The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-16

roads owning lines OF ships on the great
lakes are obliged to dispose OF them
and divorce themselves absolutely from
water transportation.
Many millions OF dollars invested In
mat lake vessels are involved In the
ACCESSION. The separation OF the rail-
roads from the water lines II to be ef-
,.cted by December 1 next
The commission decided that 'Con-
r.ss has decreed that there shal he
A restoration of conditions which pre-
vailed when railroads had no interest
in and exercised no control over the
boat lines plying upon the country's
water routes
The Panama Canal act. under which
thi. action IL taken. provides that IL
shall be unlawful for a railroad COM
pany to own. control or have any in
,erest In any way In common carriers
by water with which the railroad nay
compete. unless such ownership or con-
troll is approved by the Interstate Com
MERGE Commission.
The commission holds that tho rail-
mad. through the Lake Lines Assocla-
ton and otherwise exercise n complete
monopoly over the lake situation and
ina, competition is therefore stifed.
This decision is likely to mean much
70 The New York State barge canal.
The commission says increased useful
ne. OF that waterway will follow the
divorce Of the railroads from their
lake lines. II IL declared that the
change will reopen a through route by
water from lake ports to the eastern
49,. 70 thie raatttt fDtlnWS N Viii
be a matter of great Importance to all
New York state cities located on the
barge canal.
The decision is regarded as forecast
ing ~unfavorable action by the commits
sion on the application OF the New
Haven Railroad to retain It's Sound
steamers.
rho Lines Affected.
These are the railroads affected and
the boat lines from which they must
b. separated
pennsylvania Railroad and Northern
Central Railway from the Erie and
Western Transportation Company. the
Anchor Lin
LehIeh valley Railroad from the Le-
high Valley Transportation Company.
lake line only. and from the MUTUAL
Transit Company. .
New York Central from the Mutual
Transit Company. the Western TRANSIT
Company n the Rutland Transit COM
psu,. .,
Rutland Railroad from the Rutland
Transit Company.
Lilo Railroad from the Erie Railroad
i.a's Line and the Mutual Transit COM
pany. -,
,;rand Trunk Railway Company OF
Canada from the Canad Atlantic Tran
81, Company.
delaware. Lackawanna and Western
Railroad from the Mutual Transit COM
parry
After reviewing the method OF owner
shlp or control Of the boat lines ny inc
railroads the decision says
THE Lake Lines Association Is an
understanding organization, wnleh.
Will. claiming no, to bc an organized
agency, has held meetings. records OF
which. as shown IN the evidence pre-
srnt.d in these cases, indicate NAT lts
Junction IL TO insure a proper nHh-
agament Of these lines, from the view
rout OF the railroads. which couid no'
nav. been possible IL their operation
was unrestrained. The whole arrange
mont might he classed ms a. get together
movement TO which all the roads mere
re,ltioning are parties.
sborp of Rate Making Power.
The lake lines. In which the peti-
,,cnars are Interested. have been shorr
o. the initial rate making power. TINS
power has been usurped py tue I!unN
Line Association. OF which the petition
e.. are members. TIE through RATE
controlled by this authority, IN wn,cn
The boat lines are merely concur.,ns
carriers. .Ctermine for the shipper ""''
axe line must he used. ,
"The particular route is controlleu y.
a%pul,iug railway switching charges az
pinalo wl:ich compel the through AK
nd rail traffic 10 move via the pre-
I~atermined lake line. The zones OF ter
tory 10 be served and those not to d.
ssr,ed by the lake line are also de.er'
mined by this outside authority. ln,s
b, accomplished by maintaining "a scar
OF rates no, subject to competition ina
,o,res traffic bv either all rail or lax
md rail outes as desired ny INC ''""H
Line Associition.'
The carriers IN their application an'
declared that their poa' Ia ms
we're being operated SO as not u s."
con petition and that the lines were
losing proposition as a dlsilnct ope'at
ing unit bu; tina by reason OF tue ,han
cisl strength OF the owning rsliroau'
the boats nave been kept In service
ether lHt PSpi
nents presented by certain of the lax
ilre, are due to inherent natural ann
cul,ies or the curse OF operation IN
duced by the joint control Is a auestio'
= considerable doubt" says the com
mission. by reason OF the partlcuia
accounting plan hat has been ioiio"e'
q material deficit Is shown. whereas ac
cordlrs to the apparently more accurst
system employed by the commission
examiners of accounts the Mutual iran
at Company shows profitable operation
The rNultnstlon OF the system en-
aloN.d Uad. by the auditor or thls IN
vas that II was devised to avoid tax
alton ~ the profits that would otherwis
have been shown.
New Element Introduced.
~ = natural and usual course OF eN
Violence where n railroad acquires an
undertakes TO operate a competing boa
Ina the rate for the water transports
ION cease 10 be Influenced solely b
Hose ordinary conditions which anee
'uct traffic, because a new element !
hioduced INTO the situation, manner,
mo luterrst of the owning railroad.
"c1l gross has decreed that there sha
ue a restoration OF conditions which pre-
allied when railroads had no interest !
ahd excl. ised no control over the hos
Ines plying the country's water routes.
IN conclusion the commission says:
"Vhe records here show no ~ins;anc
"rtrc NJ, boat lines owned by IN
'usrent rail q Iriers have actively con
"-,? 'dr traffic with one another @
~h the paralleling railroads unds
.ne r"gim" 81 Joint ownership and opei
Atom.