tively, in cents: 12, 10, 9, 7, 6, 5; for fifty miles, 18, 14, 12, 8, 7, 6; for ninety miles, 24, 19, 16, 12, 10, 9. On the Lake Shore railroad, for thirty miles: 81, 8, 8, 7, 6, 41⁄2 ; for fifty miles, 12, 11, 10, 8, 7, 6; for one hundred miles, 21, 19, 15, 12, 10, 8

With regard to empty cars, there is no doubt that a considerably greater proportion of empty (box) freight cars goes west than east over the Trunk Lines, and that a much greater number of only partially loaded cars goes west than east; although the evidence shows that at times large numbers of empty cars have been brought from different points on the Trunk Lines to New York to carry west-bound traffic. The east-bound tonnage is much larger in volume than the westbound, though the latter is mostly of higher classifications. In 1887 the east-bound Trunk Line tonnage was, in round numbers, 11,000,000 tons, and the west-bound 2,000,000 tons. For a period of four months in 1887 the number of box cars forwarded west from Buffalo on the Lake Shore road, loaded and empty, was in the proportion of one empty to about 46 loaded.

The argument in behalf of the complainants is, in substance, as follows: That the difference between car-load and less than car-load quantities is prima facie unjust discrimination againt the latter, to be justified by the respondents both as to rates and classification. That a lower rate for a car-load than for less than a car-load upon the same article, transported over the same line, in the same direction, and for the same distance, violates the provision of the first section of the Act that all transportation charges shall be reasonable and just. That the differences in rates also violate the third section forbidding unreasonable preference and advantage. That they are also in violation of the fourth section of the Act. That the discrimination complained of cannot be justified upon the ground that the higher charge is upon way or local traffic; or that local business is more expensive to the carrier; or that the lower charge inures to the benefit of certain classes or communities; or that the present rates and classification merely continue the former order of business in reference to through and local traffic; or that the shipper

who gets the lower rates loads and unloads the freight; or that the matter is adjusted upon what is known as the principle of wholesale and retail. That if any discrimination is permissible in rates between car-loads and less than car-loads on the freight in question, there is no justification for the wide discrimination in the present tariffs and classifications as between one consignor to one consignee and many consignors to many consignees, or, particularly, one consignor to many consignees. That the contention of the respondents for large differences in freight rates for quantity, deduced from alleged difference in cost of service, is one not regarded in the actual practice of the railroads, and therefore should not be accepted in argument when the tariffs are challenged. That the extreme limit of difference in freight rates for differing quantities is the net commercial profit. That a reduction if discriminating differences for quantities to the basis of net commercial profit would work no injustice to the jobbing interests of the interior cities.

The complainants therefore ask the Commission to order that car-load rates upon all articles of commerce complained of in these proceedings be discontinued by the respondents, or made so close to each other that they do not prevent shipments of the commercial package. That all rates upon any quantity of any of these articles be by the hundredweight. That the respondents cease and desist from any species of discrimination whatsoever for quantities shipped of any of these articles so long as the same is contained in the commercial package; and from any discrimination whatever by car-load rates which depends upon the number of consignors or consignees. And that such rates and such classification in respect thereto be adopted as will in no degree oppress or discriminate against the smaller jobber in the smaller localities.

The complainants' argument in effect is that a lower rate for car-loads than for less than car-loads upon traffic for which, in existing conditions of commerce, a large demand exists in less than car-load quantities is unreasonable and unjust because it subjects small dealers dispersed throughout the country who may wish to purchase from seaboard or

distant jobbers to a disadvantage in choice of markets, and compels them to purchase from near jobbers, and that to enable seaboard jobbers to continue their business and compete with interior jobbers what is called the commercial package, and not a car-load, should be the unit of classification and rate.

On the part of the respondents it is claimed that cost of service is an important and acknowledged element in rate making, and the argument to sustain the present classification is based almost entirely upon the difference in cost of service shown by the evidence between car-loads usually hauled long distances to one consignee, and smaller quantities from different consignors to different consignees to be delivered at many stations.

Mr. Dey, one of the Railroad Commissioners of the State. of Iowa, who appeared generally in behalf of the States west of the Mississippi river, made an elaborate argument against the contention of the complainants. Among other considerations he presented the following:

"The car-load rate in States west of the Mississippi has, ever since the advent of the railway, been the unit of measurement in all classes of goods and all manufactured articles, as well as in the products of the soil; in fact, in everything that is or can be dealt in largely enough to require the full capacity of a car. The law was not intended to interfere with the classifications of freight, or the reasonable difference between car-load and less than car-load rates; provided the same classification applies alike to all shippers, and that all shippers are on equal terms entitled to car-load rates in everything they desire to ship. The Western Classification, that took effect December 19, 1887, and was adopted by sixty-four different railway companies, representing 77,000 miles of railroad, contains 660 articles in the car-load classification in which the rates per hundred pounds are less than in small lots. This classification is but a continuation of that in use when railways were new, representing the growth of business, and varied from time to time as experience dictated; but the car-load has always been recognized as entitled to a lower rate than the less than car-load.

"The reasons for the car-load rate are: First, the cost of service is less; second, the risk to the carrier is less; third, the time the cars are in use is less; fourth, the unloading is usually done by the consignee.

"The reduction in the differences between car-loads and less than car-loads on the part of the lines west of Chicago, was not made on any principle announced by the railroad managers of these lines, but was in the nature of a compromise between the Chicago jobbers and the interior jobbers west of the Mississippi river, and all subsequent changes made in the Western Classification have been in the direction of restoring it to its old status. Neither Chicago nor New York is the initial or starting point of all freight shipments. The car-load rate is essentially a manufacturers' rate, and originated from the necessities of manufacturers. The articles showing the smallest percentage of difference between car-load and less than car-load rates compose ninety to ninety-five per cent. of the whole tonnage, while all the other articles combined compose the other five to ten per cent.

"Under the old system of making rates, the rates from manufacturing points to a few of the large distributing centres of the country were ridiculously low as compared with the rates to the smaller distributive centres, and the real ground of the complaining parties is that they are no longer able, as jobbers, to distribute traffic over territory which they were able to do under the old system of rates.

"Such articles as plows, wagons, general agricultural implements, starch, paper, axle grease, vinegar, soap, western packed canned goods, tubs, pails and washboards, corn, syrups and pickles, are manufactured not only at Chicago and New York, but at a number of points in the West widely scattered; and what right has the jobber of the former cities. to complain if, by reason of the nearness of the manufacturers, the jobbers of the latter cities are enabled to obtain these manufactured goods at as cheap or cheaper freight than they? The articles of wooden ware, under which is comprised tubs, pails and washboards, plows and wagons, on which the largest percentage of difference between car-load and less than car-load rates exist, are first class in less than

car-loads, and fourth class and class A in car-loads. These articles can only be loaded into cars in anything like car weights by experts in loading and packing, at considerable pains and in extra-size cars. Fifteen to twenty thousand pounds may thus be loaded in a car. Of the same class of goods in the ordinary course of delivery, in broken and assorted lots at the freight station, not more than one-third of the above amount of weight can be loaded in a car by the ordinary warehouseman.

"In respect to the following items from the seaboard: Sugar, sugar syrups, raisins, rice, coffee, Baltimore packed canned goods, and salt fish, all of which, except raisins, show the smallest percentage of difference between car-load and less than car-load rates, the ground is taken that the difference in rates between car-loads and less than car-loads is not unjust or excessive. As an illustration, ten cars of miscellaneous freight billed from Chicago to Ottumwa, in September, 1885, contained on an average 7,920 pounds per car. Ten straight car-loads of groceries taken from the same month contained on an average 24,237 pounds per car.

"There is nothing in the claim that the small shipper or retailer is oppressed in the discrimination of rates. If the retailer is charged the full difference between less than carload and car-load rates by the local jobber, then the New York jobber is not shut out of competition. If the difference in freight is allowed to the small buyer or retailer, he can not complain that he is oppressed.

"The fact that the less than car-load lots take nearly four times as many cars to carry the tonnage is not answered by the claim that cars go empty for the return produce, and the railway may as cheaply haul the partially loaded car as the empty car. For the year ending June 30, 1886, the tonnage crossing the Mississippi river into Iowa by rail was, eastbound, 4,216,878 tons; west-bound, 3,263,228 tons. The freight crossing the Missouri river by rail from and to the State of Iowa was, east-bound, 1,215,433 tons; west-bound, 1,426,292 tons. For the year ending June 30, 1887, the tonnage crossing the Mississippi river into Iowa was, eastbound 4,411,544 tons; west-bound, 3,601,566 tons. Missouri