The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-04-19
GOES AGAINST
UNION PACIFIC
Interstate Commerce Commits
sion Decides the PeaVy
Elevator Case.
TWO DISSENTING OPINIONS
CONCLUSION ARRIVED AT BY
THE MAJORITY.
TWO DISSENTING OPINIONS

Washington, April 18.-In what is
known as the Peavy elevator case the
interstate commerce commission today
announced its decision against the
Union Pacific Railroad company. The
commission holds that the arrangement
between the Union Pacific and the
Peavy elevators was unlawful as it
was in excess of the actual cost of the
elevation of the grain, and therefore
a rebate.
The decision was prepared by Com
missioner Harlan and his opinion was
concurred in by a majority of the COM
mission, Commissioners Clements and
Lane, however, filed dissenting Opin-
ions.
The proceeding was entitled In the
matter of allowances to elevators by
the Union Pacific Railroad company"
II was a subject of investigation by the
commission on its own motion prior to
June ., 1904. on which date the COM
mission. on the evidence then before
it, decided that there had been no vio-
lation Of law.
Case Was Reopened.
Subsequently, in July. 1906, on petit
ton of certain railroads interested in
the grain traffic in the northwest. the
case was reOpened and much additional
testimony was taken. The case was
then argued at great extent before the
commission. and briefs were filed by
counsel representing all parties in in
terest. Upon this record and the rec
ord of the previous proceeding the COM
missions decision is based. The opin-
ion of Commissioner Harlan is sum-
married. thus:
Elevation is defined as unloading
grain from cars or grain-carrying YES
sells into a grain elevator and loading
g. out again after a period of not to
exceed ten days: it does not include
treatment or grading. cleaning and
clipping of grain; and retention in an
elevator beyond ten days becomes Stor-
age and is not part of the service of
elevation as that word is used in the
statute.
Must Be Open to All.
The law clearly recognizes eleva-
tion as facility Which the cFlrier may
provide and this authorizes the carrier
10 grant grain elevation a destination
or while the traffic Is in transit. sub
iact only to the restriction imposed by
the act that elevation, like any other
service offered by the carrier TO ship
pers. must be open to all on equal and
reasonable terms.
TO regulate commerce is entitled to pro-
vide elevation for grain shipments.
such carrier may either construct and
operate the elevator itself or furnish
elevation by arran cement with an own
or of an elevator, and the amount Of
compensation paid by the carrier to the
owner of an elevator rendering the
service is of no concern TO shippers or
TO other carriers unless ii operates to
Of ha roc no nv no 1r-T-iav
upon the grain traffic or by some de-
vice a portion of the allowance is re-
turned to shippers and thus becomes a
rebate.
Clearly a Rebate.
AN allowance made to a shipper of
grain who furnishes elevation service
under an arrangement with a carrier
IS a rebate and an unlawful discrimi-
nation when it involves a profit over
and above the actual cost to such ship
per of the service rendered. Il is not
A rebate when the allowance does not
so exceed the actual cost. The arrange
ment between the Union Pacific Rail-
road company and the PeaVy elevators
n Council Bluffs and Kansas City is
not in itself unlawful. But the allow
ance of one and a quarter cents per
100 pounds paid by the railroad COM
pany to these elevators. controlled by
the Peavy interests. who are large
shippers of grain and own practically
all the grain going into the elevators,
is in excess of the actual cost Of the
service. ard is a rebate, and therefore
unlawful
THE commission orders that the al
Iowance by the Union Pacific Rail-
road company TO the Peavy elevators
shall be reduced and shall not exceed
three-quarteTs Of q cent per 100 pounds,
the order taking effect on June !. 1901
Both Commissioners Clements and
Lane take issue i'm their opinions with
the opinion of the majority of the COM
mission. Their opinions will be avail
9 HE in q daN or two.