We construe the fourth section of the Inter- | By the Commission: state Commerce Act practically to be in substance the application to interstate commerce of the common-law principle that the shipper avail himself of competition, and that a less rate may be charged for a longer than a shorter distance, providing more could not be obtained. If the right of competition is recognized as between the carrier and the shipper, our carrying business will not be interrupted; but otherwise we shall be unable to compete for the Chinese and Japanese trade with the Suez Canal, and also unable to compete with the water routes by Panama and Cape Horn for business originating in California. We await your construcLeland Stanford. tion. President Southern Pacific Railroad. Washington, D. C. April 5. Leland Stanford, San Francisco: Applications to the Commission for special exception under the Interstate Commerce Law can only be granted after investigation into the facts. A verified petition, setting forth the grounds of application, should be presented. T. M. Cooley, Chairman. San Francisco, April 6. Judge T. M. Cooley, Chairman, Washington, D. C.: We do not ask for a ruling upon a special case, but a construction of section 4, as all the business between Pacific and Atlantic ports is governed by competition; the business from ports of China and Japan across the Continent to Atlantic ports is governed by competition; and agents in China and Japan, to obtain business, make rates, to meet the competition of Suez. One of the Oriental & Occidental Company's ships will arrive in a few days with a cargo mostly for points east of the Rocky Mountains. If the rates established by the other companies are maintained, the contracts made for ship ment cannot be carried out. All the through business of the overland lines is involved, and we cannot accept and dispatch freight, except upon a general ruling applicable to all business. The question arises upon every ton of freight offered for shipment, and practically we find ourselves unable to do through business. You will see, therefore, that a special ruling or exception will not meet the case, as it arises upon every ton of freight offered. Leland Stanford. Washington, April 7. Leland Stanford, San Francisco: The Commission were under no misapprehension regarding the facts; but they still hold that if, rather than take the responsibility of your own construction, you call for authoritative action, a case must be formally presented by petition and then investigated by them. T. M. Cooley, Chairman. (April 7, 1887.) Re DETROIT, GRAND HAVEN & MILWAUKEE R. R. CO. The operation of section 4 of the Act suspended for ninety days, as to the traffic of the petitioner between certain points. 2 The Detroit, Grand Haven & Milwaukee Railroad Company having made application to the Commission for a suspension of the operation of section 4 of the Interstate Commerce Law so far as it would apply to traffic taken across Lake Michigan to Grand Haven, and destined to points east of Detroit and St. Clair Rivers, and having assigned as a reason for such suspension that the said Railway Company owns and operates a line of boats on Lake Michigan, and has been doing so for many years past, and by common consent of its competitors has been allowed to charge a less rate from Milwaukee, by way of Grand Haven, on the traffic above mentioned, than is charged on the all rail lines by way of Chicago on the like traffic and that the making of such less rates by said Railway Company is just and fair as between Milwaukee and Chicago, is necessary to enable said petitioner to compete with said lines by way of Chicago; and the said Railway Company having further shown that between certain points on its line east of Lake Michigan it has been customary to make rates on such traffic which are greater for a shorter than for a able and correspond to those made by compet longer haul, which greater charges are reasonthe said application and duly considered it, and ing lines; and the Commission having heard it appearing to the Commission that the case is a proper one for temporary relief, It is now ordered, That, for a period of ninety days from this date, the operation of the said fourth section of the Interstate Commerce Law be suspended as to the traffic from Milwaukee over the petitioner's line, so far as to permit the of property from Grand Haven and points eastcharging of greater rates for the transportation erly thereof, to and including Ionia, to points east of the Detroit and St. Clair Rivers, than are charged on the like traffic from Milwaukee to points east of the same rivers over the same line; and also for the transportation of property to Ionia and Grand Haven and points between the same from points east of the Detroit and St. Clair Rivers than are charged on the like traffic to Milwaukee over the same line; but subject, nevertheless, to the restriction that such charges to and from Grand Haven, Ionia and intermediate points shall not at any time exceed the forwarding rates on the like traffic between the City of Chicago and the same points east of said Detroit and St. Clair Rivers, nor greater in proportion to Milwaukee rates than are now charged by the petitioner's line. And it is further ordered, That this order shall only take effect on a copy thereof being posted by said petitioner with its tariff of rates at each of the stations at which such higher rates may be chargeable; and the same shall be kept so posted for general information; and any party or locality claiming to be aggrieved by such rate shall be at liberty at any time to apply by petition for a modification or recession thereof. Re SOUTHERN RAILWAY & STEAMSHIP ASSOCIATION. The Southern Railway & Steamship Associa HE Commission, upon a second petition of Commissioners -salaries. secretary,employ eos. time, make or amend such general rules or orders as may be requisite for the order and regulation of proceedings before it, including forms of notices and the service thereof, which shall conform, as nearly as may be, to those in use in the courts of the United States. Any party may appear before said Commission and be heard, in person or by attorney. Every vote and official act of the Commission shall be entered of record, and its proceedings shall be public upon the request of either party interested. Said Commission shall have an official seal, which shall be judicially noticed. Either of the members of the Commission may administer oaths and affirmations. Sec. 18. That each Commissioner shall receive an annual salary of $7,500, payable in the same manner as the salaries of judges of Commission the courts of the United States. The Commission shall appoint a secretary, who shall receive an annual salary of $3,500, payable in like manner. The Commission shall have authority to employ and fix the compensation of such other employees as it may find necessary to the proper performance of its duties, subject to the approval Commission-ofexpenses, fices. of the Secretary of the Interior. The Commission shall be furnished by the Secretary of the Intewitness fees, etc. rior with suitable offices and all necessary office supplies. Witnesses summoned before the Commission shall be paid the same fees and mileage that are paid witnesses in the courts of the United States. All of the expenses of the Commission, including all necessary expenses for transportation incurred by the Commissioners, or by their employees under their orders, in making any investigation in any other places than in the City of Washington, shall be allowed and the chairman of the Commission and the Secretary of the Interior. paid, on the presentation of itemized vouchers therefor approved by general and spe- the City of Washington, where its general sessions shall be held; Sec. 19. That the principal office of the Commission shall be in but whenever the convenience of the public or of the parties may be promoted or delay or expense prevented thereby, the Commission may hold special sessions in any part of the United States. It may, by one or more of the Commissioners, prosecute any inquiry necessary to its duties, in any part of the United States, into any matter or question of fact pertaining to the business of any common Commissioncial sessions. Annual reports common from they shall show. carrier subject to the provisions of this Act. Sec. 20. That the Commission is hereby authorized to require carriers and what annual reports from all common carriers subject to the provisions of this Act, to fix the time and prescribe the manner in which such reanswers to all questions upon which the Commission may need inports shall be made, and to require from such carriers specific formation. Such annual reports shall show in detail the amount of capital stock issued, the amounts paid therefor, and the manner of payment for the same; the dividends paid, the surplus fund, if any, and the number of stockholders; the funded and floating debts and the interest paid thereon; the cost and value of the carrier's prop erty, franchises, and equipment; the number of employees and the salaries paid each class; the amounts expended for improvements each year, how expended, and the character of such improvements; the earnings and receipts from each branch of business and from all sources; the operating and other expenses; the balances of profit and loss; and a complete exhibit of the financial operations of the carrier each year, including an annual balance sheet. Such reports shall also contain such information in relation to rates or regulations concerning fares or freights, or agreements, arrangements, or contracts with other common carriers, as the Commission may require; and the said Commission may, within its discretion, for the purpose of enabling it the better to carry out the purposes of this Act, prescribe (if in the opinion of the Commission it is prac-of accounts. ticable to prescribe such uniformity and methods of keeping accounts) a period of time within which all common carriers subject to the provisions of this Act shall have, as near as may be, a uniform system of accounts, and the manner in which such accounts 'shall be kept. Uniform system mission to Secre rior. Sec. 21. That the Commission shall, on or before the first day of Report by ComDecember in each year, make a report to the Secretary of the Inte- tary of the Interior, which shall be by him transmitted to Congress, and copies of which shall be distributed as are the other reports issued from the Interior Department. This report shall contain such information and data collected by the Commission as may be considered of value in the determination of questions connected with the regulation of commerce, together with such recommendations as to additional legislation relating thereto as the Commission may deem necessary. rates. Mileage, excur sion or commuta Sec. 22. That nothing in this Act shall apply to the carriage, Free or reduced storage, or handling of property free or at reduced rates for the United States, State, or municipal governments, or for charitable purposes, or to or from fairs and expositions for exhibition thereat, or the issuance of mileage, excursion, or commutation passenger tickets; nothing in this Act shall be construed to prohibit any common carrier tion tickets. from giving reduced rates to ministers of religion; nothing in this Act shall be construed to prevent railroads from giving free carriage to their own officers and employees, or to prevent the principal officers of any railroad company or companies from exchanging passes or tickets with other railroad companies for their officers and employees; and nothing in this Act contained shall in any way abridge transportation. or alter the remedies now existing at common law or by statute, but the provisions of this Act are in addition to such remedies: Provided, That no pending litigation shall in any way be affected by this Act. Passes and free for the Act. Sec. 23. That the sum of $100,000 is hereby appropriated for Appropriation the use and purposes of this Act for the fiscal year ending June thirtieth, Anno Domini eighteen hundred and eighty-eight, and the intervening time anterior thereto. When Act takes effect. Sec. 24. That the provisions of sections eleven and eighteen of this Act, relating to the appointment and organization of the Commission herein provided for, shall take effect immediately, and the remaining provisions of this Act shall take effect sixty days after its passage. THE INTERSTATE COMMERCE COMMISSION Hon. THOMAS M. COOLEY, of Michigan, Chairman. Hon. WILLIAM R. MORRISON, OF ILLINOIS. Hon. AUGUSTUS SCHOONMAKER, OF NEW YORK. Hon. ALDACE F. WALKER, (April 5, 1887.) RULE AS TO APPLICATIONS FOR THE Indianapolis, Decatur & Springfield Railway, John S. Lazarus, general freight agent of the applied by letter for "the privilege of charging less on grain and other traffic received from ACTION OF THE COMMISSION. THE HE Commission promulgated the follow-connecting lines at junctions than we make from our local stations." ing rule: Applications made for the official action of the Commission shall be made by petition, which shall set forth the facts on which they are founded, and be verified by the oath of the applicants or some authorized agent or attor ney. Pittsburg & Lake Erie Railroad, presented a peA. D. Smith, general passenger agent of the tition asking that the long and short haul provision be waived for the present as regards the transportation of passengers between Pittsburg and New York. R. A. Anderson, superintendent of the WestRe SUSPENSION OF THE FOURTH SEC-ern & Atlantic Railroad Company, extending TION OF THE ACT. (The "long and short haul" section.) R. Worthington, general counsel for the Rich from Atlanta to Chattanooga, petitioned to be relieved from the operation of the fourth section, and to be allowed to charge less for a longer than for a shorter haul to, from and MR.Worthington, system. Mr. Shelman, through Atlanta, Rome and Chattanooga and traffic manager of the Central Railroad & Banking Company of Georgia, and Vice President Smith, of the Louisville & Nashville Railroad Company, appeared, each in behalf of his own corporation, to file the necessary formal petitions for relief. . In each case the purpose of the petitioner was to secure a suspension of the operation of the long and short haul feature of the law, until the Commission can give hearings upon the cases. intermediate points, in order that said company might meet water competition at Rome, Chattanooga, Montgomery and Augusta. The Commission considered the petition presented by the Southern Railway & Steamship Association, asking relief from the operations of the long and short haul clause. (April 6, 1887.) SHIP ASSOCIATION. Congressman Butterworth, accompanied by Captain J. T. Stockdale, of the Pittsburg & Re SOUTHERN RAILWAY & STEAMCincinnati Steamboat Company; Captain Hanshell, of the Big Sandy & Louisville Mail Line, and Captain R. W. Wise, of the Memphis & Cincinnati Packet Company, appeared before the Commission as representatives of the "river interests." George R. Blanchard, chairman of the Central Traffic Association, addressed the Commission briefly in behalf of the Michigan railroads, setting forth the circumstances which led to the establishment of lower through rates (from Mil The operation of the fourth section of the Act suspended, in its application to certain railroads and connecting steamship lines, for a period not greater than ninety days, until the Commission can make a complete examination of the matters alleged in the petition. waukee across the lake, and thence across the PETITION for relief from the operation of State of Michigan), than could be given for local traffic by reason of the all rail competition by way of Chicago. These roads asked permission to maintain local rates, irrespective of the through rates, until such time as the Commission shall be able to take the peculiar circumstances and situation into consideration. 15 the fourth (the long and short haul) section of the Act. The questions presented are stated in the ruling of the Commission. By the Commission: Application having been made to the Interstate Commerce Commission under section 4 |