Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1910-04-15
BIG REDUCTION IN
ALL PULLMAN CAR
RATES The ORDER
Discrimination to Charge Same
For an Upper and Lower
Berth.

Washington. April 1.-The Inter-
stats m commission will issue
within a short time a decision in which
It Will order general reduction OF Pull
man sleeping car rates throughout the
country.
Authority very close to the commits
sion states that the decision has been
reached. and will be given TO the pub
lie in a few days. II Is promised that
the opinion will be only the opening OF
a long and determined fight. in which
the Pullman company will contest to
the end the right Of the commission to
regulate It's business. The company
has always insisted that Ii Is not a
common carrier. but merely a hotel
proprietor whose hotels chance to be
operated on wheels.
Taking an opposite view, and CLASH
flying sleeping cars and their operation
as functions OF interstate commerce
within the meaning of the law, the
commission has decided against the big
Chicago concern. and proposes to fight
to the end to establish the right to
reduce it's rates. The decision lays
down several important points.
/. The Pullman company, though 1T
Is conceded that II does not transport
it's cars, but leases them to railroads
for transportation, is found to manage
the cars in transit, to man them, TO
collect the tickets for them, n gen.
orally TO retain control OF everything
save the actual moving OF them.
2. This is held 70 make the Pullman
company q common carrier under the
present law.
8. The commission finds that II Is
a discrimination to charge the same
rates for upper and lower berths, n
the order looks to a readjustment that
will make upper berths cheaper.
4. A general reorganization Of Pull
man charges is foreshadowed in a re-
,uuirement that Pullman routes shall
be classified according to their reven-
ues, and rates shall be adjusted to the
rattle conditions. This, carried into
effect, will NEAR large reductions on
those routes which have heavy sleep
ing car traffic and are found to be
highly profitable.
only this outline OF the decision has
thus far leaked out. 1t will be rem
dered in the case brought about two
years ago by George s. LOTUS, of Min
neapolis, in which he charged extor-
ton In rates generally, citing a num-
Der of specific cases; and In which he
asked the commission to find that up
per berths should not cost as much as
lower. LOTUS pushed his case, and
travellers from all parts OF the country
have taken deep interest in 1t.
The forthcoming decision Is said to
be one of the most important the COM
mission has ever made. For one thing,
II goes into the financial history Of the
Pullman company, showing how the
concern began with about a million
dollars, and has grown to its present
magnitude with about 800, 600, 600 of
property, through the capitalization of
the heavy surplus which remained
after paying good dividends. THE COM
mission views this financial plan with
disapprobation, pointing out that 1t not
only compels the public to pay unreal
sonable rates, but forces II to a In
terest on the excess Of the rate,
through capitalization OF the surplus.
The COMMISSIONS financial history of
the company will be a most interesting
document. Organized in 1867, 1t had
81 1850, 900 capital. BY 1893 II had
grown to $54, 900, 900, when II was rails
ed to S74,0 600, 900 In order to absorb
the Wagner company; and In 1906 a
stock dividend of SO per cent raised 1t
to 800. 000, 900. ~he company Is 10Y
a Morgan-Vanderbilt affair, George r.
Baker, of Morgan & Co, being chair
man Of the board. and Robert T. Lin
coin, president. j. p. Morgan has been
on the board for some years.
Brewers Death Effects Decision.
1t has developed here that the ques-
ton whether the Interstate Commerce
commission can regulate rates under
the Hepburn law, will probably be up
held by seven justices OF the supreme
court on account of the death Of JUS
tice Brewer Not only has his death
affected the Standard OIL, the tobacco
and corporation a cases, blu ques-
tions of rate regulation as well. It
may result in a four to three decision
on the rate question. The question
will be tested in the Missouri rate case,
known as the Durham, Hanna, Munger
case, In which Judge Grosscup decided
against the commission to class rates
on through hauls from he Atlantic
lseaboard between the Mississippi and
the Missouri. This case Is up for sub
mission next week TO the supreme
court.