Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-05-26
GOVERNMENT LOSES
TAP LINES" CASE
Finding of Now Defunct Conn.,
merce Court Upheld by Su-
preme Court of the U. S.

Defeat for the government and the
Q. X. of the Supreme Court of the Unit
ed States of A finding of the now defunct
Commerce Court was contained in A de-
cision of the court handed down yester-
day. declaring that tap lines of rail
ways serving lumber camps in the south
west, and owned by the lumber con-
Germs. were entitled to share with trunk
lines in through rates. The case was one
in which the interstate commerce commits
sion had held that such division of the
rate was in effect rebate. and had Or
dered the division discontinued The
Commerce Court. before its dissolution.
held the interstate commerce commission
to be without power to enforce such an
order.
Justice Day. in delivering the opinion
of the court, said:
Lumber Industry Excepted.
Congress has not made it ILLEGAL for
roads thus owned ,owned by the persons
who also own the timber and mills which
they principally serve, to operate in inter-
state commerce. He added that even
the commodities clause under which an
unsuccessful attempt was made several
years ago to divorce eastern railroads
from the coal business. expressly ex-
cepted from its operation the lumber in
dustry
1t was further pointed out that the
common ownership was not shown tC be
inconsistent with the laws of the states
in which the tap lines operate and
Justice Harlan said. I'VE think the com
mission exceeded its authority when it
condemned these roads as a mere at
tempt to evade the law. and so reserve
rebates and preferences for them
selves.
T In effect the court held that the tap
lines were common carriers as to both
proprietary and non-proprietary bust
ness. and that the ownership did not
change their character when hauling
commodities produced by company in
common ownership.
The recently abolisher Commerce Court
held in this case that the Commission
was not only without power to forbid
any allowance whatsoever to be made
BY trunk line" 70 proprietary rail
way hui lit also was without power to
prohibit the making of joint rates by
the trunk lines and the petitioning tap
lines.
Decision No Surprise to I. C. C.
The decision did not come as surprise
to the interstate commerce commission.
Members of the commission were well
pleased with that part of the opinion
holding that the commission has full
power to prevent preferences and dis
ordinations in the fixing of allowances
and divisions of rates. This leaves to the
commission the fixing of allowances based
upon the character of the service: that is
whether it is switching. or a line-haul
service. 1t can prevent a milling-in-t tran
sit privilege. which makes no charge for
the haul of the logs and may require a
charge by the zap line for log haul from
forest to mill. in addition to the full
lumber rate from mill to market
The commission has not taken up vet
the questions involved in the Supreme
Courts decision, but in the near future
the entire tap line case will be read
justed in conformity with the opinion of
the court. 1t is not regarded as proba BILE
that the decision in any way will affect
the pending advance rate case. or that il
will have particular bearing upon the de-