The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-10-02
KNOCKS 1T OUT.
Judge Pollock Holds Jobbers'
Rates Are Discriminatory.
Therefore They Can Not Be
Enforced by Law.
III is FAR REACHING.
May Affect All Jobbing Interest
in Kansas.
Grattan Says State Will Keep
Up Fight.
1t is FAR REACHING.

Judge ]. c. Pollock, of the United
states court, has rendered a decision
in the Kansas freight rate case in
which he holds that the "joobing rates"
provided in the new freight schedules
of the railway commission, are invalid,
because they are discriminatory.
The opinion was rendered in the mo-
tion Of the railway companies to strike
out all of the states defense of this
class of rates.
The effect of this ruling is of the
most sweeping nature If it is sus-
tanned by the higher courts. it may
have the effect of invalidating the
whole new freight schedule proposed
Dy the state railway commissioners. If
the railway commissioners can not
compel the railways to continue to give
JoDDinS rates to the Kansas wholesale
houses, it may be impracticable to put
in the proposed new distance tariffs.
1t has been the custom in Kansas, as
in other states, for the railroad COM
panies to grant what are termed com
modify or jobbers' rates. These rates
applied on shipments of merchandise
made by wholesalers, and are consid-
erably lower than the rates on similar
goods not shipped by jobbers. These
low rates have been made by the rail-
road companies to protect Kansas job
bers from similar low rates made to
Kansas City, st. Joseph. and st. Louis
jobbers.. If the railroads did not grant
low rates to the Kansas jobbers, there
would be no Kansas .jobbers, because
they would be driven out of business
by the Missouri river jobbers.
Under the protection of the 'jobbers'
rates" Kansas has developed a thrifty
and progressive wholesale business.
When the Kansas railway commits
sion was making up its new distance
= vi n aRf IN fnJ1 I1n Of
the railway companies and put in
"jobbers' rate" lower than the present
jobbers' rate in proportion to the
amount the distance tariff is lower
than the regular tariffs now in use.
The railway commission simply follow
ed the plan of the railway companies,
and made jobbing rates with appropri-
ate dffferentials to protect Topeka,
North Topeka and Lawrence the same
system which the railroad companies
at present employ. But the rates which
the railway commission proposed to
give the Kansas jobbers was consid
erably lower than the rates which the
railways are now giving them.
One of the first points which the rail-
ways attacked when they started their
the board was to charge that the rail
way commission could not order" the
railways to put in the new
'jobbing rates" and ''differentials." The
railways dulHlIlSQ lnSy were dl
present giving such rates. but declared
that they were undoubtedly a discrimi-
nation in favor of jobbers, and were
unlawful, and could be knocked out by
anybody who desired to make a fight
on them. The railways contended that
as such rates were unlawful, the rail-
way commissioners had no right to
compel them to do an unlawful thing.
The attorneys for the railway COM
mission replied to this charge by say
ing that the railways had of their OWE
free will established the system of
making such rates, and that by such a
system had built up great jobbing
business III Kansas towns which would
be destroyed if the rates were with
drawn. and the present low rates to
Missouri river jobbers continued The
state held that since the railway COM
panies had voluntarily granted the
''jobbi- rates. such rates were subject
to review by the railway commission.
Judge Pollock in the federal court
sustains the railways position in the
matter and says that the railway COM
missioners can not order the railways
to make a change in the jobbing rates.
The state is therefore in the peculiar
position of having a series of railway
rates in operation in the state which
If can not amend. or even investigate
with view of amending. The only thing
il could lawfully do would be to wipe
ont such rates altogether, and this
would be death blow to Kansas
wholesale houses.
If the railway commission is obliged
to confine itself strictly to a distance
tariff, to be applied alike to all ship
pers under all circumstances, it is
highly probable that the entire power
of the state to make a workable freight
rate system has vanished. The state
would hardly care to put all it's whole
sale houses out of business by W1ping
out the jobbing rates.
Apparently the courts order will per-
NIT the railways themselves to con-
tinue the granting of jobbing rates on
such terms as they please, but will not
permit the state to step in and lower
these iobbing rates. as the state want
ed to do. The present jobbing rates,
however, would not be equitable in case
the rest of the new freight tariff pre-
pared by the state railway commission,
should be declared valid
1t is possible that under the ruling
of Judge Pollock the railway companies
tend to Kansas jobbing houses the job
bling rates now in effect. The policy OF
the railways on this proposition has
not been announced.
Mr.. Grattan's Opinion.
G. F. Grattan, attorney for the
the state will yet win it's fight, and
that the contention of the state that
the jobbers rates are not dis
criminatory will be sustained by the
courts. This indicates that the state
will appeal from Judge Pollock's de-
cision to the United States court of
appeals
Mr.. Grattan said this morning:
"In the several cases brought by the
railroads against the board of rail-
road commissioners to enjoin the en-
forcement of the freight rate order of
the board, it is the claim of the rail-
roads that the statute of the state is
such that jobbers' rates that have
prevailed in Kansas for many years,
and now are discriminative as against
persons and places, and the board has