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which, it is to be presumed, are not unwilling ville & Nashville Case covers every point. But to see the “survival of the fittest.” Weak since the announcement of that decision, Judge lines are to be swallowed up, competition de Deady has gone a step further, and held that stroyed, and the very purpose of the Interstate competition in all cases, whether by foreign or Commerce Law defeated. The rates thus fixed domestic corporations, or by water lines, conby the trunk lines must be met, or the Cen- stitutes a dissimilar circumstance. tral Vermont must go out of the business; and Ex parte Koehler, 1 Interstate Com. Rep. in meeting them another obstacle is in the way. 317. The Boston and Albany Line is about 140 The lines out of Boston that compete for miles shorter to Chicago than the Central Ver- west bound traffic to points in the West are very mont Line. (See Porteous' Milage Computa- numerous, and are enumerated in the answers tion.)
and shown on the maps. At the same rates from Boston to competing Montreal is a competing point. The Grand points in the West, traffic would naturally go Trunk, via Portland, is one line competing by the shorter and quicker line. To meet the there; the water line, via New York and Lake difficulty and overcome the inequality thus Champlain, is another; the Delaware & Hudexisting between the lines, it was, as early as son Canal Company is another; the Canadian 1865, conceded by the trunk lines that this line Pacific is another. might charge less than the trunk lines to com. A vast amount of traffic that, before the peting points in the West. This line was passage of the Interstate Commerce Law, used obliged to do this in order to secure business, to come over the Grand Trunk and Central and it was conceded by the trunk lines as a Vermont, and was exported at Boston, now matter of justice. On the other hand, wbile stops at Montreal, and is exported that way. this line was the longest and slowest, it could; IV. Q. It is true that the Boston & Albany nevertheless, make the lower rate because its Company, and everybody else, has a standing line reached the great Lakes at Ogdensburgh before this Commission to complain. But it is by a shorter rail line (118 miles) than the Bos- observable that this complaint does not come ton & Albany reached the great Lakes at Buf- from a shipper who complains of the rates at falo, and also because defeudant's cars go West Ogdensburgh and St. Albans respectively. It empty, unless they take freight at such rates comes from a competitor at points on the great as they can get. They maintain rates for east Lakes, and that is the real grievance. The bound freight. (See maps and Porteous' Mil. Boston & Albany care nothing about the rates age Computation.)
at Ogdensburgh and St. Albans. Theirs is not All the foregoing applies to the Ogdensburgh a missionary duty. But the trouble is, they & Lake Champlain Road as well as the Central want to get rid of their principal competitor Vermont. See auditor's statement as to earn for west bound traffic to competing points in ings from through and local business.
the West. e. The decision in the Louisvillle & Nash. But it has been generally supposed that the ville Case (1 Interstate Com. Rep. 278), com-object of the Interstate Commerce Law was to pletely covers this case. That case announces encourage competition and to break down mo. the rule that when the competition is by for. nopolies instead of creating them; and so the eign railroads or lines, competition is of itself Commission announced in the Louisville & a dissimilar circumstance. Also water lines. Nashville Case. The principal competitorsfor Boston west How often has it been held that he who seeks bound traffic are the Grand Trunk, via Port- equity must come into court with clean hands. land, and the Canadian Pacific, via the South Motives are material. Thus when & stock. eastern, also a Canadian corporation, and a holder of a private corporation buys the stock water line by ocean carriage from Boston to of a rival corporation for the purpose of bring. Halifax, and thence by the Inter-Colonial to ing a suit to destroy the rivalry, he will not be Montreal, and by the other water lines referred heard in a court of equity, when the question to in the maps, answers and testimony. is one of discretion.
Especially is this true by the all water line, 1 Pedfield on Railways, 76. via New York City, the Hudson River, the
The author says: Erie Canal and the Great Lakes to Cleveland, “ But when the fact is established that unPort Huron, Detroit, Milwaukee, and Chicago. der pretense of serving the interests of one New England agents sell their goods delivered company, the shareholders of a rival company, in New York, at New England prices. The by purchasing shares for the purpose of litcarriage by water from Boston to New York gation, can make this court the instrument for is triding. The rates from New York to defeating or injuring the company into which Cleveland and Detroit are
they so intrude themselves, in order to raise 35 30 25 18 17 15.
questions and disputes on matters as to which And Milwaukee and Chicago,
all the other members of the company may be 35 30 25 20 18 16.
agreed, I cannot consider that in such a case The rates of insurance are much less by this it is the province of the court ordinarily to inline than by the Central Vermont Line of terfere. In questions of the law of contracts, Steamers, via Ogdensburgh; so that in the ag: when there is a discretionary jurisdiction in gregate the rate is 8 to 10 cents per hundred this court, circumstances affecting the con pounds less than on any other line. A vast dition of the contracting parties and the origin amount of New England business that used to of their rights in relation to the subject matter go via Ogdensburgh now goes by this route, of the contract deserve great consideration." since the passage of the Interstate Commerce b. The second, third, and fourth sections of Law.
the Interstate Commerce Law are merely deIt is unnecessary to go further. The Louis- 1 claratory of the common law. Unjust dis
crimination was illegal at common law. So of course, of no consequence. A few illustrawas undue preference; and to charge more for tions will be given for argument: a shorter than a longer distance, for the same a. Let us take a few of the rates between amount and class of freight, under the same Ogdensburgh and Vermont points to Boston circumstances, was also illegal.
(which are the ones complained of). Atchison, etc. R. R. Co. v. Denver, etc. R. R. Co. 110 U. S. 683 (Bk. 28, L. ed. 297).
CENTRAL VERMONT RAILROAD. The guiding rule at common law was, What
Rates per is reasonable? And that is the rule, and the
Miles to 100 lbs. only guiding rule, under this statute, where Points.
Boston. 1st class. every case involves a question of law and
408 fact, and where every case depends on its own St. Albans,
55 The petitioners never have been able to Waterbury,
55 break down the defendant's line as a competitor Montpelier,
55 for through business. Is it reasonable that the Rutland,
30 instrumentality of the Interstate Commerce Ludlow,
30 Law should be used to accomplish that pur- White River Junction, · 144 36 pose, when the object of the Law was to promote competition?
PASSUMPSIC ROAD. c. The petition is based on the fourth section. No questions arise under any other sec
Miles to 100 lbs. tion. Petitions must notify parties of what Points.
Boston, 1st class. they have got to meet, otherwise interminable
60 confusion arises on trial.
60 As to the Petition of the Vermont State Grange. Lyndonville,
46 A. Bradford,
40 The Rates to Boston, etc.
St. J. & L. C. ROAD.
Miles to 100 lbs. great variety of reasons besides those enumer.
Boston. 1st class. ated above. The rates charged compare most Swanton,
• 302 55 favorably with those of other north and south
6. As to the rates to Providence, Rhode lines. The character of the country through Island, it will be noticed that the rates given which these roads run, the cost of construc: by the Central Vermont are also less than those tion, the cost of operation and the amount of of other Vermont Roads to the same point. local support will, of course, be remembered. No proper comparison can be made between
CENTRAL VERMONT ROAD. Vermont Roads and roads running through
Distances Rates 100 Massachusetts, between Boston and New York,
to Provi. lbs. 1st where there are numerous rival roads and
dence. class. where the roads pass through large manufact
270 uring districts, and are operated at a compar: Waterbury,
58 atively small expense. The only fair test is to
58 take other roads, situated like the Central Ver- Montpelier,
195 mont and Ogdensburgh Roads, and compare
33 their interstate rates. The Passumpsic Road is of this character. The St. Johnsbury &
PASSUMPSIC ROAD. Lake Champlain Road is another.
Distances Rates 100 The rates made by the Central Vermont
to Provi. lbs. 1st Road to Boston are less than the rates of either
dence. class. of these roads for the same distances. The
233 rates made by the Central Vermont Road to Littleton, N. H.
58 Providence, Rhode Island, are also less than Lisbon, N. H. those of other Vermont lines. The rates Wentworth, N. H.
53 made by the Connecticut River Railroad and Plymouth, N. H.
40 the New York, New Haven & Hartford Rail. Meredith, N. H.
36 road for Vermont business are higher, dis Laconia, N. H. tances considered, than the rates made by the Tilton, N. H.
36 Central Vermont Road from St. Albans and c. As to the rates to New York, it will be other Vermont points to Boston, which latter noticed that the difference in favor of the Cenare the subject of complaint. The tables sub- tral Vermont is great on the first four classes mitted by Mr. Chittenden will show this. The of freight, and still greater on the last two local rates that begin and end in Vermont are, classes. INTER S.
by whatever it was it made a total of 13 or 14 Q.
the ti By Mr. Strout: Is it not true that you have Portland you E Hudor, and lines of steamships there, as an agree tem terminal?
the fi A Yes sir.
chan Q And the Grand Trunk gets a large feren mount of freight going to Portland for ship. A. test
, from the West, while they have a com- refer patirely small amount of goods going East, lished ad very little shipped back over the line? shoul 1. Yes sir; there is more east bound than cussic
By By the Chairman:
Q. Why is it the Pennsylvania roads have win a difference in full and empty cars? whol 4. It is largely on account of the oal busi- Marc
Mr By Mr. Strout:
A. Is it not true that the Boston & Albany Mr. w have a large local business?
per ct 1 I suppose it is.
that 1 You got more agreements for pooling ar-| Desp pements before the passage of the Interstate A. uzmerce Law?
in th 1 Yes sir. And when that Law came into effect this
Tb na wuld not make any such agreements in tions
s require good time in transpor- A. West bound.
Q. You do not haul any more, in propor
tion, than your competitors, do you? ime you established the differen- A. It hinges upon the traffic; Mr. Fink said ound business there were only to me the other day that the Pennsylvania freight?
Company hauled Wesí as many as four cars to nen it was agreed to have differ- what they hauled East.
Q. From Boston? not a part of that ageeement that A. No sir; on their system. ld be any fifth, or additional Q. They carry a good deal of coal, etc? ght, that the differential should be A. Yes. those additional classes ?
Q. I am talking about the Boston system; doIs stated so, and I take it it was you know whether or not your road carries How to the contrary.
any more than its proportion, as compared with atter of fact you have assumed to the other roads, of empty cars back to the mts on your present differentials, West? three?
A. I should think not. believe so.
Q. Are not the circumstances of competition know that that differential was ever between the western markets and the sea board agreement between your road and substantially the same as from the sea board s, that is the fifth and sixth classes, to the West ? al of four and three cents?
A. Yes; the same competitors of course. ollection is that they were the sub- By the Chairman: ommendation on the part of Mr. Q. State what proportion you are now get
ting of the Boston business from Chicago, east. ong ago?
bound. st three or four years; Mr. Fink A. We are getting now, about between thirin 1879 or 1880, seven years ago; teen and fourteen per cent of the Chicago busining between that time and this ness.
Q. And of the Detroit business, how is it? say that you know it was estab- A. I have no facts as to the Detroit business; I m as four and three cents ? refer to the business emanating from or passing s to the best of my belief; he is a through Chicago, that is, what comes to us party to the differentials on behalf from the Chicago & Grand Trunk Railway; lines.
then there is the Milwaukee business which ar and three cents per 100 on those comes to us by the Chicago & Grand Trunk
and the Wabash. r; that is my belief.
Q. What I want to know is, what proportime was that done?
tion of the Chicago through business are you hot say; it must have been about getting now? pread over the time between 1880 A. My answer to that was 13 or 14 per cent; sent time.
it is divided into two parts, that includes the to the Commission what the differ-whole business; we have connections at the Nithe carriage over these particular agara frontier east over another route, and also road between the east bound and through Toronto; passing in this direction the und traffic, that is, in the service whole of the business, via the Chicago & wered by the railroads, between the Grand Trunk Railway, will be about 13 or 14 and the west bound traffic, in one per cent of the whole Chicago business; that ou have the differential, and in the includes business to New York as well as to Now, what do you say is the dis- Boston.
By Mr. Strout: reference to the class of business. 2. Do you include in your answer to the question refer to the actual, physical Chairman all the freight that comes over the
Chicago & Grand Trunk Railway? question refers to the service ren- A. Yes; I referred only to that.
Q. But all of that does not come East by the gradients are varying in both direc- Central Vermont, and Boston & Lowell
Roads? hich direction?
A. No sir; a large proportion of it goes off e is much of a muchness about that; at the Niagara frontier. he haulage would be about the same; Q. Does the whole of that 13 or 14 per cent w that there is any great difference. come over your road and by Montreal do not know that there is any dif- A. No sir; not to Montreal; a large portion the service rendered between the goes to New York. est bound haul?
Q. Not more than 5 per cent of it comes by w nothing about the line south of Montreal?
there is one thing of a physical A. I think we have been awarded 25 per
empty cars go West, and few going By the Chairman:
25 per cent of the New England business to us:
llon to cast bound freight?
1 Yes; it was illegal then. Before that Law was passed was not the Bost suunt of business obtainable in the West to byt u za board affected by rebates given, also?
1. Yes; I have no doubt about that. were By Commissioner Schoonmaker. Have
А erebates ceased?
I think so, entirely.
Wes $ Since the passage of this Law?
Yes sir. & Idid not understand what percentage you ton of the New England business; please state
I think I said we had 25 per cent of the bur La England business from Chicago. That som into a pool would represent so much of
wei a whole business.
mei You said you had 13 or 14 per cent of the
R. Sago business coming East; now, what part for chat comes to New England ?
Cer 11 should think about 5 per cent of it.
for ut 5-13 of the whole sea board business
Gra the West by the Chicago & Grand Trunk Liny. That includes everything out of Chi- BRI for this district. Comunistioner Walker: Do you mean that of the business com to New England, as between you and Lay Viehburg, and the Boston & Albany, you firs bare a quarter of the whole? 1 Yes sir; of all the business to this district
A comparatively small proportion.
but whatever it was it made a total of 13 or 14 Q. I understand that there were four classes per cent.
of freight, and that certain articles went into By Mr. Strout:
the third and fourth classes; now I understand Q. Is it not true that you have Portland you to say that the differentials on those were Harbor, and lines of steamships there, as an agreed to. When these articles were put into easterp terminal?
the fifth and sixth classes, was there ever any A. Yes sir,
change agreed to as to the amount of the difQ. And the Grand Trunk gets a large ferentials? amount of freight going to Portland for ship- A. We have never agreed to any change in ment, from the West, while they have a com- reference to differentials since they were estab. paratively small amount of goods going East, lished. We conceded that the differentials and very little shipped back over the line? should be less to Detroit. There was a dis
A. Yes sir; there is more east bound than cussion whether it should apply to Detroit.
By the Chairman:
Q. When were those two classes added ?
A. It is largely on account of the oal busi- March_meeting. ness.
Mr. Edmunds. In reference to the new law? By Mr. Strout:
A. Yes sir. Q. Is it not true that the Boston & Albany Mr. Strout. When you spoke of the 25 also have a large local business?
per cent being allowed you, you did not mean A. I suppose it is.
that the whole of that goes over the National Q. You got more agreements for pooling ar- Despatch Line, did you? rangements before the passage of the Interstate A. No sir; I mean everything; to all points Commerce Law?
in this district. A. Yes sir.
The Chairman, What does it go over iu Q. And when that Law came into effect this district, when it does not go over the Napou could not make any such agreements in tional Despatch Line? relation to east bound freight?
A. Some of it would go by way of Groveton A. Yes; it was illegal then.
Junction, and by the line that way, and by the Q. Before that Law was passed was not the Boston & Lowell. The rest of the traffic goes amount of business obtainable in the West to by the National Despatch Line. the sea board affected by rebates given, also? Commissioner Schoonmaker, What lines A. Yes; I have no doubt about that.
were the others that you referred to? By Commissioner Schoonmaker. Have A. By Niagara Frontier, and the New York those rebates ceased ?
Central, the Erie, West Shore, and PennsylA. I think so, entirely.
vania, and the Delaware, Lackawanna & Q. Since the passage of this Law?
Commissioner Walker. If they go to Bog.
gland Line, and their connections, the FitchA. I think I said we had 25 per cent of the burg Line, and over the Boston & Albany. New England business from Chicago. That Tb testimony closed he
and the cases thrown into a pool would represent so much of were submitted to the Commission, with arguthe whole business.
ments by Mr. Hoar, for the Boston & Albany Q. You said you had 13 or 14 per cent of the R. R. Co.; Messrs. Edmunds and Haskins, Chicago business coming East; now, what part for the State Grange; Mr. Fifield, for the of that comes to New England?
Central Vermont R. R. Co.; and Mr. Strout,
TRAL VERMONT R. R. Co.*
Q. Do you mean that of the business com. By section one of the Interstate Commerce ing into New England, as between you and Law, no carrier is subject to the Act unless: the Fitchburg, and the Boston & Albany, you first, it is engaged in Interstate Commerce; receive a quarter of the whole?
and, second, unless it is a carrier by railroad, A. Yes sir; of all the business to this district or partly by railroad and partly by water,
where they are subject to a common manageQ. How much of that goes to Portland? ment or control, or between whom there is an A. A comparatively small proportion. arrangement for a continuous carriage or shipBy Mr. Hoar:
ment. Q. Have you any steamers to connect with The case shows that the Boston & Lowell, a in ihe winter at Portland?
Massachusetts Corporation, is managed by its A. Only in the Portland season, from De- own board of Directors and by nobody else. cember to April.
So of the Concord, a New Hampshire CorporaQ. You don't go to Portland to the ocean tion. So of the Central Vermont, a Vermont steainers in the summer?
Corporation. So of the Grand Trunk, an En4. No sir; to Montreal in the summer. By Mr. Strout:
*This brief was prepared in advance of the hearing,
BOSTON & A. R. R. CO. V. Bo
This construction is favored by section 6, that prto
, which requires joint tariffs to be filed O. R
the Commission. The next clause re- good padres copies of all contracts, agreements and com mugements between carriers to be filed. If for a Le point tariffs constitute an "arrangement," to an de bat clause is tautological. The section and natemplates an "arrangement” independent and
Ljine tariffs; and when it does exist then ceive per tariffs become important in order that in th
* Commission may know whether they are by the wable or not; and, second, they shall not provi
1 nised without ten days' notice, which or fro uts that the object of the publication of II.
jiet tariffs is an advertisement to the public stitut (vhat the rates are, and nothing more. riage
I may therefore be assumed safely that the Wha par tarifis referred to in the petition do not fourt sattute an "arrangement for a continuous Itc rriage or shipment," within the meaning of woul
ha bint section of the law; and the defendant the s except in so far as they are controlled Th y se another, are not subject to the Inter- refere et Commerce Law. The Central Vermont liner u nothing to do with the roads south of carri The River Junction, Vermont, nor they contr u the Central Vermont, except to deliver ment tez another freight "for a continuous car- Noth
INTERSTATE COMMERCE REPORTS—THE COMMISSION.
Sep., oration. These roads, then, being in | said: “The general doctrine, then, as to trans States and countries, and not being portation by connecting lines, approved by a common control, are not subject this court and also by a majority of the state , unless there is between them "an courts, amounts to this: that each road confin. ent for a continuous carriage or sbip. ing itself to its common-law liability is only
bound, in the absence of a special contract, to xists, unless it is implied from the safely convey over its own route and safely to joint tariffs.
deliver to the next succeeding carrier, but that nt tariff does not make an arrange any one of the companies may agree that over a continuous carriage or shipment.' the whole route its liability shall extend. In ere advertisement to the public of the the absence of a special contract to that effect, ch will be charged from a point of such liability will not attach, and the agree. to a given point of arrival. The ment will not be inferred from doubtful exLowell can know the advertised rates pressions or loose language, but only from -ch company charges over its own clear and satisfactory evidence." -een Boston and Chicago. It can ag. And speaking of the effect of the joint tariff ese charges without the knowledge posted in the office of the company at Chicago, i of any of the other roads, and ad- as bearing on the question whether the Michihrough rate to Chicago with perfect gan Cent. R. R. Co. agreed to carry to the And the reason is this: it is the legal place of destination, the court said: very railroad to carry to the terminus "Nor was the common-law liability of the
road, and deliver its cars to the road defendant corporation enlarged by the fact accession, and for such last mentioned that a notice of the charges for through transeceive and haul the cars over its own portation was posted in defendant's station
so on, until the car arrives at its house in Chicago. Such notices are usually destination,
found in stations on lines which connect with '8 Interstate Law, 114, and cases there other lines; and they furnish important infor
mation to shippers who paturally desire to aty has become binding because of the know what the charges are for through and custom among railroads for forty freights as well as for those over a single line. respect to the intercbange of cars with It would be unfortunate if this information her. It has become the common law could not be given by a public notice in the g railroads in this regard.
station of a company without subjecting that Rep. 135; 13 Fed. Rep. 3.
company, if freight is taken by it, to responsiso a duty under Acts of Congress. bility for the manner in which it is carried on n's Interstate Law, 150; 45 lova Rep. intermediate and connecting lines to the end
of the route." elieved that the duty is enjoined by all Again the court says: tes. It certainly is by the States "Our attention bas been called to some de which these roads pass.
cisions of the State of Illinois which would Statutes of Mass. 639, $ 217; Gen- seem to hold that a railroad company which 08 of New Hampshire, 392, $ 1; Re-receives goods to carry, marked for a particu: 08 of Vermont, 651, $ 3399.
lar destination, though beyond its own line is n a railroad enters upon, intersects or prima facie bound to carry them to that place
with another railroad, the managers and deliver them there, and that an agreement of such connecting roads shall furnish to that effect is implied from the reception of hers reasonable terms of connection, the goods thus marked. Assuming that such odations, privileges and facilities in is the purport of the decisions, they are not ption, transportation and delivery of binding upon us. What constitutes a contract Ec. Sec. 3399, R. L. of V.
of carriage is not a question of local law upou ills of lading of the Boston & Lowell which the decisions of the state courts must I and its connections expressly exclude control. It is a matter of general law upon ility beyond the terminus of its own which this court will exercise its own judg:
ment." ills of lading.)
Such is the unqualified and unconditional arrangement” between the roads is judgment of the Supreme Court of the United ty for this purpose. It rests upon 8 States, which must ultimately determine the iy. Doubtless arrangements and con construction of the Interstate Commerce Law; ay be made between connecting roads. and if they have not settled the question that bint tariff does not make such an "ar- the liability of a railroad does not extend beent."
yond its own terminus unless further liability yrick v. Michigan Cent. R.R. Co. 107 U.S. is assumed by a plain, unambiguous, express
27, L. ed. $35), the case is this: The contract, and that a joint tariff does not conJ.R.R. Co. received at Chicago cattle stitute such a contract, it is difficult to see d for Philadelphia. They gave a re. how they can do it. On the other hand it
the shipper indicating the place of would seem clear that if such joint tariffs do tion. He was informed of the tbrough not constitute a contract, as beiween the shipod the joint tariffs posted in the com per and the companies, it does not constitute office in Chicago indicated them. The i contract or arrangement for a continuous f claimed this constituted a contract to carriage as between ihe companies themselves. e cattle through to the place of destina- The continuous carriage results from nd the circuit court so ruled, but the legal duty, and the joini tariff is for notice ne court reversed the decision. They or information to the public.
le" by virtue of a legal duty.
Schison, etc. R. R. Co. v. Denver, etc. R. R. man 1 10 U. 8. 667 (Bk. 28, L. ed. 291). body The decision made by Judge Deady on this Low bject in Ex porte Kehler is instructive. It But Laported in i Interstate Com. Rep. 28. The state notes are as follows:
rang The transportation of property from one ment but to another is Interstate Commerce, of th selber the carriers engaged in moving it, tarifi p de vehicles on which it is borne, cross the the f be of the State or not."
| line, This Act does not include or apply to all maki uters engaged in Interstate Commerce, but road uy such as use a railway, or a railway and The ta craft, 'under common control, manage- diffe et er arrangement for a continuous carriage lines dipment of property from one Stute to cove oibar ; nor does it apply to the carriage of
Oi reperty by rail wholly within the State, al. Con both shipped from or destined to a place & L Cart the State, so that such place is not Bost
freig The O. R. & N. Company carries certain If soda od goods on its steamers forth and back meai
a Portland and San Francisco at special by * reduced rates; the 0. &C. Railway, under The kuidagement of the petitioner, carries the
Ti kinds of goods forth and back between Veri to, ef special and reduced rates; the o.land
tubo a foreign country.
and and Ashland and way stations, in from klimay Company carries the same kinds Chic
pada forth and back between certain points joint the line of the 0. & C. road and San Fran. deng
bin its railway from Albany to Yaquina diffe 1, and then thence by steamer,
reduced one Ruand thereby competes with the O. & C., not
10. R. & N. for business between said line. Man and San Francisco. The O. R. & N. | beto A Ge receiver of the 0. & C. act independ. mak
Allough concurrently, in making these is to Med noties, but no through bill of lading or are
recept is given, nor is either interested fron N I own line of transportation. Held, alle
te Wile for the carriage of the goods be- T