The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-05-25
BIG REDUCTIONS
IN RATES ORDERED
Cut Is to Be Made Between
u Cincinnati and Chattanooga
ROADS WILL CONTEST
If Straight Rates, rs Ordered, Shor..
Continue In Effect Other Reduc-
lions Would Follow In the
Southeastern states

Washington, May 24.-Materlal re
duction in the numbered classes o
freight between Cincinnati. Ohio. an,
Chattanooga, Tenn, were ordered to
day by the interstate commerce com
mission. The present rates. which hav
been in effect many years. were he'll,
to be unreasonable even with prevail
ing conditions of cost of railway oper
alton.
The reductions will become effectiv,
July IS. next.
The reductions ordered by the com
mission on each of the six classes O.
freight between Cincinnati and chatta.
nooga are as follows, in cents per hund
red weight:
First, rs TO 70; second. 65 to so
third, 81 to SO; fourth, Al to A; fifth
40 to IS. and sixth. 80 to % These
rates by order of the commission musi
remain in effect beginning on July Is
for at least two years.
1t is not only reasonably certain that
the roads will contest the commits
sion's order but also that IL the rates
sh ould continue in effect their oper-
alton will result in a reduction of the
sea and rail rates from Atlantic ports
to points of destination in the interior
of the south.
The order of the commission was is
sued in connection with an opinion In
the case of the Receivers and Ship
pers' association of Cincinnati against
the Cincinnati, New Orleans and Texas
Pacific railway and other interstate car
riers in the south Before the final
hearing of the questions involved are
settled the merchants of Boston, the
Business Mems association of HolyoEc
and the boards of trade of Salem, Fitch
burg and Springfield, Mass, and of
Portland. Me- the Trades league of
Philadelphia. the Merchants association
of New York, the chamber of COM
merce of Petersburg, the Merchants
and Manufacturers association of Bal
timore and the Indianapolis freight 5u
reau became interveners.
In a subsequent case brought by the
Chicago Association of Commerce
against the Pennsylvania company and
other carriers an effort was made TO
points in the south than the coinbina-
ton of the local rates through Gin
cinnati
In effect the cases involve the same
points.
The burden of the complaints was that
the rates upon the numbered classes Of
freight from the central west represented
,,,s,a 10 ri
points in the southwest were too high
as compared with the rates upon the
same classes from points of origin in
the east to the same points of destina-
ton in the south.
1t was held by the commission, in the
opinion written by Commissioner Prouty.
that it was not apparent that rates from
the east discriminate against the west.
although it was conceded that the rates
from Cincinnati to Chattanooga were so
high as to be unreasonable.
The commissioner adds that ''if dis
lance is to be taken as the standard
rates from the complaining cities are
much higher thar from their rival trade
centers upon the Atlantic Seaboard; but
Were water competition enters as 1dc-
tor some different basis of comparison
than distance must be found
Three notably important points are
made in the opinion. all of which are ap-
plicable to transportation of freight
throughout the country. In the commits
sion's words these are
East and the west find a common mar
ket in the south and in determining
, whether the present rates from the west
are reasonable ones subject to inquiry is
the only way under traffic arrangements.
The fair inference from the testimony
seems that the relation in rates between
the east and the west, which has been in
effect for the last, third of a century.
does not today abnormally promote the
movement OF traffic from either section.
Neither the west nor east has any
right to invade the southern territory
without reasonable rates and 1t must do
business under that rate. A railroad Is
entitled to fair return upon the value
OF the property devoted to the public
use and it is not entitled to have that
property paid for by the public"