The Saint Paul globe., 1897-04-30
GREAT NORTHERN NOT OPEN TO
CHARGE OF DISCRIMINATING
AGAINST SPOKANE.
CASE HAS TAKEN FIVE YEARS.
INTERSTATE COMMISSION AND
FEDERAL COURT HAVE EACH
CONSIDERED THE SUBJECT.
COMPETITION CUT MUCH FIGURE.
Geographical Position of the Wash
ingtOn Town Made IL Material
Difference in the Result.

One of the most important railroad
cases ever tried in the federal courts
and by the interstate commerce COM
mission has been decided in favor OF
the railroads and against the city Of
Spokane. The winning road nominally
is the Great Northern, but the rail-
. roads generally claim the benefit Of
the principles involved in the decision.
The case in question has been known
during the five years Of its life as the
Spokane rate case. The city of Spo-
kane, five years ago, filed a complaint
with the interstate commerce commits
sicn that the Great Northern railroad
twai unjustly discriminating against
THAI city in the matter Of rates, in ia
vor of Pacific coast terminals. The
gist of the complaint was that Pacific
coast cities were receiving lower tar
ifs, proportionately, than Spokane,
which was located over 400 miles in
land. The decision of the interstate
commerce commission was not favora-
ble to the city of Spokane, and the
merchants of that place banded to-
gether and carried the case to the fed
eral courts. The railroads contended
that they had done all for the city
that they could do in the matter Of
rates. and that the geographical posi-
ton of the city initiated against any
ether settlement than had been made.
November 80, 1894, Federal Judge Han
ford appointed Hon. L. S. B. Sawyer
a special master in chancery to hear
the case and submit findings. Master
lawyer Immediately commenced his
Iaborious work. and, during the inter
val. vast amounts Of evidence have
been taken in Spokane, Seattle, Port
land and San Francisco. The case has
attracted widespread attention, owing
to the Importance of the issues in
Volved.
Master in Chancery Sawyer has now
filed his findings, which cover forty-fivn
pages Of typewriter copy. The find
ingS favor the railroad. The findings
trace the case from the building Of the
Great Northern railroad through to
every feature of the case. One of the
issues brought up by the citizens Of
Spokane was the alleged promise CIV
en- by President Hill to the citizens of
Spokane, that, if the city would give
him a franchise for his road, that he
freight rates from the East to Spo-
kane Judge Sawyer holds that since
the promise was made, the competi-
ton has materially reduced the rates
TO Spokane and that virtually the
promise had been kept. The claim
of discrimination against Spokane was
also said to hold against Helena, and
both were charged to the geographical
locations Of the two cities.
Spokane merchants asked for a rate
to that city from st. Paul practically
amounting to 50 per cent of the rate to
the Pacific coast on articles not sub
ject to water competition, on the as
sumption that the shorter haul to Spo-
kane than to the coast entitled the
former to the reduction asked for. In
his findings the master in chancery
says, in answer to this claim, that the
roads west of Spokane were construct
ed at far greater expense and are re-
ported at heavier expense than the
roads than the roads east of Spokane
and that, Notwithstanding the roads
were compelled in the long haul to COM
pete with water transportation COM
panies. In his findings, the special
master also takes up the matter of
water competition via clipper ships
and the more recent competition via the
Gulf of Mexico by steamships and re-
views the decision Which recognized the
Southern Pacific as a water route; the
Atlantic coast ports to New Orleans
and Galveston, at which ports the
rail lines take the shipments and deIiv-
ers them to Pacific coast points, and
cites the rates Of transfer to Puget
sound ports via Pacific coast steam
ship lines in competition with all rail
routes acrOsss the continent. 1t is nee
essary, says the finding, that the rail
roads meet all of this water competitor,
and what appears as discriminating
against Spokane, Helena, Salt Lake
and other interior cities, is the result Of
the effort at self-defense by the rail-
roads.
The findings do not bear out the
claims of the citizens of Spokane that
they are met with competition from
the Pacific coast points. The find
ings show that the merchants of Spo-
kane receive by the car load and pay
car load rates. Shipments from the
Pacific coast to Spokane would be
based on less than carload rates,
which figure in their totals higher
that rates based on full carloads
The master in chancery fails to find any
violation of the interstate commerce
laws on the part Of the railroads, and
sums up in favor of the latter.