The new era., 1909-03-25
RULING OF INTERSTATE COM.
MERGE COMMISSION MAY BE
FAR-REACHlNG.
RATES UNREASONABLE.
DECISION THAT PROMISES TO
HELP DENVER AND ROCKY
MOUNTAIN POINTS.


day morning says: Decisions on two
points of the famous Spokane rate dis
elimination case by the Interstate
Commerce Commission yesterday will
work revolution in railroad rates all
over the West.
The contentious of George j. kindel
in the Denver case, in which he pleads
for making Denver basic point, and
in which the chamber of commerce in
tervened on the ground that Kindel
was wrong. are supported by the Spo-
kane decision and if the decision is
followed out in principle, Denver will
get fair treatment in the future and
wholesalers and jobbers will be given
large reductions on almost every ship
ment from the East and to the West
The first point in the Spokane case,
that rates to Spokane were higher than
to Seattle, more distant point, was
decided in favor of the three railroads
named as defendants, the Union Pa
cific, the Great Northern and the
Northern Pacific. The railroads con-
tended that this rate was compelled
bywater competition and that there
fore they might charge the higher rate
without violating the long and short
haul provision of the law and without
discrimination against Spokane.
The second point contended for by
the city of Spokane was that the rates
to Spokane from eastern points were
unreasonable and unjust.
The commission found in favor of
the complainant and ordered lG3:,
per cent. decrease in class rates. The
reduction is horizontal and in some in
stances will be ninety per cent. and
in others only six to eight per cent
George j. Kindel regards the decis-
ion as an immense victory, without
bounds to its Importance, for the fair
rate fighters of the country.
"The decision is by far the most i'm
portant ever rendered by the Inter-
state Commerce Commission" said
Mr.. Kindel last night. THE Spokane
case embodies almos, the same Griev-
ances that are embodied in my suit,
No. 951, which has been hanging fire
for two years. That was the case the
with the statement that was wrong in
my contentious. They may change
their minds now. The decision holds
the greatest importance for Denver
and Denver shippers, and if the prin-
ciple Is enforced throughout the coun-
try, we will have little cause for COM
plant in the future.
The whole question resolves itself
into this proposition: In the past we
have been paving "A cents more on
freight shipped direct to Denver to be
transferred here for intermediate
points between here and the Pacific
coast, than If we shipped first to St.
Louis, transferred there, then to Kan
sas City. transferred there and then to
Denver and transferred here. Seventy
four cents more per hundred pounds
with two transfers and longer haul
than one transfer and a shorter haul.
It's the old water competition argu-
ment, and it don't go with me.
THE Interstate Commerce Commits
sion's decision means complete re-
vision In nearly all of the tariff sched-
ules Of every railroad In the country,
if the decision is enforced. Every in
termediate point in the transcontinen-
tai territory will be affected and bene-
fitted"
The order of the commission goes
into effect May 1st The commission
in arriving at its decision went deeply
into the history of the case, and the
rights OF the railroads to their rates.
The commission figured the capital of
the railroad invested. the cost of con-
struction and cost of operation and
then decided that for several years, in
the Northern Pacific's case especially,
earnings had been excessive.