Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-11-14
RAILROADS MAY
PAY ELEVATORS
jnited States Supreme Court Makes
Final Ruling in Peavey Grain
Transit Case.
ASE FROM THE CIRCUIT COURT
.ailroads vitally Interested in Out
come OF the Suit.
.EvERSAL FOR The COMMISSION
% Holding Was Charge Clear Viola
ton of the Law,
COMMERCIAL BODIES TAKE PART
'ceision Crews out of Peavey Case
brought IN iOOs, aud settles
Mootca Question tong
Before Courts.
.ailroads vitally Interested in Out.
come OF the Suit.
EvERsAL FOR lHE COMMISSION
% Holding Was Charge Clear Viola
ton of the Law,
OMMERCIAL BODIES TAKE PART
tFrom a sad correspondentl


WASHINGTON. u. c., Nov. l3-(spe-
cial Tclegram.) )-Tho United statcs SUI
preme court today In a far reaching
opinion. decided that the Interstate Com
merce mmission had no power TO pro-
hibit railroads from paying TO elevator
operators compensation for "elevatlng
.... al transit" M
nis decision grows Qua OF the so-ealled
avey case which came into promln-
zee In 1908. when the Interstate Com
cree mmission held that an elevator
,arse was specific violation Of the In
estate commerce act,' but which deci-
On was set aside by the United States
rcult court for the western district OF
lssouri on the ground that the com
ission had no right TO issue such an
der.
railroads IN the middle west, espe-
ally in the trans Mississippi untry
,.ned with Peavey a Co. OF Mnneap-
II, Omaha. and other cities in resist
the right OF the commission TO make
ordtr Il did. Boards OF traae and
embers OF commerce likewise Joined In
otest until the case became one ut
ost Importance.
Probably tho greatest commercial inter-
sts In the Mississippi valley we're in
olved In the contest. The Union Pacific
nd other roads with eastern terminals
I the Missouri river cities oontended that
,nlcss they were permitted TO pay for
deviation OF grain IN transit they would
oe driven out Of the business by the COM
,etition OF roads that do not terminate at
dissouri river cities
Raflroadz WITH, foru,tnat. "a tt,..n n,st.a
iut In a similar complaint Elevator men,
through the respective boards of trade.
declared their business would be ruined
~ such an order.
The railroads running east and west OF
tho Missouri river were In favor OF the
order 81. Louis and other grain. centers
on the Mississippi river aiso favored It.
In holding that the colnmiasiOn could
,noii inapa such 90 ordsr, the. circuit court
said the law merely gave che commission
powersto soc thar a just and reasohabld
rate was fixed for the service OF olevhl
tion. part Of transportation which tbs
railroads must furnish on demand. IRON
this the court arrived at the conciusi6n
that the commission by implication was
forbidden from prohibiting an eompensa-
tion for elevation OF grain.
The commission considered that Peavey
q Co, owners OF elevators ut Missouri
river points and pis shipper OF grain.
likewise would unJustly profit by the al
iowanee for elevation 30 Peavey q co.
In announcing the opinion OF the couft
today, Justice Holmes said: "The law
does not attempt TO equallze the location
OF men" ns
The supreme court held that the order
Of the commission reducing the allowance
for elevation 10 the cost OF the service,
namely thres-rourths OF a cent. should be
allowed TO stand. The court also allowed
70 stand the so-called Peavey order Of
1909 insofar rs Il, confined the allowances
20 grain reshipped within ten days. Ex-
cept as to these two points the decree OF
the United states circuit court for west
ern Missouri In regard 70 the elevation
charges was affirmed.
Charles j. Lane. general freight agent
OF the Union Pacific. when told of the
supreme court decision said that from
the meager reports he should conslder It
complete vindieatiop OF The position
aiken by the Union Pacific In making rs
contracts with tho big elevators. Some
OF these contracts have still some years