The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-04-19
ter Fight of Years Road Is
Held Guilty of Unlawful
Deal With Elevators.
|,LOWANCE TO SHIPPER
INVOLVED SOME PROFIT
cisiOn Prepared by Commits
|ioner Harlan and COncurred
in by Majority.

WASHINGTON, April 1s.--In what
:nown as the Peavey elevator case,
Interstate Commerce commission to-
announced its decision against the
on Pacific Railroad company. The
mission holds that the arrangement
yeen the Union Pacific and the
vey elevators was unlawful, as it
In excess of the actual cost of the
alton Of the grain, and therefore
kbate.
he decision was prepared by Com
ioner Harlan and his opinion was
nrrcd in by a majoity Of the com
ion. Commissioners Clements and
e, however, filed dissenting opln-
he proceeding was entitled sin the
ter of allowances 10 elevators by
Union Pacific Railroad company. -
vas a subject of investigation by
Commission on its own motion prior
June 25, 1904. on which date the
mission. on the evidence then be-
il, decided that there had been no
ation of law.
Case Has Long Dragged
lbsequeutly, in July, 1906, on peti-
of certain railroads interested in
grain traffic of the Northwest, the
Twas reopcncd and much additional
imony WAS taken. The case was
argued at great extent before the
mission, and briefs were filed by
isel representing all parties in in
pt. Upon this record and the record
$he previous proceedings the COM
ion Is decision is based The opin-
.of Commissioner Harlan is sum
lzed thus:
Elevation is defined as unloading
q from cars or grain.carrying yes
INTO grain elevator, and loading
u again after n period of not 10 eX
ten days; IL does not include treat
or grading, cleaning and clipping
rain; and retention in an elevator
nd ten days becomes storage and
.t part OF the service of elevation
lat word is used in the statute.
.Ihe law clearly recognizes elevation
Facility which the carrier may pro-
and this authorizes the carrier
ant grain elevation at destination
,lhile the traffic is in transit, sub
Only 10 the restrictions imposed by
not that elevation, like any other
-ce offered by the carrier 10 ship.
must be open 10 all on equal and
mable terms
-Sjnce a carrier subject to the act
Rulate commerce is entitled TO pro-
Elevation for grain shipments. such
pr may either construct and op.
the elevator itself or furnish Gle.
IN by arrangement with an owner
elevator: and the amount of com.
ation paid hv the carrier TO the
r of an elevator rendering the
lie is of no concern to shippers or
her carriers, unless IL operates to
" the rates charged by the carrier
the grain traffic or by some de.
"A portion Of the allowance is re-
d to shippers and thus becomes a
What Is Unlawful Allowance.
In allowance made TO a shipper of
who furnishes elevation service
An arrangement with r. carrier is
ate and an unlawful discrimination
II involves a profit over and above
actual cost TO such shipper of the
ce rendered. 1t is not a rebate
the allowance does not so exceed
actual cost. The arrangement be-
70 the Union Pacific Railroad COM
and the Peavey elevators at Coun.
siuffs and Kansas City is not in
unlawful. But the allowance of
>and a quarter cents per 100 pounds
by the railroad company 10 these
tfors, controlled bv the Peavey in
o'ts, who are large shippers of grain
,iewn practically all the grain going
the elevators, is In excess of the
sfni cost of the service. and is a re-
.. and therefore unlawful.
1.-The commission orders that the al.
nee by the Union Pacific Railroad
|aPany TO the Peavey elevators shall
lpeduced and shall not exceed three.
ters OF n cent per 100 pounds. the
taking effect on June [. 1907
m Commissioners Clements and
~ take Issue in their opinions with
opinion of tho majority of the
rission. Their opinions will be
: able in day or two.