New-York tribune., 1908-11-07
RAILROADS WIN POINT
IN MISSOURI RATE CASE.
T.. S. Circuit Court Restraints Inter
state Commerce Commission.

Chicago. Nov. s.-Judges Grosscup, Seaman ana
Baker in the United States Circuit Court here to-
day. grasted temporary injunction restraining
tbs Inters5ats Commerce Commission from carry
ing into effect its order reducing freight rates from
the Atlantic eeaboard TO Missouri River polnts-
The complaint from which the order originated
developed into ons of the most important cases
With ~hioE the commission has had to oeaI IN TIE
last year. II was brought by the BurnhaH-Herlna-
Munger Drygoods Company ana many similar con-
o.-z.s in kansas City against the Chicago Rock
Island & Pacific Railroad Company, and practi-
caIIy sil the railroads doing business between At
lsntic seaboaSd points and Kansas City. In effect.
the complaint that the rates on class commodi-
ties between Atlantic seaboard points and Kansas
City were 100 high. and that they Disseminated
against Kansas City. compared with many other
points In ths West snd Northwest.
developed by the commissions inquiry that
no through existed between Atlantic seaboard
POINTS and Kansas City class commodities but
that THE rates paid by Kansas City merchants
were the through crates from Atlantic ports to
Mississippi River blessings, plus the sum Of the
Mississippi River crossings to Kan
City and nearby points. The order of the
mission that the rates on first class freight
from Mississippi River crossings TO Kansas City
points should be reduced cents hundIed pounds
thus making that rate 81 cents, instead of 90
Proportionate reductions were made on second,
third. fourth and fifth class freight between the
same points. This order the commission consid-
cred just 20 the transportation lines the rates
on the same classes Of freight shipped from At
lantic seaboard points through Mississippi River
crossings TO Minneapolis and other northwestern
points were even lower than those fixed by the
commission to Kansas City points
The court did not go into the merits OF the law,
but said that the temporary order would issue,
no injustice would be done by allowing the old rate
20 continue until the question is finally adjudi-
Gated. Judge Grosscup suggested that the lawyers
endeavoT 10 agree statement Of facts which
could be presented without loss of time to the
United States Supreme Court. The ruling of the
commission requiring lower rates between MissiS-
sippi and Missouri river points shipments orig
mating OF Pfttsburg and Buffalo than those
orgina ting west Of the cities named alleged by
the railroads which sued for Injunction to be
revolutionary The ruling, it was declared II al
lowed 70 stand, would FIX a principle tantamount TO
government ownership Of the roads. It also
declared discriminate against communities west
OF Buffalo and PittsbuTg- Counsel for the commits
sion held that If Detroit Chicago any other city
considered itself Disseminated against, it had only
TO prove the fact to the commission TO have the
rate equalized- With these opposing arguments be-
fore them. the Judges took the under advise
rnent October 30
JUDGE GRossCUPs OPINION.
Judge Grosscur IN delivering the opinion of the
court said:
only one feature of the bill. in the opinion OF
feature grows out of the fact that under the order
Of the Interstate Commerce Commission a rate or
nine cents less given first class and other
the Atlantic seaboard TO Missouri River points
than given 10 traffic originating at inter
mediate points, Tire bill Of complaint cites the
opinion of tie commission, which frankly and
clearly shows that diferential of nine cents was
created To make the reduction universal in
place Of differentjal would put the Eastern cities
Whether the bill and the answer and the opinion
Of the court satisfactorily show this condition is
not the question considered attempted to be
passed on now The question which the court Is
concerned with is: Has a prima facie case been
made out authorizing the court TO enter the inter
locItory order prayed for2
The rules of the Interstate Commerce Commits
sion authorized the ground that they
would prevent undue discrimination The sole
point 10 be considered is: What is undue dis
elimination? Discrimination is admitted. Is II
due undue2 Many points are involved IN deter
mining this question but the court holds that
sufficient is shown in the bill 10 require to
grant the interlocutory order In the first place
there has grown UP the basis Of the OLD the
commerce Of the country We cannot overlook
that Trade houses have undoubtedly grown up
under the conditions giving them the same rela-
tive rates from intermediate points TO the West
as from the Atlantic coast The rule OF the
commission disturbs commercial conditions which
have grown up for years on IA basis Of the pres
ert rates which IS sufficient to warrant the court
in issuing a restraining order until the case is
finally presented
Leave was granted to other railroads wishing
TO intervene III the case.
Washington Nov. 6.-ConsideTable surprise was