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om Boston or any place between and White River Junction, on busiinto the State of Vermont, that the have arranged and agreed upon a which that business shall be done ices which shall be paid for it; an at and understanding was arrived summated between the agent of the of the Central Vermont Railroad on the one hand, and the agent of ation of the Boston & Lowell Railany, on the other, and perhaps some r roads in the route, but mainly be two I have named. That arrangemade in advance as to what rates charged for that joint business, and on that was to be made from the of those rates, as shown by the diput in evidence. If this is not a gement (which is more than the Law f it is not an "arrangement," to use nguage of the Law, for the carriage From one State into another over a ne, then there is no language that en out of our English tongue that plish it. And I leave that. That is to say about that.

ming the concerns that compose it), | bans, etc.; and the reason it did not combine was that it had no interest in that matter. If you take the proposition. in the reverse, the Boston & Lowell would have no interest whatever and could have nothing to do and would have nothing to do with the question of rates. on freight from Toronto or Detroit to Montpelier, although that would have come from a foreign country to the United States. The only way, on that theory of the Law, that you could have the fourth section operate at all would be between two roads in adjoining States who made an interchange, each agreeing that it would charge as a common carrier, so much into the other State, and would collect the carriage money and pay it over. This would bring them within the operation of the Law, I think you will be satisfied, as I certainly am. Take the Boston & Lowell, where Mr. Mellen swears they got once and a half or twice as much for carrying a car load of chairs from Boston to White River Junction, for use there, as they would if the chairs were going to Montreal or beyond. They are hauling the same goods over the same line in the same direction, and the same distance in one case, for less than half what they get in the other. Putting such a construction upon the business as is urged here, there is not a single road in the world, not even between two States, that would be under the provision of section 4, and could not be. But this is the position they take. It is the philosophy and dialectics of sophistry that people who feel the hand of the law and are conscious of doing injustice, resort to-as is fair for counsel if they can persuade any body to believe it-to escape from a plain responsibility.

he National Despatch Line.

n.

The same is true in the reverse order. The Central Vermont will not be liable under that claim, because they have nothing to do with what the Lowell Road gets the moment you cross into New Hampshire, and the Lowell nothing to do with what the Central gets the moment the line of Vermont is crossed the other way. Neither is responsible. It is only necessary to state such a proposition to see the fallacy of it, and make an end of it. Congress has not any power over interstate commerce, if that proposition be correct.

s to this National Despatch Line. st the same only it is done in a difWe have learned from the evihis case what this National Despatch As some of the witnesses stated, it is ne, or a trademark. But the public r known what it really is. A well an in this town, who is a large shipo me that he had sent millions of dolight out of this town by the National Line, supposing it to be a regularly corporation, having a body and cap fficers, and somebody to look to if any loss or damage to be made good. uch amused to find that the National Line was in reality a good deal betronger than he supposed it was in ct, for it had turned out to be comhe Boston & Lowell Railroad Comh all its goods, assets and effects; the ermont, with all its goods, assets and e Grand Trunk Railway and all its s, and a good deal better. But we his National Despatch Line is simply which these three operating railroads arough business together; by which ey freight from Boston to the West, ontreal and East, from those places to d eastern points. That brings these in the Act, I assume. The question, mply whether, in order to bring any em or all of them within the fourth f this Act, it is necessary that they with entire frankness: I get twice as much for combine in the charging of a greater doing that thing to White River Junction as I shorter distance than for the longer do if it is going to Montpelier. But if it is it is necessary that they should all going to be a purely local, intrastate traffic, then it is clear to my mind, as my then I do not charge any more for carrying riend Strout says, that the Grand thing to Manchester than to White River Juncailway Company has not had any- tion; but if it is going to be interstate traffic, lo in respect of the charges that are then I fly directly in the face of the Law. Alle between Boston and West Lebanon, though it does not appear on my tables, yet River Junction, or between Boston as a matter of fact I make an arrangement by te River Junction, Montpelier, St. Al- which I get twice as much for my short dis

But, if there being any arrangement to do that thing brings them within the jurisdiction and power of Congress, then the doing of it must be within its remedial power of prohibition. And they do it. I will call your attention to the case where the Boston & Lowell, within its own State and its own corporate boundary, makes the rates you have heard in the evidence. It does not charge any more for carrying goods to Manchester than it does to carry them to White River Junction, if it is going to stop there. Mr. Mellen tells you

ce as I do for the longer distance of which | the 1form a component and "arranging" part. profi price lated

than

Breusing Circumstances and Conditions. Now, then, we come to the only question in perfo is case, that is under section 4, as to whether circu tis made out that the circumstances and con- who ins are such that you are bound to find, er, fo rought to find fairly and justly, that these bush panies ought to be relieved from this duty. mort Ivill say something later upon the question road der the other part of the statute. The first by I they urge as an excusing circumstance doub the length of their line. I respectfully sub- ulent that the length of line over the same line sume which the freight goes any short distance must long distance is no different as to these Wha ads than it can be on any other line in the above try. So that length of line only enters as becau element in the matter of competition at or u distant point of the system, and in no deny er respect whatever. Then you come to the difficulty of weather State climate. Is that an element that makes a be de il circumstance and condition over the the p line? If I live in the tropics, where any is no snow at all, is it to be said that be- petiti it is hotter at one place on the line than ques at another point on the same line, there is valu son for making a difference in the rates stand se respective points? Of course not. If are t e in the Arctics, as we do here in the win-men does it cost a railroad any more to haul a dert distance through the snow and get its cons Bi out of the snow banks than it does to haul ly, 1nger distance over the mountains in the tions Ter! It must costs less, under the cir- altho stances, for the shorter distance. The the v therefore, that the snow or the grades into bas anything to do with this question of objec ging more for a short distance than for of th inger one over the same line, is preposter-trem with all respect to the honored gentlemen not i the other side.

(

Two Sides to the Question.

spec the There are two sides to the subject of money who relat king and profits, it might be added. These eithe ads appeal to you to allow them to make railr hr profit, as much as they fairly and reason- frier That is proper enough. But they the same duty to their customers, and you supp Bi the same duty to their customers. The cons Pater is no colder for the railroads in Ver- then than it is for the farmer. It is no colder here Termont in the winter for the railroad, than lines for the manufacturer, or the passenger, or fic; body else. They are all under precisely the eme conditions on the same line, as of to th they must be. Therefore, all those con- East terations fail, entering for what they are say merely into the consideration of compon at a distant point. Jow, then, I submit with great respect, and line, pliar ink it will turn out to be so in the next ten form an il not upon any supposed construction of para Law that you may make, or upon any too sam ded a construction of it, but as a fact in Cent Social economics of this country, resting agai justice which gives to every man his due I am a fair play to all, that every service that a I m od or any body else does for another un- the public regulations, and of which he is not stro

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tance as I do for the longer distance of which
I form a component and “arranging" part.
Excusing Circumstances and Conditions.
Now, then, we come to the only question in
this case, that is under section 4, as to whether
it is made out that the circumstances and con-
ditions are such that you are bound to find,
or ought to find fairly and justly, that these
companies ought to be relieved from this duty.
I will say something later upon the question
under the other part of the statute. The first
reason they urge as an excusing circumstance
is the length of their line. I respectfully sub-
mit that the length of line over the same line
over which the freight goes any short distance
and long distance is no different as to these
roads than it can be on any other line in the
country. So that length of line only enters as
one element in the matter of competition at
some distant point of the system, and in no
other respect whatever.

the master (as every man has a right to receive
profit from his labor which he can sell at any
price he chooses to take, or not), will be regu-
lated according to the value of the services
performed and not according to the particular
circumstances of the person or the corporation
who has to perform it. What right has a mill-
er, for illustration, to charge me ten cents a
bushel for grinding wheat because there is a
mortgage on his mill? What right has a rail-
road company, like one out in Ohio, managed
by Ives, to put its rates up double because
double the amount of its stock has been fraud-
ulently issued, into innocent hands, I will as-
sume; and, therefore, to pay a profit the rates
must be raised, and the public made to pay it?
What right has a railroad to put up its rates
above a fair value for the service performed,
because the management has been extravagant
or unfortunate, and got itself into debt? I
deny the proposition. And I say that in less
than ten years, unless the people of the United
States have lost their reason, this matter will
be dealt with by Congress, as far as they have
the power, and you will not be troubled with
any question about considerations as to com-
petition. You will only be troubled with the
question of what is reasonable according to the
value of the service performed, because that
stands, and can only stand upon principles that
are beyond the reach of any contrivances that
men may make.

Then you come to the difficulty of weather
and climate. Is that an element that makes a
special circumstance and condition over the
same line? If I live in the tropics, where
there is no snow at all, is it to be said that be-
cause it is hotter at one place on the line than
it is at another point on the same line, there is
a reason for making a difference in the rates
to those respective points? Of course not. If
I live in the Arctics, as we do here in the win-
ter, does it cost a railroad any more to haul a But we will take it as it is. I say on the
short distance through the snow and get its construction of this Law itself, fairly and just-
cars out of the snow banks than it does to haul ly, on the special circumstances and condi-
it a longer distance over the mountains in the tions, that the fact that there is competition,
winter? It must costs less, under the cir- although it is the strongest that there is, is yet
cumstances, for the shorter distance. The the very smallest of elements that should enter
idea, therefore, that the snow or the grades into the considertion of this question. The
claim has anything to do with this question of object and purpose of Congress in making use
charging more for a short distance than for of that phrase was to guard against some ex-
a longer one over the same line, is preposter-treme and possible circumstances that could
ous, with all respect to the honored gentlemen
on the other side.

Two Sides to the Question.

not be foreseen. It was intended that those special circumstances and conditions related to the work and the service to be done, and the relations of the parties between whom and by There are two sides to the subject of money whom it was to be done, and not the relations making and profits, it might be added. These either of the shippers to the business, or the railroads appeal to you to allow them to make railroad to its competitors, its enemies or its a fair profit, as much as they fairly and reason- friends. ably can. That is proper enough. But they But we will suppose it is not so. We will owe the same duty to their customers, and you suppose that competition is an element to be owe the same duty to their customers. The considered. Where would you find yourselves, weather is no colder for the railroads in Ver- then, upon any such competition as exists mont than it is for the farmer. It is no colder here? Here is this line, and here are the other in Vermont in the winter for the railroad, than lines in New England competing for this trafit is for the manufacturer, or the passenger, or fic; the lines from Boston to the West crossing anybody else. They are all under precisely the State of New York, or from Baltimore to the same conditions on the same line, as of to the West, from Savannah to the West and course they must be. Therefore, all those con- East and North and South. Every road can siderations fail, entering for what they are say the same thing and be excused from comworth merely into the consideration of compliance with the requirements of the Law. As petition at a distant point. an illustration of my idea, take the Passumpsic line, if that be an independent one. It will form a good basis for example because it is a parallel line to the Central Vermont in this same north country, and a competitor with the Central Vermont. If a charge were brought against the Passumpsic, that road would say: I am in competition. You must not touch me. I must charge more for the shorter than for the longer distance, because there is such a strong competition to contend against. The

Now, then, I submit with great respect, and I think it will turn out to be so in the next ten years, not upon any supposed construction of this Law that you may make, or upon any too extended a construction of it, but as a fact in the social economics of this country, resting upon justice which gives to every man his due and fair play to all, that every service that a railroad or any body else does for another under public regulations, and of which he is not

INTERSTATE COMMERCE REPORTS-THE COMMISSION.

, it is to be presumed, are not unwilling the "survival of the fittest." Weak re to be swallowed up, competition ded, and the very purpose of the Interstate merce Law defeated. The rates thus fixed e trunk lines must be met, or the Cenermont must go out of the business; and eting them another obstacle is in the way. Boston and Albany Line is about 140 shorter to Chicago than the Central VerLine. (See Porteous' Milage Computa

SEP,

ville & Nashville Case covers every point. But
since the announcement of that decision, Judge
Deady has gone a step further, and held that
competition in all cases, whether by foreign or
domestic corporations, or by water lines, con-
stitutes a dissimilar circumstance.

Ex parte Koehler, 1 Interstate Com. Rep.

317.

the same rates from Boston to competing s in the West, traffic would naturally go e shorter and quicker line. To meet the ulty and overcome the inequality thus ng between the lines, it was, as early as conceded by the trunk lines that this line t charge less than the trunk lines to comg points in the West. This line was ed to do this in order to secure business, t was conceded by the trunk lines as a er of justice. On the other hand, while line was the longest and slowest, it could, rtheless, make the lower rate because its reached the great Lakes at Ogdensburgh shorter rail line (118 miles) than the BosAlbany reached the great Lakes at Bufand also because defendant's cars go West ty. unless they take freight at such rates ey can get. They maintain rates for east nd freight. (See maps and Porteous' MilComputation.)

The lines out of Boston that compete for west bound traffic to points in the West are very numerous, and are enumerated in the answers and shown on the maps.

Montreal is a competing point. The Grand Trunk, via Portland, is one line competing there; the water line, via New York and Lake Champlain, is another; the Delaware & Hudson Canal Company is another; the Canadian Pacific is another.

the foregoing applies to the Ogdensburgh ake Champlain Road as well as the Central mont. See auditor's statement as to earn from through and local business. The decision in the Louisvillle & NashCase (1 Interstate Com. Rep. 278), comely covers this case. That case announces rule that when the competition is by for railroads or lines, competition is of itself issimilar circumstance. Also water lines. e principal competitorsfor Boston west nd traffic are the Grand Trunk, via Port, and the Canadian Pacific, via the Southern, also a Canadian corporation, and a er line by ocean carriage from Boston to lifax, and thence by the Inter-Colonial to ntreal, and by the other water lines referred In the maps, answers and testimony. Especially is this true by the all water line, New York City, the Hudson River, the e Canal and the Great Lakes to Cleveland, rt Huron, Detroit, Milwaukee, and Chicago. w England agents sell their goods delivered New York, at New England prices. The riage by water from Boston to New York trifling. The rates from New York to eveland and Detroit are

A vast amount of traffic that, before the passage of the Interstate Commerce Law, used to come over the Grand Trunk and Central Vermont, and was exported at Boston, now stops at Montreal, and is exported that way.

IV. a. It is true that the Boston & Albany Company, and everybody else, has a standing before this Commission to complain. But it is observable that this complaint does not come from a shipper who complains of the rates at Ogdensburgh and St. Albans respectively. It comes from a competitor at points on the great Lakes, and that is the real grievance. The Boston & Albany care nothing about the rates at Ogdensburgh and St. Albans. Theirs is not a missionary duty. But the trouble is, they want to get rid of their principal competitor for west bound traffic to competing points in

the West.

But it has been generally supposed that the object of the Interstate Commerce Law was to encourage competition and to break down monopolies instead of creating them; and so the Commission announced in the Louisville & Nashville Case.

How often has it been held that he who seeks equity must come into court with clean hands. Motives are material. Thus when a stockholder of a private corporation buys the stock of a rival corporation for the purpose of bring. ing a suit to destroy the rivalry, he will not be heard in a court of equity, when the question is one of discretion.

1 Redfield on Railways, 76.
The author says:

"But when the fact is established that un-
der pretense of serving the interests of one
company, the shareholders of a rival company,
by purchasing shares for the purpose of lit
gation, can make this court the instrument for
defeating or injuring the company into which
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 in
me than by the Central Vermont Line of terfere. In questions of the law of contracts,
eamers, via Ogdensburgh; so that in the ag when there is a discretionary jurisdiction in
egate the rate is 8 to 10 cents per hundred this court, circumstances affecting the con-
ounds less than on any other line. A vast dition of the contracting parties and the origin
mount of New England business that used to of their rights in relation to the subject matter
O via Ogdensburgh now goes by this route, of the contract deserve great consideration."
nce the passage of the Interstate Commerce b. The second, third, and fourth sections of
the Interstate Commerce Law are merely de-

AW.

It is unnecessary to go further. The Louis-claratory of the common law. Unjust die

BOSTON & A. R. R. Co. v. BOSTO

ination was illegal at common law. So of cour
due preference; and to charge more for tions w
arter than a longer distance, for the same
a. Le
ant and class of freight, under the same Ogdens
mstances, was also illegal.
Allison, etc. R. R. Co. v. Denver, etc. R. R.
110 U. S. 683 (Bk. 28, L. ed. 297).

(which

The guiding rule at common law was, What
sonable? And that is the rule, and the
guiding rule, under this statute, where Point
case involves a question of law and Ogdens
sad where every case depends on its own St. Alba
petitioners never have been able to Waterb
Burling
down the defendant's line as a competitor Montpel
rough business. Is it reasonable that the Rutland
mentality of the Interstate Commerce Ludlow
hould be used to accomplish that pur-White 1
when the object of the Law was to pro-
competition?

The petition is based on the fourth sec-
No questions arise under any other sec-
Petitions must notify parties of what
have got to meet, otherwise interminable
on arises on trial.

Points

Newpor

Barton,
Petition of the Vermont State Grange. Lyndon
Ryegate
Bradfor
Norwic

A.

The Rates to Boston, etc.

The rates between Boston and Ogdens
and St. Albans, respectively, and other
4 points are reasonable, and for a
ariety of reasons besides those enumer
above. The rates charged compare most Swanto
Point
bly with those of other north and south
The character of the country through Island,
these roads run, the cost of construc- by the C
b. As
the cost of operation and the amount of of other
support will, of course, be remembered.
per comparison can be made between
Roads and roads running through
chusetts, between Boston and New York,
there are numerous rival roads and
the roads pass through large manufact-
districts, and are operated at a compar- Waterb
Point
mall expense. The only fair test is to
Burling
her roads, situated like the Central Ver-
nd Ogdensburgh Roads, and compare
erstate rates. The Passumpsic Road
this character. The St. Johnsbury &
Champlain Road is another.
entes made by the Central Vermont
to Boston are less than the rates of either
se roads for the same distances. The
de by the Central Vermont Road to
ce, Rhode Island, are also less than Lisbon,
other Vermont lines. The rates Wentw
by the Connecticut River Railroad and Plymou
New York, New Haven & Hartford Rail- Meredit
fer Vermont business are higher, dis- Laconia
coidered, than the rates made by the Tilton,
Vermont Road from St. Albans and
Vermont points to Boston, which latter noticed
subject of complaint. The tables sub- tral Ve
by Mr. Chittenden will show this. The of freig
c. As
that begin and end in Vermont are, classes.

Point
Littleto

Montpe
Rutland
Ludlow

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sideratio Sections merely

crimination was illegal at common law. So
was undue preference; and to charge more for
a shorter than a longer distance, for the same
amount and class of freight, under the same
circumstances, was also illegal.

Atchison, etc. R. R. Co. v. Denver, etc. R. R.
Co, 110 U. S. 683 (Bk. 28, L. ed. 297).

c. The petition is based on the fourth section. No questions arise under any other section. Petitions must notify parties of what they have got to meet, otherwise interminable confusion arises on trial.

of course, of no consequence. A few illustra
tions will be given for argument:

a. Let us take a few of the rates between
Ogdensburgh and Vermont points to Boston
(which are the ones complained of).

The guiding rule at common law was, What
is reasonable? And that is the rule, and the
only guiding rule, under this statute, where
every case involves a question of law and
fact, and where every case depends on its own
merits.

Points.
Ogdensburgh
St. Albans,
Burlington, -

Rutland,

The petitioners never have been able to Waterbury,
break down the defendant's line as a competitor Montpelier,
for through business. Is it reasonable that the
instrumentality of the Interstate Commerce Ludlow,
Law should be used to accomplish that pur-White River Junction,
pose, when the object of the Law was to pro-
mote competition?

CENTRAL VERMONT RAILROAD.
Rates per
Miles to 100 lbs.
Boston. 1st class.

408

264

Points.
Newport,
Barton,

As to the Petition of the Vermont State Grange. Lyndonville,
Ryegate,
Bradford,
Norwich,

A.

The Rates to Boston, etc.

V. The rates between Boston and Ogdensburgh and St. Albans, respectively, and other Vermont points are reasonable, and for a great variety of reasons besides those enumerated above. The rates charged compare most favorably with those of other north and south lines. The character of the country through which these roads run, the cost of construction, the cost of operation and the amount of local support will, of course, be remembered. No proper comparison can be made between Vermont Roads and roads running through Massachusetts, between Boston and New York, where there are numerous rival roads and where the roads pass through large manufacturing districts, and are operated at a compar atively small expense. The only fair test is to take other roads, situated like the Central Vermont and Ogdensburgh Roads, and compare their interstate rates. The Passumpsic Road is of this character. The St. Johnsbury & Lake Champlain Road is another.

Points.
Burlington,
Waterbury,
Montpelier,
Rutland,
Ludlow,

PASSUMPSIC ROAD.

250
235

214

189
173
149

ST. J. & L. C. ROAD.

Points.

Littleton, N. H.
Lisbon, N. H.
Wentworth, N. H.
Plymouth, N. H.
Meredith, N. H.
Laconia, N. H.
Tilton, N. H.

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Miles to
Boston.

248

218

207

167

142

144

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Rates per
100 lbs.

Points.
Swanton,

1st class.
55

Island, it will be noticed that the rates given
b. As to the rates to Providence, Rhode
by the Central Vermont are also less than those
of other Vermont Roads to the same point.
CENTRAL VERMONT ROAD.

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270

240

229

195 169

Distances
to Provi-
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30 36

Distances Rates 100
lbs. 1st

to Provi-
dence.

233

222

186

170

157

146

137

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The rates made by the Central Vermont
Road to Boston are less than the rates of either
of these roads for the same distances. The
rates made by the Central Vermont Road to
Providence, Rhode Island, are also less than
those of other Vermont lines.
The rates
made by the Connecticut River Railroad and
the New York, New Haven & Hartford Rail-
road for Vermont business are higher, dis-
tances considered, than the rates made by the
Central Vermont Road from St. Albans and
other Vermont points to Boston, which latter
are 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.

c. As to the rates to New York, it will be
noticed that the difference in favor of the Cen-

class.

58

58

58

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Rates 100
lbs. 1st
class.

58

58

53

40

40

36

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on.

ans,

rt,

gton, Sury,

elier,

nville, nsbury,

ze,

rd,

ch,

on,

d,

Lion.

asburgh,

pelier,

66

"

e River Junc., Northampton,

44

44 **

**

ford, Vt.,

ron,

th Royalton, atpelier,

The Delaware and Hudson Canal Com"s Road is an instance of a New York oad running through a country similar to A reference to the table of that comPs rates, given in Mr. Chittenden's state,shows that the Interstate rates to Boston, by the Central Vermont Road on the side of Lake Champlain, compare very rably with those of the Delaware & HudCanal Company's for corresponding points he west side of the lake; and in many inces the rates of the Central Vermont for esponding distances are considerably less. instance the Delaware & Hudson Canal pany's rate from Westport to Boston, a nce of 298 miles, is sixty cents, while the ral Vermont's rate from Alburgh to the e point, a distance of 284 miles, is only -five cents.

ex Junction,

Con,
Albans,

se's Point, N. Y., densburgh, N. Y.,]

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last two rates above are about 40 per | in Connecticut and New York on the line of ess, for about the same distances, than the New York, New Haven & Hartford Road, es from Bradford and Norwich on the shows that these rates are considerably higher, distances considered, than the rates from Og. mpsic Road. An examination of the rates existing be- densburgh, St. Albans, and other Vermont Vermont points and points in Massa- points to Boston, as is shown by the following tts on the line of the Connecticut River examples taken from Mr. Chittenden's stateand between Vermont points and points ment: Destination. Northampton, Conn. R. Hartford,

Road.

N. Y., N. H. & H.
Boston,
C. V. R. R.
Northampton, Conn. R.
Hartford,
Boston,
Northampton, Conn. R.
Springfield,
Boston,

N. Y., N. H. & H.
C. V. R. R.

Conn. R.

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Again, & comparison of the rates of the shows the Vermont Road from Vermont points Railroad Jew York, with the interstate rates of the correspon go & Alton Railroad, the Chicago, following kee & St. Paul Railroad, and the plained 1 ngo, Burlington & Quincy Railroad, statement

Rates Rates C. & A.R.R. Rates 1st class. 1st class. 1 C. V. R. R. Miles. Rate. Mi 30 234

234

64

22

248

30

248

65

23

273

30

273

70

27

279

70

28

279 34
290
306 54

45 290 70

306 340

340 55 380 60 380 Point, 404 60 404 78 (See Mr. Chittenden's Statement.)

751

29

30

34

The sta State Ta 1884 and

37 40

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