The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1909-09-17
GRAIN RATE
is CUT
prDITCTION IN WHEAT TAR
IFF ORDERED BY CON-
MISSION.
Complaint of East Side Grain
Growers, After Extended In
yestigation, Is Declared Well
Founded-Farmers Will Benefit
BY 1t.

OLYMPIA. Wash, Sept. 13.-Grain
toe on the Northern Pacific, except
=. Washington Central branch, are de-
.rorod unreasonable, excessive and ex-
,rlitant by the state railroad commits
"a, which has issued an order di-
.,o+ino that a rate not exceeding STU
,,,. cent of the rates charged by that
rosd June 50, 1909, be hereafter in
effect.
The Northern Pacific is commanded
=, iscne tariffs in accordance with this
order, The hearing as to the Great
Northern and as to the Washington
Central branch of the Northern Pacific
N this grain-rate case is continued for
further investigation.
Thousands Saved to Farmers.
BASED upon last years grain move
mpnt this reduction of 12k per cent
!, rates would mean loss to the rail-
road in revenue of approximately
eq0o 600. No order is issued as to the
q f & n, but, in view of the fact
that the Northern Pacific territory
covered by these new rates is largely
connective with the Oregon road, the
latter line will probably be forced to
meet the cut
This order results from complaint
made to the commission years ago by
W R. Cunningham, of Ritzville, and
hundreds of other East Side grain
growers.
The memorandum opinion filed in
the case recites briefly the history of
the Investigations resulting in the Or
der. Among other things, it shows
that the Northern Pacific is earning
more than $1,000,0O0 a year on state
business alone, in excess of per
cent dividend upon the full value of
all the companys property used in
state transportation. The opinion
shows the enormous increase in net
return by the Northern Pacific the
past five years, which went up from
Ill per cent to 1S.5 per cent.
Difficult Problems Ahead
1t is serious problem with the
commission how to dispose of the
Great Northern side of the case, for
the reason that the earnings of the
Great Northern in recent years, on ex-
Clusiyey state business, have been
actually less than per cent on the
value of the property used in state
business. This is due to the fact that
for many years that railroad permitted
its rOadbed and equipment to run
down and lately it has been forced to
large expenditures from it's earnings
to bring its property up to the proper
condition.
The memorandum opinion filed in
this case follows:
This is the first case heard by the
question of what is reasonable rate
1t involves a determination of what
Is reasonable return for the railway
company to make on the value of it's
property from its freights and fares.
How far railway may apply earnings
10 DettermentS and improvements and
thereafter insist on a capitalization of
Such improvements, very materially
affects the public as we'll as the road.
mat 1t is in the interest of the pub
tic that such improvements and
changes to roadbed as will cheaper
the cost of transportation be early
made cannot be gainsaid.
The debatabe lquestiQn is whether
such improvements should be made
from earnings or an increase in capital
STOCK. That a surplus fund be pro-
FIded in good times from which to
pay deficits in hard times instead of
further burdening the public by raise
IN rates during such hard times ought
not to be open to question. Our rail-
roads are new. They were construct
eu to meet conditions then existing.
Inc management was unable to antici-
pate the demands that the phenomenal
growth in wealth and population has
MADE on their lines. Grades and cur
'atures that a few years ago were
reasonable, are impracticable today.
lrafhc conditions are uns ettled. State
earnings are increasing proportionate-
much faster than earnings from in
'eFState business. The advent of the
he" transcontinental lines now build
ing IN the state adds further ele-
nent that tends to render unsettled
Tue net earning ability of the roads
operating in the state. Transportation
lacliltles are clearly inadequate to
meet the demands that will be made
III The near future, and many miles of
NE" roads must be constructed.
Just what amount should be allow
gu TO meet any or all of these contin.
sehcles and conditions is difficult, if
not impossible, to arrive at until the
earning ability of the roads is further
demonstrated. We can but approx
inate, and give such consideration
'hereto and make such allowance and
provision therefor as our best judg.
ilent dictates. The allowance may be
100 great or too small. Mathematical
precision, however, is not necess airy to
d Qot0rmin fiop Of +bo :ca,,2. loro -,