The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-11-15
LONG AND SHORT HAUL
CLAUSE IS HELD LEGAL
Commerce Court Rules Against
Commissions Action In Order
ing Rates Reduced, However.

WASHINGTON. Nov. 1.-THE con-
stitutionality OF the long and short
haui clause of the act -" e
commerce OF February 4, 1887, and as
amended June IS. 1910, was establish
ed today in a decision by the United
States commerce court. The written
decision OF the court In the Spokane
rate case, made public today, says In
part:
Insofar as the interstate commerce
, commission attempts TO determine
the relation OF long and short haul
rates. irrespective of absolute rates,
IL goes beyond any authority that has
been vested in II, for Il is not In the
power of the commission to say that
100 per cent, LOT per cent, or any
given percentage OF an unknown less
than reasonable rate 10 the coast ID
necessarily a maximum. reasonable
ani on-discriminatory rate from the
same point OF origin TO an interior
point"
Though the decision enjoined the
reduction in rates in inter-mountain
cities. as ordered by the interstate
commerce commission, the commits
sion found much satisfaction In the
.upheidiftg- Of lifelong and short haul
clause. In this manner the specific
case was setback. but the principle
established was looked upon by some
experts here today as favorable Tor
the inter-mountain cities In respect to
The final issue in the case. The court,
as quoted, disagrees with the methods
employed by the commission in deter
mining the proper rate and in this re-
gard IL Is expected that a thorough
investigation will be made before the
ease Is finally settled. The commits
sion has always strongly supported
The constitutionality of the long and
short haul clause but has had some
fear that there might eventually be
an adverse decision upon II.
The court laid much stress on the
authority under the law TO grant ex-
,eptions TO the application of the long
and short haul clause and made a
clear declaration of it's belief that
cities having water traffic are entitled
To lower rates than cities where there
Is no water competition. This Is a
severe blow to Spokane, Reno and
/. other interior cities which have been
fighting for rates equalized on the
basis of through rates TO the Pacific
coast. In this connection the com
merce court today said:
For example, as Seattle can get
Its supplies from New York by water
and Spokane, because of its location,
cannot do so, Seattle cannot be said
To be unduly favored merely because
The rail carrier in order TO meet the
water competition, charges a lesser
rate from New York TO Seattle
through Spokane than from New York
TO Spokane, provided the Spokane
rate Is reasonable per sent, and the
Seattle rate not unremunerative.
And so, too, IL the st. PaulSeattle
rate Is reduced 10 a point less than
reasonable per Sc, although not I'M
remunerative, to meet the New York
Seattle rate in order to enable the
St Paul merchants to compete with
New York merchants at Seattle Spo-
kane could not complain merely be-
cause this rate Is made less than the
St Paul-Spokane rate. In each OF
these cases Spokane is not unduly
prejudiced because If the lower rail
rate TO Seattle were forbidden Seat
tie would nevertheless, by reason of
It's location, be able to secure it's sup
plies by water, and would therefore
in the nature of things have: this ad-
vantage over Spokane"
In summing up the court said in
part:
The practical effort OF the commits
sion's order is either to compel a
liianket rate from the entire east to
the entire west, or TO prevent the
carriers from getting all the business
which they now secure without loss
by making rates which enable mer-
chants TO meet market competition"
The court also issued an injunction
forbiddng the enforcement OF the in
terstate commerce commissions order
.educfng- tfrv-ffter eHHte4H-rates-
Pending the final determination of
the case"
WASHINGTON. Nov. Ia. - The
United States commerce court today
dismissed the case OF the government
against the Union Stock yards and
Transit Co, OF Chicago, to compel II
to nle tariffs and reports with the in
terstate commerce commission ard
the Joint action to enjoin the opera
ton OF a contract between the Union
Stock Yards and Transit CO.; Louis
Packer and Sons, and the Chicago
Junction and Union Stock Yards Co.
.(Known as the Investment Coz
The commerce court held that none
OF these defendants was a common
carrier. II determined. however. that
the separate corporation known as