The Washington herald., 1910-06-30

The Interstate Commerce Commission
yesterday handed down several decisions
OF Importance 10 the country.
It has ordered extensive reductions Of
freight rates west OF the Missouri River.
especially In the intermountain and Pa
cihc States.
These reductions are the most compre-
hensive that tfice commission ever made,
and will AFFECT all transcontinental lines
The bulk. II not all. of the burden of
the reductions however. win fall upon
roads operating west Of the Mississippi.
whose rates have been relatively higher
than those Of the roads OF the East.
The commission has not. however,
taken this important step without exer-
cising a good deal of caution.
It has provided for the postponement OF
the effective date OF it's more important
orders until October /.
In the meantime the railroads affected,
acting under the commissions orders,
will keep two sets OF revenue accounts,
one showing the revenue at the present
rates, and another the figures as they
VIII stand at the reduction ordered by the
commission.
To Test Soundness.
This comparative data is to be sub
mitted before October I. and through
this actual test the commission believes
that II will be able to verify the sound
ness OF the decisions that the present
rates are unreasonable.
The decisions handed down involve
what are popularity known as the Pacific
Coast cases. The cases were heard last
fall by the commission on a six weeks
trip 10 the Pacific Coast and intermoun-
tain territory. and have been under con-
sideration ever since. The commission
orders a reduction OF rates in practically
every case complained OF. In some in
stances they amount 20 close 70 80 per
cent The long and short haul question
is involved In most OF the commission
present decisions.
Bitter Complaint Over Rates.
Spokane. Wash, and Reno. New. are
two cities that have complained bitterly
against this method OF rate making. and
they have been sustained by the COM
mission. The railroads. Of course. have
contended that they have had to make
reductions.
The commission invites from the rail-
roads any criticisms Of its schedules, 20
/ he fled with the commission on or be-
| fore August 10
IF upon examination OF the objec-
tons so fled" says the commission.
such course seems necessary, opportu-
nifty will be given 10 the parties during
| the month of September 10 present tes-
/ timony IN support OF their objections, 20
| the end that by October the case may
stand for final disposition.
I'VE do not recognize the right Of the
| carrier" says the commission. "to sin
gle out piece OF expensive road and
make the local trif1c thereon bear an I'm
due portion Of the expense of its main
| tenance or OF its construction"
Southern Pacihc'E Case Cited.
The commissions opinion, which was
written by Commissioner Lane, says that
in the past two years the operating reve-
nues Of the Southern Pacific system have
| increased SS,0O0,OO while its operating
! expenses have decreased $500, 900, thus
/ producing an increased operating income
OF over $l20Oo,O60. or a net increase OF
about $1,000 per mile Of road.
THE time has come, IN our opinion,
| says the commission. when the carriers
/ west Of the Rocky Mountains must treat
/ the intermountain country upon diff
4 ferent basis from that which has hitherto
/ obtained
Members OF the commission believe
that the decisions which it has handed
| down are bound to result in a general
| readjustment of transcontinental rates
and in the local rates in the Pacific and
/ intermouptain States. It is likely that
other decisions Will be handed down to-
/ day along the same lines
The decisions in these cases, entailIne
an actual test from now until October
l on many of the roads, has still further
complicated the railroad rate situation
both for the railroads and the Interstate
f Commerce Commission. The commission
is buried with work in passing on thC
postponed increases that have been filed
| by all of the trunk lines
The commission has decided to hold g
general conference with the railroads or
July 10.