The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1912-11-17
THE LIGHTERAGE DECISION.

Among the remarkable decisions which the Court
of Commerce has handed down during its brief and
troubled career, is extraordinary than that
Just issued in the New York ghterage case. 1t has
an importance to the whole country, and bearing
on all efforts to suppress discrimination in transpor-
tation which justify examination and understanding
Of its doctrine.
The Sugar trust under Henry o. Havemeyer be-
came powerful through its relations with railroads.
Just about one-thrd of westbound tonnage from the
New York industrial area is in sugar and coffee.
There is always a vastly greater tonnage coming
East than going West Consequently the road fought
for the sugar business. They would rather make
very low rates than maui empty cars West.
Havemeyer, controlling most Of the sugar ton
mage, used this situation to advantage himself He
refined sugar on Long Island, and lightered it to
rail ends Of the westbound roads at the west margin
of the Hudson river. For this lightersge the rail-
roads allowed him cents per hundred on sugar
destined to the Pittsburgh line, and is cents on
that destined farther West.
In addition, for years he was allowed cents per
hundred for carriage" These we're very excessive
allowances for the services, and amounted to huge
rebates. The carriage remission was finally ended by
order of the Interstate Commission but the lighter
age continued
Il plant at Yonkers, up tine Hudson few miles, de-
manded that it be given the lighterage allow,
ance that the trust enjoyed This was denied, on
the ground that Yonkers outside the arbitrarily
fixed "lghterage district" of New York harbor. The
Federal then complained against this discrimination
and the Interstate Commission ordered it stopped
1t favored an equality of treatment among all the
refnerS.
The Court of Commerce en- oined the commits
sions order The Federal, in order to get itself on
equal terms with its big competitor, then organized
new scheme Of delivering its sugar to the railroads
1t sent its sugar down to point within the ligherage
district and thence recons gned it to the railroads
on the Jersey side, and demanded tine ligherage
allowance This was of course device, a subter
fuge if YOU please; but it a device by which
the company expected to secure the same terms thai
the ligherage device granted to the American.
This plan the Commerce Court now holds, is "a
plain subterfuge" The allowance must not be paie
to the Federal, but will continue to be paid to tn,
American,
Of course the lighterage scheme of the Fedora
is subterfuge But so is the ligherage plan Of the
American and Arbuckes The American and Ar
buckle scheme is merely the successor to the odme
plan of frankly paying rebates. 1t accompshes the
same end, but in legal form. The Federals subter
fuge was made necessary in order to offset the ad
vantage which the Americans subterfuge gave Il
the latter company Now the court condemns thu
one subterfuge and sustains the other. incidentally
it sustans the big advantage the American and Ar
buckles have enjoyed, and rejects the plea of tn,
Federal for equal treatment
This decision seems to deny the substance O
equitable treatment grounds that so technica
as 10 make their occupation by great court occa
-. he Ipta ,iScinp y,;i
appeal the case to the Supreme Court. IT, there, thu
Commerce Court shall be sustained, it will neces
state change in the law, or else permit reversor
to many of the vicious practices of rate discrimina
ton