The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-26
COMMERCE BOARD HIT
BY SUPREME COURT
Roads Are Upheld in Decision
Making Tap Lines Common
Carriers.

WASHINGTON, May 25.-The Supreme
Court handed down decision to-day In
the so-called tap line case" sustaining
the position OF the railroads and over
ruling the Interstate Commerce Com
mission. This decision had been awaited
by the railroads of the country and by
business interests with great interest for
several months. 1t not only involves an
important question OF the power of the
Interstate Commerce Commission but also
affected rates which amount to many mill
ions of dollars a year and which the In
terstate Commerce Commission had char
acterzsd as rebates.
The decision holds that the commission
has exceeded Its authority In attempting
to denominate railroad AS "A common
carrier for one purpose and not COM
mon carrier for another. The commits
sion had held that the short tap line
railroads owned and operated by indus
trial concerns which connect their plants
with trunk line railroads were not COM
mon carriers 80 far as the carrying of the
freight of the owners Of the road was
concerned. They were held to be common
carriers of non-proprietary freight.
on this ruling the Interstate Commerce
Commission had refused to permit the
trunk lines to make allowances to these
tap lines for freight charges in proper
ton TO the length OF the haul, based on a
joint rate for through Soute.
Commerce Court Is Upheld.
The Commerce Court nullified the order
Of the Interstate Commerce Commission,
holding that the tap lines were not COM
mon carriers as to proprietary freight.
and the Supreme Court to-day affirmed
the Commerce Court ruling The decision
means that these feeders belonging to in
dustrial plants will continue to partic pate
in Joint rates with other carriers instead
Of being partially cut on.
To-ddy's decision not only makes tap
lines bona fide common carriers In every
respect, but throws upyn the Interstate
Commerce Commission the Necessity OF
regulating the charges OF carrying fire. ght
on these lines. 1t will be the industrial
concerns owning these lines rather tnan
the trunk line railroads which will profit.
There are more than 1000 tap lines.
OF these, however, only 2i3, operating
5000 miles Of track. were receiving al
lowances from public carriers at the time
the commission made its investigation.
The question Immediately arose upon
the handing down of this opinion whether
IL might have some effect on the pending
advance rate case. The Interstate Com
merce Commission has already announced
that the Eastern railroads are losing sl5,-
100000 through allowances to industrial
lines aud recently the commission indi-
Gated that 1t would cut OF these allow
ances as one means of increasing the
revenues OF the railroads.
Members OF the commission do not be-
lieve that the decision will seriously in
terfere with the proposal To cut OF the
so-called free allowances by common car
ricrs in Eastern territory.
II was pointed out that the tap lines
In 1tf.1 Ia 20. lr1Ns sHsH.
common carriers, serving other parties
besides owners. In the case OF the So
called industrial lines only few. IL was
said, can claim 10 De common carriers.
Ground for Controversy Remains.
There seems at least to be ground for
controversy on this point under to-days
decision, and II IL should apply 10 the
industrial lines Of the East. notably the
roads belonging to the several steel plants.
il would be necessary for the Interstate
Commerce Commission TO revise its inten-
ton of figuring on this ti5,000,000 In
crease in revenue In attempting to pass
on the application OF the railroads for .
per cent. increase,
The tap lines involved in the decision
all belong to lumber companies. The
commissions decision against them was
based on complaints by lumber concerns
that their competitors who conducted the
tap lines were receiving allowances from
the railroads out OF all proportion TO the
service rendered and which virtually
amounted TO rebates.
The opinion Of the court, read by Jus
tice Day. points out that the tap lines will
be subject to control by the Interstate
Commerce Commission, adding:
THAT body has the authority and II Is
It's duty to reach all unlawful discrm-
inatory practices resulting In favoritism
and unfair advantages TO particular ship
pers or carriers"
Justice Day held that the tap lines were
common carriers, tried by the test OF or
ganization for that purpose under COM
petent legislation of the State they are
so treated by the State they are engaged
in carrying for hire the goods of those
who see nj to employ them they exercise
the right OF eminent domain In the States
OF their incorporation and are treated as
common carriers by connecting systems
OF other common carriers
1--WE think the commission exceeded its
authority when 1t condemned these roads
as a mere attempt to evade the law and
secure rebates and preferences for them
selves said the court.