No. 782. Unreasonable and unjust reconsignment and car-service charges on carload shipments of hay at East St. Louis, Ill. Reparation claimed. Sections 1, 2, and 6.

No. 783. Discrimination in matter of switching charge at Hazen's switch on shipments of lumber from Cates, Ala., to Cincinnati, Ohio. Sections 1, 2 and 3.

No. 784. Unreasonable and unjust rates on galvanized wire from Pittsburg, Pa., and Cleveland, Ohio, to Tecumseh, Mich., as compared with rate to Adrian, Mich. Sections 1, 2 and 3.

No. 785. Excessive and prejudicial rates on snapped corn from Grove, Ind. T., to Marshall, Tex. Reparation claimed. Sections 1 and 3.

No. 786. Greater rates on brick machinery for the shorter distance from Lochland, Ky., to East St. Louis, Ill., than for the longer distance from Louisville, Ky. Reparation asked. Sections 1, 3 and 4.

No. 787. Investigation by the Commission in the matter of bills of lading in Official Classification territory.

No. 788. Investigation by the Commission in the matter of alleged unlawful rates and practices in the transportation of grain and grain products to and from Louisville and other Ohio River points.

No. 789. Investigation by the Commission in the matter of alleged unlawful rates and practices in the transportation of coal and mine supplies by the Atchison, Topeka & Santa Fe Railway Company.

HEARINGS AND INVESTIGATIONS.

Fifty-eight hearings and investigations of alleged violations of the act to regulate commerce have been had at general sessions of the Commission at its office in Washington, D. C., and at special sessions held in New York, N. Y.; Boston, Mass.; Philadelphia, Pa.; Chicago, Ill.; Detroit, and Lenox, Mich.; St. Louis, Mo.; Cincinnati, Ohio; St. Paul, Minn.; Atlanta, Ga.; New Orleans, La.; Fort Worth, El Paso, and Denison, Tex.; Memphis, Tenn.; Montpelier, Vt.; Denver, Colo., and Albuquerque, N. Mex.

The formal proceedings so heard and investigated involve the following matters: Allowances to elevators by the Union Pacific Railroad Company. The publication and filing of tariffs on export and import traffic. Failure to furnish cars at Valley Center, Doyle, Avoca, Cros well, and Memphis, Mich., for shipments of hay and grain. Transportation of salt from Hutchinson, Kans. Rates on grain and grain products over the Chicago, Milwaukee & St. Paul Railway. Rates on grain and grain products over the Atchison, Topeka & Santa Fe Railway. Rates on grain and grain products over the Chicago & Northwestern Railway. Rates on grain and grain products over the Chicago Great Western Railway. Rates on grain and grain products over the Chicago, Burlington & Quincy Railway. Rates on grain and grain products over the Illinois Central Railroad. Rates on grain and grain products over the Chicago, Rock Island & Pacific Railway. Rates on grain and grain products over the Wabash Railroad. Rates on grain and grain products over the Chicago & Alton Railway. Rates on wheat, rye, and other grains from Cannon Falls, Minn., to Chicago, Ill.

Advance in rates on yellow-pine lumber from points in Mississippi, Alabama, and Louisiana to points in the Western, Northern, and Eastern States. Discrimination in rates on lumber by means of so-called tap line divisions of rates. Class and commodity rates from St. Louis to Texas common points in force over the Missouri, Kansas & Texas Railway. Class and commodity rates from St. Louis to Texas common points in force over the St. Louis Southwestern Railway. Class and commodity rates from St. Louis to Texas common points in force over the St. Louis and San Francisco Railroad. Class and commodity rates from St. Louis to Texas common points in force over the Missouri Pacific and other railways. Excessive minimum carload weight causing damage to shipment of peaches; rates on peaches and plums from points in Georgia to eastern cities. Relative rates from East St. Louis, Ill., to New York, N. Y., on cotton shipped in compressed square bales and in round bales. Rates on chewing gum from Chicago, Ill., to points south of the Ohio and Potomac rivers and east of the Mississippi River. Rates on coal from Thacker and the Thacker District, W. Va., to Hillsboro, Ohio. Rates on cotton piece goods from points in Georgia, Alabama, and South Carolina to Cincinnati, Ohio. Rates on cotton from Selma, Ala., and Columbus, Ga., to Savannah, Ga.; discrimination in use of expense bills. Rates on horses from Bayou Sara, La., to St. Louis, Mo. Rates on live stock from Fort Worth, Tex., to New Orleans, La. Unreasonable storage charge on sugar at Macon, Ga.; unreasonable storage charge on molasses at Columbia, S. C. Rates on cowpeas from Darlington, Florence, Sumter, and Bennettsville, S. C., to New Orleans, La. Advance in rates on live stock from points in Texas, New Mexico, Oklahoma, Arizona, Colorado, and Kansas to Kansas City, St. Joseph, South Omaha, St. Louis, Chicago, Fort Worth, New Orleans, Denver, and Pueblo. Rates on lump and slack coal from McAlester, Ind. T., to Denison, Tex. Division of joint rates and other allowances to terminal railroads. Rates on cotton from Gibson, Ind. T., to St. Louis, Mo., when compressed in square bales and "Lowry" round bales. Rates from Memphis, Tenn., to points in Arkansas. Rates on cotton from points in Arkansas to Memphis. Differential freight rates to and from North Atlantic ports. Rates on anthracite coal in carloads from anthracite coal regions of Pennsylvania to New York, Boston, Washington, and other eastern points. Charges for the transportation and refrigeration of fruit shipped from points on the Pere Marquette and Michigan Central Railroads. Terminal charge on live stock at Union Stock Yards, Chicago, Ill. Rates on boots and shoes from points in Massachusetts to East St. Louis. Rates on bituminous coal from Norwood, N. Y., to Montpelier, Vt. Rates on cotton piece goods from Boston and Boston points to Denver, Colo. Rates on cotton piece goods, duck, denims, drills, and sheetings from Boston, New

York, Philadelphia, and Baltimore to Denver, Colo. Rates, facilities, and practices applied by the carriers in the transportation of cattle from producing, grazing, and feeding sections west of the Mississippi River. Transportation of freight by common carriers in cars not owned by said common carriers. Rates on lumber from Saginaw, Mich., to points in NewJersey. Relative rates on rye, wheat, and corn from East St. Louis, Ill., to Owensboro, Ky. Rates on hay from East St. Louis, Ill., to points in States south of Kentucky and Virginia and east of the Mississippi River. Rates on oats and rye from Wyaconda, Mo., to Chicago, Ill. Failure to furnish side-track connections at mines near Barnesville, Ohio. Failure to furnish cars at Irwin, Johnstown, Jeannette, and Marchand, Pa., for shipment of coal. Milling-in-transit privilege at Harrisburg, Pa., on shipments of wheat, corn, rye, oats, and barley shipped from Ohio, Illinois, and Indiana points to New York, Philadelphia, and Baltimore. Bills of lading in official classification territory. Unlawful advance in rates on coal from San Antonio, N. Mex., to El Paso, Tex. Alleged unlawful rates and practices in the transportation of coal and mine supplies by the Atchison, Topeka & Santa Fe Railway Company.

CASES SETTLED AND DISCONTINUED.

The following cases have been settled through concession of relief by the carriers or agreement of the parties:

A case involving advance in rates on machinery from St. Louis, Mo., and other points to Little Rock, Ark., and on cotton presses, cotton gins, and cotton-gin machinery from Little Rock to Memphis, Tenn., and New Orleans, La., was settled by the carriers reducing the rates to the satisfaction of the complainants.

A case arising at Milwaukee, Wis., involving rates on bituminous coal from mines in Ohio and West Virginia to Milwaukee, was discontinued at the request of complainant.

Another case arising at Farmville, Va., involving rates on bituminous coal from Bluefield, W. Va., and Virginia City, Va., to Farmville, was settled by the carrier adjusting the rates to the satisfaction of the complainant.

A case originating at Owensboro, Ky., involving the rate on rye from East St. Louis, Ill., to Owensboro, was settled by the reduction of the charge to the amount of the rate on corn and wheat and refund upon the same basis of the excess rate charged on one carload of rye shipped by complainant between the points mentioned.

The settlement of another case was effected by the readjustment of tariffs under which the rates on fence wire and also the class rates and those on iron and steel articles generally from Cleveland and Pittsburg were made the same to Tecumseh as those to Adrian, Mich.

A proceeding relating to the furnishing of cars for shipments of scrap iron was discontinued upon request of complainant, stating that it did not care to proceed further in the matter. Two other cases disposed of upon the same ground related to shipments of small lots combined into carloads at the carload rates, and rates on bituminous coal from Pennsylvania mines to Windsor Locks, Conn.

Two cases relating to the provision of switch connections from coal mines to lines of defendants, in which unjust discrimination in favor of other mines was alleged, were stated to have been settled by concession of the relief demanded in the complaint.

The rate on tan bark in carloads from Wayne, W. Va., to Columbus, Ohio, having been reduced from 15 to 12 cents per 100 pounds, in accordance with the prayer of the complaint, a case involving the reasonableness of the 15-cent rate was discontinued.

DECISIONS BY THE COMMISSION.

Besides disposing of a large number of complaints through informal investigation and deciding numerous questions arising in relation to the publication and observance of tariffs, the Commission has rendered during the year 27 decisions in reports and opinions upon contested cases or investigations made by the Commission on its own motion. A statement showing the character of these proceedings and the questions presented and decided is given below.

DIVISIONS OR ALLOWANCES TO TERMINAL OR INDUSTRIAL RAILROADS-ALLOWANCES TO ELEVATORS.

In another part of this report the granting of divisions of joint rates and other allowances to terminal railroads is discussed, and the decision rendered by the Commission in November of the present year in a proceeding entitled "In the Matter of Divisions of Joint Rates and Other Allowances to Terminal Railroads" (10 I. C. C. Rep., 385) is only referred to here for the purpose of stating the rulings actually made, and which are as follows:

While there may be great objections to allowing shippers to build and operate railroads over which their traffic moves, such action is not prohibited by the act to regulate commerce; and the mere fact that the property of a common carrier is owned by the largest individual shipper over it, or that it was originally constructed for the purpose of doing the work of that shipper, furnishes no reason why it can not make joint rates and agree upon joint divisions with other railroads.

The act to regulate commerce prohibits a difference in charges as between shippers "by any special rate, rebate, drawback, or other device," and the granting of any undue preference to any individual or species of traffic "in any respect whatsoever," and the Elkins

amendment, requiring the publication of tariffs in all cases, prohibits, under severe penalty, any practice on the part of the carrier "whereby any such property shall by any device whatever be transported at a less rate than that named in the tariffs * * * or whereby any other advantage is given or discrimination is practiced." The manifest intention of the act to regulate commerce, especially as expressed in the Elkins amendment, is to strike through all pretense, all ingenious device, to the substance of the transaction itself; and where excessive divisions of rates are granted by a carrier to another carrier owned and controlled by a shipper, for the purpose of obtaining the traffic of that shipper, they benefit the shipper and operate as a rebate or other device to cut the tariff charge in violation of the law.

The International Harvester Company owns the capital stock of the Illinois Northern Railroad Company and a controlling interest in the Chicago, West Pullman & Southern Railway Company, operating as terminal connecting roads in and about the city of Chicago between the plant of the Harvester Company and various other industries and connecting roads leading to the Missouri River and other sections of the country. Until recently the charge received for services by these terminal roads was a switching charge amounting to from $1 to $3.50 per car for the Illinois Northern and $3 per car for the Chicago, West Pullman & Southern. These lines now receive in many instances a division of the rate, which on lines reaching the Missouri River is 20 per cent, with the Missouri River division as a maximum. This amounts on farm machinery to $12 per car of 20,000 pounds as against the former maximum of $3.50 per car. A charge of $3.50 per car by the Illinois Northern and of $3 per car by the Chicago, West Pullman & Southern would be reasonable for these switching services, and charges for such service in excess of those sums amounted to unlawful preference in favor of the International Harvester Company.

The Chicago, Lake Shore & Eastern Railway Company, owned by the United States Steel Corporation, is a terminal road operated between the Illinois Steel Company's works, near Chicago, and connecting with roads leading east, west, and south. It receives a division of 10 per cent of the rate to the seaboard, 15 per cent to Buffalo and Pittsburg, and 20 per cent to the Missouri River and beyond, and in some cases obtains special divisions. These divisions are found to be grossly excessive for the service rendered and to afford unlawful preference to the United States Steel Corporation, which owns and controls the Illinois Steel Company.

On pages 18 to 22 of the last annual report of the Commission is contained, in substance, a preliminary report upon the investigation made by the Commission during the latter part of 1903 in relation to the transportation of salt from Hutchinson, Kans. In January, 1904, the Commission formally rendered its decision (10 I. C. C. Rep., 1).