The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-06-29
Interstate Commerce Commits
sion Rules on Several Cases.
Each Has to Do With Traffic in
the West.
REDUCTION ORDERED.
In One Case 1t Is as Much as
80 Per Cent.
Declared to Be Unjust, Unrea-
sOnable and Excessive.

Washington, June 29.-Present class
freight rates between Utah common
POINTS, and Mississippi and Missouri
river transfer points are found by the
Interstate commerce commission to be
excessive, and they are ordered to be
reduced about IS per cent.
In case involving class freight rates
from eastern territory to Phoenix, Ariz,
the commission held the rates to be un-
just and unreasonable and ordered re-
auctions of approximately 30 per cent.
On complaint of the railroad commits
sion of Nevada the interstate commerce
commission hello that the class rates
from eastern defined territory to points
in Nevada are unreasonable and order
ed that rates materially lower be put
into effect by the carriers.
In what was known as the Port
land backhauF' case the commission
declared that the rates from Seattle,
Tacoma and Portland to points in
Washington, Oregon, Idaho and Mon
tana were unreasonable and a reduc-
ton of 20 per cent was proposed.
In the Spokane rate case the commits
sion decided that present freight rates
ere unreasonable and oppressive. Just
and reasonable rates or both class and
commodity freight were established for
the future.
By decision of the commission in
what is known as the Reno case, the
class al commodity rates from Sac
ramento' Cal, by the Southern Pacific
betW cen Reno, New, and Cecil Junction,
Titan, are declared excessive. Reason
able rates are prescribed.
OF Vast Importance.
The decisions handed down today by
the interstate commerce commission,
are of countrywide Importance. They
affect freight rates-both class and
Cmmodity-on all transcontinental lines
operating between the Atlantic and Pa
cIic oceans. Extensive reductions were
ordered.
The decisions are in what popularity
are known as the Pacific coast cases.
The cases were heard last autumn by
the commission on it's six weeks trip
t. the Pacific coast and intermountain
territory and have been under consid-
GRAFTON ever since. The commission re
allied the immense Importance of the
cases. not only to the railroads but to
the shipping public and it prepared its
opinions with the greatest care.
In every instance reductions in the
rates complained of were made and in
some instances they amounted to near
ly so per cent. The commission found
q remarkable rate situation existing on
the Pacific coast and even more re-
markable one in the intermountain ter
ritory- This is notably true of the
rates to and from spokane, Wash, anG
Reno, New.
The Spokane rate case had been be-
fore the commission in one form or an
ether for several years. The shippers
OF LndL city COulpldiHCu lDSlSI6Hlly OL
the rates which were charged on freight
classes and commodities from eastern
points Of origin. because they were re
uUired 10 pay the Pacific coast termi
lal rates, plus the local rates, back to
Spokane from those terminals. although
'he freight was discharged at Spokane
by the railroads on the western trip.
Subst9 ntially the same state of af-
fairs existed at Reno and other points
which had to pay the rates to San
Francisco and the bacl1haul local rates
from San Francisco to Sacramento to
the point of ultimate destination. These
territorial rates in most Instances
amounted to twO-fifths or more of the
entire rate from eastern points of or
igin to Pacific coast terminals
AS noted above, the decisions of the
class and commodity rates between
eastern points and the far west.
No complaint was made in any OF
the cases of the rates of the eastern
lines hetween Atlantic points and Mis-
sissippi river transfers and all of the
reductions ordered by the commission
affected the rates from Mississippi
river and Missouri river transfer points
to Pacific coast terminals and inter
mountain territorial points
The Spokane Case.
The decision of the commission IN
the case of the city Ct Spokane
against the Northern Pacific and Great
Northern railroad companies and 9TH |
eT carriers was pESpdISu ny OOAAlAIilo-
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 re- |
port 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 un-
reasonable on an entirely different |
consideration.
THE scheme of rates proposed by |
the Great Northern and the Northern |
Pacific for the transportation of traf- |
fic from st. Paul and Chicago to Spok- |
ane made by taking 75 per cent of the |
terminal rates. is founded on facts |
which do not exist and is constructed |
on a theory which cannot be approved |
by the commission"
The rates established for the future |
are materially lower-approximate |
20 ger cent on both classes and COM |
Inodities-but they will not be effective !
Immediately.
The defendant lines maintained that |
81 material reductions were made the !
result would be disastrous 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
st had expended approximately $685.
100000 and the Great Northern
showed it had expended $75,000,0O0 in
betterments.
The commission says: These sums
ould in each case equal approximate
25 Der cent of the entire production