Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-07-28
WILL ACT ON RATES
Commission Announces New Position
Regarding Proposed Advance.
NO WAITING FOR PROTESTS
New Tariffs Will Be Investigated
Before They Take Effect.
INTEREST IN sPEER DECISION
Finding by Southern Federal Judge
Now Attracts Attention.
SMALL SHIPPERS WIN CASE
Commission Makes Ruling that
Parcels May he Bunched Into
One shipment and sent at
Rate for This Glass.
New Tariffs Will Be Investigated
Before They Take Effect.
INTEREST IN sPEER DECISION
Finding by Southern Federal Judge
Now Attracts Attention.
SMALL SHIPPERS WIN CAsI

the Interstate Commerce commission to-
day that It would consider the reasonable
ness Of rates OF notice Of increases by the
shippers and prior to the filing Of pro-
tests is regarded az of widespread i'm
portance. Following closely upon the ac-
tion Of Cincinnati shippers appealing to
the president to induce the commission to
take this course, It is generally believed
here that the suggestion calling for the
statement comes from President Roosevelt.
Chairman Knapp said last Saturday that
the law contemplated investigation of the
reasonableness Of rates by the commission
after they have become effective. but he
thought the commission might decide
whether the increase is reasonable after
notice had been given by a carrier and
before the new rate actually goes into ef-
feet. The commissions statement today
takes that view of its powers.
THE commission" the statement says,
has no authority to suspend a proposed
advance In rates and can order reduction
of the advanced rates only as the result
of investigation after the advanced
rates have become effective; but the COM
mission, while it could make no effective
order prior to the actual advancing OF the
rates. has almost unlimited power of in
vestigation and 1t is understood that II the
tariffs filed with the commission show
general increase the commission vShout
waiting for the filing Of formal complaints
will institute an investigation on its own
motion for the purpose of determining
whether or not the advances are Justified.
Such general information would enable 1t
to handle very promptly any complaint
which may be filed against advanced
rates.
THE commission is having a close check
kept OF all advances in freight rates"
Interest in sDeer Decision.
There is much interest in the decision by
Judge Speer of the southern judicial d's-
trict of Georgia. granting a preliminary
Injunction, restraining the Atlantic Coast
line, the Louisville and Nashville, the Nash
Vile, Chattanooga and St. Louis, the Gin
cinnati, New Orleans and Texas and the
Southern railway companies from putting
into effect on August /, the increased rates
on shipments OF staple products from west
ern TO southern points. In 1903 Judge Speer
took the same course in relation to the in
crease OF cents per 100 pounds on yellow
pine by the Southern railway and couth-
eastern carriers, including the Southeaster
Freight association. The advance was on
rates from Georgia and Chattanooga to
Cincinnati, and other points on the Ohio
river The increase was promulgated by
the carriers ot take effect April IS, 1900 and
would have become effective except for the
temporary injunction granted by Judge
Sp7er April H. On May 16. the court dis
solved the temporary injunction and with
held further action until the case could
lie determined by the Interstate Commerce
commission. The court placed the carriers
under bond to refund the overcharge should
Nha 49,.
rate was unreasonable and the new rate
was then allowed to go into effect, the COM
mission deciding in favor OF the complaint
ants the railroads refused to obey their
order and Judge speer sustained the COM
missions decision and enforced its order
fnvorins the lower rate.
Grouping Small Shipments Legal,
According to decision by the Interstate
Commerce commission today shippers may
combine small quantities of freight of vari-
Gus ownership, either by arrangement
among themselves or through the medium
OF forwarding agency. and ship the COM
bined lot at the relatively lower rates appli-
cable 10 large shipments
The commission decided in favor OF the
smaller shippers upon the ground that the
ownership Of property rendered for shipment
cannot be made test as to the applicab bIity
as TO carriers rates. The Interstate com
merce law forbids discrimination between
shippers and the fact that one shipper
tenders a "bulked" shipment made up of
property OF various ownerships consolidated
before delivery to the carrier will not Justify
the carrier in making a different charge
than for shipment OF similar character
rendered by shipper who Is also the
owner
The commission rests it's decision prin-
clpally on the case of Wight versus United
states, where the supreme court held that
the phrase under substantially similar
circumstances and conditions as found in
section two Of the act prohibiting discrim-
nation refers to the matter of carriage.
The decision also follows the English
cases Interpreting the so-caIIed equality
clause" Of the English act. which clause
has been substantially Incorporated into
the interstate commerce law.
This decision was made by Comnissio,sr
Lane, based on a complaint by the Cali
fornia Commerce association versus. Wells
Fargo & Co. The express COMPANY re-
fused to apply its quantity rates to ship
ments which consisted OF a combination
OF packages of various ownership ten
dered at one time and one place by a sin
gle eonsignor and consigned to a single
eonsignee under one bill OF lsding.
The export shipping cases in which sev-
eral railroads are named as defendants
arise from a similar situation. The com
plainant is engaged as a forwarding agent
al Chicago and New York. assembling
packages OF merchandise OF various own
ership, consolidating them into carload
lots and shipping at the carload RATE
The refusal OF the caArier TO accept car
load rates for these combined shipments
was made under the official classification
which refusal the commission oDw de-
elares TO be illegal