New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-12-21
INTERSTATE COMMISSION
CLASHES WITH COURT
UphoIds Order in TranS-ContI-
mental Rate Cases in Making
Annual Report to Congress.
ECONOMIC WASTE IS SHOWN
Commerce Tribunals Objection
to Differentials Answered by
Statement That 1t Is Only
Means at Command.

Washington. Dec 20.-Sharp issue is taken
by the Interstate Commerce COMMISSION
with the Commerce Court In the twenty
nth annual report OF the commission trans
mitted 10 Congress to-day on what popu-
Iarlv is known as the 'transcontinentai
rate cases." involving freight rates from
the Atlantic 10 Pacific Coast terminals and
TO intermediate points
Existing rates OF the transcontinental
lines from Eastern points 10 inter-Rocky
Mountain cities are materially higher than
70 Pacific Coast terminals. In decision
interpreting the long -snd-short-haul pro-
vision CT the present law. the Interstate
Con,rerce Commission directed. by ORDER
that relation Of rates should be estao-
lished between the Pacific Coast ana points
OF origin in five zones into "hlch '"e
United States was divided.
The effect of the order was 10 reouce
rates 10 inter-Rocky Mountain cities anu
nra,.ont the railroads from exacting from
SINNERS the Pacific Coast rate plus the
LEGAL rates from Pacific Coast terminals 10
the intermediate points. The orders Oh '"e
commission, on application OF the trans
continental carriers, were enJoined oy 'he
Commerce Court and the matter mas 0eeh
carried on appeal to the United States SUI
preme Court.
Points to Economic Waste.
In its report to Congress to-day the COM
mission says;
: Ttts waste Of transportation. ana tneie-
fore unecononical and wrong, 10 Wdlhtd,n
a system Of tariffs which are EXPRESS!
intended TO develop the PACING COAST clues
and 70 arrest the development OF the IN
terror noints II is impossible 10 ulsdsso-
ciate the intermediate from the long uis-
tance point Whether the intermediate raie
| A. reasonable depends upon what rate Is
,,.do 10 other points on both sides OF H.
and 10 permit the railroads or TINS coun,
trv 10 select points where they VIII anu
where they will not compete Wouio pc III
tolerable. ., ..,. ,ba
The Commerce Court intimates that the
mistake of the commission is in having
attempted TO fix relation or rates III.
stead of establishing reasonable rates ou'
| there is no way i'm which the dlscrlmlhe-
ION found TO exist in these tariffs can ne
nreyenred except by fixing q dlfferentiaL
since we have no power to estapllSh Al
al soluta rate or tx a minimum charge Oe-
low which the carrier is not free to go;
we feel strongly that water competition,
oven when the widest reasonable lautude
Is given TO the effect OF market competi-
ton. cannot by any possibility JUSTIFY q
higher rate from Omaha 10 Reno than from
Omaha TO San Francisco; from st. Paui
10 Snokane. than from St Paul 10 Seattle.
IN the other hand, II should be roted that
fbe onening of the Panama Canal may so
add TO the intensity Of this water compe-
titiou as 10 call for some MODIFICATION OF
the conclusion now reached.
The commission holds the fixing OF rea-
sonable rates to be n legislative function.
not subject 10 review by the courts. Con
gress. Il IS maintained, has delegated that
power TO the commission. and the intima-
ton is clear that the courts. In the opinion
OF the commission. has no power 10 review
such rates as may have been established
through the orders OF the commission in
the transcontinental cases.
The report shows that during tho last
year $50 cases, embodying 5O7 formal de-
csions were disposed of During the wear
$50 formal complaints were filed and T.
proceedings OF inquiry We're instituted by
the commission on it's own initiative. In
addition. there were Instituted 81 proceed
ings Of Investigations and suspensions Of
tariffs containing proposed increases and
rates. 1875 informal complaints. $3.50 claims
ana 5.723 applications for relief from the
operation OF the long and short haul pro
vision.
At the sessions OF the commission hold
I'm Washington and else9 here as hearings