66

That this arrangement was continued until the twentieth day of February, 1888, when, pursuant to a resolution adopted by the Trunk Line Executive Committee, which had resolved, at a meeting held on the eleventh day of February, 1888, that 'the system now in operation of making through export tariffs be discontinued, and that thereafter the rates on export traffic be the same as the inland tariffs plus the ocean rates current from time to time,' the same was discontinued and inland rates alone filed, accompanied with a written statement that through export freights were made by adding such inland rates to the rates of connecting ocean carriers;

"That although the resolutions above referred to were passed unanimously, yet they were accompanied by the statement on the part of the Pennsylvania Railroad Company that the acquiescence of the officers of that company was only occasioned by their deference to the desire of the other companies in the Trunk Line Association; and with the further statement that the officers of that company had not altered their opinion as to the justice and legality of the through billing system, and that they believed the results from its abandonment would be injurious. Experience since the twentieth of February, 1888, has sustained the correctness of the view of your petitioner thus stated, and your petitioner apprehends that it will be its duty at an early period to make a new arrangement for carriage from points within the United States to points in a foreign country for a gross sum.

"Pending the considering of this matter your petitioner received the order made by this honorable Commission at its meeting held in the city of Washington on the eighth day of March, 1888; copy of which order is hereto attached and marked 'Exhibit A.' This order, if within the meaning of the law and enforced by this honorable Commission primarily and ultimately by the courts, would prevent the doing of that which, as your petitioner is advised, under said Act parties to such common arrangements for a continuous carriage are permitted to do, namely, filing the joint tariff of rates established for such route by such carriers, subject only to the

0 February 10th, 1888. saiz Fant Jmmittee adopted the following:

-red, That, taking effect Koning, Formary 20th,

1888, the system now in operation of making through export tariffs be discontinued; and that thereafter the rates on export traffic be the sum of the inland tariffs plus the ocean rates current from time to time, except that the inland rate to Boston on export traffic may be the same as to New York; it being understood that on grain shipments the elevator charges at point of export shall be also added.

66

Resolved, That the inland rates be filed with the Interstate Commerce Commission, with a written statement that the through export rates are made by adding such inland rates and elevator charges to the rates of connecting ocean carriers.

Resolved, That from this date to February 20th, the published tariff rates to foreign ports will be used in giving rates to foreign ports named therein, but nothing to be contracted that can not be forwarded by the 20th. For foreign points not named in the export tariff, full domestic rates are to be used as the proportion of the through rates, except that New York rates may be made to Boston on export traffic.

Resolved, That export traffic contracted, way-billed and actually forwarded from points west of Chicago, St. Louis, &c., prior to February 20th, will be passed at the present export tariff rates or the authorized export basis, to and including February 25th, at Chicago, St. Louis, &c., and thereafter the way-bills shall be corrected."

Between November 4th, 1887, and February 20th, 1888, the inland proportion of the rate for the transportation of merchandise through to foreign ports was frequently less than the rate for the transportation of the same kind of merchandise from the same point of shipment for delivery to the consignee at the seaboard; and the share of such through rate to the foreign port of each defendant line was in like manner less in one case than in the other.

The cost of transportation of freight from Chicago to New York and of delivery by lighter in New York harbor, is no greater on freight for New York consignees than on freight delivered to steamships for immediate export.

requirements of publicity in such manner as might be deemed practicable by this honorable Commission.

"Your petitioner most respectfully submits, that by the sixth section of said Act the power of the Commission is limited to requiring that the tariffs for joint through rates shall be filed, and to the direction as to the manner and measure of publicity.

"That nowhere in said Act can warrant be found for requiring any one of said joint carriers to show in their tariff or to make public, either the manner in which the through rates to the points of ultimate destination is to be determined when only the inland rate is definitely fixed, or, when a gross sum for the transportation is given from a point within the United States to a port or place in a foreign country, show what part of the whole is allowed to the inland carrier.

"Your petitioner further represents, that if the power of this honorable Commission to make said order is vested in your Commission, the making thereof, under the circumstances, does not tend to subserve the purposes contemplated by said Act to regulate commerce, but on the contrary works to the prejudice both of the shipper and the carriers, as this petitioner believes could be established to the satisfaction of this honorable Commission were opportunity afforded.

"This petitioner, therefore, most respectfully prays that it may be accorded a hearing, and that an order may be made modifying said order of the 8th of March, 1888."

On June 13th, 1888, the case was brought to a hearing upon the complaint and answers, and upon the petition, and the testimony taken.

The following facts appeared in evidence:

The New York Produce Exchange is a corporation duly created and existing under the laws of the State of New York, and located in the city of New York, composed largely of merchants engaged in foreign and domestic commerce.

Since April 4th, 1887, the respondent companies named in the petition have been railroad corporations, as therein alleged, engaged in the transportation of property shipped from Chicago, and other western points, to New York city

and other Atlantic seaports, wholly by rail, a large proportion of the property so carried being trans-shipped to European ports by water. A part of such transportation was under contracts for a through rate to the foreign destination, and was carried under some arrangement for continuous carriage between the points of origin and the European port to which it was destined. Each of said respondent roads constituted a part or portion of some through and continuous line of transportation under established joint tariffs; and the respondents are, as to such transportation to New York city and other Atlantic seaports, within the provisions of the Act to regulate commerce.

The Trunk Line Association, the Central Traffic Association, the Joint Committee (respectively so-called), and such fast freight lines as are operated over any of the respondents' roads are, to a qualified and limited extent, agents of the respondents or certain of them, and connecting lines with which repondents have established joint tariffs.

The Trunk Line Association, the Central Traffic Association and the Joint Committee, aforesaid, make rates, classifications, rules and regulations which are accepted by the railroads mentioned in the petition, and the fast freight lines operated over certain of them, which rates, classifications, rules and regulations are those which regulate, govern and control such through and continuous transportation between the points aforesaid as to classification and joint rates.

Since April 4th, 1887, the joint rates and classifications, via all rail, established, published, filed and maintained, have been as follows: