The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1910-06-29
UTAH FREIGHT
RATES REDUCED
Continued from Page One.)

Tho decision OF the commission In
the case OF the City Of Spokane
against the Northern Pacific and
Great Northern companies and other
carriers. was prepared by ComInis
sioner Prouty 1t was held that the
earnings of the Northern Pacific and
the Great Northern for the ten years
preceding 1908. might fairly be term
ed excessive and that reduction In
revenues might therefore be made
without violating the constitutional
rights of those companies"
The report continued.
Having determined that question.
we did not make reductions in rates
TO Spokane for the reason that these
revenues were excessive and for the
purpose of reducing the revenues.
"The rates to Spokane were held TO
be unreasonable and other rates were
established as reasonable on an en-
tirely different consideration.
"The scheme of rates proposed by
the Great Northern and Northern Pa
cilc for the transportation of traffic
from st Paul and Chicago to Spokane,
made by taking 10 per cent from the
terminal rates, Is founded upon facts
which do not exist and is construct
ed on a theory which cannot be ap-
proved by the commission"
The rates established for the future
are materially lower-approXlmatel
20 per cent on both classes and com
modities-but they Will not be effec-
tive Immediately. The defendant lines
maintained that II material reductions
were made the result would be dis
astrous in view of the reductions that
necessarily would have to be made
elsewhere.
In addition, the Northern Pacific
showed that, since the first decision
in the Spokane case In the spring OF
1907, 1t had expended approximately
1000. 900 and the Great Northern
showed 1t had expended S75.000.000 In
betterments. Tho commission says;
These sums would. in each case,
IL accompanied by Increased earnings.
perhaps Justify the claim TO greater
return. An examination OF the nature
of these expenditures does not, how
ever. lead 10 the conclusion that they
can have any legitimate bearing.
Utah Rates Unreasonable.
Present class rates In both direc-
tions. between Chicago. the Mississip-
pi river and tho Missouri river on the
one hand. and Utah common points on
tho other nre held by the commits
sion to be unjust and unreasonable.
and material reductions nre proposed,
but no order on either class or COM
modify freight rates from eastern de-
fined territory to Utah will be made
until account Of the present and pro-
posed rates for the months of July.
August and September can bo OBJ
talned
This conclusion Is reached in the
case OF the Commercial club of Salt
Lake City against the Atchisou, To-
peka & Santa Fe Railway company
and other carriers
The commission also orders the
carriers TO reduce their rates on
fruits from California to Utah COM
mon points.
Tho passenger rates between Utah
common points and Omaha and Port
land are not found to be unreasonable
as alleged, but the fares between Salt
Lake City and Los Angeles, Salt Lake
City and San Francisco and between
Ogdcn and Provo and San Francisco
are declared TO be unreasonable and
they are ordered reduced.
The commission finds that only %
per cent of the traffic into Reno from
the East originates east of Chicago,
while as per cent originates between
Chicago and Denver.
Turning 10 the division of earnings
between carriers on traflc from the
east to Reno. the commission 1Dds
that the lions share accrues to the
Southern Pacific company.
1t Is significant. as indicated in the
opinion, that the lines east of Ogden.
Utah. receive exactly the same divis-
Ions out OF the so-callcd water COM
petition rates to Pacific coast ter
ninal points, as they receive out of
the vastly higher rates 10 Nevada
points. the entire difference being ap-
propriated by the Southern Pacific
company.
Astonishing fncts were developed
concerning the earning capacity OF the
Pacific lines The commission shows
that during the last two years the
operating revenues OF the Southern
Pacific companies Pacific system,
had Increased sS,000,000, while its op-