The San Francisco call., 1909-03-03
SPOKANE WINS BIG
FREIGHT RATE SUIT
Tariff of Hill Lines Inherently
Unreasonable, = Rules
Commission
Horizontal Cuts Ordered Rang
ing From Six to Ninety
Per Cent


road rates involved in the famous case
of the city OF Spokane. Wash, against
the Northern Pacific and other rail-
roads were today held by the inter
state commerce commission to be in
herently unreasonable.
The decision says the eastern rates
to Spokane were higher than to Seattle,
a more distant point.
The interstate commerce commission
decided the two points in the complaint
filed by the city OF Spokane against the
Northern Pacific. the Great Northern
and the Union Pacific, which We're:
First, that the rates from eastern
destinations to Spokane were higher
than to Seattle, a more distant point.
Second, that the rates to Spokane
were Inherently unreasonable.
On the first point defendants main
tafned that water, competition COM
pelled them to charge the rates in
effect to Seattle and that therefore
they might charge a higher rate to
Spokane without violating the long
and short haul provision or without
discriminating against Spokane under
the law.
RATES ARE LAWFUL.
The commission sustains the claim of
holds that the rates to Spokane, al
though higher than to Seattle, are not
unlawful.
On the second point the commission
sustains the claim of the petitioner
and holds that the rates from eastern
! destinations to Spokane are unjust and
unreasonable. 1t reduces class rates
from st. Paul to Spokane 16 2-3 per
cent. and makes substantially the
a ad11Df {rv, ~
Kane. Rates east of Chicago are not
dealt with
The decision II applied in principle to
all commodities and to all interior
points must work revolution in
rates from eastern points Of origin to
all interior transcontinental territory
and In that view it is one of the most
far reaching decisions.
The case has been under considera-
ton for about a year and a half. For
many months the commission has been
endeavoring to settle the intricate
points involved, but not until a few
days ago was an agreement possible.
The unanimous opinion of the commits
sion was prepared by Commissioner
Prouty.
COMMODITY RATES INVOLVED
It is pointed out that nearly all com
modities to the Pacific coast move un-
der commodity rates, and these were
the principal subject of complaint upon
the part of Spokane. Rates from all
points on the Missouri river to Seattle
are the same, while rates from the same
points to Spokane usually are consid-
erably higher than TO Seattle, and they
increase as the points of origin lie
farther east.
| AS illustrative of this condition. the
complaint referred to 32 articles. The
I II drA frl =
nix the rates only upon the articles
enumerated. The cut in rates ordered
is horizontal and amounts in some in
stances to so per cent; in other cases
to only or S per cent.
| In the hearing the cost of reproduc-
Ing the properties Of the Great North
ern and Northern Pacific, their financial
history, their present capitalization and
their earnings in recent years were
fully considered.
Spokane to Celebrate
| SPOKANE, March 2.-The Spokane
merchants association Is planning for a
great public celebration in honor of the
freight rate decision announced by the
interstate commerce commission today.
The decision, which comes after a
campaign that has been wagered by
the shippers for II years. is expected
to add vast territory to Spokane s
1obbing field and is declared by Presi-
dent A w. Doland of the merchants
association to be ''one of the greatest
things that has ever happened in the
| history of Spokane"
| The decision is expected to be in
actual effect before May 1.
VIII Affect. Whole Coast
ST. PAUL. Mimi, March 2.-Wide-
spread changes will result from the de-
cision of the interstate commerce COM
mission in the Spokane rate case, ac-
cording to st. Paul railroad officials
They say that the order will necessi-
tate changes in class rates to a great
many points in Oregon. Washington and
possibly Montana.
There is a fixed relation between the
rates from eastern points to correspond
ing territory served by each of the
4 transcontinental lines" said an official
tonight "and therefore it would follow
/ that class rates would be reduced to
points similarly situated on the Union
Pacific, Santa Fe and Southern Pacific
lines. and the ultimate effect of such
changes will be a widespread adjust
ment of the rates in the whole territory
west of Chicago and south OF the inter-
national boundary"