Inclosed herewith are copies of our tariffs showing the relative rates to Beaver, Ellis Junction, Porterfield, and Marinette, and Menominee. Yours truly, C. C. MCCAIN, Esq., J. C. FORESTER, General Freight Agent. Auditor Interstate Commerce Commission, Washington, D. C. MILWAUKEE AND NORTHERN RAILROAD COMPANY, GENTLEMEN: I hand you herewith a map of the State of Wisconsin, showing the line of this road, and beg leave to ask your consideration of the following statement of facts: At Marinette, Wis., and Menominee, Mich., there is a very large quantity of lumber manufactured, which, owing to the location of these points on the shores of Lake Michigan, has uniformly been transported to Chicago and Milwaukee by water, either for local consumption or for reshipment west, and to secure a share of this and other business we have for the past two years adopted the policy of making a lower rate between Marinette and Menominee and Chicago and Milwaukee than we make between points south of Marinette to and including Coleman and Chicago and Milwaukee. We have construed section 4 of the interstate-commerce act, which inferentially permits a less charge for a longer than for a shorter haul where the circumstances and conditions are not similar, as giving us authority to make a less charge Chicago or Milwaukee to Marinette and Menominee than to Ellis Junction, as we maintain that by reason of Marinette and Menominee having direct water communications with Milwaukee and Chicago, the circumstances and conditions are not similar to those at Ellis Junction, which does not enjoy these natural advantages and would have nothing on which to base a claim for an equal rate were it not for the fact that this line, as constructed, reaches Marinette and Menominee in a somewhat roundabout way. Acting on the above construction of section 4 we are preparing tariffs, which, in some instances, show a lower rate to and from Marinette and Menominee than to points south; and as we desire to conform strictly to the provisions of the law we would ask if our construction of section 4 will be approved by you. We desire to shape our action in conformity with the provisions of the law, and, if we err, to take an appeal as soon as possible and prepare our arguments for authority to charge less for a longer than for a shorter haul in the instance cited. Requesting an early reply, I am, very respectfully, yours, The INTERSTATE COMMERCE COMMISSIONERS, J. C. FORESTER, General Freight Agent. Washington, D. C. THE INTERSTATE COMMERCE COMMISSION, DEAR SIR: Yours of the 5th instant has been laid before the Commission, but does not seem to call at present for any action at its hands. Very respectfully, yours, J. C. FORESTER, Esq., General Freight Agent Milwaukee and Northern Railroad Co. T. M. COOLEY. MISSISSIPPI AND TENNESSEE RAILROAD COMPANY. DEAR SIR: Your favor 20th instant relative to making of rates and effect of same as to fourth clause of interstate law. The Mississippi and Tennessee Railroad is 100 miles in length. The terminals are Memphis, Tenn., and Grenada, Miss. Ten miles of the road is in the State of Tennessee and 90 miles in the State of Mississippi. The business of this road is wholly interstate, originating at or passing through Memphis, Tenn., except, say, about (not exceeding) 4 per cent., which is local within the State of Mississippi. I am not aware of any passenger rates in effect over our road being less for a longer than the short haul in the same direction. Local rates are in full observance of the lawi. e., a fixed rate per mile for any distance. All the local rates for freight and passengers are made in accordance with the interstate law and approved by the railroad commission of the State of Mississippi; that is, the rates and classifications as approved by the Mississippi State Commission to points on this road are in effect and applied from Memphis, Tenn., to all points on this road. This company does not lease or operate any other line or railroad. In connection with other lines, in some few instances we have in effect rates lower for longer haul than the short hauls in same direction, made so by shorter lines with whom we are in competition for the same traffic. We have in effect between Memphis and New Orleans, La., rates lower than from Memphis to intermediate points over the same haul. This competition, (although our road, in connection with the Illinois Central Railroad, forms and makes the shortest line between Memphis and New Orleans) was forced lower by the Louisville, New Orleans and Texas Railway (a competing line for this business) refusing to advance its rates to a proper rate based upon insurance differentials higher than the river rates. Also rates between Memphis, Tenn., and New York City, via ocean from New York to New Orleans, and the Illinois Central and this road from New Orleans to Memphis, are less than the rates from Memphis to intermediate points. Jackson, Tenn., an all-rail point, has been so treated, but will be discontinued at once. Again, rates to Mobile and Ohio Railroad points all in the State of Mississippi, as rates to these points are made by the shorter lines. Any further information I can give will be cheerfully furnished when advised. C. C. MCCAIN, A. J. KNAPP, General Freight and Passenger Agent. Auditor Interstate Commerce Commission, Washington, D. C. NATCHEZ, JACKSON AND COLUMBUS RAILROAD. DEAR SIR: Replying to your circular letter dated October 20, 1887, we have no points on our line for which interstate passenger rates are less for the longer than for the shorter haul. Natchez, Miss., is the only point where interstate freight rates are less for the long haul than for some points shorter haul. Interstate rates on regular line apply immediately outside city of Natchez. Reason for the reduced rates to Natchez is that it is on the Mississippi River, and we are compelled to meet the rates made by steam-boats or stop business. To illustrate: My through rate from Natchez to Boston on cotton is 70 cents per 100 pounds. Utica, Miss., is 67 miles east of Natchez, and that much nearer Boston, but from that point the rate on cotton is $1.02 per 100 pounds, the reason for difference being that boats will take cotton from Natchez to Boston for 70 cents, and in order to get any of the business we are compelled to meet their rates at Natchez. The same rate applies if only 10 miles east of Natchez, viz: $1.02 to Boston. This being a small organization, I hope you will excuse us from making a tabulated list of all our rates, as I should be compelled to employ expensive extra force to do it. We now send you copies of all our issues. Yours, truly, C. C. CAIN, Esq., Auditor Interstate Commerce, Washington, D. C. T. J. NICHOLL, NEVADA AND CALIFORNIA RAILROAD. In reply to the three first paragraphs (queries) in your circular letter of October 20. (1) Since interstate law took effect we have not made, nor are we now making, rates in connection with other roads. (2) Nor have we charged in any instance a greater rate per ton for a less distance than for over the whole length of road; ergo, "the fourth section of the act to regulate conmerce is practically applied to the stations on" this line. This road lies in two States, Nevada and California; it is connecting link between Central Pacific Railroad and team transportation distributing lines. The Central Pacific tariff is overweighted with classification, like so many other common carriers. The teams have no classification. Our experience as intermediate has proved a valuable lesson and induced the doing away almost entirely classifications. (See attached tariff.) The fourth section is the true principle. It is unfortunate that it was suspended for a period, and also equally to be regretted that so many still suppose it abrogated. We understand it to be in full force and law. The great mistake made by many railway managers was in making the law pretext for raising local rates, instead of entering heart and spirit into co-operating with and working to sustain it, leaving experience to discover its lefects and intelligent legislation to remove the impracticable features and add essential clauses. Many, and I fear most, railroad managers seem to be utterly oblivious to the suicidal policy being pursued by continuous increase of rolling stock and track facilities, thus piling up capital account to do business somebody else can, by reason of superior location and other advantages, better than they. It is not gross earnings that one should play his card to secure, but net gain. It is only matter of time, a few years, before the trans continental and affiliated trunk lines will be hopelessly bankrupt. Our opinions are not based upon the lesson offered by this "one-horse" railroad, but date back to practical experience commencing with initial building railways in America, and we declare out of fourth section will grow palatable, beneficial, and saving results. Very respectfully, INTERSTATE COMMERCE COMMISSION, E. GEST, Manager. Washington, D. C. NEWPORT NEWS AND MISSISSIPPI VALLEY COMPANY-WESTERN DIVISION. DEAR SIR: In reply to your circular dated October 20, 1887, I beg to submit the fol lowing: We are making less rates from Louisville and Paducah to Memphis than we are making from Louisville and Paducah to local stations this side of Memphis; and the rates from Louisville to Memphis are as follows: From Louisville to Stations, East Troy to Fraysen, Tenn., inclusive: Classes (rates per 100 pounds). First Second Third Fourth Fifth From Paducah to Memphis: These rates are made in competition with the steamboats from Louisville and Paducah to Memphis, thus enabling us to control our share of the business as against river competition, we taking it for granted this is under dissimilar circumstances and conditions. In making the rates to local stations named, we take the through rate we are compelled to make to meet competition with the river, and add locals back, thus giving each local station the benefit of the lowest combination that can possibly be made to that point. If we did not meet the rates made by the river we would not be able to carry any of the traffic; and were we compelled to charge the same rates to Memphis as made to Covington and stations this side of Memphis, as named in the letter, we would not receive any portion of the Memphis competitive business. Very respectfully, C. C. MCCAIN, Esq., Auditor Interstate Commerce Commission, Washington, D. C. JOHN ECHOLL, Third Vice-President. NEW YORK AND NEW ENGLAND RAILROAD COMPANY. DEAR SIR: Replying to your circular of the 20th of October and circular letter of November 23, I beg to state that the cases in which this company in itself, or in combination with other roads, in charging for passengers or freight which are greater than the rates to or from more distant points in the same direction over the same line are as follows: As to passenger rates there are no such cases. As to freight rates there are the following: The rates to in- (1) From Newburgh to Hartford we make a rate of $1 per gross ton. termediate points on the main line of our road are all $1.45 per gross ton. for this is that anthracite coal goes to Hartford by water from the shipping terminals of the coal-carrying roads on the water adjacent to New York and from Philadelphia and Baltimore, and the rate of $1 per ton is necessary to meet the water competition. The rate of $1.45 per ton to intermediate points is less than the rate heretofore charged from Newburgh to those points. (2) The rates between Boston and New York City are not classified (as all the other freight rates of the company are) in six regular classes, for the reason that the Metropolitan Steamship Company, which transports freight entirely by water between Boston and New York, charges a tariff rate which is made upon each article, and which in some cases is by weight and in other cases is by the cubic feet of measurement, to compete with which it is necessary to adopt a similar method for the through traffic between Boston and New York, part of which is carried in connection with the Norwich and New York Transportation Company's line of steamers which is running between New York and New London, Conn., and part of which is carried in connection with the New York, New Haven and Hartford Railroad Company by rail between Boston and Harlem River, and from Harlem River to Pier 50, New York, by barge. The rates between Boston and intermediate points on these two routes have been made as nearly as may be so as not to exceed the through rates, but in the case of a very few articles they are slightly in excess, arising from the fact that the through rates are not classified as the local rates are. The justification for this is, as stated, in the water competition between Boston and New York. (3) The tariff rates for local business between stations on the New York, New Haven and Hartford Railroad and Boston and intermediate stations on the New York and New England are in some cases slightly higher than the through rates between New York and Boston, as above referred to, and for the same reasons. There are no other rates made by this company that I am aware of which come within your call. Yours, truly, C. C. MCCAIN, Esq., WM. P. SHINN, Vice-President Auditor Interstate Commerce Commission. NEW YORK CENTRAL AND HUDSON RIVER RAILROAD COMPANY. DEAR SIR: Your favor of the 20th instant, asking if there are any points upon the railroads of this company to or from which interstate rates for passengers or freight are made which are greater than the rates to or from more distant points in the same direction, over the same line, is received. There are no such points, and the fourth section of the interstate-commerce act, to the best of my knowledge and belief, is strictly applied at the stations on our line. Yours, truly, C. C. MCCAIN, Esq., Auditor Interstate Commerce Commission. H. J. HAYDEN, Second Vice-President. NEW YORK, CHICAGO AND ST. LOUIS RAILWAY. DEAR SIR: Referring to inclosed inquiry from Mr. C. C. McCain, auditor of the Interstate Commerce Commission, under date October 20, 1887, freight tariffs from all points on this railroad to all points on this railroad are made to conform to the fourth section of the act. The tariffs from points on this railroad to points on other railroads and vice versa, so far as the latter have come under notice, also conform to the provisions of the fourth section of the act with one exception-that of the Wheeling and Lake Erie Railway, who issue a tariff from southeastern points on their railway, via Bellevue, on this railroad, to eastern points which are lower than the rates to Bellevue, thus: The rates from Bellevue to New York are based upon 78 per cent. of the Chicago rates. The rates from southeastern points on the Wheeling and Lake Erie Railway to New York take the following percentage of the Chicago rates via the various more direct routes indicated: Wellington (Cleveland, Columbus, Cincinnati and Indianapolis Railroad) - Orrville (Pennsylvana). Massillon (Pennsylvania). Per cent. 76 71 71 71 71 74 Navarre (Cleveland, Indianapolis and Western and Cleveland, Columbus, Cincinnati and Indianapolis) Bowerston (Pennsylvania). Consequently, to continue to get, as formerly, a share of the trade via Bellevue, the Wheeling and Lake Erie Railway had to make their tariffs conform with those of the more direct roads. Still, under the fourth section of the act we interrupted the business we had been receiving from the southeastern section of the Wheeling and Lake Erie Railway, because of the lower prevailing rates than those in force from Bellevue, and although they issued a tariff by Erie Dispatch, Lackawanna Line, and Nickel Plate Line, taking effect June 15, 1887, we gave no recognition to it and passed no business via Bellevue at less than the Bellevue rates until the 4th August, and then only on the distinct understanding that the Wheeling and Lake Erie Railway assumed all the risks which might attach to such proceeding. The argument of Mr. Blair, general freight agent of the Wheeling and Lake Erie Railway, to Mr. Tappen. general manager of the Nickel Plate Line, is attached, also copy of letter to Mr. Tappen of August 1, acknowledging what I considered the reasonableness of the proposition. I can not see that any parties at Bellevue are injured by our taking this business, while both the shippers at the points named and the Wheeling and Lake Erie Railway would alike be injured by these competitive facilities, formerly extended to shippers, being withdrawn. We have another connecting road, similarly situated as regards east-bound business, with the Wheeling and Lake Erie Railway, viz: the Pittsburg and Western, running southeast from Painesville, a point on our road 29 miles east of Cleveland, to Allegheny, 136 miles southeast of Painesville. We have only had a connection with that road some three our four months, and have not so far attempted to do any east-bound business because their important points, such as New Castle, Youngstown, Girard, Niles, etc., can get to eastern cities via the Lake Shore and Michigan Southern, New York, Pennsylvania and Ohio, and Pennsylvania interests on a basis of 66.50 per cent. of the Chicago to New York rates, while Painesville takes 71 per cent., and the business of the Pittsburgh and Western given to us would necessarily pass through Painesville on its way to the east; but I think it must be plain to any one that the interests of Painesville as a shipping point could not be injured in the least by our taking this traffic, while the shippers along the line of the Pittsburgh and Western who can now get their business out at rates lower than the Painesville rates would enjoy greater facilities if the Pittsburgh and Western were in a position to take the business. We are asked to make rates on staves from some of our western points to New Orleans via Chicago and the Illinois Central road in competition with the Cincinnati route. I have had some correspondence with Mr. Tucker, general freight agent of the Illinois Central, touching on this question, but as he wants us to make through rates to New |