Arizona republican., 1910-06-30


 were handed down by the interstate commerce commission today of wide importance. They affect freight rates, both class and commodities, on all transcontinental lines operating be- tween the Atlantic and Pacific oceans Extensive reductions are ordered.
 In what is known as the Reno case, class and commodity rates from Sac ramento, Cal, on the Southern Pacific to Reno, New, and Cecil Junction, Utah, are declared excessive, and reasonable rates" were prescribed.
 In what is known as the Portland back haur' case, the commission de- cided that freight rates from Seattle, Tacoma and Portland to points in Washington, oregon. Idaho and Mon- tana are unreasonable, and a reduc- ton of 20 per cent is proposed.
 In the Spokane rate case, the com mission decided that the present freight rates are excessive and unjust, and reasonable rates, both class and commodity, are established for the future. The present class rates be-
 
 Mississippi and Missouri river trans fer points are also found excessive, and are ordered reduced about IS per cent.
 THE PHOENIX CASE.
 In case involving class freight rates from eastern territory to Phoe- nix, Ariz, the commission ordered re- auctions of approximately 30 per cent.
 On the complaint of the railroad commission of Nevada, the interstate commerce commission held that class rates from eastern defined territory to points in Nevada were unreason- able. and ordered that rates mate rially lower be put into effect by the carriers.
 The decision is in what are popu- larly 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 intermoun- tain territory, and have been under consideration ever since.
 The commission realized the im- portance of the cases not only to the railroads, but to the shipping public, and prepared it's opinions with the E ductions of the rates complained of were made. and in some instances they amounted to nearly 50 per cent.
 THE COAST SITUATION.
 The commission found a remark able rate situation existing on the Pacific coast, and an even more re- markable one in the intermountain territory, notably the rates to and
 
 The Spokane rate case has been be- fore the commission in. one form or another for several years. Shippers at that point complained insistently of the charges for classes ard 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 freights were charged to .5pokane by the rail- roads on the western trip.
 Substantially the same state of af- fairs existed at Reno and other points which had to pay the rates to San Francisco and the back haul at local rates from San Francisco and Sacra- mento to points of ultimate destina- tion. These terminal rates in most instances amounted to twO-fifths or more of the entire rates from the eastern points of origin to the Pa cific coast terminals.
 SCOPE OF THE DECISION.
 As noted above, the decision of the commission in these cases affects all class and commodity rates between eastern points and the far west.
 No complaint was made in any of the cases of the rates of eastern lines between Atlantic points and the Mis- sissippi river transfers, and all reduc- tions ordered by the commission af- feet rates from Mississippi river and Missouri river transfer points to the Pacific coast terminals and inter- mountain territorial points.
 The decision of the commission in the case of the city of Spokane against the Northern Pacific the Great Northern and other carriers was prepared by Commissioner Prouty. It was held that the earnings of the Northern Pacific and Great Northern for ten years preceding 1908 might fairly be termed excessive, and that reduction of revenues might there fore be made without a violation of the constitutional rights of those com panies"
 The report continues: Having de- termined the question. we did not make the reductions of rates to Spo- kane for the reason that these reven- ues were excessive and for the pur- pose of reducing revenues, the rates to Spokane were held to be unrea- sonable, and new rates were estab-