The Washington times., 1907-06-23
FINAL STRUGGLE
OF SPOKANE FOR
EQUALZED RATES
Case Against Railways
to Be Before Inter-
state Commission
Wednesday.
City Complains Because
1t Pays More Than
Coast Towns.

Coast Towns.
The famous old case of the city Of
Spokane against the Hill railroads,
which affects all Western rates, after
nearly twenty years of tendency before
the Interstate Commerce Commission.
will ne argued for the third or fourth
time. beginning Wednesday.
This was the most important case
probably ever brought before the COM
mission under the old law of 1887, as il
is probably the most important that has
been brought under the reorganized law
of 1906
The city Of Spokane. located about 500
miles east of the Pacific termini Of the
Northern Pacific and Great Northern.
has for many years been compelled to
pay higher rates on freight from the
East than that paid by the Pacific coast
cities, uotwithsta nding the haul to Spo-
kane is much shorter than 10 the latter
point The railroads justify this on the
ground that the rates TO the coast tor
minals are controlled by water cumpeti-
Ton, out insist that the rates TO SDo-
kane are not in themselves unreason-
ably high.
Other Cities Involved.
The situation which prevails at
Spokane is duplicated at every com
mercial center between the Missouri
river and the coast range OF mountains
in California. Oregon. and Washington
II the Interstate Commerce Commission
and following it the courts snail decide
that Spokane is entitled to the i'm
portant reduction in it's freight rates
which il demands, a corresponding re-
auction will have 20 be made also 10
all other inland points in the great inter
mountain country. The whole CONNER
Cial and industrial situation Of an area
equal 10 something like third Of the
United States will be revolutionized.
Under the law Of 1887 the Spokane case
was one OF the very first fled before the
Interstate. Commerce Commission. and
after several years il was decided that
the commission had not sufficient power
TO enforce All order giving Spokane as
low rates as the Pacific terminals. The
final decision against the people Of Spo-
kane was reached in the courts on this
point Then the law of 1896 was passe-
and the Spokane people were ready witt
their complaint the very day the new
law took effect. Since then small.
sized library has been accumulated il
the case. Hearings have ben held al
3 Chicago. Spokane, Portland. and othe!
places, and the final oral arugment viii
take place Wednesday before the full
commission in this city. The array OF
counsel who will be heard include.
Brooks Adams and II. NJ Stephens
counsel for the people Of Spokane.
Argument by Analogy.
The brief which Brooks Adams ha.
fled in behalf of Spokane. is A remark.
able analysis OF the relations Of high,
ways 10 the development OF civilization
Mr.. Adams assumes as automatic tina
the peoples control Of highways /!
necessary TO the maintenance of thefl
sovereignty. His entire argument /.
based on the broad proposition that tn,
discrimination against the inter noun
tain cities in the form of freight rate,
Is nothing less than the modern equiva
lelt Of the forciful taking of tolls by
freebooters Of the Middle Ages all owe
the Continent Of Europe
1t is expected that the argument fl
this case will direct attention TO III
rail-
road rates. One school of thinkers per
sist that capitalization and valuation
have neither one Of them anything [
do with rates. and this is the viey
commonly advanced by railroad law
yers. The direct opposite Of this i
urged by Mr.. Adams and his co-coun
sellers in behalf Of the city Of Spokane
They insist that the Northern Pacih
and Great Northern railroads ar
grossly overcapitalized, and that it ha
been the uniform policy of Mr.. Hill {
keep his railroads capitalized up 20 tn
point where the capitalization woul
absorb in interest and dividend charge
all the revenues the traffic would bear
on the other hand, the attorneys 70
the Northern Pacific and Great North
ern undertake TO prove that at preseu
prices Of real estate, materials. equip
ment. etc. these railroads not only ar
not overcapitalized. but actually ar
represented by capitalization less tina
the reasonble cost Of reproducing tn
properties. In reaching this conclusion
of course, everything is put in at pres
ent values.
Decision Far Reaching.
In a large way the Spokane case re
QulreS the interstate OOIlUlls
sion to determine whether il will applI
with the authority of the Hepburn Law
the long and short haul clause. II
generally believed by members of IN
commission that the new law give
power enough TO revive the practice
application of that clause. notwithstanC
ing that the Supreme Court held In
case under the old law, that the long an
short haul clause was worthless an
could not be enforced.
The question Of water competition
however. is really larger question tina
ever before, because there is now re
prospect of the completion Of an istl
milan canal II sailing vessels have bee
able TO haul freight around Cape Hol
at rates so low as TO dictate the emit
schedules of rates to coast termin
points. then it seems certain that, wh'
the Panama Canal is finished, wat
competition will be vastly great
foctor haCauep the distance will ba,