Omaha daily bee., 1907-07-09
GRAIN MEN WIN THEIR POINT
Proportional Rate Dates Back to the
Origin of Shipment.
JULY RISE NOT YET EFFECTIVE
Interstate Commerce Commission Sup
ports the Contention of the
Omaha Exchange in It's Com
trOversy with Roads.

! ing victory over the railroads on a point
of contention regarding the application of
the new proportional rates on grain out
Of Omaha. A letter just received from
Franklin X. Lane Of the Interstate Com
mcrce commission is construed meaning
that the exchange is in the right. The
railroads must now either yield or be en-
Joined by the exchange
| An advance In proportionals went into
effect July 1. on that date there was in
Omaha a large quantity of grain which
had arrived from Nebraska points ana
also large quantity of grain in tran
sit from Nebraska points to Omaha. all
destined to points east. The railroads re-
fused to allow this grain to move out Of
Omaha under the old proportionals while
the exchange contended 1t ought to do so.
The exchange addressed letter to the
Interstate Commerce commission on June
25 and on July 8 received answer. The
two letters follow:
| OMAHA, June 25, 1907-To the Honor
able, the Interstate Commerce Commission,
Washington, D. c.; Tariffs have been is
Iby all of the railroads leading out Of
Omaha to the north, east, south and south
grain IA cents per hundred, effective July
II. All of these tariffs are clearly applicable
as proportions of through rates on business
originating beyond" Omaha. The rates
named in these tariffs are only applied
upon such shipments as have moved ''in'
by rail and satisfactory evidence of that
fact must be given TO the transit inspection
bureau, which is maintained jointly by all
the railroads, before the proportionals 'out'
forthcoming the shipments are assumed
to be local shipments originating in Omaha
and the local grain rates, which are ma
terially higher than the proportional rates.
are applied on same.
Contention of the Exchange.
In view of these facts, the exchange con-
tends that the proportional rates now In
effect from Omaha must be applied TO all
such shipments as moved into Omaha on
the local rates prior to July l. and that the
| advanced proportional rates which go into
shipments as leave the points of origin in
the country July l or thereafter. We have
presented this view to some or the rail-
roads concerned and have quoted the de-
osion of your honorable body on the ques-
tion of the application of the proportional
Itariff from Omaha 20 the east on sugar,
llished about June 8, and from which we
beg leave to quote as follows;
THAT sugar which moved from Long
mont etc., prior to the going into effect
of this tariff cannot be moved out of
Omaha under its provisions and upon the
rate named therein. proporuonai rate
is through rate and can be applied only
to the traffic moving hereunder from point
Of origin to destination. At the time is the
named. this tariff was not in effect and
the local rate paid into Omaha cannot be
! treated as an ADVANCE payment ulOH u
proportional rate which was not in effect
at the time of origin of movement"
Applies to the Grain. @
We submit that the language of this
decision applies clearly and unmistakably
70 the movement Of grain In al, and out, out OF
from the reasoning of your honorable body
in the sugar case, that a proportional
tariff on grain, which is made effective
on July /, cannot be applied a proper
tion of through rate which was used to
bill the shipment i'm" at date before
of our position, we beg leave to quote
again from the decision of your honorable
body in the sugar case:
"All OF the conditions. regulations and
privileges obtaining as to any factor in
such combination rate for through ship
ment at the time of initial shipment upon
such combination through rate must bo
adhered to and cannot be varied as to
that shipment during the period of trans
portation on such shipment to Its final des-
tination. A local or proportionRte rate In
cannot be absorbed, diminished or affected
by any out rate not In effect at the time
when the traffic moved upon such local or
proportional rate"
We will appreciate 1t very much II your
honorable body will advise us whether our
contentious with reference to the applica-
tion of your decisions are correct, and what
proceedings are necessary to protect our
rights, in case the railroads refuse to
from Omaha for the completion of the
haul upon business that originated in the
l.
OMAHA GRAIN EXCHANGE.
BY e. z. Bruce, Chairman Transportation
Committee, and E. ]. McVann, Secre-
tary.
Answer of the Commission.
Grain Exchange, Omaha. Seb.: This is to o
acknowledge receipt of your letter of June
IS relative to proportional rates on grain
from Omaha to eastern markets. A copy Of
the opinion OF the commission in the matter
of through rates where through routes have
haa fab ia inplnQad
opinion seems to be entirely clear and plain
and it's application to any particular case
depends only upon the facts presented in
Proportional rates, after all. are but the
separately established charges of carriers
applicable to through business imposed by
carriers which have Joined in a through
route without u joint rate. This being so,
proportional rates take effect as of the date
OF origin of shipment over the through
route. If a shipment from your town to the
east is not entitled TO the proportional as Of
the date of It's origin, then II Is not entitled
TO move upon a proportional, but must move
upon the local rate.
! cannot pass upon the facts in any cabo,
nor determine the nature Of any particular
shipment, without investigation and hear
ing to all parties Interested.
If any carrier charges a different rate
from the legal rate on any shipment the
shipper may bring suit for reparation Also,
carriers threatening TO charge more than
tion. II may be added that an intentional
charge OF more than the legal rate IS a
Cflnlnhl OIenho DOth on lne part or the
corporation and on the part Of the officer
or agent OF such corporation making such
charge. Very truly yours,
FRANKLIN X. LANE, Commissioner.
Statement OF Local Committee.
The transportation committee OF the
Grain exchange gave out this statement
Monday;
1T seems clear that the old proportional
rate on grain, which was In effect prior 70
July 1st, must be applied to all grain for
which back billing can be furnished bear
ing a date prior to July LIST. Some OF the
railroads have claimed that the shipments
must be through shipments TO be entitled
to such a rate, but their own tariffs con-
tTadict this The tarinF clearly read that
the rates contained therein are applicable
only upon business originating beyond or
west OF the Missouri river and an expen-
sive transit inspection bureau Is maintained
here by the railroads to see that no busi-
ness IL billed on the proportional except
the business designated. No matter whether
ths grain ia billed in on local rates OF any
- 4.