Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-10-19
Omaha Shippers
to Get Refund
From Railroads
Supreme Court Denies Petition and
Orders Reduced Rates to Go
Into Effect.

WASHINGTON, oct IS Especial Tele-
gram The decision OF the United states
supreme court yesterday in the famous
Missouri river rate case denying the petit
ton Of the railroads for a rehearing
makes Necessary the immediate dissolu-
ton of the injunction ISSUED two years
ago by the United states circuit court
at Chicago and Compels railroads between
the Mississippi river and the Missouri
river to put into effect TO Omaha at once
the reduced rates originally ordered by
the commission. The immediate result Of
this decision viii be . cents per hundred
In the first class rate from the immense
Atlantic seaboard territory to Omaha. a
corresponding reduction Will be made on
the remaining four merchandise classes.
This decision is the elimination of a
contest, which was begun in 1906 and
which resulted in the commission ordering
the reduction above in rates west of the
Mississippi river. The commissions order
was bitterly contested by the railroads
and was enjolned by Judge Grosscup in
1905. on June 1, 1910, the United states
supreme court upheld the commission a
! petition was Immediately filed by the
railroads interested which operated as a
| stay to the mandate Of the supreme court
| and the result was that the injunction is
sued by Judge Grosscup remained in eff
] feet. This compelled the Omaha shippers
! to pay the excessive rates which had been
condemned by the commission. The de-
NAL OF the petition for a rehearing Will
dissolve the injunction and the railroads
viii lbe compelled to put the reduced rates
| into effect at once
The traffic bureau OF the Commercial
club has been engaged for some months in
] 49,.
behalf Of Omaha shippers in anticipation
of the decision rendered yesterday. And
these claims will be presented to the Inter
state Commerce commission Immediately.
The commission will beasked not only to
award reparauon but to issue a new order
extending the time in which new rates
shall be effective to the full period of two
years so that the rates may become per-
manent. t.,.
There has been no change in the condi-
tons since the original opinion Of the COM
mission was rendered in 1908 that would
justify charging any higher rates than
those named in the original order.
h. J. McVann, manager of the traffic
bureau of the Commercial club, who is in
Washington preparing evidence in the ad-
vance rate case, says Of this decision:
The immediate effect will be a refund
to the Omaha shippers of about $751; 600
wrongfully collected under the rates con-
demned by the commission. The traffic
bureau will file claims on behalf of its
members asking for repayment and will
also ask the commission to make new
order extending the new rates for the fun
two years.
while the reduction does not yet bring
the Atlantic seaboard rates down to where
they ought TO be, it will help Omaha job
bers and retail merchants who buy in that
territory"
This is the case originally tried by John
l.. Webster in 1905 and followed through
to the United STATES supreme court by
him, with the backing Of Omaha's ship
ping interests. Mr.. Webster is entitled to
share in the Fluctuations offered to
Omaha upon this victory.
Omaha shippers will not only get back
from the railroads a total of something
like $4,000 to 100000, but according to
John Lee Webster the attorney who won
the fight for them, an annual saving to
the shippers of this city of approximately
! $4,000 will be effected. The refusal of the
supreme court to grant rehearing finally
settles the matter for all time.
| MIR. Webster bases his computation
which he does not assert to be definite, on
testimony given at the hearing by the
assistant to the president of the Gould
roads. That witness said that the annual
loss to the roads by the reduction would
amount to S56OOOO OF this Omaha ship
pers net about one-third.
The Omaha shippers who are entitled
to reparation are those who were among
the original plaintiffs in the action before
the commission" said Mr.. Webster, the
list being as follows: Byrne- Hammer COM
pany, NJ. Z. Smith g. Co., Kirkendan g.
Co., E. e. Bruce company, Carpenter
Paper company, j. l. Brandeis & Sons
company Thomas KiIpatriek g. Co Amer