Note 68 — Chapter IX · SUBSTITUTES FOR REBATES.

The railway charged the same rates from the East to Grand Rapids as to Ionia, although the former was 33 miles a longer distance point on the same line of road, and in addition gave free cartage to Grand Rapids companies. Complaint was made in September, 1888; April 26, 1890, the Commission held the free cartage to be in effect a rebate, and ordered the railroad to desist from giving free cartage in Grand Rapids. (3 I. C. C. Decis. 60; I. C. C. Rep. 1896, pp. 37–39; 1897, pp. 94–95.) The Circuit Court upheld the order October, 1893 (57 Fed. Rep. 1002), but the Circuit Court of Appeals overruled the decision April, 1896 (74 Fed. Rep. 803), and the United States Supreme Court sustained the Court of Appeals. (167 U. S. 633, May, 1897.) The Commission made the mistake of resting the case on the 4th or long-haul section instead of the 2d or 3d sections relating to undue preference, and the railway should have been allowed the option of removing the discrimination by giving free cartage in Ionia or making a lower rate there. The order to discontinue free cartage in Grand Rapids was arbitrary and unnecessary.