Ogden Daily Standard | 1914-05-25 | Page 1 | Tap Line Order is Annulled

TAP LINE ORDER IS ANNULLED I Supreme Court Takes Ground mKa That Interstate Commerce Commission Acted Ar- Hn bitrarily. HHjj DECISION UNANIMOUS R Commission May Strike Down B$( Such Rates as Are Used to Grant Rebates. Washington. D. C. May 25. The su- IKrc preme court today annulled the Inter- iB state commerce commission's order In LHr the tap line cases. HK The court upheld the commerce court, which annulled the commls- Lk slon s order on the ground It acted IBBsara arbitrarily in holding that allowances He' could not he granted on freight of in- sElr terests owning both the lumber and the tap lines, but could be granted on iWpii freight of other interests shipping Isbbbcv over the tap line. LV Justice Day. in announcing the Br" court's decision, said the decision did El not. however, prevent the commission from striking down divisions of LbV' through rates, if such division were LKb used to grant actual rebates Th HaW court held in effect that the merp division was not to be regarded in, B' and of, itself as a rebate. BbT- The decision was unanimous ssss - Trunk line railroads in the Yellow BE .. Pine districts of Missouri. Arkansas, BnV I Texas and Louisiana had cancelled H&J" I joint through rates on lumber shipped Bs over the tap lines and the trunk lines Bk; The commission held that ae tap Hl lines were not entitled to have the Bg I joint rates restored and that anv al- B& lowances or divisions from the trunk BP lines to ninety-two of the tap lines ffffr were unlawful. The commission held IHR' further that where the tap lines were H ow ned by a lumber company such an Bg allowance was in effect a rebate. & '