The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-30
Reason Casts Its Kindly Light on
the Railroads.

Probably relatively small number
of persons are interested In the direct
bearings Of the Supreme Court decision
in the so-called tap line railroad cases.
The Indirect relations OF this decision
are Of very great consequence to the
whole country because Of the possible
effect It may have in determining the
ruling of the Interstate Commerce
Commission on the Eastern rate case.
The tap lines in question are all little
railroads chiefly In the South. connect
ing logging and timber operations with
the main railroad systems. The Su-
preme Court last Monday held In sub
stance that the Interstate Commerce
Commission was radically wrong In
seeking TO deprive these tap lines Of
any title to joint rates with the trunk
lines and to allowances from the trunk
lines for services rendered. The vital
significance of this ruling consists in
it's application to one line OF relief
which the Interstate Commerce Com
mission has favored II IL should find,
as 1t probably must find, that the earn
ings Of the petitionlng railroads in the
Eastern rate case are inadequate.
While the fortunes Of the tap lines
are important to those who are inter-
ested la them, they may be dismissed
from present consideration. They have
served their purpose in obtaining from
the Supreme Court rule Of reason
which may help the railroads in the
East to elicit rom the Interstate Com
merce Commission Judgment that will
recognize principle OF expansion as
we'll rs principle of contraction IN
the freight rate structure.
Adopting the Brnndeis theories the
commission has seemed to favor line
of action leading away from an i'm
mediate sanction OF general rate In.
crea SEES. The commission is on record
ms agreeing with Mr.. BRANDErs that
there Is large catalogue OF services
rendered by the line carriers ut So
called industrial plant lines out of
which the railroads are not making
the earnings that they should. 1t has
been contended that through divisions
of rates between the line carriers and
the plant lines and through services
performed by the line carriers practi-
cally free of charge for the owners Of
the plant lines great sums OF money
have been diverted from trunk line
treasures. The idea was that these
practices could all be readily changed
by general rules so as to add perhaps
ms much as $50. 100000 year directly
to the incomes of the trunk lines.
There has been more than sugges-
ton OF disposition on the part of the
commission either to insist on the trial
Of remedy Of this sort before allowing
general freight rate increases or to
make 1t the principal feature Of a pro-
gramne Of relief for insufficient earn
ings which would include rs n subordi-
nate part the concession Of some tri-
fling advances In freight rates. The
| judgment rendered by the Supreme
Court seems to have interfered ma
terially to the advantage of the rail-
roads with the prospects for recourse
by the commission to the Brandeis
project.
The essence Of the Interstate Com
merce Commissions action in the tap
line ca ses was that these lines were not
common carriers but were parts Of in
dustrlal plants. The Supreme Court
holds that they are common carriers.
The Industrial plant lines which have
figured In the reckoning in the Eastern