•  
  •  

Home > Journals > Michigan Law Review > MLR > Volume 29 > Issue 4 (1931)

 

Abstract

The divisions here involved were those to be made in joint rates between points in southwestern territory and those in western trunk-line territory, or via western territory to and from eastern points. The line between western and southwestern territory passes through St. Louis and other Missouri and Illinois towns. The divisions of these joint rates between the carriers in these territories had been in existence for many years and were without uniform or rational basis. The Interstate Commerce Commission, investigating these divisions, found them more favor able to southwestern lines than present circumstances justified. Conditions in southwestern territory had become relatively more favorable; and the roads there were in better financial condition than the western ones. The cost of operation per ton mile, including fair return on investigation, was found to be less than 20% higher in southwestern than in western territory, while existing divisions gave southwestern lines over 30% more than the mileage prorate. The commission laid down a new division on a rate-prorate basis (basing the division on the proportion that the southwestern first-class rate for the length of haul south of the gateway bore to a fixed percentage, 75 to 87 for different gateways, of what the southwestern first-class rate would be for the length of haul north of the gateway), 148 I.C.C. 457, modified in 156 I.C.C. 94. This left a substantial advantage to the southwestern carriers, but would give the western roads $3,000,000 annually more than prior division. The southwestern carriers sued to have this order set aside; but their petition was dismissed. 36 F.(2d) 78g. On appeal, affirmed and held that this order be enforced, Beaumont, S. L. & W. Ry., et al., v. United States, et al., (Adv. Ops. 44, 45, Nov. 24, 1930). 51 Sup. Ct. 1.

Download

Share

COinS