Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1910-07-09
FREIGHT RATES
ORDERED REDUCED
The Interstate Commerce Commission
Finally Renders a Decision In
the Famous Spokane Case.

The interstate commerce commission
has handed down its long delayed de-
cision in the Spokane freight rates
case, and the result is decided victory
for the Inland Empire and Spokane in
particular.
The decision comes on the fourth an
niversary of the passing Of the Hepburn
law, under which it IS rendered, and
over 10 years after the city of Spokane
first started its fight against discriml-
natory freight rates. During this time
the case has attracted national atten-
tion and has been one of the most im-
portant with which the Interstate COM
merce commission has had to deal.
The ruling of the commission applies
to class rates and more than $50 COM
modities. 1t is estimated the reductions
will average about rs per cent of the
rates hitherto prevailing from eastern
points to Spokane.
The results of the decision will be
| two-fold. Spokane jobbing territory
will be greatly extended and the cost
of merchandise to Inland Empire con-
sumers will be reduced. The Trade has
been informed by many jobbers that
any reductions they get will be passed
will use the lower rates to extend their
business rather than to increase profits
on present business.
| Other inter-mountain cities will share
in the fruits of the victory, the great
credit for which must be given Spo-
kane.
Short Historical Resume.
The history of the Spokane rate case
| LOT 90 no al rlxrt 70 kl.,
city of Spokane,' backed informally
by the principal jobbers, made com
plant to the interstate commerce com
mission. AT that time the Spokane rate
was determined by taking the through
rate from the east to the Coast and
adding the local rate from the Coast to
| Spokane.
| A decision was issued by the COM
mission in the spring of 1892 which
gave Spokane a rate of 50 per cent of
the terminal rate to the Coast ON all
articles which were not actually carried
| by water. The limits of water competi-
| ton were also very carefully defined.
The railroads paid no attention to
this decision, and in 1896 the shippers
of Spokane brought suit in Judge Han
| ford IS federal court to compel the rail
roads to carry out the instructions of
| the commission. Before the court could
pass upon it, however, the United States
supreme court issued a decision which
declared that the interstate commerce
commission had no authority to fix
freight rates.
This brought matters to a halt until
six years ago, when the merchants of
| Spokane boycotted the Hill roads and
gave their freight to the o. r. & N.
Then Spokane was given what was
known as the "100-mile radius of job
bling rates, but these were steadily re-
stricted.
When the Hepburn bill was before
the senate committee, Brooks Adams of
Boston appeared before the committee
in behalf of Spokane and argued for
the passage of the bill.
1t was in 1896, also, that the chamber
of commerce elected a special com
mittee to gather facts and figures in
regard to Spokane freight rates, and
Spokane's suit against the railroads
was the first on the calendar under the
new law.
The first hearing was held in January,
1907, with Commissioners Charles A..
Prouty and Franklin K. Lane present.
There was another hearing in June, with
subsequent hearings in Portland Chi
cago and Washington. The commission
finally rendered a decision in February,
1909, in which the rates were reduced
on 81 commodities. The decision was
not mandatory, but allowed the rail
roads to make a counter-proposition
which was to take rs per cent of the
through rate to the Coast and add
thereto the local rate from the Coast
back to Spokane.
This proposal was opposed by a dele
CATION of Spokane business men, headed
by H. M. Stephens as attorney, which
appeared in Washington in person, June
10, 1909, presented a revised complaint
and succeeded in getting the railroad
proposal knocked out.
At that time 80 commodity rates
were suspended by the commission and
class rates were reduced 16 2-3 per cent
an advantage which the retailers have
enjoyed for Is months.
Spokane was allowed to substitute
the amended complaint, which included
more than 500 commodities, and the
commission made a six weeks TRIP
over Pacific coast and interurban terri
tory last fall, holding hearings, not only
in Spokane, but in Seattle, Portland
San Francisco, Los Angeles and Reno
|
these hearings and embodies all the
commodities named in the amended
7 complaint.
Conference July IL.
/ July IL is the date and Chicago tn
= place fixed by the interstate commerce
commission for conference with repre-
sentatives of railroad companies af
fected by the decision in the Spokan
rate case, at which time plans will
J. be discussed for checking up receipt
of the roads under the prevailing rate
and comparing them with receipts tina
would have accrued had the reduce
It rates favored by the commission bee
II put in operation.
Favor a Fair Profit.
;, The commission, before ordering tn
= roads to adopt the rates stipulated |
- the decision, is anxious to ascertai
whether the proposed reductions ar