The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-03-05
D|STR|BUT|vE
RATES LOWER
MANAGER OF SEATTLE TRANS
PoRTATIoN BUREAU, MAKES
STATEMENT ON CASE.
Points Out Differences Between Tariffs
to Coast and to Inland Empire
Points.


merca and formerly secretary of the
oreeon Wholesale Grocers' association
at Portland, expressed the belief that
one result Of the Spokane rate decl-
sion will be a very pronounced reduc-
ton of all distributive rates from the
coast to interior points. In an inter-
view Mr.. Mears speaks as follows:
Seventeen years ago, in the summer
of 1892, Spokane sued the transcontl-
mental railroads before the Interstate
Commerce commission, demanding
rates from middle western and Atlantic
coast points to Spokane as low as was
given the Pacific coast terminal cities
Seattle, Tacoma, Portland, etc. AL
that time I was a resident of Spokane
and felt that the city was being dis
eliminated against by the railroads
With other leading citizens-notably
Mr., Easson (now dead) and Mr.. Do
land of the Spokane Drug Co., assist
ed with all my power in trying to right
what we considered grievous wrong
We secured a decision that the class
rates to Spokane should be 80 per cent
of the class rates to the coast. This
decision was however, overturned by
the United States supreme court. TWO
wears ago Spokane instituted another
suit before the interstate commerce
commission, making practically the
same complaint The decision of this
case. known over the whole country
as the Spokane Rate Case was pub
lished yesterday.
"In this suit Spokane claimed that
rates from the east were inherently
unreasonable and pointed to the fact
Of the immense sums piled mp by the
Union Pacific, the Great Northern and
the Northern Pacific, as surplus which
amounted to nearly $30,000,O00 for each
company. Also pointed to the large
dividends given the stockholders and
more especially to the certificates
against it's ore lands, which were is
sued to the stockholders of the Great
Northern by that company, practically
an immense dividend.
Spokane's Claim.
Spokane further claimed that it was
outrageous and unlawful for railroads
| to charge more for carrying freight to
Spokane than they do for carrying the
same kind of freight clear through to
the coast cities-Seattle Tacoma and
Portland. To prove this contention
| they enumerated 80 commodities, on
which they asked terminal rates.
"Of course, until I can see the full
decision, read it carefully, and study It,
| 1 cannot give an exact opinion as TO
what the decision actually is, and as
| to how far reaching it is; but taking
what information is available, should
say that the commission agrees with
| Spokane; agrees with the coast cities,
too, for that matter, in deciding that
Spokane rates are m themselves in
| herently unreasonable.
'1t also, as the report says, allows
Spokane terminal rates on of the 80
| commodities enumerated. What these
commodities are, we, of course, cam
not know until We get the full decision
CAS- to the other point raised, the
commission decides, as it has more than
based on-not the theory, but the fact,
that ocean competition makes the
trans continental rate to all Pacific
coast ports-is a proper system, and
that rates to coast cities may be lower
than to interior points, like Spokane,
and still be lawful and reasonable, no
matter if the haul to the coast cities
is longer than the haul to the interior
city.
Inherently Unreasonable.
/ present Spokane rates are based on
this theory, and the class rates are
formed by taking the rates forced on
the railroads by water competition at
coast terminal points, and adding it to
the local rate back. The distributive
rates back into the interior from Pa
cific coast terminal cities are abnor-
mally, unreasonably and unlawfully
high. Everyone seems agreed on that
point Even high railroad officials
have quietly acknowledged that dis
tributive rates from the coast to the in
terror are indefensible. AS the commits
sion says, The rates to Spokane are
inherently unreasonable and as
these rates are composed of two rates,
viz: The rate to the coast-which is
forced down by water competition, and
cannot be unreasonable-and the rate
back to Spokane, which is high and
unreasonable the railroads must re-
duce the rates back to Spokane. This