Annual Report of the Interstate Commerce Commission

Held, That the action was unwarranted. A decision on facts does not establish a principle to govern where the facts are different, and no facts which had been laid before the Commission would have authorized a ruling raising the rates on the Pennsylvania roads on barrel oil, either absolutely or relatively.

The New Orleans Cotton Exchange v. The Cincinnati, New Orleans and Texas Pacific Railway Company, the Alabama Great Southern Railroad Company, the Vicksburg and Meridian Railroad Company, the Vicksburg, Shreveport and Pacific Railroad Company, and the New Orleans and North Eastern Railroad Company.

To correctly estimate the causes influencing the movement of cotton and the falling off in the proportion of the crop received at New Orleans in recent years, the rail lines of transportation constructed, improved methods, and new conditions must be taken into account. Whether railroad companies combine or act separately in making rates and charges is not so important, the essential requirement is that, however made, they shall be reasonable of themselves and so fairly adjusted as to be reasonable in their relations to each other and in their results.

That under like conditions freight can be carried proportionally lower for long than short distances is as nearly settled as anything relating to railroad charges can be. Equal mileage rates would often prevent legitimate competition and give a monopoly in transportation to the best and shortest road.

The reasonableness of rates can not be fairly determined in a proceeding to which some of the parties responsible for such rates are not parties.

Commerce between points in the same State, but which in being carried from one place to the other passes through another State, is interstate commerce, and subject to regulation by the provisions of the act to regulate commerce.

In determining what are reasonable rates, the fact that a road earns little more than operating expenses is not to be overlooked, but it can not be made to justify grossly excessive rates. Wherever there are more roads than the business at fair rates will remunerate, they must rely upon future earnings for the return of investments and profits.

To be reasonable, the rate from Meridian to New Orleans should not exceed $1.50 per bale, compressed cotton.

12366 I C C -9

APPENDIX C.

EXTRACTS FROM DOCKET AND RECORDS OF COMMISSION, SHOWING COMPLAINTS PENDING DURING THE YEAR UNDER SECTION 13 OF THE ACT TO REGULATE COMMERCE, AND DISPOSITION OR PRESENT CONDITION OF EACH.

4. Nathaniel W. Howell, Hiram A. Pooler, Charles M. Thompson, Cornelius B. Wood, and A. T. Moshier, residents and tax-payers of Orange County, New York, representing the farmers and milk producers of said county, against New York, Lake Erie and Western Railroad Company; New York, Ontario and Western Railroad Company; New York, Susquehanna and Western Railroad Company; Lehigh and Hudson River Railway Company :

Complaint alleges violation of sections 1, 2, and 3 of the act, in the transportation of milk from points in southern New York to Jersey City.

Apr. 23, 1887. Complaint filed.

May 17 to June 2, 1887. Answers filed.

July 13, 1887. Hearing commenced and postponed.

Oct. 13, 1887. Hearing.

Leave to file briefs granted.
Dec. 1, 1887. Time to file briefs further entended.
Mar. 7 to May 13, 1888. Briefs filed.

Opinion by Walker, Commissioner. (2 I. C. C. Repts., p. 272.)
Complainants granted leave to produce additional evidence
upon the reasonableness of the rates complained of; but as
to the allegation that, in charging the same rate on milk
transportation to all points reached by the regular daily milk
trains upon their several roads the defendants contravene
the provisions of the statute, the complaint is held to be not
sustained.

8. Associated Wholesale Grocers of Saint Louis against Missouri Pacific Railway Company:

Complaint alleges violation of sections 1 and 2 of the act in the matter of greater charges upon merchandise shipped in small quantities than upon car-load lots.

May 21, 1887. Complaint filed.

June 11, 1887. Answer filed.

July 21, 1887. Hearing.

By consent of parties decision postponed until other cases presenting the same question should also be heard. (See Nos. 65, 66, 67.)

130

Street's Stable Car Line and John W. Street against Atchison, Topeka and Santa Fé Railroad Company and fifty-three others: Complaint alleges extortion, discrimination, and failure to provide and furnish suitable live-stock cars to shippers.

June 3, 1887. Complaint filed.

June 15, 1887. Further proceedings suspended by request of complainants.

24. B. S. Crews, J. E. Schoolfield, and D. S. Overbey, individually and as members of the committee on transportation of the Danville Chamber of Commerce, against Richmond and Danville Railroad Company; Virginia Midland Railroad, controlled and operated by the Richmond and Danville Railroad Company: Complaint alleges excessive freight charges and discrimination against Danville, Va.

June 8, 1887. Complaint filed.

July 18, 1887. Answer filed.

Nov. 14, 15, 1887. Hearing on depositions, oral testimony, and arguments.

Dec. 1, 1887. Case under advisement.

Opinion by Cooley, chairman (1 I. C. C. Repts., p. 401).
Complaint dismissed.

33. Armour and Company against Chicago and Grand Trunk Railway Company: