New-York tribune., 1910-06-30
HEAVY REDUCTIONS IN
FREIGHT RATES ORDERED
Commerce Commissions DecI-
sions Affect Every Railroad
in United States.
FIGHT WON BY SHIPPERS
Transcontinental Tariffs Cut as
Much as so Per Cent in Some
Instances-Three Months
Test Granted.
rFrou The Tribune Bureau

rFror The Tribune Bureau-l
washington, June 29.-EXtensive re-
auctions in freight rates have been or
oered by the Interstate Commerce Com
mission after months of investigation
The reductions affect both class ana
commodity rates, and will be felt by
every railroad in the country, despite the
fact that Far Western tariffs were made
the immediate subject of the inquiry
All transcontinental lines will feel the
primary effects of to-day's decisions.
which were prepared with the utmost
care and have been awaited with I'M
usual interest by shippers in all parts
of The country. They were rendered in
the Pacific Coast cases. The most i'm
ycrtant is the Spokane case, which has
been before the commission in one form
or another for several years.
In every instance reductions in the ex-
listing rates were ordered, and in some
cases these reductions amount to as
much as % per cent of the present
tariffs. The shippers of Spokane COM
plained 20 the commission that the rate
on freight to their city was the rate to
the Coast, plus the local rates TO Spo-
kane. although the freight was dis
charged at the latter point by the rail-
roads on the trip west. Reno, Salt Lake
and other cities in that section seconded
the complaint The commission recon-
raended a reduction Of approximately %
per cent in the rates to these cities
This reduction. however, will not be I'M
rnediately effective In order to pro-
ceed with caution the commission has
determined TO ascertain by actual test
the effect of proposed rates. and Will re-
ouire the carriers to keep detailed ac-
count for three months showing the rev.
enues and the expenses. The commits
sion found a remarkable rate situation
existing on the Pacific Coast, and an
even more remarkable one in the inter
mountain territory. This is notably
true of the rates to and from Spokane
and Reno.
Coincident with the decisions HANDED
down to-day. which viii involve an i'm
rlense amouAt Of work on the part OF
the commission, hundreds of tariffs were
fled to-day by the trunk lines, including
the Pennsylvania and the Erie rail-
roads. These tariffs increase class rates,
and will have to be investigated by the
commission before they can become ef-
fec1iye under the new rate law. The
commission has decided to hold con-
ference on July 10 to consider these
tariffs after experts have studied them
carefully.
Decision in Spokane Case.
7ba 5ac;e;or of the commission in the
case Of Spokane against the Northern
Pacific and Great Northern Railroad
companies and other carriers was pre-
pared by Commissioner Prouty- It was
held that the earnings of the Northern
Pacific and the Great Northern for the
ten years preceding 1903 might fairly
be termed excessive and that reductions
in revenues might therefore be made
without violating the constitutional
rights Of those companies" The COM
N mission adds:
Having determined that question. we did
not make reductions in rates 10 SPOKANE
Tor The reason that these revenues were
excessive and for the purpose of reducing
these revenues. The rates TO Spokane were
held to be unreasonable. and other rates
were established as reasonable upon en-
tirely different considerations
The scheme OF rates proposed 10y the
Great Northern and the Northern fdClllC
Tor transportation Of traffic from St. Pau
and Chicago 10 Spokane, made by takine
80 per cent OF the terminal rates, IS founded
upon facts which 90 not exist and IS con
structAd upon a theory which cannot pt
approved by the commission.
The defendant lines maintained that
if material reductions We're made the
result would be disastrous in view OF
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, it had spent ap-
proximately 1913 600 900. and the Great
Northern showed it had spent approx
rnateIy S75eo0000 in betterments. The
commission says:
These sums would in each case equal ap-
rroxirnately 25 per cent Of the entire cost
Of reproduction. as found by the conInls-
sion and would. if not accompanied DE IN
creased earnings. perhaps justify the claln
to 2 greater return An examination OF tht
nature Of these expenditures does not
b0Trever' lead 70 the conclusion that they
can have any legitimate bearing upon the
correctness Of our former decision
In fixing the rates to Spokane the
commission did not use the rates to
Seattle as a standard, but adjusted then,
on what it considered a reasona bic
basis, taking into account that water
competition at Spokane was not ma
terial. Then the commission held as
follows:
Joint through rates. both class and com:
modify. should be established from defined
territories east Of Chicago to Spokane
Where Joint through rates do not now exist
from points east OF Chicago upon certain
lines 10 Spokane, the commission finds that
there is no reasonable and satisfactory
routes and Joint rates ought 10 be estab-