The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1911-07-26
RATE CASE
IS DECIDED
Material Reductions, Practically
the Same as Former De-
cision, Ordered
COUNTRY DIVIDED
INTO FIVE ZONES
While Interstate Commerce Com
mission Finds That Water
Competition Does Exist As a
Fact-Many Notifications


i WASHINGTON, July 24.--Decisions
of far reaching Importance were an
nounced late today by the interstate
commerce commission. They affect
directly all freight rates between the
Atlantic ocean and the Pacific coast.
Particularly they affect the rates in
the territory lying between Denver
and Pacific coast points. The rates to
the intermountain territory hereto
fore have been made without any
definite relation to the water COM
petition rates to the Pacific coast, the
extent of the discrimination being en-
tirely optional with the carriers BY
the opinions handed down today the
commission has attempted to arrive
at definite relation of the rates to
the non-competitive points as COM
pared with those to the coast and has
laid down the extent to which the
rates to interior points may exceed
the cost rates.
In all the cases decided the car
! riers are given until October Is to
file tariffs with the commission con-
structed in accordance with the views
set forth in the opinions The net re-
suit of the decisions will be to give
lower rates on all West-bound trans
continental traffic to cities in the in
ter-Rocky mountain territory. To all
intents and purposes the back haul
rates from Pacific coast terminals to
cities in the Rocky mountain terri
tory are wiped out and the service
! rendered by the carriers will be paid
by shippers substantially on a strict
Interpretation of the long and short
haul provision of the existing law.
| The commission holds in the So
called Reno case that traffic original
ing at Chicago and in Chicago terri
tory moving under commodity rates
may have rate seven per cent high
er to intermediate points than that
imposed on freight originating in
Chicago and Chicago territory des-
tined to the Pacific coast terminals
From Buffalo Pttsburg territory the
rates may rise above those demanded
from the same points to Pacific coast
terminals to the extent Of Is per
cent; while from New York and trunk
line territory trunk rate charges shall
coast terminal rates.
First of the Kind
These are the first decisions an
nounced by the commission in which
a definite principle in respect of the
long and short haul provision is laid
down. While the opinions fully recog-
nize the influence of water COMPETE
ton, to a marked extent they draw a
line upon indiscriminate market
competition
The effect OF the decisions will be
to notify the carriers that they will
be allowed to meet water competition
to a reasonable extent, but that the
| location of the markets hereafter will
be left more to the play of the COM
mercial causes than to the will of the
| traffic managers Of railways. The
cases involved are those of the city
| OF Spokane against the Northern Pa
cifc Railway company, known popu-
| larly as the Spokane rate cases"
The commercial club of Salt Lake
City against the Atchison, Topeka 4
Santa Fe Railway company. and 9TH
ers. the railroad commission of Ne
vada against the Southern Pacific
and others and the Maricopa county
commercial club against the Santa
Fe. Prescott and Phoenix Railway
company and others.
1nasmuch as the cases generally
dovetail into one another the COM
sion takes the view which it took in
its opinion Of the same cases an
nounced a year ago last June. At
that time the commission said it
would Nd tl,<
rates which it suggested might be put
into effect until it had opportunity to
determine from reports made TO it
by the carriers of the probable effect
of the suggested rates. Meantime the
carriers have submitted to the COM
mission their earnings under the old
rates and what would have been their
earnings under the rates proposed by
the commission. These tabulated
statements have convinced the COM
mission that the rates determined up
on by the commission in it's decisions
OF June :, 1910, are generally fair
and reasonable. The commission says
that there is no reason why those
rates should not now be established
Amendment Considered
Since the PRONUNCIATION of that
opinion" the commission says, 1.-The
fourth section (the long and short
haul provision) has been amended
lnasmuch as the gravamen OF the
complaint of the city of Spokane, and
to some extent OF Salt Lake City was
directed against the violation of the
fourth section, il is necessary again to
Inquire whether under the amended
fourth section the relief to which
these communities are entitled can
now he granted
The complainants contend that the
proViSo in the amended section per-
hitting the committee to authorize in
particular Instances the charging of Il
higher rate At the Intermediate point
is void as delegation ~ legislative
authority. that II would be rejected
ana the section applied by the COM
mission as though II were An absolute
long and short haul. prohibition. This
contention is not sustained
The defendants contend that the
only effect OF the amendment is to
cast upon the CO rriers the burden of