The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-08-25
STRIKES BLOW
AT CHECK UPON
UNJUST RATES
Judge GrOsscup Declares Too
Vast a Power Was Placed
in Hands of Body
Baker Dissenting Declares That
II Was Intended to Curb
Railroads Avarice

number OF important shipping interests
interviewed as co-complainants.
The question raised" said Judge
Grosscup in rendering his opinion, lin
its larger respect is not so much a
question between the shippers and the
railroads as between the commercial
and manufacturing interests of Denver
and OF the territory west of the Mis-
sissippi river on the one side and the
commercial and manufacturing inter
ests OF the Missouri river cities on the
other"
The joint rate now in force from the
Atlantic sesboard to the Missouri river
on first class matter is s1.47 per 100
pounds. The reduction proposed by
the commission was TO sl.SS. The
through rate now in force on the same
matter from the Atlantic seaboard to
the Mississippi river is 81 cents, which,
plus the through rate from the Missis-
sippi river TO the Missouri river 600
cents) makes the same total, S147 per
100. the joint rate from the Atlantic
seaboard to the Missouri river.
Defeats Competition
The commissions defeated purpose
would have allowed the Atlantic sea
board to deliver goods to Missouri river
cities on a joint rate cents less than
could have been done if the shipments
were sent first to the Mississippi river
and then resent to the Missouri river.
In the Denver case 1t is said the sea-
board by shipping direct TO Denver
under the order of the commission
could save % cents on nrst class ship
ments, and proportionately on other
classes, instead of reshipping at the
Missouri. Shippers Of the Missouri val
ley thereupon protested vigorously that
the enforcement OF the order would
discriminate against them.
In the present case the railroads
maintain that the principle laid down
by the commission would be proper if
applied TO one road, but that its ap-
plication 10 more than one would work
a hardship because of the expense of
operation of terminals by each road
The railroads also contended that the
reductions ordered by the commission
meant discrimination against western
railroads. manufacturers and mer-
chants in favor OF the Atlantic sea-
board shippers.
Doubt Practical Working
Speaking of the power Of the commits
sion the opinion says:
We are not prepared to say that the
commission has the power to enter upon
a plan looking toward a system of
rates wherein the rates. for longer or
shorter hauls, viii tapen downward, ac-
cording 10 distance, provided such ia
pering is both cOmprehensively and
symmetricslly spplpied-applied with a
design Of carrying out what may be
the economic fact. that. on the whole
il is worth something less per mile to
carry for the long distances than the
short distances.
But it does not follow that power of
that character includes power, by the
use of differentials, TO artifcfally df-
vide the country into traffic zones trib-
utary TO given trade and manufactur-
ing centers, the commission. in such
cases, having as a result, to predeter-
mine what the trade and manufactur-
ing centers shall be; for such power
Vaster than any one body of men here
tofore exercised. though wisely exerted
in specific instances, would be putting
in the hands Of the commission the
general power of life and death over
every trade adm manufacturing center
in the United States"
The opinion holds that the commits
sion, in attempting to enforce its order,
sought to exercise this colossal power.
Important Conference Planned
WASHINGTON, Aug. 24-Knapp and
Prouty OF the interstate commerce com
mission are in receipt of invitations
from President Taft TO attend a con-
ference beginning in New York next
Monday TO consider proposed changes in
the interstate commerce act.
Attending the conference beside the
two commissioners will be Attorney
General Wickersham. Secretary NageI
Of the department Of commerce and
labor, Solicitor General Bowers Of the
department Of justice and Representa-
tive Townsend. In a general way it is
known that it is proposed If possible to
have enacted by congress legislation
that will take from the interstate COM
merce commission the investigation of
practices OF interstate carriers and
place such Investigations in the hands
Of ofhcials OF the department of jus
tice and OF the bureau of corporations.
Such an arrangement would make of
the interstate commerce commission
practically a judicial body with powers
limited 10 an examination into the rea-
condolences of freight rates. II is OBJ
posed by majority OF the members of
the commission.