several of the stations between St. Peter and Pierre, a lower total rate would be obtained than on the direct rate from Chicago to each of these stations. These stations_are, upon first-class freight, Walnut Grove, Tracy, Balaton, Lake Benton, and Highmore; upon fifth-class freight, Sleepy Eye, Sanborn, Walnut Grove, Tracy, Balaton, Lake Benton, Elkton, Huron, Miller, Highmore, and Pierre; and upon Class A, Sanborn, Walnut Grove, Tracy, Balaton, Lake Benton, Iroquois, Wolsey, Miller, and Highmore. On branches of this line there was evidence of the same character as to rates on first-class freight at Marshall and Canby; on fifth-class freight at Marshal, Canby, and Gettysburg, and on freight of Class A, at Marshall, Canby, and Watertown.

This evidence is corroborated by the tariffs of the defendant on file with us, which show this condition of affairs to exist. According to these freight may be shipped from Chicago to St. Peter at one rate, unloaded, and then subsequently re-shipped from St. Peter to each of these stations at a rate which, added to the rate from Chicago to St. Peter, is considerably less than the direct rate from Chicago to each of these stations. No reason that we are aware of exists, that could justify this anomalous condition of affairs. Still some such reason may exist under the peculiar conditions of transportation at St. Peter, and before condemning it and ordering its discontinuance we will give the defendant an opportunity to be heard respecting it in an investigation which we will inaugurate. The same condition of affairs may exist as to other classes of freight, and this investigation, as made by us, will embrace all classes of freight. The reason for our taking this course is that the evidence upon this subject was admitted only for the purpose of the bearing it might have, if any upon the unreasonableness of rates at stations from St. Peter to Pierre, and the matters to which it directly related were not made the subject of complaint, so that the defendant could have an opportunity to answer them, but were brought forward collaterally in the evidence at the hearing for the first time.

which defend

By section 15 of the act to regulate commerce it is provided that if in any case in which an investigation shall be made by the Commission, it shall be made to apMatter as to pear to the satisfaction of the Commission, either ant will have by testimony of witnesses or other evidence, that another hearing.anything has been done, or omitted to be done, in violation of the provisions of the statute by any common carrier, it shall be the duty of the Commission to take the proper proceedings to put an end to such violation of law. In the case of Smith v. The Northern Pacific R. Co.

(1 Interstate Commerce Commission Reports, page 209), where the company in its answer admitted what was a violation of law, although the petitioner failed upon the proof to establish his complaint, yet, as the company in its answer had deliberately confessed as to another matter a violation of the statute, this established such violation clearly to our satisfaction, and we ordered the company to cease and desist from such further violation. The present case differs from that, in this, that here the company has not admitted the violation of the statute. It may be acting upon some conditions of transportation as it exists at St. Peter, which may or may not justify its action as to the differences made on direct rates from Chicago to points west of St. Peter, and the combination of the Chicago rate to St. Peter with the local rates to stations added between St. Peter and Pierre. For these rea sons we will give the company a hearing on this, and the reasonableness of its rates between St. Peter and Pierre and its branch roads west of St. Peter, in a separate investigation of these matters.

All that we can decide in this proceeding now is that the rule insisted upon by the petitioner, that the rate Rule insisted per ton per mile, taken as a basis between Chicago on by petiand St. Peter, must be adopted as the standard at tioner not stations between St. Peter and Pierre, and that the sustained. latter rates must decrease relatively for the greater distance in the same proportion as from Chicago to St. Peter, is one that in the existing conditions of transportation along the line of this railroad, upon the evidence in this proceeding, cannot be sustained. As the complaint is based upon this ground alone, and was so tried by the parties and heard by the Commission, it results from the views we have expressed that this petition must be dismissed.

BUSINESS MEN'S ASSOCIATION OF THE STATE OF MINNESOTA

V.

CHICAGO, ST. PAUL, MINNEAPOLIS & OMAHA R. CO.

(Interstate Commerce Commission, June 20, 1888.)

Interstate Commerce-Competing Lines-Local Rates.-The distance from Duluth to St. Paul by the St. Paul and Duluth railroad is 152 miles; the distance between the same points by the line of the Chicago, St. Paul, Minneapolis & Omaha R. Co. is 178 miles, and from Washburn to St. Paul by the line of the same company, 188 miles. In transporting freight, the latter company made a freight rate, from the Lake Superior points above mentioned to St. Paul, which was the same as that adopted by the St. Paul & Duluth R. Co., and under which the rate per ton per mile decreased in proportion to the greater distance, while the aggregate of the rate increased. For points between St. Paul and Sioux City the freight rate on traffic coming from Lake Superior was in some instances graded according to distance, and in some instances grouped so as to make the same rate at contiguous stations. The rate charged on traffic from Lake Superior after it reached St. Paul showed an increase per ton per mile, and was not in keeping with the rule above stated. It appeared that the rates from Sioux City, and points between Sioux City and Mankato, were controlled by rates made to Chicago and other Lake Michigan points. Held, that under the circumstances of the particular case, the rule that while the aggregate charge is continually increasing the further freight is carried, the rate per ton should be constantly decreasing, did not apply owing to the competition which caused the adoption of the same rates between St. Paul and Lake Superior, as those adopted by the St. Paul & Duluth Rail

road.

PETITION by the Business Men's Association of the State of Minnesota against the Chicago, St. Paul, Minneapolis & Omaha R. Co., complaining that the freight rates upon merchandise transported between Washburn, Ashland, Superior, Bayfield, and Duluth, Lake Superior points, and Mankota, and other points upon the defendant's line south and west of St. Paul, were unjust and unreasonable, so far as concerned the rates from St. Paul southward and westward. The opinion states the circumstances out of which the application arose. J. M. Burlingame for petitioner.

J. D. Howe for defendant.

BRAGG, C.-The complaint in this proceeding avers that

complaint.

petitioner is an association consisting of the several boards of trade, business men's associations, and farmers' organizations of the State of Minnesota, and that Averments in the object of the organization is to secure equal and reasonable rates for the transportation of persons and property in accordance with State and national legislation.

It avers that the Chicago, St. Paul, Minneapolis & Omaha R. Co. is an organization duly incorporated under the laws of the State of Wisconsin, and owning and operating lines of railway, and doing business as a common carrier in the transportation for hire of passengers and property in the States of Wisconsin, Minnesota, Iowa, and Nebraska.

It avers that the defendant railway company, for its services as such common carrier in carrying merchandise of all kinds and classes from Superior, Ashland, Washburn, Bayfield, and Duluth, Lake Superior ports, to stations on its line of road above indicated, has established and published a tariff of freights and charges, as it of right ought to do, which establishes and makes a reduced rate per ton per mile for the greater distance from said lake ports for all stations on its line of road between them and St. Paul, Minnesota, an average distance of 185 miles, while in the same tariffs for a continuous transportation of the same freights, over the same line and from the same points of origination, it establishes and makes a higher through rate per ton per mile for the stations west and south of St. Paul. In support of this charge the petitioner makes part of its petition a table of extracts from said tariff, wherein the rate per ton per mile is figured from the rates and distances as above stated, showing, as it is claimed, the results averred by the petitioner.

That on the first four classes of freight all stations in the State of Minnesota south of Henderson and on said line of the said defendant railway are charged an unreasonable rate and rate per ton per mile.

That on the fifth class (the most important class of general merchandise) all stations in the State of Minnesota south of St. Paul on the said line of road are charged an unreasonable rate and rate per ton per mile.

That on classes A and B all stations south of Henderson on said line are charged an unreasonable rate and rate per ton per mile.

That on class E all stations south of Mankato on said line are charged an unreasonable rate and rate per ton per mile. That on classes C and D all stations on said line south of St. Paul are charged an unreasonable rate and rate per ton per mile.

That on the classes of coal and grain (staples of vital im

portance) all stations on said line of road are charged an unreasonable rate and rate per ton per mile.

That such charges are unjust and unreasonable aud in violation of section 1 of an act to regulate commerce, approved February 4, 1887.

That by such charges such common carrier gives an undue and unreasonable preference and advantage to several certain stations and localities along the line of the said route, and to the same extent subjects the certain other stations and localities to undue and unreasonable prejudice and disadvantage, in violation of section 3 of said act.

The prayer of the petition is that the charges made in it may be investigated, and if established, that an order shall be made to said common carrier to amend its tariffs of rates and charges so that it shall not now nor at any time in the future charge as high a rate per ton per mile for the longer as for the shorter haul aforesaid, and that such proportionate rates may be recommended as shall be just and reasonable, and as shall prevent all undue preferences and advantages and all undue and unwarranted prejudices and disadvantages.

The defendant railway company, answering this complaint, admits that it is a corporation chartered under the laws of Defendant's the State of Wisconsin, and owns and operates lines of railway and is doing business as a common carrier over such lines in the transportation for hire of passengers and property in the States named in the complaint.

answer.

It neither admits nor denies the averment in the complaint that petitioner is an association consisting of the several boards of trade, business men's associations, and farmers' organizations of the State of Minnesota, or the objects of said association.

It admits that as such common carrier it has established and published the tariff of freights and charges from Superior and other Lake Superior ports to stations on its line in the State of Minnesota and to other stations mentioned in the complaint.

It avers that even if it be true, as charged in the complaint, that defendant "establishes and makes a reduced rate per ton per mile for the greater distance from said lake ports for all stations on its lines of road between them and St. Paul, Minnesota, an average distance of 185 miles, while in the same tariffs for a continuous transportation of the same freights, over the same line and from the same point of origination, it establishes and makes a higher through rate per ton per mile for stations south and west of St. Paul," yet, if such statements are true, the defendant has not thereby violated any law of the United States.