The question in the case is the validity of an order of the Interstate Commerce Commission, reducing the class rates charged by the appellee railroad companies on through freight shipped from the Atlantic seaboard to Kansas City and St. Joseph, Missouri, and Omaha, Nebraska, cities on the Missouri river, and called throughout the record, and in this opinion, Missouri river cities.
The through class rates were reduced from 1/147, 2/120, 3/93, 4/68, 5/57 in CENTS PER 100 POUNDS TO 1/138, 2/113, 3/88, 4/64, 5/54. the numbers above the lines indicate the classes and the numbers below the lines the rates.
The reduction was made in that part of the through rate which applied to the haul between the Mississippi and Missouri rivers. Explaining its order of reduction, the Commission said the through rates from Atlantic seaboard terminals to the Missouri river cities are made by adding together the rates from points of origin to the Mississippi river crossings, using proportional rates when such were available, and the local rates from the Mississippi crossings to the Missouri river cities. The through rates the Commission pronounced to be unreasonably high, 'because those portions of the through rates which apply between the Mississippi river crossings and the Missouri river cities are too high. These are defendants' 'separately established rates,' which are 'applied to the through transportation,' and therefore the through rates should be adjusted by reduction of those factors or parts thereof which are found to be unreasonable.'
The division of the rates, as established by the railroad, was as follows: From New York to the several Mississippi river crossings on traffic moving through them to points beyond, in cents per 100 pounds, 1/87, 2/75, 3/58, 4/41, 5/35. From the Mississippi river crossings to the Missouri river cities, 1/60, 2/45, 3/35, 4/27, 5/22. The latter are local class rates under the Western classification, and are those which the Commission adjudged too high, and which it reduced in cents per 100 pounds, to the following: 1/51, 2/38, 3/30, 4/23, 5/19. The amount of reduction it will be observed, is 9 cents on first-class freight and a proportional reduction on the other four classes.
The order of the Commission required the railroad companies to cease and desist on or before the 25th of August, 1908, from charging, demanding, or collecting anything in excess of the rates last above set out, and the companies were required to put such rates in force before the 25th of August, 1908, and maintain them for a period of not less than two years.
The proceedings before the Commission were begun by a petition filed by appellants in case No. 664, who were doing business in Kansas City and St. Joseph, Missouri, and Omaha, Nebraska. They alleged that they were engaged in either the mercantile or manufacturing business, and in buying and selling various commodities shipped from the Atlantic seaboard to them, respectively, under the definite freight classifications maintained by the railroad companies. The rates, according to the classifications, from New York to St. Paul and Minneapolis, and rates from New York to Chicago, and from the latter city to Kansas City, St. Joseph, and Omaha, the petition alleged, 'are arrived at by adding to the rates from Mississippi river points, as shown above, the following rates, subject to official classification, to wit: 87 cents, 75 cents, 58 cents, 41 cents, and 35 cents per hundred pounds for said five classes, respectively; that the aforesaid through rates, applying from New York to Kansas City, are observed by defendant carriers on traffic moving by way of Chicago; that in the division of said through rates from Atlantic seaboard to said three Missouri river cities, Kansas City, St. Joseph, and Omaha, each of said defendant railroad companies allows and pays to said Eastern connections 72.3 cents, 62.4 cents, 48.4 cents, 34.3 cents, and 29.4 cents per hundred pounds on the said five classes, respectively; and charges, accepts, and retains, as their respective shares of said through rates upon the several classes aforesaid, 74.7 cents, 57.6 cents, 44.6 cents, 33.7 cents and 27.6 cents per hundred pounds.'
A table showing the distance of the various roads from New York to St. Paul and Minneapolis and the Missouri river cities is given, which shows that the distances are not materially different, and also shows distances west of Chicago.