitled to provide. elevation
lot gram shipments, such carrier may either con-
stfuct and operate the elevator itself. or furnish
elevation by arrangement with owner Of an
the carrier to the owner Of elevator rendering
the service is Of concern to shippers to other
carriers, unless It operates to affect the rates
charged by the carrier the grain traffic or by
some device portion of the allowance Is returned
10 shippers and thus becomes rebate.
An allowance made to a shipper OF grain viii
furnishes elevation service under an arrangement
with a carrier is rebate and an unlawful dis
Crimination when it involves profit over and above
me actual cost to such shipper OF the service rem
dered- Ii is not a rebate when the allowance does
not so exceed the actual cost The arrangement
between the Union Pacific Railroad Company and
City is not in itself unla wfUI. But the allowance OF
one and one-quarter cents per 100 pounds paid by
the railroad company to these elevators controlled
by the Peavey interests. who are large shippers Of
grain and practically all the grain going into
the elevators is in OF the actual cost OF the
service and Is a rebate, and therefore unlawful
The commission orders that the allowance by
the Union Pacific Railroad Company to the Peavey
elevators shall be reduced and shall not exceed
threequarteTs of cent per 100 pounds, such order
taking effect on June 1. 1907.
Commissioners Clements and Lane take issue with
tbs opinion of the majority. Their opinions will be
available in day two.