The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-08-05
RAILROAD NEWS.
Big Systems Unite to Fight
Common Battles.
will Wage Warfare Against
Commissions Ruling.
SOU. PACIFIC IN LEAD.
Millions of Dollars Are at Make
Millions of Dollars Are at Stake
in Controversy.
Other Items of Interest in Rail.
way Circles.

While special agents of the inter-
state commerce commission are in Chi
cago and other cities collecting evil
dence on which to base proceedings
against the Hartman roads for viola
ton of the Sherman antitrust law,
recent developments in the Pacific
coast lumber rate situation indicate
that the railroads are planning a con-
centrated attack against the decisions
of the commerce commission. The
fight will involve millions of dollars in
rates. it is said. and may go so far as
to call into question the constitutional
ity of the interstate commerce act
itself. In this case not only the lines
comprising the Union Pacif1c-Southern
system, but also the combined legal
talent Of the Morgan-HilI system will
be arrayed against the commission and
the powerful lumber interests of the
west
1t was announced in Chicagolast week
that the Transcontinental roads in
volved in the fight had decided definite
ly to appeal to the federal courts from
the decisions of the interstate COM
merce commission in all the northwest
ern lumber rate cases, which were de-
cided on June l. In one case the South
ern Pacific company already has APP
piled FOR an injunction to restrain the
commission from enforcing it's order.
In the latter case, that of the West
ern. Oregon Lumber Manufacturers
association against the Southern Pa
cific. the commission decided that the
increase in the rate on rough green
lumber from the Willamette valley to
San Francisco from $40 to S. which
was made effective on April l. was ex-
cessive. 1t ordered a reduction to So. 40
The petition of the road for a re-
| straining order, fled in the United
<7sr ~r.%k ~ .te
has been set for a hearing on August
| 8. but it is probable that the hearing
will be postponed until October.
| This is the only case in which the
roads will seek an injunction restrain
ing the commission from enforcing it's
orders. In the other cases, involving
a general increase of approximately 25
per cent in lumber rates from North
Pacific coast points to the east in
which the commission had ordered ma
terial reductions, 1t has permitted the
roads to postpone until October Is the
filing of tariffs in accordance with its
orders. The present purpose of the
roads is to publish all of the rates fix
ed by the commission except those in
the Willamette valley, case, 1t is said,
and then to attack them in the courts
for the purpose of determining the
commissions power TO fix the rates
The cases arise from the fight of the
lumber manufacturers association of
the Northwest to prevent the railroads
from increasing by from Is to 25 per
cent the rates that have been in effect
since 1893.
To the lumbermen the proposed in
creases would mean millions of dollars
in additional freight rates. and If the
advance had been approved they be-
lieve other increases would have been
made as their products increased in
value.
The commission held that all the in
creases were unreasonable but permit
ted advances of about per cent to
points east of line from Grand Forks,
N D., through Missouri river points to
grounds on which the decisions were
based were:
That the rates superseded had been
in effect for a long time and therefore
an advance would injure the numbering
industry Of the Northwest That the
roads had been earning large profits on
the previous rates.
The contention of the railroad Off
Gals was based on the great increase
In the price of the lumber products in
volved. the increasing cost of operation
and the fact that since the old rates
we're put into effect the predominance
of the movement of empty cars has
been changed from eastward to west
ward thus obviating a good reason for
making a low rate. The roads admit
an increase would involve greatly ad-
ded expense to the manufacturers, but
claim that the industry largely has
been built up to it's present position
by the low rates that previously have
been granted.
The roads are taking added encour-
agement in believing that they have a
strong case from the fact that Com
missioners Harlan and Knapp filed dis
senting opinions in two of the cases.
The attitude of the roads Is that the
commission has exceeded its powers as
a ouasi-judicial Body, empowered to de-
terurine the reasonableness Of rates af-
ter the traffic managers have made
them. and has assumed the functions OF
the traffic manager.
Pending their adjudication In the
courts the maximum rates prescribed
by the commission will be put into eff
feet. and as q decision In favor of eth
err side cannot be made retroactive,
producers and dealers will know just
where they stand and can proceed to
handle their business on the basis of
those rates without regard to what the
courts hereafter may decide.