New-York tribune., 1911-03-06
SUGAR u|CHTERACE CASE
Interstate Commission UphOldS
Charge of Discrimination.
CARRIERSTO CEASE PAYMENT
Discriminatory Allowances to
Arbuckle Brothers Ordered
Stopped by April 15.

Washington. March "a long standing
dispute between great refiners OF sugar in
New York, with many OF the large Eastern
railways as a third party was passed upon
finally by the Interstate Commerce Com
mission in a decision made public to-day.
Discrimination and unreasonable regula-
tions as to the lighterage OF sugar from
New York City and Brooklyn TO the New
Jersey terminals OF the railroads are heid
by the commission TO cause the exactioh
of unjust charges from the Federal sugar
Refining Company, Of Yonkers. ~ u IL
compared with the charges paid by AT
buckle Brothers. direct competitor OF
the Federal.
In the majority opinion OF the commits
sion. which was prepared by Commissioner
Harlan. It Is known that Arbuckle Broth-
ers operate in Brooklyn what is known
as the Jay Street Terminal OF tbs de-
fendant railways For the service OF con-
Quoting this terminal as freight station
carriers pay TO Arbuckle Brothers
from cents to Ais cents hundred
pounds for the lightering of freight across
the river TO the Jersey terminals or the
roads One-third OF all the freight handled
at the Jay street station is sugar refined
by the Arbuckles at their factory immedi-
ately adjoining the station
The Arbuckles receive. therefore. what Is
regarded as a considerable allowance from
the railroads for lightering their own sugar
to the Jersey shore
on the other hand. the defendant lines
decline to make similar allowance TO the
Federal company for the lightering OF It's
sugar to their Jersey terminals. for the an
nounced reason that the refinery of the
Federal, at Yonkers, is outside the lighter
age limits of New York Harbor.
The Federal company instituted COM
plant against the Baltimore & Ohio and
other Eastern carriers. alleging undue dis
elimination against II and the exaction
from IT Of unreasonable charges. The COM
plainant asserted that the allowances made
by the roads to the Arbuckles afforded
them a distinct advantage In the sugar con-
Stunning markets west Of New York, and
that the allowance for lighterage amounted
substantially 10 a rebate on the freight rate
on sugar 10 destinations reached by rail
from New York.
These contentious are upheld by the COM
Commissioner Harlan holds as follows:
A carrier is not warranted in making an
allowance 10 one shipper who provides
facility and performs a service in the
transportation Of his own property, while
refusing a similar allowance to another
shipper competing In the same markets ana
In the same line OF business, who provides
a similar facility and performs the same
service in the transportation of his prop
erty.
The allowances paid by the defendants
on the sugar brought by Arbuckle Brothers
on floats and lighters to their regular
freight stations on the Jersey shore, no
allowances being paid to complainant on
sugar brought by II m lighters TO the same
stations, result in inequalities. preferences
and determinations. and are unduly preju-
dicial TO the complainant as shipper over
the defendants lines In competition with
Arbuckle Brothers in tie same markets
The fact that Arbuckle Brothers operate
their dock in Brooklyn as a terminal FOR
the defendants does not justify an allow
ance 70 them for lighterinS their sugar TO
the regular stations OF the defendants on
the Jersey shore. so long as an allowance
to the complainant for lightering It's sugar
to the same stations from Pler "A Is re-
fused.
by a competitor in the same line OF business
is not a reasonable facility Of transporta-
ton TO offer shipper.
'
the commission when the case was decided.
and Commissioner Prouty dissent from the
views of the majority OF the body. Judge
Knapp dissented because OF the admission
OF complanants counsel that the opera
ton Of the Jay street station by the de-
fendant carrier would result IN no beneht
to the complainant.
Commissioner Prouty's dissent was based
on the fact that the Federal companys
refinery is located without the free light
eraee limits of New York Harbor, and,
while the disadvantage complained of Is
evident. it is not improper or unlawful.
The order OF the commission directs the
carriers by April 70. 1911. to cease the pay
ment to Arbuckle Brothers of the discrim-
inatory allowances. and the order is made
effective for two years from that date.
The order indicates that II Ike allow
ances are paid to both rchneries for similar
service they would not be held to be I'M
10 aurfll