The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-05-25
POINTS IN SOUTH
GET LOWER RATES.
Interstate Commerce Commission
Orders Material Reduc-
tions.
---
BECOME EFFECTIVE JULY IS
Richmond Chamber Of Commerce
an interviewer in
BECOME EFFECTIVE JULY X

Washington, D. c., May 24.--Aiaterial
reductions npon the numbered classes
cf freislfs between Cincinnati, Ohio,
and Chattanooga, Tenn. were ordered
to-day by the Interstate Commerce
Commission. The present rates. which
have been IN effect many years. were
held to be unreasonable. even in pre-
vailing conditions of cost of railroad
operation. The reductions will become
effective July Is next. The reductions
ordered by the commission on each of
the six classes of freight between Gin
cinnati and Chattanooga are as fol-
lows, in cents per 100 pounds:
First, rs to 70; second, 65 to so; third.
81 to SO; fourth. ~ to IA; fifth 40 to
3s, and sixth. 80 TO %. These rates, by
order of the commission, must remain
in effect. beginning on July 10. for at
least two years. 1t Is not only reason
ably certain that the roads Will con-
test the commissions order, but also
that. II the rates should continue In
effect their operation Wa result In
reduction in all-rail rates from At
lantic 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 Shippers
Association of Cincinnati against the
Cincinnati. New Orleans and Texas Pa
,clfc Railway and other interstate car
riers in the South, Before the final
| hearing of the questions involved, the
merchants Association of Boston, the
Business MEMS Association of Holyoke
| and the Boards of Trade of Salem,
Fitchburg and Springfield. Mass, and
of Portland. Maine: the Traders League
of philadelphia, the Merchants Asso-
citation Of New York. the Chamber OF
Commerce OF Richmond. the Board of
Trade of Norfolk, the Chamber of Com
merce Of Petersburg, the Merchants
and Manufacturers Association of Bal
/ timore and the indianapolis Freight
| Bureau became interveners.
I From Chicago to South.
/ In a subsequent case, brought by
/ the Chicago Association of Commerce
against the Pennsylvania Company. and
other carriers. an effort was made to
| secure lower rates from Chicago to
| points in the South than the combina-
| tlon 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 by Chi
| cago and Cincinnati. to various points
| of consumption in the South were too
| high, as compared with the rate upon
| the same classes from points of origin
in the East to the same points of des-
tinat1on in the South.
1t was held by the commission, In
the opinion written by Commissioner
| Prouty, that 1T was not apparent that
rates from the East discriminate
against the West. although It was
| conceded that the rates from Cincinnati
to Chattanooga We're so high as to be
| unreasonable The commissioner adds,
however, that distance Is to be taken
as the standard rates from the COM
/ planning cities are much higher than
1 from their rival trade centres upon the
Atlantic Seaboard, but where water
/ competition enters as a factor. some
different basis of comparison than dis.
tance must be found"
i Three notably important points are
4 made In the opinion, all of which are
applicable to transportation of freight
4 throughout the country. In the COM
mission words there are: The East and
West find a common market in this
section Of the South, and In determin-
ing whether the present rates from the
i West are reasonable one subject of In
! quiry is the movement of traffic under
] the present rates, The fair inference
\ from the testimony seems to be that
/ the relation In rates between the East
and the West, which has been9in effect
for the last third ,of a century, does
not to-day abnormally promote the
movement Of traHic from either Sec
ltion, HIM