The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-01-12


the Missouri river to, the Pacific coast
were $50 under straight. mileage" the
charge TO Salt Lake would be $40 and
under a constructive mileage" OF one
and onc-half miles the charge would
be SIS.
Taking only arbitrary figures as an IL
lustratIon for the sake OF clearness, and
charge is $50 to san Francisco today
from the Missouri river, and the charge
from San Francisco TO Salt Lake, going
east, of course, is $40 then the present
river to Salt Lake is the rate TO the
coast, $50, plus the back haul from the
rate to Salt Lake from the Missouri
river OF $50.
Some Illustrative Figures.
Considering the rate from the Missouri
river TO the coast as $50 and the charge
going east from San Francisco TO Reno
river to Reno is $50, the coast rate, plus
50, the back haul charge from the coast
10 Reno, or total OF S25 from the Mis-
This would make the rate to Salt Lake
$50: to Reno SIS and to Los Angeles
and San Francisco $50. all starting from
over the same rails right through Salt
Lake and Reno,
The goods. by the way. are not hauled
clear through TO the Pacific coast from
the Missouri river an dthen hauled back
| to Reno or TO Salt Lake from the coast.
| The goods are stopped at Salt Lake or
| Reno and delivered but the charge Is
made for hauling them to San Francisco
and back, although the haul Is not ac-
| tual!y made.
| The inland cities, such as Spokane,
Reno and Salt Lake, are asking tina. the
I rates to the coast remain practically as
| they arc, but that the rates TO the inland
| points be reduced, In some cases lower
than the coast rates, as in the case OF
| Salt Lake, and In some cases equal 10
the coast rates, as in the case of Reno
| The coast cities such as Seattle, Port
land, San Francisco and Los Angeles, are
asking that the coast rates be made low
er and that the "back,haur' charges be
practically es they are. Naturally these
coast cities act with the railroads aSalnst
the inland icties to keep inland rates high
going west. but cheaper going east al
though hghting against the railroads TO
have coast rates lowered
The railroads are lighting both the
coast and the inland cities In trying to
1t Is three-cornered fight all the
cities fighting the railroads for lower
rates to their own particular town, and
roads in keeping up rates TO rival cities.
The position of the inland cities and the
coast cities are exactly opposite, each
asking the interstate commerce oommls-
sion to grant exactly opposite peti-
tions.
What Reno Wants.
Reno asks for practically the same rate
as is given to the coast cities, The Keno
railroads in the United States haul yearly
about 100000 tons OF freight to the
Pacific coast, and that the ships carry
only about $50 900 tons. hence that the
ships cannot cut into the business OF
the railroads very much. The railroads
say that If the rates TO the coast We're
higher. which no one asks for. oy the
way, not even the railroads themselves.
that the ocean is still there and mat
more ships would soon appear and carry
practically all the freight.
rates to the coast have to be so low oe-
cause OF hits water competition that the
inland cities must pay higher rates or
the roads cannot make any money.
The Reno brief calls attention to the
testimony of G. w. Luce, general freight
agent of the Southern Pacific. in the Salt
Lake hearing when Mr., Luce testified
that approximately SO per cent OF the
business that passed through Ogden and
Salt Lake is to and from the Pacifc;
coast and that IL Is not ''remunerative.
The Reno commissioners asked Mr..
Luce please 10 explain how it is that
II 96 per cent of the business OF his road
ages to pay 10 per cent dividends, and If
all this profit comes out OF the other
4 per cent of the business, that is. the
business to the inland ah points Which must
Caught in this tangle OF questions, Mr.. |
Luce had practically no answer TO make.
Some Inexorable Logic.
IF one-half of the business fails 10
pay just return for the service and
the whole business is fairly profitable. It
follows by the most inexorable rule of
logic that the other half must pay more
than its just proportion says the Reno
brief,
The brief is less happy. however in
another part where il says: suppose, !
for example. that there were no competi-
ton at the terminals, that the terminal
l., hal of hn ttyhn a nd
that the net profits were per cent. Sup
pose. again, that competition should sud
denly spring up at the terminals fore
ing reductions in rates there which would
cut down the profits on that part OF the
business to per cent. This would re-
duce the general profits OF the whole
ously argued that the road would have
n right 10 raise the rates where there
was no competition to figures that would
maintain the general average OF profits
at per cent? Such a contention. we are
sure, would never receive the approval
OF the commission or Of any court"
This contention the railroads seriously
make on the grounds that TO use the il
Illustrative figures OF the Reno brief. the
road must pay per cent or there VIII
be no railroad, and that money cannot be
had 10 build more railroads or to keep up
the road as 1t IL. that railroad is pub
lie necessity and must be maintained.
that the railroad for number OF rea-
sons must run from the terminals both
for the good of the terminals themselves
and for the inland country and the east
ern country, and that II the terminals are
so situated by nature as TO get a per
cent rate, as the brief has IL, that then
the other less favored points inland must
make up the balance. that the inland
must pay the per cent. or have no rail-
road at all, for without the average 6
per cent there will soon be no railroad to
either terminals or inland points,
Excessive Railroad Earnings.
On the other hand. Il IS maintained
that the terminal business does not rep
resent a loss in any case: although the
earnings may not be up to the average.
and that the railroad earnings are. as
whole too high. far beyond the illus
| trative per cent on a legitimate basis
OF investment. and that this excessive
profit Is made out OF the inland cities,
as il cannot be made out OF the sea-
coast cities because OF the ocean and the
ships, hence the inland rates should be
reduced and the earnings OF the, roads
| brought down TO more reasonable per-
ceniage on actual Investment.
The Reno brief also states that, ac-
L