Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-06-16
RAILWAY COMMISSION TACKLES
BIG PROBLEM OF RATES ON
WESTERN LINES.
COMPLAINT OF FAR WEST
APPARENTLY is JUSTIFIED
Fabric Of Rates Shown to Be Unrea.
sonable and lllosicaI-commerce
Commission Will Undertake to Fix
Valuations of Property as Basis for
Fixing Fair Charges.
Especial correspondence.)

Especial Correspondence.)
Washington, June 16-The govern
ment authorities are now fairly entered
upon the first stages of a long crusade
against the entire scheme of railroad
rates in the trans Missouri west, which
looks to pairing down very greatly the
revenues of the far western railroads,
and to establishing a general reorgan-
ization of the relations of rates in that
territory.
How sweeping and important this
readjustment is likely to prove, is
shown by the fact that its keynote was
sounded in the decision Of the COM
mission in the famous Spokane case.
The unanimous opinion of the commits
sion in that action said in substance:
"These far western railroads are
earning too much money; they ought
to be compelled to divide up with the
public in their territories.
That is pretty radical view to take,
but it is the present-day feeling of the
commission. 1t has long been the
feeling of the people who patronize the
railroads in the inter mountain coun-
try; and within the last year chis feel
ing has crystallized into such a deter
mined movement for lower rates and
fairer adjustments, that it has reached
up to the big politicians, and corn
PEELED them to choose whether they
should stand with the railroads or the
business interests. In the main they
have taken their stand with their peo-
pie. A few weeks ago a deputation OF
far western senators and representa-
tives went to the White House. on be-
half of the petitioners in their home
states and told the president of the
demand for investigation and reorgan-
izaton of the rate conditions; and
ever since that time there has been
succession of doings at the interstate
commission, which plainly indicates the
purpose of that body to get some re-
suits if possible
Radical Reform Needed.
The basis of the far vests COM
plant can be summarized in single
instance. 1t costs more to haul many
kinds of freight from Ogden to Den
yer than to haul the same article from
San Francisco to Omaha. 1t costs more
to move some important freights from
Denver to Omaha, than from Sar
Francisco to Chicago.
| With such a curious arrangement az
that at the bottom. the whole fabric
of rates in the farther west is criticized
as utterly unrea sonable and illogical
The western business interests insist
that it is holding back the commercial
and industrial development of Their
section. They want radical reforms.
The Spokane case is to come up II
a new phase in a short time, and The
commission has suggested that. ir
order to make it broad enough to IN
clude the whole far western rate sit
uation instead of merely the loca
status at Spokane some other city il
another part of the west intervene
reached at Spokane apply to othe
eral cities will accept this advice
Meanwhile the members of the com
mission are seriously considering {
tour to the far west during the sum
mer, for the purpose of a careful in
vestigation of the whole situation, an
| incidentally to hear some of the ives.
ern cases which are pending.
Will Undertake Valuations.
In the Spokane case the Northern
Pacific and Great Northern roads FLEE
detailed schedules of valuation of thei
r,-itt vic "a
strating that the immense investment
they have in their plants makes it nee
essary to charge the old rates if the
are to be allowed to earn fair return
on their Investments The commission
at loss how to disprove the reason
ableness Of these statements, has de
cided upon the highly important ste
of undertaking its own valuation 0
these roads, and has hired Dwight {
Morgan of Saint Paul to make the val
! uation. Morgan managed the valuatio
OF the Minnesota railroads for tn
authorities of that state. He is al
ready started on his new task. Th
commission is about sending to his di
a staff of expert assistants.
This valuation LIS recognized as tn
beginning toward general valuatio
of the railroads of the entire countr.
There is likely to be no stop after tn
work is once under way. 1t will b
extended to the other far western ron
after the Hill lines are valued: IN
then to other sections of the countr.
So important Is the work considere
that the commission has entered upo
it without stopping to ask the author
ity Of an appropriation from congress
1t considers that it has enough author
ity, and can so handle its funds as
pay the expenses until congress sha
be ready to make specific approprl
ation.