The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1910-11-18
MOST IMPORTANT WORK WAS
DETERMINING REASONABLE
NESS OF RATES.
under Former Rates One Road Made
10 Per Cent on Value of Property
in Standardization Have Amount.
ed to $1,25o,ooo AnnuaIIy-valuation
Of Telephone and Telegraph Prop.
erty Next.

rodd commission today made public
letter to Gov. Hay reviewing it's
work since organization five years ago.
The communication was drawn up to
transmit the COMMISSIONS fifth an
nual report, which, however, will not
be ready for publication until Decem-
Der 10.
The report says in part:
The most important act of the COM
mission was the determination of the
reasonableness of railroad rates in
this state. The findings in the valua-
tion case established, among other
things, the fact that the Northern
Pacific Railway Company was making
a net return from it's state business,
of approximately 10 per cent. Grain
being one of the principal products of
this state, product upon which large
ly depends the prosperity of its peo-
pie, the commission concluded that a
substantial reduction could be made
in the charge for transporting grain
and still leave the railroad an ample
return on its property, and therefore
an order reducing the rates on grain
substantially IL per cent, was made.
At this time the charges on other COM
modities were relatively high, and, in
making the reduction on grain, the
commission kept in mind the fact that
a reduction on other commodities was
called for, provision for which must
be made without reducing the revenue
of the railroad below a reasonable re-
turn.
Reduction $1,25o,oo0.
"The commission has not deter
mined what that return should be.
The railroads have enjoyed an era Of
great prosperity and have been taxed
to the utmost in order to move the
traffic offered. From its decision in
the grain rate case no appeal was
made by the railroads, and the reduc-
ton ordered has been in effect since
November 1, 1909. The amount of
such reduction on all the railroads in
this state is estimated at $750,000 an
nually. Owing to relation of rates and
the location of the grain districts of
Oregon and Idaho, similar reductions
were made in those states, so that the
total reductions amount to about ST.
100000 annually"
Electric Road Rates.
can order was rendered reducing
certain passenger rates on the Puget
Sound Electric railway to rates for
merly charged" says the report.
From this decision an appeal was
filed and the case is now pending in
the courts. This is one of the inn
portant decisions made by the COM
mission, involving as it does every
phase of rate regulation and every
principle of law laid down by the SUI
preme court of the United States af-
fecting regulation of rates."
The total constructed railway mile
age in the state has increased from
1927 miles four years ago to 5,168
miles at present. This is an increase
of more than So per cent in five years,
the greatest per cent of increase OF
any state in the unien except Nevada"
The commission reports that many
new railroads are being built in this
state and the mileage is rapidly In
creasing." The new roads will divide
the movement of traffic. The commits
sion believes that the growth OF the
state will more than keep pace with
railroad development.
The review says the commission is
now engaged in the valuation OF the
telephone and telegraph property In
this state preparatory to making q
determination of the reasonableness
of the rates and the tolls charged.
"The history OF telephones has been
very largely one of monopoly" says
the commission.