The citizen. (Honesdale, Pa.) 1908-1914, 1910-07-01
INTERESTS.
Freight Rate Decisions At.
feet Entire Country.
QUEER METHODS ARE REVEALED
Interstate Commerce Commission Cuts
Railroad charges-Shows How In
ereasina Rates and Lowered Ex-
pcnses Swell Incomes.

Washington, June 3O.-Nation wide
interest was attracted today by the
freight rate decisions handed down
yesterday by the interstate commerce
commission:
These decisions affect freight rates,
both class and commodity, on all trans.
continental lines operating between
the Atlantic and Pacific oceans. Ex.
tenslve reductions were ordered.
The decisions are in what are known
as the Pacific coast cases. The cases
We're heard last autumn by the com.
mission on It's six weeks trip to the
Pacific coast and intermountain terri.
tory and have been under considera
ton ever since.
In every instance reductions in the
existing rates complained of were
made, and in some instances they
amounted to nearly 30 per cent. The
scommission found through its inquiry
remarkable rate situation existing
on the Pacific coast and even a more
remarkable one in the intermountain
territory. This is notably true of the
rates to and from Spokane, Wash, and
Reno, New.
The decision of the commission in
the case of the city of Spokane against
the Northern Pacific and Great North
ern railroad companies and other car.
riers was prepared by Commissioner
Prouty. It was held that the earnings
of the Northern Pacific and the Great
Northern for the ten years preceding
1908 might fairly be termed excessive
and that reductions in revenues might
therefore be made without violating
the constitutional rights of those COM
panies."
In fixing the rates to Spokane the
, commission did not use the rates to
| Seattle as standard, but adjusted the
rates to Spokane upon what it consid-
cred to be reasonable basis, taking
into account that water competition at
! Spokane was not material. Then the
I commission held as follows:
Joint through rates, both class and
commodity, should be established from
/ defined territories, east of Chicago to
/ Spokane"
! In each of the Nevada and Arizona
cases heavy reduction in class rates is
ordered, some of the reductions being
as high as 80 1-3 per cent.
1t was pointed out, as illustrating
the western methods of fixing rates,
that for carrying a carload of first
class traffic containing 10000 pounds
from Omaha to Reno the Union and
Southern Pacific lines charge 1858, but
that If the same carload goes 154
miles further, to Sacramento, the
rate to the more distant point, Sacra-
mento, is SO per 100 pounds and to the
nearer point, Reno, $429 per 10O
pounds. If the same carload of freight
originates at Denver, 500 miles west
of Omaha, the same rates to Reno and
Sacramento apply, and If the freight
originates at Boston, 1900 miles east
of Omaha, the rates are the same.
Turning to the division of earnings
between carriers on traffic from the
east to Reno, the commission finds thai
the lions share accrues to the South
ern Pacific company.
After discussing the situation tht
commission adds:
"The fact remains, however, that fol
the 2,4O0 mile haul from New York Il
Ogden the New York Central, the LAX,
Shore, the Northwestern and the UnioI
Pacific secure the same revenue out %
the 50 rate to Sacramento that they d,
out of the $4.29 rate to Reno.
Astonishing facts We're developed b!
the commission at its hearings con
cerning the earning capacity of tn,
Pacific lines. The commission show
that during the last two years tn
operating revenues of the Southern
Pacific company's Pacific system ha,
increased $S0O0,000, while its operat
ing expenses had decreased $5,000,00C
thus producing an increased operating
: income of over $12OO0,00O, or a ne
Increase of about $4,000 per mile o