The Owosso times. (Owosso, Mich.) 1897-1926, 1916-09-01
r. y. Reynolds Tobacco Co. Wins
An Important Suit Before Inter-
State Commerce Commission

A decision of value to all cigarette
shippers in the United States has been
handed down by the Interstate Com.
MERGE Commission in the case filed last
July before the Commission, recorded
as, "R. ]. Reynolds Tobacco Company,
Complainant. VS.. Abilene and Southern
Railway Company, et al /, Respond
ents" A total of FIVE hundred and ten
railroad and steamship lines comprised
the list of respondents.
The r. J. Reynolds Tobacco Com
pany attacked the rules of all the
transportation lines in the United
States, which then required that cigar
cites must be shipped only in wooden
box, strapped at each end. with cords
passing in and out of holes in each
board the cords to be tied In double
knot with metal seal bearing identif.
cation mark. If different package
was used, it was charged at double first
class rates In the East ard West and
three times first class in the South.
The Reynolds Company fret brought
a case before the Railroad Commission
Of North Carolina in 1914 and estab.
lished that the fibre box sealed with a
paper strip was q satisfactory carrier
for cigarettes. Its use proving salts
factory there, In 1915 the Reynolds
Company was in position to file com
plant with the Interstate Commerce
Commission for nation. wide use with
the North Carolina test as basis
After complaint had been filed with
the Interstate Commerce Commission
the railroads altered their rules. effec-
tive in the south and west, in October,
1915. and in the eastern and middle
states January 1st, 1915, and permitted
the use of fibre board boxes at first.
class rates when such boxes complied
with the general rules applying to other
freight, and provided also that such
boxes were secured with two or more
metal straps not less than 30 guage and
not less than 38 inch in width, encir
cling the box at least once around the
end and once around the side, and
drawn taunt to prevent slipping. The
ends of straps must pass through metal
sleeve and be crimped. The straps
must also be crimped at crossings or
intersections. On boxes exceeding "a
inches in length, metal straps must not
be more than 10 inches apart" The
use of fibre box fastened by machine
with metal stitches was also authorized.
The railroads claimed that the pro.
tective devices were to afford security
aga INST concealed theft, that is, pilfer.
age where the package comes to the
consignee bearing no evidence of having
been tempered with. They further con
tended that cigarettes offered peculiar
temptations to pilferage.
The Reynolds Company contended
this was notion and not fact, and
that it was unjust discrimination to
force them to use strapped fibre board
boxes under penalty of excessive rates
while other boxed freight, including
smoking tobacco with cigar cite papers
enclosed, were exempted. They also
pointed out that the extra cost to a
shipper in strapping and scaling in the
required way was in the nature of q
compulsory insurance premium against
an imagined risk, and showed by evi.
dence that the cost of the strspping was
far greater than the conceded losses re.
ported.
In granting the relief asked by the
Reynolds Company the Interstate Com
merce Commission concluded its deci.
sion in part as follows:
Upon the record we are Of opinion
and find that the requirements of the
carriers here complained of are unrea
sonable and that cigarettes in standard
fibreboard packages, meeting with gen
eral classification requirements. with
flaps securely glued and with seam.
covered by paper scaling strips should
be accepted and transported in inter.
state commerce at not to exceed the
fret. class rate.
Defendants will be expected to
modify their requirements in accord.
ance with our conclusions here on or
before August 10Th, 1915. II this is
not done we will proceed to the entry
of such order or orders as may appear
necessary"
This is a signal victory for the R J.
Reynolds Tobacco Company and force
; fully illustrates the aggressive policy
that has enabled them to make grea,
progress. Other shippers of cigarettes
in the United States will benefit from
this decision because of the foresight
! and efforts Of the Reynolds Company.
This case, and the decision rendered
. | will ho tha maana whorahv cioor shiv,