The Washington times., 1907-02-23
LAW At STAKE
IN RATE CASE
At SPOKANE
Blanket Reduction Would
Define Interstate Com
missions Limits.

The Interstate Commerce Commits
sion is rapidly reaching Il point where
it will be settled whether there is any
real force in the rate law passed by
Congress last winter and whether
there is any real effectiveness in the
sherman antitrust law to prevent
railroad mergers. The present Harri-
man merger inquiry IS expected to re-
suit in a test Of whether railroad
mergers may with impunity be con-
summated under the law.
The real test Of wna- are the rate
making powers OF the commission will
come in the Spokane r1,e case which
involves broadly the question whether
the Interstate Commerce Commission
has the authority unGer the rate law
to reduce the rates, not on q single COM
modify, but on commodities generally
and freight rates Of all SORTS from the
great shipping centers or the East TO
Spokane, Wash. In this case. the
chamber of commerce or Spokane and
tho municipality are the plaintiffs. and
the Great Northern and Northern Pa
cific are defendants.
Coast Is Favored.
The controversy arises from the fact
that the rates on freIgnts 20 Spokane
from Chicago. Minneapolis, St. Paul
and various Eastern shipping centers.
are higher than the rates over the
same railroads from the same com
mercial centers to Seattle and other
Pacific coast poi1ts. - IS admitted
the rates TO Spokane are higher. The
reason given by the railroad COM
panies is that on the Pacific coast they
are compelled TO meet water commit
tion, and that they are thus forced 10
reduce their rates.
March Is, at Chicago. and April 10. at
Portland, the fun commission Will hold
hearings on the Spokane rate case-
june .. IN Washington, attorneys repre-
senting the different interests. will come
before the commission and make their
arguments.
Spokane wants a blanket reduction on
rates The Great Northern and North
ern Pacific have filed their answers de-
tending the present rates. The Pacific
Coast Jobbers' Association holds the
present rates are just and should not
be disturbed.
There is not much question that the
commission will Issue an order making
a sweeping reduction in the rates from
Eastern points to Spokane.
such an order VIII have to be carried
into the courts by the railroads to test
Its effectiveness. It Will devolve in the
end on the Supreme Court to decide
whether the commission can issue such
an order. or whether II can merely re-
duce a single rate on a single COM
modify.
President Roosevelt and the commits
SION believe that under the law providing
for the expedition OF cases arising under
the rate act, the Spokane case will be
decided by the Supreme Court while the
first session of the SiXtieth Congress is
still on. If it is decided adversely to
the Government. then President Roose-
Welt viii make a great effort to have
Congress enact legislation to enlarge the
scope of the rate law.
If the rates 10 Spokane from the East
can be reduced from 10 to 40 per cent.
or at all, by a blanket order of the
commission, then the rates can be re-
duced all over the United States where
the same state OF things obtains. If
Spokane wins in its contention then
cities ana towns in the territory be
tween the Missouri river and the Cas-
cade mountains may be expected to ask
large reductions i'm freights Similar
cases viii be brought TO the commission
IN the eastern hAlf or the country In
a word. the whole question OF the scope
OF the rate law hangs on the Spokane
controversy.