The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-07-25
DECISION LOWERS
FREIGHT R AT { S
Affects Territory Between Den
yer and Terminals of Trans
continental Lines.
ON SHIPMENTS FROM EAST
Principle Laid Down That Com
mcrcial Conditions Here
after Shall Control.

Washington. July 24.-In what are
known as the Spokane Reno Pacific
coast cases. the Interstate Commerce
Commission to-day ordered material
reductions in freight rates from the
East to points between Denver and
terminals OF the great transcontinen-
tai railroads.
For many years the railroads have
exacted from shippers to intermediate
points. such as Spokane and Reno,
higher rates on Eastern freignts than
were charged for the much longer
hauls to Seattle. San Francisco and
other Pacific coast points. The theory
has been that the railroads must meet
water competition to the Pacific coast.
The higher rates TO intermediate
points. arbitrarily fixed. have been de.
Tended by comparison with the coast
rates, plus a theoretical back-haul,
from the coast to the inland stations
along the line.
Inc commission recognizes the right
OF q railroad to meet water competi.
ton TO Pacific coast points. but prac-
tically wipes out the haul rates
TO inter-Rocky Mountain territory 1t
lays down what 1t considers would be
lair and Just rates to various freight
.O"~o ah TIC w COT, ana gives the rail-
roads until October Is to adjust their
tariffs accordingly.
The commission also lays down tho
important principle that hereafter
railroads Will not be permitted to fix
arbitrary market limits. and that here.
after commercial conditions. rather
than the will OF railway traffic man
ayers shall control rates on trans
continental transported ton
Far-RanchIns Importance.
me decisions announced late to-day
are Oh iar-reaching Importance They
anect directly all freight rates he.
tween the Atlantic ocean and ths pa
cihc coast. Particularly they aaect
the rates in the territory lying be-
tween Denver and Pacific coast noints
hereafter the rates paid by simmer.
WIZ be governed By a strict interpre-
tation OF the long and short haul
clause
The commission holds in the So
teo reno case that traffic originat-
ing at chicago and in Chicago terri
moving under commodity rates
may nave rate 4 per cent higher
10 intermediate points than that i'm
posed on freight originating In Chi.
caso. and Chicago territory destined
10 the Pacific coast terminals. From
Bun alo-Pittsburg territory, the rates
may rise above those demanded from
the same points 10 Pacific coast ter
minals. to the extent of Is per cent
While from New York and trunk line
territory. the rates charged shall nor
exceed 90 per cent. over Pacific coast
terminal rates.
Definite Principle.
These are the first decisions an
nounced by the commission in which
a definite principle In respect OF the
Ions and short haul provision is laid
down. While the opinions fully recog-
ntze the influence OF water compe-
tition to marked extent. they draw
line upon indiscriminate market
competition.
The effect of the decision will be to
notify the carriers that they will be
allowed to meet water competition to
reasonable extent. but that-the loca-
ton of markets hereafter will be left
more to the play OF commercial causes
than to the will OF the traffic man
ayers of railways.
The cases involved are those of the
City of Spokane against the Northern
Pacific Railway Company. known pop
ularly as the Spokane Rate Case;
the Commercial Club. of Salt Lake
City. against the Atchison. Topeka and
Santa Fe Railway Company and others;
the Railroad Commission of Nevada
against the Southern Pacific Company
and others; and the Maricopa County
Commercial Club against the Santa
Fe, Prescott and Phoenix Railway
Company and other carriers