The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-05-26
GOVERNMENT LOSES
FIGHT ON "TAP LINES"
Supreme Court Holds Thnt They Arc
Entitled 10 Shnrc With Trunk
Lines in Through Rntes.
DECISION Is NOT UNEXPECTED
Result Not Likely to Affect Pending
Application of Railroads for s Per
Cent Rate Increase.

Washington, May 20.-Another at
tempt OF the government to separate
the ownership OF railroads from In
dustrial concerns met with failure to-
day when the Supreme Court held "ta p
line railways, serving lumber camps
IN the Southwest owned by the same
interests, were entitled to share with
the TRUNK lines In through rates. The
Interstate Commerce Commission hao
held that this division of the rate was
in effect 4 rebate and ordered It dis
continued.
Justice Day. delivering the opinion
for the entire court, said:
Congress has not made 1t illegal
for reads thus owned (owEed by the
persons who also own the timber ana
mills which they principally servo) TO
operate in interstate commerce.
He added that even the commodities
clause, under which nm unsuccessf
attempt was made several years ago 10
divorce Eastern railroads from tho
coal business expressly excepted from
its operation the lumber industry.
1t further was pointed out that the
common ownership was shown to no
inconsistent with the laws OF the
States in which the tap lines opera.e,
and Justice Harlan said: I'VE think the
commission exceeded its authority
when 1t condemned these roads as n
mere attempt to evade tho law and to
secure rebates and preference for
themselves"
In effect, tho court held that the tnp
lines were common carriers as TO both
proprietary and nonproprietary busY-
ness. ami that tho ownership did not
change their character when hauling
commodities produced by company In
common ownership.
Tho recently abolished Commerce
Court held in this case that tho COM
mission was not only without power to
Forbld any allowance Whatsoever to
bc made by trunk line" 10 n pro-
prietary railway" but It also was
without power to prohibit tho max
Ing cf joint rates by tho trunlt lines
and the petitioninE tap lines"
DECISION NO SURPRISE
TO COMMISSIONERS
To-day's decision did not come rs a
surprise TO the Interstate Commerce
Commission. Members Of tho commits
sion were we'll pleased with that part
OF the opinion holding that 1t has full
powers TO prevent preferences and dis
ordinations in the fixing OF allowances
and divisions OF rates.
This leaves TO the commission tho
liking of allowances based on the
character of the service: that ie, wheth.
CT 4 is switching or a limo haul
service. 1t can prevent II milling in
transit privilege which makes no
charge for the haul of tho logs ana
may require a charge by tho tap lines
for log haul from forest 10 mill In
addition to tho full lumber rate from
mill to market.
The commission has not taken up
the questions Involved In the Supreme
Courts decision, but the entire tap
line case sotfn will be readJusted in
conformity with the opinion OF the
court.
1t IS not regarded as probable that
tho decision in any way viii affect
the pending advance rate case, or that
1t viii have particular bearing upon
tho decision OF tho commission In the
Industrial railways case In which the
commission held that allowances 70
| tho iron and stool railways were prac-
tically rebates and ordered them dis
| continued.