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Show ' B.; Extract From Opinion of Com- ' missioncr Lane in Southern H'! ' Paciiic Case. j j. h CHARGES VIA THE OGDEN jj J-1 AND COAST ROUTES h . Toll Caunot Re Charged Unless I ;; It Is Paid by the fl Carrier. H ! (1 I The Interstate Commerce commission, H ' j . Iti an opinion by Commissioner Lano, has H ! ( decided tho San Francisco Moll case, H ( - which Involved the right of tho South- H i ;j crn Pacific to charge as a part of lis H ' J rate to San Francisco a State toll of 5 H J ) c?ro a ton. Tho Southern Paclllc en- H ' 'I ters Sas Frani-lsro by two linos, one H I from the northeast, known as tho Ojr- H don route, which reaches San Francisco K 'I - bay at Oakland; and traffic hy this route K -1' j ' Js ferried across tne Day, landed on ihe H 1 -wharves in Sau Francisco, nnd hauled H l i' i hence to its station and yards. The j' second route, known as the Coast Line, H V oomos from the southeast, following: gen- i' avallv tho Hue of the oi:ean shore, and H ' , enters Pan Francisco by the all-rail H 11 j peninsular route, landing its tin flic at the H , railroad company's station. Tlio Ogden B I line Is much the older of the two, and ( was. until merged with tho Southern H tl raclflc. the Central Pacific. The Coast B ;( Una, by which freight Is transported j , ' xo and from San Francisco without T j i V crossing San Francisco bay or the H J ' t "wharvoH or water front of San Fran- H K J cisco, has been open only since .lunc, H , The title to the land which constl- H H tut os the water front of the city find H 'f V county of Sim Francisco is in the State H 5 ' . I of Callfomln, says tho Railroad Gu- H !.'( i xette, and the general charge and man- H r agement of this water front, and of H J C ' the docks and wharves erected along tho ,r same, are in the Board of State Harbor j I 't Commissioners, which is vostcl by law H u -wiUi the right to collect charges for H 1 dockage, wliarfage and tolls, and to tlx 1 1' ' nnd regulate tho rates of dockage, whnrf- H I nge, cranage, tolls and rents for their H V '.( use. In accordance with this power, tlic j i' board has fixed a schedule of tolls on Hi ( i merchandise passing over these State K , la. premises, ranging proportionately down- H -( ! . I ward from o cents a ton to 1 cent on B , t'j 400 pounds or less. B ll'l ),'? Commissioner Lane's Opinion. K i'1 ,') Commssoncr Lane continues: Traf- I'm fi0 moves from the east via tlte Coast BHfl 1 i Lino to San Francisco, and Is there de- BHflL 1' ) f live red to the consignee, to whom Is BHfl 1 piesentcfl an expense bill showing. BSfl 1 anions: other items, the ai tides carried. BHfl' i ( their weight, the rate of transportation, i . i' total frelghc charges, and. in addition. H ,'4 ; under the headr.? "Toll." the amount j (i f wlilch the consignee would have been H i required to pay upon the shipment had Hi K y ' the shipment moved by the transbay H( h I route Instead of by the Coast Line. In H' j I j other words, the rate to San Frunclsco BiiS1 l V ls exactly the same by both routes; but m ' t when the traffic moves across tho bay m I (.' J from Oakland to San Francisco the 'V )" Southern Pacific collects a toll which It In turn pays to the Stato for the use ''Uu i 'ls wharves; whereas if the shipment ric i j. moves by the Coast Lino nnd enters H' ' f j San Francisco without crossing the bay. B i an expense bill of precisely the same H , ' I character, and Including a charge for 1 i - toll, is presented to the consignee. Thus j i ,., the question arises. Why should the rail- Fl load be allowed to charge a loll on Kt ' ' Coast Line shipments which it is not Kfi r i required itself to pay, and which is not t ; i ) in any way a charge which the railroad . , lias to meet, and for which It renders no Hl I ' I Service? H. 1 ; j , Theory of Transcontinental Rates. HDj t i j The theory on which transcontinental n l( 1 I rates are made Is that the rail carriers Hif! nre compelled to meet the competition Kl i of the water carriers doing business out HTl !l ff San Francisco bay. Prior to the time I of transcontinental rail carriage trnns- 'i ii i portatlon from the Eastern Slates to j yi ij ' ' San Francisco was wholly by water or ' , ly the Panama or Nicaragua routes; 7 U 1 nnd when the first transcontinental rall- J l; i rond ,lne reached tide water it found lt- HpI'1 Heir compelled to meet this competition l Yi ' n ,n,s theory the transcontinental lines f 1 i hi 1 have Justified, and properly' so, lower t I "I Hi rates to San Francisco than to Interme- l A it -diate points. The rate to Pacific coast r . & terminals Is designated by railroad men f r fl ns a compelled rate one which the car- Hi i U r Tiers themselves would not make were (II they not required to do so by water com- !' ; petition. Hi'lii M When the Ogden lino reachod San U6 Francisco bay at Oakland it found that j if.-. to dellvor goods in San Francisco It was ' Ll'i compelled to pay an- arbitrary toll fixed j Hi hy the Slate for crossing the State lands . 4 ''m' nbuttlug the bay upon wlilch the wharves Hfi' K A ' Furroiindlng San Francisco were built. I ' j ' therefore inserted In Its larllts a note to ' " O 'i? eifect that. In nddton to the regular l 'i J transportation charges, freight arriving at f i San Francisco' would bo required to met ' I , .t P additional toll charge a charge which , j : the freight brought to San Francisco by M ocean carriers was also compelled to 1 J110,?1, ,T-a,cr- whe tho Coast Line was 1 r , )uilt. the same tnrlfC was mado applica- t i y to frelghL carried by that route, and i ' , thus it results that freight Into San Fran- U i ! cjsco by tho coast rotto bears an arhl- f 1 ' trary charge of f. cents a ton for croas- f. 'f ' i'tg a wharf which It never croeses. HH til I . Southern Pacific's Contention, i ' !!' , Tc Southern Pacific's contention. Hj y J ' however. Is that It Is entitled to make i " ', 1"lj eliarge on a shipment which does not i -I L , f tlic bay. becaunrj it may properly I ' f impose on transcontinental business anv j I 5 rate. ot unreasonable In Itself, which It 18 ' i. -'" cet in competition with wateTcnr-1' wateTcnr-1' i t rlcrs, and therefore may Include In Us M !!' P,1," ,an "mount equivalent to the Stato i a! it- ; because the water competition which il ,'vj 11- has to meet must always be compelled y 1 to mcot the toll charges of the State, t ; 1, This argument Is adroit, huL does' not 'r i - appeal to us as conclusive. Tho tariff , , i t -would make It appear that this toll j charge was actually Imposed on all freight !: i I onterlng San Francisco. This, wo per-I per-I ! celve, is not the facL Moreover, all east- , j I i bound freight leaving San Francisco Is w I not sublect to tills charge, at leasL as l n !l 10,1 c'mrge, no matter by what route (7 j v It goes. The toll, It Is contended, when ( j j toll Is paid, Is in fact included In the rate , fr itself Is absorbed by Ihe carrier and not I I specifically and separately charged as In l 'A I t'l'-" case of westbound business. J (. f If the rate to San Francisco by the H 1 Coast Line, Including the additional toll Ohnrge. Is in and of itself reasonable there Is no reason why the tariff appllca- ' 3 -g me to tho Coast TAne cannot ho made to ' 8 state, as the law requires, the full rate j I . via that route to San Francisco, J3ut It 1 Is to I'fc noted that Sacramento, Stockton ' ! k and other cities farther Inland than San i' Francisco arc given the benefit of tcr- i I ( mlnal rates witliout such additional loll ' i f charge, although the one reason that Is ,1 i i usslgned for supporting such rates Is their 1 I,! r proximity to San Francisco, through i f IL which city alone they have the advan- t taKo of water competition. I ' ! The history of this toll provision lends i v to the conclusion that It was never In-;, In-;, tended as a part, of the transportation rate; and certainly if the Const Line had , fl been first built its tariff would not have I 1) contained any such provision. Why, then, V should wo now regard It as properly In- , f sorted in n Coast Line tarlfr? Moreover h .1 .. the law does not contemplate that n rate MJ1' ( shall.be made by Including charges which il the carrier does not in fact meet; and l. f tj it tarltf or schedule of transportation ,i rates which makes the rate charged de- Kl ' I pendent upon one or more factors which Vi i ,1 'lr not nter Ipto tho transportation as It S Is actually conducted, docs not conform 1 f. .to t'.to law. To Illustrate: A ratu over the , ,! 'IU0 irork from tho West could not properly be stated as $1 por 100 pounds with a notation nota-tion elsewhere In the tariff stating that, all goods destined to Now York City would bear an additional charge equivalent equiva-lent to the cost of Hghtcragi3 from Jersey Jer-sey City lo Nov,' York, which all rival carriers onterlng New York are compelled to pay. Il will be ordered, therefore, that tho Southern Paclllc Bhall cease from making any charge Nr toll at San Francisco when such toll charge. Is nut actually r'WL in-tho in-tho .carrls s |