East Oregonian : E.O. (Pendleton, OR) 1888-current, 1910-03-10
FREIGHT RATES TO
PENDLETON REDUCED
CITY Will. GET BENEFIT
OF IA PER CENT CUT
New Schedule VIII Go in Effect Sun
day, March 20-Comes In Response
to Decision OF Supreme Court-Due
To Efforts of Railway Commission.

Pendleton will have the benefit of
a IA per cent cut in freight rates from
Portland on and after Sunday, March
20, according to an announcement
from Portland The cut is made in re-
sponse to the recent decision of the
state supreme court which dissolved
the injunction the railroad company
had secured restraining the state rail-
road commission from compelling
them to put such a reduction In ef-
feet.
This case was started in July, 1907,
when the Portland chamber Of COM
merce filed complaint with the state
railroad commission After a hear
ing which occurred on July 20,
1907, the commission ordered the road
to make the reductions. The case
was appealed and the controversy has
been pending either before the rail-
road commission or the courts of the
state for nearly three years.
Case Not Definitely Settled.
Whether this action will finally
end the controversy is unknown, for
it Is understood that the railroad COM
pany still has recourse to higher
courts The recent decision of Judge
Wolverton in the case, however dis
solves the injunction restraining the
commission from compelling the COM
pany to inaugurate the new rates
and the action by the company is in
accordance Herewith.
In issuing the new rates it is neces-
sary for the railroad company to re-
publish in its entirety its local tariff.
BY regulation of the Interstate Com
merce commission, supplements 10
tariffs are limited to 25 per cent of the
original tariff, and the right to issue
supplements to the local tariff has
been exhausted.
The local tariff, which is volume
of 55 pages. covers interstate as well
as intraState traffic, and it was there
fore necessary to get permission from
the Interstate Commerce commission
TO dispense with the statutory 80
days notice. This permission has
been given. and the work OF prepar-
ing the tariff sheets is under way.
The reduction in rates will not apply
to Washington or Idaho business, that
feature of the contention raised by
the chamber of commerce being now
under consideration by the Interstate
Commerce commission.
The chamber OF commerce in its
original complaint filed in 1907 al
legged that the charges exacted by the
o. r. & n. for transporting all KINDS
OF merchandise and commodities un-
der the class rates as set forth IN lts
tariff were excessive, unjust and un-
reasonable; that except for short dist
ances where water competition TENDS
to control rates, the rates from Port
land to points within the state on
number of classes were from 80 to
l15 per cent higher on a per-ton-per-
mile basis than were the class rates
westbound from various under sub
stantially similar conditions and cir
cumstances over the lines OF the
Northern Pacific, Great Northern
Union Pacific and Chicago, Rock Is
land & Pacific.
Unreasonable Return Charged.
II was alleged that the charges pro-
vided an unreasonable return on the
investment, and could be reduced and
still leave large profit on intrastate
business.
After hearing the railroad COM
mission ordered a reduction of first
class rates between Portland and al
points east OF The Dalles by ar
amount equal to one-sixth of the dir
ference between The Dalles rate (2s
cents) and the existing first class rate
to each Of such points. and to reduce
all other class rates between Port
land and points east of The Dalles st
that they would bear the same reia
ton to the first class rate, as is pro-
vided in the company's distance tariff
As stated, this reduction is equiva
lent to rates about IA per cent les
than existing rates.
The order was made effective Ma!
12, 1903, but on that date the o. r
& N. Co filed bill in the circui
court of the United States asking 70
a restraining order and injunction. II
this complaint 1t was alleged that tn