The Washington times., 1910-06-29
COMMISSION CUTS
WESTERN R. R. RATES
Heavy Reduction Ruling At
fects Whole TRANSMITS
souri, Territory.
CONTINUED rom First Page)

many have taken it for granted it
would be-
The cases decided include what are
known as the Sacrameuto-Reno ratio
case. the Phoenix cases. the case OF the
Commercial Club Of Salt Lake City VS.
the Santa Fe and other roads. the case
Of the Portland chamber Of commerce
VS.. the OREGON Railroad and NaviEa-
tiCn Company and others. the case Of
the Seattle chamber Of commerce vs.
the Northern Pacific and others. and
the Spokane rate case
The Spokane case is supplemental 70
the great case decided more than a
wear ago.
May RevolutiOnize Business.
Reductions of both class and commod-
ity rates are involved. These reduc-
tons are likely 10 revoluuonize business
conditions west OF the Missouri. espe-.
cially IT. the Rocky mountain and Pa
cifc cast regions.
BrOaC'y speaking the effect Of the de-
clSiOnS IS 10 reduce class rates from
the EaSI to the inteTmOmtau country
TO try harmonic with the decision
originally given in the Spokane case.
As TO commodity rates, the commits
sion finds that the present commodity
rates are unjust and unreasonable and
has set forth what il considered 10 be
just and reasonable rates. But owing
TO the vast territory affected, the COM
mission does not order the reduced
has been trial adEiOd Of three months.
The commission "a that time VIII make
a check on the business actually moving
at the old rates to see what the earning
power OF the roads would be under the
proposed reductions
Back-Haul Rates Involved.
In the Portland and Seattle cases,
the class rates from Seattle. Portland,
and Tacoma to points in Oregon, Wash
ington, Idaho, and Montana are in
vOlved. They are commonly known as
back-haul rates The commission finds
these rates OUsft to be reduced % per
cent. but no Ensl order VIII be made
untii an account has been kept for sew
eral months showing how much the
revenue Of the roads would be reduced
under the rates proposed
Some astonishing facts as to rates
are brought out il the decisions. Com
missioner Lane Eds decided the Sacra-
mento-R Reno case, and the two Phoenix
cases. He goes into them extensively.
The Sacrameuto-RenO case is that Of
( the Merchants Exchange Of Reno, New,
against the Southern Pacific. In this,
the existing class rates from SaCra-
mentO 10 points on the main line OF
the Southern Pacific In Nevada and the
western part Of Utah are cut about 80 I-S
per cent
practically Without Parallel"
The commission finds that the exist
| ing rates are practically without prec-
edent or parallel in the United states.
In some respects the most remarkable
case is that one Of what are known as
the Phoenix cases, which IS brought by
the railroad commission Of Nevada
against the Southern Pacific and other
roads. In this decision the commission
/ condemns the existing west bound class
rat s from the East 10 points in Ne
vac a.
4 TIE commission declares the highest
main line rates IN the United States
are those from Eastern points 20 stations
I I'm Nevada Fec: carrying a carload OF
/ frst-cIass freight, containing 10000
/ pounds, from Omaha 20 Reno, the Union
and Southern Pacific lines charge sos
II tbs same carload goes l54 miles far
ther-tO SaCrameutO-the charge IS but
/ 500. The irst-class rate TO the more
distant point, Sacramento. is 8 per 100
pounds. and the nearer point, Reno,
/ $f29.
I Net Increase II Revenues.
4 Strangely enough, from Denver or
from Boston TO Reno or Sacramento the
q same rates apply. twenty-five per cent
Of the traffic into Reno from the East
originates east Of Chicago.
/ The commission in this case has gone
f extensively into the question Of the
liability of the carriers to meet any reduc-
tons which the commission might make
and has discovered tI.js interesting fact:
/ During the past two years the oper-
/ atinC revenues of the Southern Pacific
/ COmpany's Pacific system have in
I creased sS.000rQ0 while its operating
/ expenses have decreased s. 100000 thus
I producing an increased operating income
/ Of more than S12O00,O00, or a net in
/ crease Of about 5000 per mile Of road