New-York tribune., 1908-12-21
AGAINST REFINER[ES
TRANSFER ALLOWANCES
DECLARED REBATES.
Commerce Commission Ends Con-
trOUersy Bet1Ceen Nezo York and
Philadelphia Companies.

Washington, Dec. 20.-In decision made pub
lie to-day the Interstate Commerce Commission
declares that allowances fo~ the transfer of
sugar from refneries to the trains are essen
tally rebates and in violation of the law.
This important determination was reached by
the commission only after several months of
consideration of the matter of allowances for the
transfer of sugar, and so far as the commission
IS concerned. brings to an end a controversy
which has long existed between the refineries in
New York and those in Philadelphia. In its de
cision the commission lays down four general
conclusions, as follows:
First-The commission has Jurisdiction to
make an order in amy inquiry on its own motion
In the same manner and to the same effect as
though complaint has been made"
Second-It is not a part of the carriers duty
70 bear the expense of transfer of goods from
dertake 70 compensate shippers for performing g
services which the shippers are legally bound to
90 for themselves is for the carriers to violate
the act.
Th1rd-The publication of gross and net rates
would needlessly add to the complexty of tariffs
rate, as such it is their duty to do.
Fourth-The allowances here considered are
rebates, and violate the law. No order is is
sued but the carriers are expected to conform
TO the law without delay.
In the testimony taken by the commission
there substantially no conflict as to the
facts developed. It was disclosed that the pay
ment as at present in New York City, Of
cents a hundred pounds to the shippers
cartage was really in the nature of a rebate
from the through rate fixed by the railroads on
shipments of sugar. The allowances, or re-
bates, in one form or another have been in
vogue since 1885. and they range from the
present allowance of cents hundred pounds
to as high AZ cents a hundred pounds.
In a recital of the conditions the commission
says that prior to 1898 the allowance was re
bate to equaize certain Philadelphia rebates.
In 1898 il was a compensation for the main
tenance of unlawful pool. To-day it is the
same allowance. but it is insisted that it has
reason for veing-viz., transfer In 1908,
after the passage Of the Elkins act, the rail
roads in the pooling arrangement to sugar
shipments from New York and Philadelphia,
generally, ceased to pay the transfer allow
ance, holding it to be unlawful
"Thereupon the American Sugar Refining Com
pany, the largest shipper from both New York
and Philadelphia, refused to protect the pool
percentages in us shipments of sugar holding
that the pool and the transfer allowances were
related as service and consideration. Subse-
quently the allowance was restored by the rail
roads and actually made retroactive for the
shipments forwarded during the period of its
discontinuance The allowance since that time
has been paid on basis Of two cents a hun
dred pounds for carriage, Practically all Of
the railroads doing business out of New YORK
have operated under this arrangement for al
lowance, the regulations OF the several lines diff
fering merely in form"
In view of these facts the commission holds
that the allowance is a rebate, and therefore un4
lawful
No order will bc made at this time" the re
port says in closing. but the commission will
expect the carriers in question at once to
form their tariffs and practices to the principles
here announced. If this is not done the com
mission will take such steps to enforce Compli-
ance with its views in this connection. either by
an order in this proceeding Jurisdiction of
which is reserved for that purpose) or by such
other means it may deem advisable in the
premises"