Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-29
PRESENT CHARGES ARE
DECLARED EXCESSIVE
Reductions Called for in Every In
stance Where Complaint Is Made.
GIVEN THREE MONTHS TO TEST
Carriers Will Be Required to Keep
Detailed Accounts of Business
During This Period, Before
Order Becomes Effective.

Order Becomes Effective.
Decisions were handed down today by
the interstate commerce commission coun
try-wide I'm importance They affect
frelght rates-both class and commodity
on all transcontfnental lines operating be-
tween the Atlantic and Pacific oceans.
Extensive reductions were ordered
The decisions are of what popularity
are known as the Pacific coast cases. The
cases were heard last autumn by the
commission on its six-weeks' trip to the
Pacific coast and intermountain terri
tory; and have been under consideration
ever since.
The commission realized the immense
Importance Of the cases, not only to the
railroads. but to the shipping public
throughout the country, and il prepared
its opinions with greatest care
In every instance reductions in theeex
listing rates complained Of were made.
and In some instances they amounted
to nearly 50 per cent. The commission
found, through its inquiry, a remarkable
rate situation existing on the Pacific
coast, and even more remarkable one
I'm the intermountain territory. This -
Spokane. Wash. and Reno. New.
Celebrated Spokane Case.
The Spokane rate case had been before
the commission, in one form or another.
for several years. The shippers of that
city complained insistently of the rates
which they were charged by the railroads
on freight classes and commodities from
eastern points OF origin. because they
were required to pay the Pacific coast
termina ] rates, plus the local rates back
to Spokane from those terminals, al
though the freight was discharged by the
railroads on the western trip.
Substantially the same state OF facts ex-
listed at Reno and other Nevada points.
which had to pay the rates to San Fran
cisco and the back-haul local rates from
of ultimate destination. These local rates
in most instances amounted to two-hfths
or more Of the entire rate from eastern
points Of origin to Pacific coast terminals.
AS above noted. the decisions Of the
commission in these cases affect all class
and commodity rates between eastern
points and the far west. No complaint
was made In any OF the cases or the
rates Of the eastern lines between At
lantic points and Mississippi river trans
fers, and all Of the reductions ordered by
the commission affected the rates from
Mississippi river and Missouri river trans
fer points to Pacific coast terminals
and intermountain territorial points.
Railroad Earnings Excessive.
The decision of the commission in the
case of the city Of Spokane against the
Northern Pacific and Great Northern
Railroad Companies and other carriers
was prepared by Commissioner Prouty.
1t was held that the earnings OF the
Northern Pacific and the Great Northern
for the ten years preceding 1908 might
fairly be termed excessive and that re-
ductions in revenues might, therefore.
be made without violating the consti
tutional rights Of those companies"
Having determined that question, we
did not make reductions In rates to
Spokane for the reason that these reve-
nues were excessive and for the purpose
of reducing those revenues. The rates to
Spokane were held to be unreasonable.
and other rates were established as rea-
sonable upon an entirely different consid-
GRAFTON.
The scheme of rates proposed by the
Great Northern and the Northern Pacific
for transportation Of traffic from st. Paul
and Chicago to Spokane, made by taking
IS per cent OF the terminal rates. Is
founded upon facts which do not exist
cannot be approved by the commission.
1t is held by the commission that the
present rates charged by the Great North
ern and the Northern Pacific from east
and excessive. The rates established for
the future are materially lower-approxi-
mately 20 per cent on both classes and
they will not be effec-
tive Immediately.
Defense of the Railroads.
The defendant lines maintained that
X material reductions were made the re-
suit would be disastrous. in view OF re-
ductions that necessarily would have 70
be made elsewhere.
In addition, the Northern Pacific
showed that since the first decision
In the Spokane case, in the spring
Of 1907. it has expended approximately
s93, 600, 900. and the Great Northern
showed 1t had expended approxima tely
I75 coo 900 in betterments.
The commission says that these sums
would in each case equal approximately
p per cent OF the entire cost of repro
duction as found by the commission, and
would, II not accompanied by increased
perhaps justify the claim to 4
greater return. An examination OF the
nature of these expenditures does not
IAN have any legitimate bearing upon
the correctness of our former decision
In fixing the rates to Spokane the COM
mission did not use the rates to Seattle
Is a standard, but adjusted the rates to
Spokane upon what il considered to be a
basis, taking into account that
water competition at Spokane was not
Then the commission held as
ollows:
Joint through rates, both class and
commodity. should be established from
lefined territories east of Chicago to Spo-
Iane.
Where joint through rates do not now
exist from points east of Chicago upon
certain lines to Spokane the commission
finds that there is no reasonable and
through route and that such
through routes and joint rates ought To
De established.
Both class and commodity rates
should be slightly lower from Mississippi
liver points to Spokane than from Chi
ago points
In the Spokane opinion it was also
held that the rates to Baker City. La
srande and Pendleton. Ore. and Walla
Nalla. Wash. were excessive. in % far