PENNSYLVANIA COMPANY. PITTSBURGH, CINCINNATI AND ST. LOUIS RAILWAY COMPANY. CHICAGO, ST. LOUIS AND PITTSBURGH RAILROAD COMPANY. DEAR SIR: Your circular letter of October 20, 1887, asking for information respecting relative rates charged upon long and short haul traffic, reached my office when I was absent, on an extended trip to the West and South. Ill health and pressure of other business since my return have prevented me from answering until to-day. Our company, acting upon the interpretation of section 4 of the interstate-commerce law, as given by its author, Senator Cullom, has established through lines with many connecting carriers and fixed through rates in pursuance of such agreements. A copy of such agreements and the tariffs established under them have been promptly filed in your office. Such tariffs have also been invariably published, and the through rates thus fixed have in no instance, except as hereafter stated, to my knowledge been less than the rate that has been charged for similar traffic over the same line hauled a shorter distance; although the proportion of the through rate which this company has received under such circumstances has been less in some instances than it has received for like traffic hauled a shorter distance over the same line. The exception above stated applies solely to traffic which is interchanged between this company and certain lines south of the Ohio River, which are seriously affected by water competition, viz: Louisville and Nashville Company, Cincinnati Southern Company, and Newport News and Mississippi Valley Company. In respect to these lines we have agreed with them upon rates to and from certain terminal points; but as to freight destined to certain intermediate points on the line of one company which originates on the line of the other, there is no doubt a greater aggregate sum has been charged for the shorter distance than is charged for similar traffic for a longer distance in the same direction over the same line. But in such cases of freight destined to intermediate points a through rate is not named, and such company bills to its own terminus only and charges its own local rate; the connecting company receives the freight at its terminus and charges its local rate to destination. We were at first reluctant to enter into this arrangement, regarding it as the only point in which in any respect our conduct could be regarded as not strictly conformable to the interstate-commerce law. We finally consented to make the arrangement upon the urgent solicitation of the lines south of the Ohio River, who represented that their business would be vitally injured if such an arrangement could not be made as had subsisted between our company and theirs before the passage of the interstate-commerce law, and upon the theory that after all a violation of the law might not be involved if each company, so far as freight destined to the intermediate points referred to was concerned, billed only to its own terminal and collected its local charges thereon. Yours, respectfully, J. N. MCCULLOUGH, Pennsylvania Company, Pittsburgh, Cincinnati and St. Louis Railway Company, Mr. C. C. McCAIN, Auditor Interstate Commerce Commission, Washington, D. C. PENNSYLVANIA RAILROAD COMPANY. PHILADELPHIA, November 12, 1887. DEAR SIR: In response to the inquiry contained in your circular of October 20, 1887, I have to say that there are no points upon the railroad of this company, or upon any railroad operated by this company, under lease or otherwise, to or from which this company has made interstate rates, for passengers or freight, either alone or in combination with other roads, greater than the rates to or from more distant points in the same direction over the same line. Yours, truly, C. C. MCCAIN, Esq., Auditor Interstate Commerce Commission, FRANK THOMSON, THE PITTSBURGH AND LAKE ERIE RAILROAD COMPANY. DEAR SIR: I have your favor of October 20, to D. Hostetter, esq., and in reply to that portion of it regarding freight rates, would say that Pittsburgh and Lake Erie Railroad does not, for itself, make any rates on interstate business which are greater than rates to or from more distant points in the same direction and over the same lines, but we do make, under the direction of the Lake Shore and Michigan Southern and New York, Pittsburgh and Ohio Railways, rates from Pittsburgh, Beaver Falls, and intermediate points; also, in some cases, from McKeesport and points between Pittsburgh and McKeesport to New York City, Boston, and many interior points east of Buffalo and Salamanca, rates which are less than the rates made by direction of same companies from points on Pittsburgh and Lake Erie Railway, Homewood, Pa., to Struthers, Ohio, inclusive; the distance from the last-named stations being less than from stations, Pittsburgh to Beaver Falls inclusive, and the freight passing over same line. The authority to make all rates from stations on Pittsburgh and Lake Erie to points referred to east of Buffalo and Salamanca is given to Lake Shore and Michigan Southern and New York, Pittsburgh and Ohio Railways, by contract entered into between these companies and the Pittsburgh and Lake Erie, October 20, 1887, copy of which, I believe, is on file in your office. I also inclose copy of the tariffs made by each of these lines from the two districts on Pittsburgh and Lake Erie Railroad, copies of which are also on file with you. The tariffs from stations Homewood to Struthers inclusive, are published as Pittsburgh and Lake Erie tariffs only, and are signed by Pittsburgh and Lake Erie officers alone, but they are practically made in the same way as the Pittsburgh tariffs, namely: under directions from Lake Shore and Michigan Southern and New York, Pennsylvania and Ohio Railways, respectively. Rates named to various points on inclosed tariff, and to minor points, taking same rates, are, I believe, the only ones from stations on this line which are not made in accordance with section No. 3 of the interstate-commerce law. If there is anything in this letter which is not clear to you, or if we can furnish you with any further information, please let me hear from you and I will be glad to furnish you all the information in my power. Yours truly, C. C. MCCAIN, FRANK A. DEAN, Auditor Interstate Commerce Commission, Washington, D. C. PONTI AC, OXFORD AND PORT AUSTIN RAILROAD COMPANY. DEAR SIR: Referring to your circular letter of October 20, addressed to George W. Debevoise, president of this road. As Mr. Debevoise is in New York and takes no active part in the management of the company's affairs, I make answer. There are no points on the line of this road (which is the only one operated by this company) to and from which interstate rates for passengers or freight are greater than the rates to and from more distant points in the same direction. While we offer no encouragement to it, and publish no rates from Pontiac, Mich. (the southern terminus of our road), to sea-board or eastern points contrary to section 4 or the short haul principle of the law, yet it is possible by means of our published tariff of rates between points within the State of Michigan, added to published rates of other roads from Detroit, for shippers of the higher classes of freight in Pontiac to secure a less rate than we make and publish from an intermediate point by one of the routes we could send the traffic. Yours truly, C. C. MCCAIN, Esq., JAMES HOUSTON, General Superintendent. Auditor, Interstate Commerce Commission, Washington, D. C. QUEEN AND CRESCENT ROUTE. [Comprising Alabama Great Southern Railroad, New Orleans and Northeastern Railroad, Cincinnati, New Orleans and Texas Pacific Railway Company, Vicksburg and Meridian Railroad, Vicksburg, Shreveport and Pacific Railroad.] DEAR SIR: Your circular letter of the 20th instant, addressed to me as general manager of the Queen and Crescent route, has reached me, and I beg to make the following reply: What is known as the "Queen and Crescent route" comprises the roads named below, each of which is owned and operated by a separate and distinct corporation, having sep arate and distinct stockholders, but whose general officers are the same, and the lines are operated in unison. They are, (1) The Cincinnati Southern Railway, leased to and operated by the Cincinnati, New Drleans and Texas Pacific Railway Company, a corporation of Ohio, and extending from Cincinnati, Ohio, 336 miles, to Chattanooga, Tenn. (2) The Alabama Great Southern Railroad, owned and operated by a corporation of Alabama of that name, and extending 290 miles from Chattanooga, Tenn., to Meridian, Miss. (3) The New Orleans and Northeastern Railroad, owned and operated by a corporation of Louisiana of that name, and extending 196 miles from Meridian Miss., to New Orleans, La. (4) The Vicksburg and Meridian Railroad, owned and operated by a Mississippi corporation of that name, and extending from Meridian, Miss., 140 miles to Vicksburg, Miss. It is now in the hands of a receiver, Frank S. Bond. (5) The Vicksburg, Shreveport and Pacific Railroad, owned and operated by a corporation of that name, and running from Delta, La., on the west bank of the Mississippi River, opposite Vicksburg, 173 miles, to Shreveport, La. The connection between the two last-mentioned roads is made across the Mississippi River by transfer boats carrying cars. These boats are owned and operated by an independent company, to which a payment is made for every car transferred. 1. As to traffic between points on said route formed by said roads: The tariffs are arranged so that the charges for a less distance are in no case greater than the rates to or from more distant points in the same direction over the same line, except between cities affected by water competition, namely, between New Orleans and Cincinnati and points reached through either of them; between Vicksburg and Cincinnati and points reached through either of them; between Monroe, La., and Cincinnati and points reached through either of them; between Monroe and Shreveport, La., and Saint Louis, Mo., and points reached through either of them. The water competition consists of boats on the Ohio, Mississippi, Red, and Ouachita Rivers. 2. As to rates made in combination with other roads: Rates in combination with other roads are all made as above, except with the roads forming the Southern Railway and Steam-ship Association. The rates of the Southern Railway and Steam-ship Association are in most cases greater than the rates to or from more distant points in the same direction over the same line. As an illustration, I beg to state that the rate from Cincinnati to Atlanta, Ga., on meat in car-load lots is 36 cents per hundred pounds, while the rate from Cincinnati to Marietta, Ga. (20 miles this side of Atlanta), is 46 cents per hundred pounds, which figure is arrived at by charging the shipper the rate from Cincinnati to Atlanta, and adding thereto the local rate from Atlanta back to Marietta. The rate on bacon (fourth class) over the Louisville and Nashville Railroad, as appears from its tariff, is from Cincinnati to Blount Springs, Ala. (34 miles this side of Birmingham), 65 cents per hundred pounds, while the rate on the same article from Cincinnati to Birmingham, over the same line, is 33 cents per hundred pounds. These two examples illustrate the general method of making rates by the Southern Railway and Steam-ship Association on business to and from the territory subject to the control of that association. From the printed proceedings of the meetings of the Southern Railway and Steam-ship Association it is apparent that our roads have repeatedly made every effort to prevent the making of a greater charge for a less distance than for a greater distance over the same line and in the same direction, except on such business as is controlled by water competiton; but owing to the refusal of members of said association to join with us in arranging a tariff upon the basis of our interpretation of the fourth section of the interstate-commerce law, we have been powerless to prevent the establishment of rates now in force; and we are compelled to carry freight at the rates as fixed by the Southern Railway and Steam-ship Association between points on our roads and on the roads forming the Southern Railway and Steam-ship Association, unless we elect to submit to a very considerable loss of revenue, detrimental both to the interests of our stockholders and to the interests of the public which avails itself of our roads for the transaction of its business. Very respectfully yours, C. C. MCCAIN, Esq., Auditor Interstate Commerce Commission, Washington, D. C. JOHN C. GAULT, General Manager. RICHMOND AND DANVILLE RAILROAD COMPANY. C. C. MCCAIN, Esq., Auditor Interstate Commerce Commission: DEAR SIR: Referring to your circular of October 20, 1887, the rates from eastern cities to Atlanta, Gainesville, Athens, and Augusta, Ga.; Columbia, S. C.; Lincolnton and Goldsborough, N. C., are an exception to the general rule, and are lower than intermediate rates, as noted below: The necessity for making lower rates to Columbia than to intermediate points is based upon the fact that the rate from Eastern cities to Columbia is made by the ocean rate to Charleston plus the rate of the South Carolina Railway Company, whose rates are made by the South Carolina Railway Commission, and which rate is worked by us. The rate to Augusta is made by the ocean rate to Savannah plus the Georgia railway commission's rate to Augusta, which in turn is governed by the river competition from Savannah to Augusta. The rate to Atlanta is made by the ocean rate to Savannah plus the authorized rate of the Georgia railway commission from Savannah to Atlanta. The same is true of Athens and Gainesville, which rates are worked by us. The maximum rates between Gainesville and Atlanta are none of them higher than the Gainesville and Atlanta rate. The distance between Gainesville and Atlanta is 53 miles, the volume of business being inconsiderable as compared with the Atlanta and Gainesville tonnage. The rate to Goldsborough, N. C., is controlled by the lines working through the Chesapeake Bay by water to Portsmouth, Va., and thence by rail to Goldsborough. This line in turn is controlled by water to New Berne, and thence by the local rate of the Atlantic and North Carolina Railroad from New Berne to Goldsborough, which makes a lower rate than either our line or the line via Portsmouth. It will be observed that the rates to Gainesville, Atlanta, Athens, and Augusta are made the same from Boston and Providence as from New York and Philadelphia, while stations north of Gainesville, north of Athens, and north of Augusta, are made 5 cents per 100 pounds higher from Boston and Providence than from New York or Philadelphia This results from the fact that the lines working through Savannah and Charleston |