Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-05-19
TRAFFIC DECISION
Of importance by the In:
terstate Commission.
Change in DitterentiaIs to Ba|ti-
more and Philadelphia.
A Reduction in the Prevailing Figures from
the Rates 10 New York.

Washington, May 1S.-The interstate
commerce commission. today, in IL long
opinion by Commissioner PrOuty an
nounced its decision in the "differen-
tial freight case" involving the Sea-
board differentials as between New
York, Boston, Philadelphia and Balti-
more. The case was submitted to the
commission for arbitration by all OF
the parties interested.
The finding of the commission is.
with respect to differentials on export
traffic. first that the differential per
hundred pounds below New York on
flour. all rail and lake and rail- should
be reduced to two cents at Baltimore
and one cent at Philadelphia; second.
that the existing differential on ex-lake
grain from Buffalo, Erie and Fairport
should be reduced to three-tenths of a
cent per bushel below the rate TO New
York, and be allowed both to Baltimore
| and Philadelphia; third, that other
wise, the present export dilferentials
should remain in force.
BY agreement of all parties domestic
traffic was excluded from considera-
ton. For that reason, no opinion was
expressed concerning the relative rates
on import traffic.
Commissioner Clements filed a dis
| senting opinion, opposing the fixing of
any differentials by the commission in
this case.
The decision is regarded by the men,
bers of the commission as one of vast
importance. as it is more than 80 years
since an adjustment was reached by
which the rates to New York We're
made the basis of those to the other
ports. Boston being charged the New
ork rate. Philadelphia being allowed a
rate of cents Der hundred pounds
lower than New York, and Baltimore
| a rate 8 cents lower. Norfolk and New
port News have been accorded the
same rates as Baltimore. These So
called differentials, however have been
the subject of repeated controversy,
and at times demands for their discon-
tinuance or modification have caused
struggles between rival points and the
lines serving them, terminating in So
called rate wars.
The proposition to submit the case to
arbitration first came from the Mer-
chants Association of New York City
anu wis III Wy IhS
joint committee on maintenance of
freight differentialS, created by COM
mercial bodies of Boston, Philadel-
phia and Baltimore, by the presidents
or traffic officials of the principal trunk
line railways.
In his opinion Commissioner PrOuty
states that the commission has en-
deavored to find some fundamental
principle by the application of which
this dispute might be laid at rest, but
entirely without success. Taking up
the contentious of each of the. four
cities. the commission declares that if
it could properly be done, these ports
should all be kept open for the trans
action of this export business upon
such terms that each one may fairly
compete for it, and that no marked adj
vantage should be given and certain
lv not by the creation of artificial con-
dtiOns, to any one port or the other.
"An ideal condition would be- says
the commissioner, "the establishment
of such rates that enterprise at either
port in the way of improvement of SER
vice or facilities might be rewarded by
increased business and that there
might exist that healthy struggle of To-
cality against lOclaity which the best
security for proper commercial devel-
orment. This is justly demanded by
the interests of the communities in
volved."
He declared that in disposing of this
question the interests of the carriers
which serve these communities should
be none the less kept in view and the
suggestion is made that if it properly
can be done these rates should be SO
adjusted that this competitive traffic
will be fairly distributed between the
different lines of railway which serve
these ports. the decision says:
This traffic. says Commissioner
Prouty, in point of fact, originates at
a great number of interpoints and
reaches numerous foreign destinations.
But" says he 1--WE may assume for
the purpose of illustration that it starts
from Chicago and all goes to LlVerpooi.
1t is apparent that it may be trans
ported between these points by any OF
the four ports in question. The d1s-
lance by rail is somewhat shorter 10
Baltimore and Philadelphia than TO
Boston and New York. Upon the other
hand. the water distance is somewhat
less from Boston and New York imam
from Philadelphia and Baltimore. Inc
| entire through distance does not great
ly vIry. In other words this traffic Is
fairly competitive and rates ought TO-
therefore, to be so adjusted that rival
rates can fairly compete for 1t.
Continuing. the commission says that as
Baltimore and Philadelphia have naturai
advantages in location as Boston and New
York have certain natural advantages III
ocean facilities and as it is Impossible 10