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Walla Walla the road runs northeasterl twenty-three miles to Bolles' Junction, which point it branches, one branch runnin easterly thirteen miles to Dayton, the othe extending northerly twenty-three miles Starbuck, where it branches again, one brand going easterly about thirty miles to Pomero the other branch continuing northerly abo nine miles to Snake River. The maximu up grade per mile on said road from the Ci of Portland easterly to Walla Walla is fift nine feet. The highest altitude above me low tide at Astoria of said road, where crosses the Cascade Mountains between Po land and Dalles, is 134 feet, and the highe elevation of the road bed of said road abo high water mark of the Columbia River tween said points is 119 feet.

During the year 1884-'5 the removal of sn blockades between Portland and Dalles c this Company $190,005.66, during the ye 1885-'6, $19,207.06; during the year 1886$10,702.07. During the year 1886 the defer ant employed a force of sand shovelers to p vent this road from being obstructed by sa drifts, for which it paid $11,205.93; and in year 1887, for the same service, $15,565. Between Portland and Dalles City, a dista of eighty-eight miles, the defendant's railr runs for most of the distance along the Col bia River, and the defendant owns and run daily line of steamers between said cities, rying both way and through freights and sengers. The amount of wheat shipped o this road from stations between Wal Junction and Dalles City, including Wall Junction, during the fall of 1886 and the w ter of 1886-'87 was 8,340 tons. The time this shipment extends from September March, inclusive, a period during which great bulk of wheat shipments are m though occasionally small shipments are n Without reciting the details of this mass of in April, May, and June, and the wheat s evidence, which, for the purposes of this re- ped is the product of both sides of the Co port and opinion, would be wholly unneces- bia River. There has been a steady and 1 sary, but all of which we have carefully con- increase in shipments of wheat over def sidered, we content ourselves with stating, in ant's road every year during the last fou substance, the facts we find from it material five years. Since the defendant began to the inquiry involved. Exclusive of the operation of this road through from Port Columbia and Palouse Railroad, the Oregon to Walla Walla it has reduced freight Railway & Navigation Company operates a wheat shipments between these points main track of 576 miles. That portion of its $12 per ton to $6 per ton, and this withou system which extends from Portland to Walla competition which forced it. The bulk o Walla is 246 miles in length, and is construct- fendant's traffic is received from the Nor ed along the Columbia River a distance of 187 Pacific at Wallula Junction, from the M miles to Umatilla Junction. From Umatilla tain Division of defendant's road at Um Junction one branch of this railroad is con- Junction and from the eastern extension structed southeasterly through the Counties of fendant's road from Snake River, Walla W Umatilla, Union, and Baker, in the State of being an intermediate point on this last n Oregon, to Huntington, where it connects road between its eastern terminus and with the Oregon Short Line, and with that land, and this freight is transported to and the Union Pacific forms a through line land. The greater portion of this bu from the Missouri River to Portland. The passes over this line or a portion of thi other line of this railroad extends from between Walla Walla and Portland. Umatilla Junction up the Columbia River freight received from Walla Walla, alth about twenty-seven miles to Wallula, where it that amounts to about 15,000 tons of connects with the Northern Pacific, the two annually, is small compared with its re forming a through line from St. Paul to Port- from the other lines named, its entire re land. From Wallula Junction there is a of wheat for the year 1886-7, being branch of this road easterly about thirty-two 121,000 tons. The wheat industry of C miles to Walla Walla City, at which point it and Washington Territory on the valley connects with the Pendleton Branch of de- Columbia River is very large and is fendant's system from the South. From growing from year to year, the crop

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For the year ending December 31, 1886, the net earnings of the Chicago, Milwaukee & St. Paul Railway were 41.09 per cent of its gross earnings; and its total expenses per mile were $2,925.51, its gross earnings being $4.966.53.

For the year ending December 31, 1886, the net earnings of the Burlington, Cedar Rapids & Northern Railway were 27.30 per cent of its gross earnings; and its total expenses per mile were $2,052.36, its gross earnings per mile being $2,823.20.

For the year ending May 31, 1886, the net earnings of the Chicago & Northwestern Railway were 42.93 per cent of its gross earnings, and its total expenses per mile were $3,561.46, its gross earnings per mile being $6,139.22.

year 1887 being estimated to be about one third | its total expenses per mile were $4,778.57, its
larger than that of the year 1886. There has gross earnings being $8,095.84 per mile.
been a great decline in the price of wheat on
the Pacific Coast steadily every year during the
last five or six years. The average price of
wheat now in the Portland market is about
$1.05 per 100 pounds. By the course of trade
wheat shipped from Walla Walla to Portland
is exported to Liverpool and other European
markets. The country is sparsely settled from
Portland to Walla Walla and vicinity. Since
April 1, 1887, the defendant has made general
and very large reductions in its freight rates
on nearly all commodities transported over its
line between Portland and Walla Walla. Dur-
ing the month of July, 1887, defendant made
and put in effect a rate on wheat from Walla
Walla to Portland of $5 per ton, or twenty-five
cents per 100 pounds. Pendleton is 231 miles
from Portland, Centreville 248 miles, Blue
Mountain 265 miles; and at each ofthese points
defendant has been maintaining a rate of $6 per
ton on wheat shipped to Portland, the same as
to Walla Walla, and they appear to have been
grouped together for the purposes of this rate. For eleven months ending December 31,
The construction of defendant's roads has been 1886, the net earnings of the Central Iowa
at its own expense, and without any aid-fed- Railway were 10.42 per cent of its gross earn-
eral, state, or municipal-either in their build-ings, and its total expenses per mile were
ing or equipment, and in a new and sparsely $2,062.69, its gross earnings being $2,302.65
settled country. For the year ending June 30, per mile.
1886, the defendant paid as rental to the North-
ern Pacific Terminal Company for terminal
facilities an expense of $171,452.36 and for the
year ending June 30, 1887, $144,266.26.
There is no competition between defendant
and any other road or water line in the section
of country through which its lines are operated.
We find that the net earnings of the Railroad
Division of the Oregon Railway & Navigation
Company, 576 miles, and exclusive of the Co-
lumbia & Palouse Division, for the year end
ing June 30, 1886, was $2,068,488.69, or 52.70
per cent of its gross earnings, and that its
operating expenses per mile were $3,223.98.

For the year ending December 31, 1886, the net earnings of the Chicago, St. Paul, Minneapolis & Omaha Railway were 37.45 per cent of its gross earnings, and its total expenses were $2,841.77 per mile, its gross earnings per mile being $4,591.27.

For the year ending June 30, 1886, the net earnings of the Central Vermont Railroad Company were 31.39 per cent of its gross earnings, and its total expenses per mile were $3,841.13, its gross earnings per mile being $5,598.63.

This list of railroads, except the Central Vermont Railroad Company, was named and selected by the petitioners. We included the Central Vermont Railroad because it is con

Upon the point of the expense of operation,

as well as of earnings, as urged by petitioners,structed and operated much of its way through
we have compared the earnings and expenses a mountainous country, away from populous
of operation of this Company on that division cities, and its through freights are large in
and during that period with other railroads proportion to its local freights.
more nearly similarly situated than any other
in the United States, as contended by petition
ers, and which are also more or less wheat
carrying roads; and from such examination
and comparison we find that while the average
percentage of expense of operation was not
greater on the Railroad Division of the Oregon
Railway & Navigation Company than on them
and its percentage of net earnings was consid-
erably larger than either of them, yet its wheat
rates were very much higher than any of them.
The railroads taken for this comparison have
been the Missouri Pacific Railway, the Chica-
go, Milwaukee & St. Paul Railway, the Bur-
lington, Cedar Rapids & Northern Railway,
the Chicago & Northwestern Railway, the
Chicago, St. Paul, Minneapolis & Omaha
Railway, the Central Iowa Railway, the At
chison, Topeka & Sante Fé Railroad, and the
Central Vermont Railroad Company.

For the year ending December 31, 1886, the
net earnings of the Missouri Pacific railway
were 40.98 per cent of its gross earnings, and
INTER S.
44

For the year ending December 31, 1886, the net earnings of the Atchison, Topeka & Santa Fé Railroad were 49.19 per cent of its gross earnings, and its total expenses per mile were $3.355.51; its gross earnings, $6,604.57 per mile.

For the year ending June 30, 1886, the gross earnings per mile of the Railroad Division of the Oregon Railway & Navigation Company (576 miles) were $6.815.11, and the operating expenses per mile during the same period were $3,223.98.

The wheat rates charged on these respective railroads we find to be as follows:*

We do not find the expenses of operation of the defendant's railroad lines to be exceptionally high in proportion to its earnings. We find that the wheat shipments amount in a general way to nearly one fifth of the entire freight carrying traffic of the defendant between points on its railroad division (exclusive of the Columbia & Palouse Division) and Portland, and we are satisfied that this is a much larger percentage of wheat, when compared with its other local freights on this division, than is carried by either of the other railroads above named in proportion to their other local freights. We find from the evidence that the *Table given on next page.

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gerous to the successful existence companies for them to make or be req make freight rates upon mere theories jectures. They have to deal with bu they find it. It is evident in this i from the very sparsely settled country which its railroad lines are operated, side of the through business which nished to the defendant at Wallula Northern Pacific Railway and by the Short Line at Umatilla, one of the cl cles of freight upon which it must d the transportation of wheat to I There is this difference between the of the defendant and each of the oth with which it has been compared transportation of wheat, and it is a v difference. Passing through more communities, in addition to the freights furnished by their connecti have a greater variety of local a freights, and are not compelled to de is the defendant, so largely upon w receive for the transportation of any commodity, such as wheat. They derive revenue from these other sour cal and way freights to a much grea than the defendant, and can with c rely upon them, and for this reason safely make their rates less on wheat defendant. Besides, the wheat hau defendant is transported in sacks, w more expensive mode of shipping ering wheat than that usually adopt other roads with which it has been which is in car loads of solid whea from and delivered to elevators a lines.

A very large proportion of the b the defendant is derived from throug and cannot at present be otherwis ceived from through freights. The through freights fluctuates very some seasons being more and in o and is frequently influenced by caus the control of a remote carrier like t ant. These fluctuations are occasi ardous to the business of such a ca expense of frequently hauling em reach this wheat before it can be r carriage back to Portland is a ci that cannot be overlooked in an inq description, where the reasonable rate charged upon it is the only o volved. The bare statement of thes considerations, without amplifyin length, as we could do, by abunda and obvious reasoning, shows then and of very controlling weight, an cannot be ignored in a proceed character.

The defendant's railroad lines a nally well situated in their relati transportation facilities and a la growing commerce and agricult consideration of their alleged la has been urged upon us as a circ show that it ought to reduce it wheat very greatly from Walla W land. It is plain to be seen that derived by the defendant from property is very remunerative,

A variety of considerations of a very practical nature must always enter into the making of freight rates by a railroad company, and these also go very far in every instance to determine the question of whether such rates are reasonable or unreasonable. It would be very dan-l amount the evidence is conflictin

would be antirely too great under the circumstances by which the defendant is surrounded at this time.

The order, therefore, is that on and after the 15th day of December, 1887, the defendant must cease to charge more than 284 cents per 100 pounds, or $4.70 per ton, on wheat transported by it over its railroad lines from Walia Walla, in Washington Territory, to Portland, in the State of Oregon, during the present grain season.

the actual result in inextricable doubt at this time. Upon the theory of petitioners it would be between 10 and 11 per cent net per annum; upon the theory of defendant, and taking into the estimate the several judgments rendered against it for $210,000 by the Federal Court in Oregon, and now pending on appeal in the Supreme Court of the United States, it would be about 6 per cent per annum. We have considered this, but it does not change the conclusion we have reached and which has been already stated. The order is also made in this form as to the -A certified copy of a recommendation made, present grain season upon the statement in the on the second day of June, 1887, by the hon-answer of the defendant that further reducorable Board of Railroad Commissioners of tions on wheat rates are intended to be made the State of Oregon to the Oregon Railway & by defendant as soon as this can be done, and Navigation Company, recommending, among upon the general course of dealing of defendother things, to reduce its rates on wheat to ant, as shown in the proofs, that the rate for twenty cents per 100 pounds in car load lots the next season on wheat will doubtless be furfrom certain points east in that State to Port-ther modified. land has been introduced in evidence by petitioners and is relied on by them as sustaining their view of this case. Among the points thus named are Centreville, Blue Mountain, and Pendleton. A recommendation of that honorable board as evidence upon any matter to which it relates receives, as it deserves to receive, at our hands a very high and respectful consideration; but we do not know the evidence upon which that recommendation was made, and if we did we would still be constrained to be governed by the evidence that is before us in this proceeding, which involves interstate commerce and is within a peculiar jurisdiction, which is devolved upon us by the Statute.

Shortly after these petitions were filed the defendant, as it had a right to do under the statute, reduced its rate on wheat from Walla Walla to Portland from $6 per ton to $5 per ton, or twenty five cents per 100 weight.

Since the first of April, 1887, the defendant has reduced its rates as follows:

Dry goods, boots, and shoes,

Sugar, in less than car loads,
Coffee,

Bacon, in less than car loads,

Bacon, in car loads,

Nails, in car loads and less than car loads,

Barbed wire,

Coal oil, less than car loads,
Dried fruit,

Cents per
100 lbs.

15

33

43

LINCOLN BOARD OF TRADE
0.

CHICAGO,

BURLINGTON & QUINCY R. R. CO., Burlington & Missouri River R. R. Co. in Nebraska; Denver & Rio Grande R. R. Co.; Rio Grande Western R. R. Co.; and Southern Pacific Co.

(No. 94.)

That the Chicago, Burlington & Quincy with its connections, transports by a through line to San Francisco in accordance with a joint traffic arrangement. It transports from San 33 Francisco (principally sugar and canned goods) to Denver, Lincoln, Omaha and Chica37 go, and has published a joint tariff.

15

15

15

15

12 San Francisco to Lincoln 1.46.

.75

These are large and general reductions on a fine line of freights, and they are fairly entitled to be taken into consideration in a proceeding of this nature. Rates are, and should be, to a considerable extent, so related to each other in the manner in which they are laid for the revenue of a railroad that the instances are very frequent in which a change of the freight upon one important article of commerce in volves a consideration of the relative rates on other articles. This case is one of that de scription. A reduction of rates, such as is claimed by petitioners, to fifteen cents per 100 pounds, or $3 per ton, on wheat shipments from Walla Walla to Portland is one that

BSTRACT filed November

A17, 1897, alleging the imposition of unreas

onable rates between Chicago and Lincoln.

Complains that the rates between Chicago and Lincoln are unreasonable being 10 to 40 per cent higher than to Louisville or Omaha.

Hardware,

Agricultural implements in less than car loads, 33 | Omaha to Chicago
Lime, in car loads,

33
15

Soap,

Freight over Chicago, Burlington & Quin

Starch, less than car loads,

43 cy from San Francisco to Omaha and Chicago

Starch, in car loads,

38

passes through Lincoln.

Present rates to and from Lincoln discriminate against this locality.

Defendants violate:

Sec. 1. Charges unreasonable in themselves etc.

Sec. 2. Constitutes unjust discriminations etc.

Sec. 3. Gives preference to certain firms and localities.

Canned goods sugar.

.75 .60

Sec. 6. Shall not receive or collect greater or less charges than published rates.

Sec. 7. No interruption shall be made of continuous carriage to evade Act.

*This is the way the charge is made in the complaint under sections 6 and 7 reciting the words of

the Act, but only by inference from what precedes, stating that it is violated.

The LINCOLN BOARD OF TRADE

v.

The MISSOURI PACIFIC R. R. CO. (No. 95.) BSTRACT of complaint filed November reasonable rates between St. Louis, Missouri, and Lincoln and other places in Nebraska.

Complain that the rates between St. Louis. Missouri and Lincoln, Nebraska and adjacent and competitive points in Nebraska are unreasonable as compared with former rates and rates to other points on their system (specifying cases), being from 10 to 50 per cent high-pounds on car load lots. er than from St. Louis to Weeping Water or Omaha. For twelve years previous to the Act Lincoln enjoyed Omaha rates.

Lincoln should not be considered a local station but "a rate basing point from which rates are graded."

Lincoln is a jobbing point of 45,000 population.

The charges are too great in themselves and constitute discrimination against Lincoln, inasmuch as they give preference to certain lo calities.

PLUMMER, PERRY AND CO.

V.

chased and billed at one time" consigned to complainants at Lincoln, Nebraska, 375 barrels of sugar by way of defendants' lines at rates set forth in exhibits annexed; said shipment was by continuous carriage, without break of bulk or change of cars, from San

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For the purpose of evading the Act and in pursuance of said agreement, etc., the Southern Pacific Railway Company declined to make a rate from San Francisco to Lincoln; but pursuant to request of Union Pacific Company and said agreement guarantied that the rate to Omaha should not exceed sixty cents per 100

Complainants allege that heretofore to wit: on the 24th and 25th days of June, 1887, the American Sugar Refining Company of San Francisco, California, shipped at that point "the goods and property having been pur

The Union Pacific, in pursuance of agreement, refused to switch the goods by way of the Omaha & Republican Valley Railroad direct to their destination, but sent them to Omaha where they were rebilled. Causing the goods to be shipped to Omaha and there rebilled involved additional distance of transit of seventy miles and imposed an extra charge on complainants-thereby discriminating against

them.

The NEW ORLEANS COTTON EX CHANGE, a Corporation Established under the Laws of Louisiana,

The UNION PACIFIC R. CO. and South-
ern Pacific Co.
(No. 96.)

ABSTRACT of complaint filed November 17, ABSTRACT of complaint filed November

1887, an of an extra and discriminative charge for the transportation of sugar.

15, 1887, charging of section 1 of the Act, by making unjust and unreasonable rates for handling cotton.

Complainants are wholesale grocers at Lincoln, Nebraska.

The Union Pacific owns and operates the Omaha & Republican Valley Railway (giv. ing points of connections of the roads).

Defendants, pursuant to an agreement, combination etc., operate lines of railway constit-leans, uting a through line connecting San Francisco with Omaha and Lincoln, Nebraska.

V.

NEW ORLEANS, CINCINNATI & TEXAS
PACIFIC R. CO. "A Corporation Owning
and Managing Several Lines of Railroad."
(No. 97.)

Defendant is "a common carrier engaged in the transportation of passengers and property by railroad under a common control, etc.," "for a continuous carrying or shipment from one State of the United States to other States of the United States, to wit:" from New OrLouisiana, to and through Loiusiana, Mississippi, Tennessee, Kentucky, Pennsylva nia, New York and other States to the Cities of Lowell and Boston, Massachusetts, and New York City, and in the opposite direction from said respective places to New Orleans.

Defendant for the last six months has been and still is making unjust and unreasonable rates for hauling cotton from Meridian, Mississippi, to New Orleans, Louisiana, and from points between Meridian and New Orleans to New Orleans in violation of the last clause of the first section of the Act. Has charged "or received from" some persons more than others for doing a "like, etc.," service, under substantially, etc. (Quoting words of Act.) Has given undue and unreasonable advantage, etc., to Lowell and Boston and subjected to undue, etc., disadvantages, New Orleans. Specifies: Has charged and does charge for transporting cotton from Meridian, Mississippi, to Boston and Lowell, Massachusetts (1,500 miles, or less), seventy five cents per 100 pounds and pays out of that sum ten cents per 100 pounds for compressing—making net rate to Boston and Lowell sixty-five cents per 100 pounds also.

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