The San Francisco call., 1895-12-19
Such Is the Decision of the Inter
state Commerce Com.
mission.
rHE EFFECT OF THE RULING.
It May Mean General Reduction on
All Rates Between Colorado
and California.

There is much more than appears on the
surface in the decision of the Interstate
Commerce Commission in the case OF the
Colorado Fuel and Iron Company against
the Southern Pacific Company and other
carriers, relating to the legality of rates on
steel rails and other iron and steel articles
from Pueblo, Co1o., to San Francisco. The
complainant alleged that an unreasonable
charge of 81 so per 100 pounds was made
on these articles, while the rates from the
East were much less.
The commission decided that the rates
complained of were unreasonable and un-
just and ordered that the rates from
Pueblo to San Francisco should not ex-
ceed As cents per 100 pounds on steel rails
and fastenings and 37H cents per 100
pounds on similar articles of iron, and
that the rates shall never exceed IS per
cent OF those charged on like traffic from
Chicago to San Francisco.
The important feature of the decision
lies not in the rates fixed as Just by the
commission on the articles specified, but
in that comprehensive concluding sem
tence which virtually makes a general
basis for the fixing of all freight rates, in
structing that those between Pueblo,
which is Colorado terminal point, and
San Francisco, a California terminal point,
shall never exceed 75 per cent of those
charged on like traffic from Chicago to San
Francisco.
While the full text of this decision has
not been received it is the opinion of those
versed in railroad traffic affairs that the
decision IN, oli o1ah ha
per cent basis apply to all freight between
Colorado and California points, whether
eastbound or westbound.
In view of the fact that the distance be-
tween San Francisco and Pueblo is only
something like 100 miles more than be-
tween Chicago and Pueblo, the basis of
rate-making fixed by the commission is
considered by shippers as an eminen:ly
fair one to the carriers operating west of
Colorado.
At present the rate between Colorado
and California, with but one solitary ex-
ception, that for fifth-class freight is in
excess of this rs per cent basis. while in
one instance the eastbound rate on first
class freight is 81 20 per 100 pounds in ex-
&C ss of the 70 per cent basis, or $24 per ton
more than it should be according to the
opinion of the Interstate Commerce Com
mission.
This action of the Interstate Com m cree
Commission, it is claimed, means, in other
words, that the Southern Pacific Company
and its Colorado connections have been
charging extortionate rates and that they
must make reductions on all classes of
freight ranging from 10 to 40 per cent.
This reduction will signify much to the
merchants OF San Francisco, for it will
mean more than the simple saving of
freight money on the part of the shippers
Reduced rates on the basis fixed by the
commission will mean that San Francisco
merchants will have better opportunities
for securing part of the trade OF Colorado
that is now forced into the Chicago mar
ket by reason of the discriminative rates
that prevail against San Francisco.
Charles F. Smurr, general freight agent
of the Southern Pacific Company, when
asked what effect the commissions de-
cision was likely to have on rates as they
now existed, said that he preferred not to
discuss the matter until the full decision
was received by mail.
Traffic Manager w. B. Curtis of the
Traffic Association, who watches most
closely all railroad developments that
might have tendency to permit an ex-
tension of San Francisco's commercial re-
lations. looks upon the decision as most
radical one and one that is likely to prove
of direct benefit to local merchants. Speak
ing of the matter he said:
We would like to see, Of course, rates from
San Francisco to Colorado made the same as
they are from Chicago to Colorado, the dis
tance being about the same. Information re-
garding the decision of the Interstate Com
merce Commission is very meager, and it is
not possible to tell just how far it is intended
to apply the rs per cert basis. 1t would not
seem, however, that it would willfully select
one item and rule that upon that item alone
rates should be rs per cent of the Chicago
San Francisco rate. 1t does not appear to me
to be consistent that they would do SO.
AS showing what general application
of the Is per cent basis would mean, Mr..
NEW TO-DAY.