The Detroit times., 1910-10-18
llN AFFECTS
D|(L|0n RATES
tors(nte Commerce Commission
1us Stop TO Use Of Taplines
For Evading Statute.


amended rate law went into effect. the
s 1nterstate Commerce commission has
r suspended. nalf q million rates and
g suspended the cancellation OF about as
many more Perhaps II Is too dignifed
q - nay that the million Is an estimate.
E AL the railroads in all parts Of the
oountry except the southeastern Sec
tion gave notice during the last three
Y months Of desire to increase their
+ income.
Nj In theory the commission Is going
& 20 examine this half million OF rates
and determine. with regard TO each
whether the rate II is to- displaee was
h 100 low or just right. AS mater oi
& fact the procedure will be 20 taks
sample rates from a large number cl
y tariffs and apply 10 them tests thu
commissioners have made for them.
= selves. II Is expected that the COM
missioners will assume, for their o@ n
y guidance. that the existing rates
which the railroads desire to dis
place. are just and reasonable. That
ofrords = fair base line. At least that
& ~ the view minor officials Of the com
\ mission are Inclined TO take.
The new law specifically places the
burden OF proving that new and high
{ Or rates are needed upon the rail-
roads. Therefore, II the commission
~ assume that the existing rates are
4 1ust and reasonable, they will require
the railroads 10 show in what amount
= their permanent ordinary expenses
& have been increased by the high cost
of living.
Case Of the Pennsylvania.
a few railroads, notably the Penn
Gylvnnfa, will be able TO show that
X their fixed charges have been In
& Ereased by the construction OF new
f0rminals. Nearly all will be able TO
1how that wages have been increased.
f % doubtful, however. whether the
Penneylvania will be able 10 show
that there win be no compensating IN
trease In earnings because OF the con-
nfr1Iction of the terminals. AS 10 the
fncfease OF wages. 1t is generally be-
11eved among those who have thought
N tho subject. hat the increased lis
X kursemenfs on that account will not
e eonvince the commission that in
creases as In e. as those proposed,
Will be jistiaable.
There Is A suspic' on that the rate
1arifR-mar fonfronief with an in
crease IN The va es account OF say.
h N .00O nce have PROPOSED Increases,
n which n gr- ntef will enable the rail-
roads 10 incrsa-e the incoms on ac
count OF the. 'nerease in WAGES 70
three or. foar times the amount OF the
extra 0issursc for higher wages
The half million OF suspensions or
rates proposed To be cancelled make
x op what are known as the tar-line
eases. The railroads that are admit
tad to be Interstate commerce car
riers, SEEKING upon definition OF a
<ap-lin given by the commission,
x have undertaken to cancel all the
1oint and through rates made By them
~ connection with short railroads
that. primarily. were built TO bring
& ant logs and lumber from a country
h that IL now developing. The carriers
c0ttend that the definition is so broad
Z ~ TO include practically every one Of
4 the / 200 or 500 tap-lines and indus
trial railroads. some OF which perform
K the functions of common carriers for
nDarsely settled districts. but their
chief business is hauling commodities
& Tor the interests that built them
Commission Saw Through u.
The comm .ssion, when il made the
6efnition OF tap-iine. saw chiefly the
almost uni mned opportunities afford
"a by the possession OF such a tap
line or inaustrial railroad for eyading
the anti-rebate section OF the law. The
fnct L. II had in mind the fact that
The International Harvester Co, the
Onion stockyards and many other
companies. under pretense OF making
6 lolnt through rates with the railroads
that are admittedly common carriers
md nothing else, could and did de-
1nand rates that amounted to prefer
9ntial treatment for themselves and
n Abe Industries for the accommodation
Xkof which their short railroads were
built Then again, ii saw that the
big lumber companies, the chief units
~ the lumber combination. could use
T 1heir railroads for the same purpose.
hence the sweeping character Of tbe
y >1ecision.
Since the railroads gave notice Of
Gancelling point through rates made
9Th. tap-lines, the tap-line companies
have fled complaints against the car
tfers. charging violations OF the pro-
yisions OF the law requiring common
barriers to make such rates or take
The risk of having the commission
make such rates. There never was a
time when the situation I'm respect to
& The railroad problems Of the country
4 VAS mare confusing. Apparently the
commission has got to consider every
. top-1ine separately. on It's merits. IL
X Il has really developed into a COM
mon carrier II must be accorded the
rights OF common carrier.
Whacks state Boards.
The commission held the mere fact
Il that company has a charter as a
u common carrier does not make il one.
IN doing that II took another whack
ot the state railroad commissions. its
1rst blow being a decision that even
- the sum of the local rates, fixed by
state legislatures was less than the
through rate fixed by the carriers,
that fact would not be considered even
Dersuasive by II. II is under that
1oling that the railroads can and do
1hnrge more for through ticket from
Iontgomery TO Atlanta than the sum
the Alabama and Georgia rates.
~ thrifty Georgian. desiring to go
IN the capital of his state TO a
M near the Alabama line. buys a
~ TO the point nearest the line
roou those states for the Georgia
fwo cents q mile. Then, II nee
~ buva 70 the first DOint