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LEHMANN, HIGGINSON & COMPANY v. THE SOUTH
ERN PACIFIC COMPANY, THE TEXAS & PACIFIC
LEHMANN, HIGGINSON & COMPANY v. THE SOUTH
ERN PACIFIC COMPANY, THE ATLANTIC &
LEHMANN, HIGGINSON & COMPANY v. THE CEN
TRAL PACIFIC RAILROAD COMPANY, THE
Complaints filed June 17, 1889. Answers filed July 9 to August 24, 1889.
Heard at Kansas City, Mo., September 24 and 25, 1889. Briefs
A lower charge for a longer distance for transportation of like traffic may
be justified by actual water competition of controlling force, relating to traffic important in amount; and among the circumstances and conditions that may be considered in estimating the dissimilarity created by water competition are the character of the roads, the character of the traffic, the preponderance of empty cars moving in a direction in which the traffic must be taken, and the legitimacy
of the competition by the rail carrier. The transportation of traffic under circumstances and conditions that
force a low rate for its carriage or an abandonment of the business, but which affords some revenue above the cost of its movement, and works no material injustice to other patrons of a carrier, is to be
4. PATENT ME
et al., & 5. SOAP.
pany et Beaver &
Compar 6. Food PRODUC
In re Alle
ucts, 48 7. PETROLEUM AI
Rice v. At 8. BLANKET.
Rice v. At 9. HOGS AND Hoc
Squire & C 10. Pig Iron.
Railroad 11. SURGICAL CHA
Harvard CC 12. COAL.
Coxe Broth 13. GROUP.
Coxe Broth 14. WHEAT AND F
al., 417. 15. IMPORT TRAFF
Railroad 16. CATTLE AND DI
Squire & Co 17. PEACHES.
Railroad Boston Frui
Railroad 18. PERISHABLE FR
em Pacific Company et al, 1
Cincinnati & St. Louis Rail
mon & Dayton Railroad Com cinnati & St. Louis Railway
New York & Pennsylvanis
Cailroad Company et al., 2
Railroad Company et al., 9
1. Chicago & Alton Railroad
Railroad Company et al
York Central & Hudson River
mpany et al., 212.
Testern Railroad Company, 2%
REASONABLE RATES. 1. To SMALL Town.-When a reduced rate is made at the terminus of a
through route under the compulsion of competition, a town not on the through route but reached over a connecting road has a disadvantage of location entailing some additional expense, and a reasonably higher rate to such town than the forced competitive rate is not unlawful.
Lehmann, Higginson & Company o. Southern Pacific Company et al., 1. 2. PATENT MEDICINES.-Patent medicines manufactured and shipped by the complainant are rated in the
Official Classification as first class for less than carloads and third class for carloads. Ale, beer and mineral water are rated as third class in less than carloads and fifth class in carloads. The market value of the medicines is three times or more higher than that of the other articles named and the quantity transported much less. Upon complaint made that the patent medicines should be classified the same as ale, beer and mineral water:
Held, that in view of the much higher market value of the medicines
as toilet soap, but claimed not superior to certain laun
way Company et al., 41.
non soap ste
ly net weig
it since sai they have charged for gross weight wn
og the rate hundred pounds. The effect of this wa
ixth more the same service than had before been ch.
tran portation under the net-weight practice w
an without complaint on the part of shippers
Valley Railroad Company
ari Pacific Railway Company
or many yes
sportation et al. t. Pennsylvania
al Railroad Company et al., till
York, Philadelphia & Nortok 20. New York & New England
deemed legitimate competition. When, however, its carriage is at a loss, and imposes a burden on like traffic at other points, and on other traffic, it is to be deemed destructive and illegitimate como
petition. Rates can not be arbitrarily charged in the mere discretion of a carrier.
They are to be equitably adjusted with regard to the public interests as well as the carrier’s. Reduced rates at points where competitive influences are controlling must not fall below some revenue from the traffic in excess of cost, and higher rates at other points, required for the necessary revenue of a carrier, must be reasonable in themselves, and also relatively reasonable in comparison with the com
petitive rate. The general rule contemplated by the statute of equitably graduated
charges on like traffic with reasonable reference to the amount of the service, is just in itself, and commonly most beneficial both to the carriers and to the public, and is only to be departed from when justified by exceptional conditions, and in such instances no longer
than the conditions require. Where a reduced rate is made at the terminus of a through route, under
the compulsion of competition, a town not located on the line of the through route, but reached over a lateral connecting road, has a disadvantage of situation entailing some additional expense, and a reasonably higher rate to snch town than the forced competitive rate to the more distant terminus of the through route, is not unjust
discrimination. l'pon complaint by dealers at Humboldt, Kansas, against the respond
ent lines for unjust discrimination in charging a rate of 65 cents per hundred pounds on sugar transported from San Francisco to Kansas City, and 85 cents per hundred pounds upon the same commodity from San Francisco to Humboldt, more than a hundred miles
shorter distance, but not on the through line. Held, that the reduced rate to Kansas City being forced upon the car.
riers by competitive conditions beyond their control, and the rate to
E. A. Barber and II. C. Sluss, for con ('. II. Threel and J. ('. Martin, for $ Warner, Denn d llagerman, for
Kansas & Texas Railway Co.