Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1910-07-02
FREIGHT RATES
ARE TOO HIGH
Commission Orders Big Reduc.
lions in West.
OvERCHARGES SAID TO Be TRUE
Interstate Commerce Commission
Finds Remarkable Rate Situation"
and Charges Railroads Earnings
Are Excessive.

Are Excessive.
Decisions have been handed down
by the interstate commerce commits
sion which are countrywide In theft
Importance They affect freight rates
both class and commodity--on all the
transcontinental lines between the AT
lantic and Pacific oceans. Extensive
reductions were ordered.
These decisions are OF what are
popular known as the Pacific coast
cases. which were heard last autumn
by the commission on its trip to the
Pacific coast and inter.mountain ter.
Titory.
The commission. realizing the I'M
portance of the cases. not only TO the
railroads but to the shipping public,
prepared its opinions with great care.
Reductions In Every Instance.
In every instance reductions in the
rates complained of were made and in
some instances they amounted to al.
most 80 per cent
The commission found a remark.
able rate situation on the Pacific
coast. and even a more remarkable
one in the intermountain territory.
This was notably true OF the rates to
and from Spokane and Reno.
The Spokane rate case had been
before the commission in one form or
another for several years. Shippers OF
that city complained insistently OF
rates on freight classes and commodi.
ties from eastern points OF origin. be
cause they were required TO pay the
Pacific coast terminal rates. plus the
local rates back to Spokane from those
terminals. although the freight was
discharged at Spokane on the western
trip.
Substantially the same conditions
existed at Reno and other Nevada
points, which had to pay the rates to
San Francisco and the back-haul local
rates from San Francisco or Sacra-
mento to the point of ultimate desti.
nation.
These local rates. In most instances,
amounted To two-fifths or more OF
the entire rate from eastern points Of
origin TO Pacific coast terminals.
No complaint was made of the rates
of the eastern lines between Atlantic
points and Mississippi river transfers.
Earnings of Roads Excessive.
The decision In the case of the city
of Spokane against the Northern Pa
cific. Great Northern and other car.
81 he snun mi fafs or
Prouty
II held that the earnings OF the
Northern Pacific and the Great North
ern for the ten years preceding 1908
might fairly be termed excessive,
and that reductions in revenues might
therefore be made without violating
she constitutional rights Of those com.
panies."
The defendant lines maintained that
II material reductions were made the
result would be disastrous. in view
of reductions that necessarily would
have to be made elsewhere.
In fixing the rates to Spokane the
commission did not use Seattle rates
as a standard. but adjusted them upon
what II considered reasonable basis.
taking into account that water compe.
tition at Spokane was not material.
To proceed with caution the COM
mission determined before making a
final order to ascertain by an actual
test the result of present and proposed
new rates.
The carriers will be required. there.
fore, for July. August and September
to keep a detailed account showing the
revenues accruing upon business act
ually handled under present rates. and
revenues which would have accrued
had the rates prescribed by the com.
mission been In effect.