The Raymer enterprise., 1911-07-27
MATERIAL REDUCTIONS ORDERED
IN sPokANE.RENo PACIFIC
CASES.
COLORADO IS AFFECTED
RAILROADS GIVEN UNTIL ocTo.
Der is TO ADJUST THEIR
TARIFFS.
Newspaper Union News Service.

Western Newspaper Union News Service.
Washington.-The Interstate Com.
merce Commission, in what Is known
as the Spokane-Reno.Paclfic case, or
dered material reduction in freight
rates from the East to points between
Denver and the western terminals Of
the transcontinental railroads.
For many years the railroads have
exacted from shippers to intermediate
points, such ~ as Spokane and Reno.
higher rates on eastern freights than
were charged for the much longer
hauls to Seattle. San Francisco and
other Pacific Coast points.
The theory has been that the rail.
roads must meet water competition to
the Pacific Coast. The higher rates to
intermediate points. arbitrarily fixed.
have been defended by q comparison
with the coast rates. plus theoretical
back-haul from the coast to the inland
stations along the line.
There exists some difference Of
opinion as to the effect this will have
on Denver and other Colorado points.
The commission recognizes the right
Of railroad to meet water competi.
tion to Pacific Coast points, but prac-
tically wipes out that back-haul rates
to inter.Rocky Mountain territory.
1t lays down what 1t considers would
be fair and Just rates to various
freight zones in the West and gives
the railroads until October 18th to ad.
Just their tariffs accordingly.
The decisions are Of far.reaching i'm
portance. They affect directly all
freight rates between the Atlantic
ocean and the Pacific coast. Particu.
larly they affect the rates In the ter.
ritory lying between Denver and Pa.
cific coast points. Hereafter the rates
paid by shippers will be governed by
a strict Interpretation Of the long and
short haul clause.
The commission holds In the so.
called Reno case that traffic originat-
Ing at Chicago and In Chicago terri
tory moving unaer commodity rates
may have rate Z per cent higher to
intermediate points than that i'm.
posed on freight originating in Chicago
and Chicago territory destined to the
Pacific coast terminals.
From Pittsburg territory the
rates may rise above those demanded
from the same points to Pacific coast
terminals to the extent Of 15 per
cent; while from New York and trunk
line territory the rates charged shall
not exceed 23 per cent over Pacific
coast terminal rates.
The effect Of the decisions will be to
notify the carriers that they will be
allowed to meet water competition to
u reasonable extent, but that the loca.
tion Of markets hereafter will be left
more to the play Of commercial causes
than to the will Of the traffic mana.
gers 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 &
Santa Fe Railway Company and 9th.
ers; the Railroad Commission Of Ne.
vada against the Southern Pacific
Company and others, and the MarIcopa
County Commercial Club against the
Santa Fe, Prescott & Phoenix Railway
Company and other carriers.
At that time the commission said
1t would make no order respecting the
rates which 1t suggested might be put
into effect until 1t had had oppor.
tunity to determine from reports made
to 1t by the carriers Of the probable
effect Of the suggested rates. Mean.
time. the carriers have submitted to
the commission 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 commission that the
rates determined upon by the com.
mission In Its decisions Of June Z.
1910, are generally fair and reason.
able. The commission says that there
Is no reason why those rates should
not now be established.