The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-07-25

point is void as q delegation OF legis-
lative authority; that 1t should be re-
Jected and the section applied by the
commission as though IL were an abb
solute long and-short- haul prohibit
ton. This contention is not sustained.
/ THE defendants contend that the
only effect of the amendment lis to
cast upon the carriers the burden of
assuming the initiative in justifying
the higher rate at the intermediate
point. IL upon investigation It is found
that competition exists at the more
distant point and not at the inter-
mediate point then the commission
must, without further inquiry. grant
the relief asked for; If no such COM
petition exists 1t must deny the appli-
cation. This contention is not sus-
tained.
In amending the fourth section by
striking out the words similar cir
cumstances and conditions congress
intended TO invest the commission
with authority not only to determine
whether a wrong results from the dis
regard for the long -and~short- haul
provision, but also TO correct that
wrong IL 1t was found to exist.
1
shall be permitted to make the higher
intermediate charge the commission
cannot act arbitrarily, but must apply
the principles which control 1t in the
administration of other portions Of the
act. 1t must inquire whether the
maintenance Of the higher inter-
mediate rate will result in unreason-
able charges or unjust determinations.
If so the permission must be refused;
otherwise 1t must be granted.
"The commission may prescribe in
any way that is definite and certain
the extent to which the intermediate
rate may exceed the long distance
rate in cases where this is necessary
to prevent unreasonable rates and un-
just Determinations"
The opinions in the Spokane rate
case and in the Salt Lake case were
prepared by Commissioners Prouty.
They affect all applications by the car
riers for relief under the long and
short haul provision. For the sake of
convenience the country between the
Atlantic and the Pacific oceans is d.
vided into five freight zones. These
zones are defined with reasonable
/ definiteness by the decisions. From
zone number one which includes APP
proximately all territory west of a
mid-continental north-and-south line
| it is prescribed that rates must not
| be higher on westbound traffic to any
intermediate point than to a more dis
tant point Moving eastward, from
zone number two the rates to inter
mediate points may exceed those to
more distant points by not over pei
cent; from zone number three by moi
over Is per cent; and from zone num-
Der four by not over rs per cent. Nc
opinion is expressed as to the rates
from zone number five, which is farth.
est east. because the rates from thai
territory are not particularly involved
in these decisions, inasmuch as they
generally are controlled by ocean
transportation to the Pacific coast.
Concluding Discussion.
In concluding the discussion Of tn,
Spokane case. the commissions re.
port says:
TT may be asked why the schedule
of rates suggested by the commission
as reasonable should not be orderet
In. The answer is that carriers
should be permitted in so far as posi-.
BILE to adjust their own tariffs and tina
it seems probable that in compliance
with this order carriers must estab.
lish rates in substantial accord with
those suggested by us. It should bt
ever borne in mind that the acute
complaint in this case is the discrimi.
nation and not the unreasonable rate
Obedience to this order will doubles;
result in some rates from the cas-
which are higher and in others which
are lower than those suggested by the
commission, since we did not then fee
at liberty, as the compliments re.
quested, to make the Spokane rate de.
pend upon the coast rate. But 1t Ii
likely that the resulting schedule will
be more satisfactory to the complain
ants and no more burdensome upor
the defendants. If the carriers estab-
lish under this disposition of the case
rates to Spokane which are excessive
further order can be made in this
proceeding reducing them to a proper
basis"
| In an elaborate discussion Of the
long and-short-hau provision in the
so-called Reno case and the Phoenix
Arizona, case, Commissioner Lane
who prepared the opinions in these
cases for the commission, asserts
that ut must be affirmatively shown
by the carriers seeking exceptions to
the long-and- short haul provisions
that an injustice will not be done to
intermediate points by allowing lower
rates to the more distant points.
THE intentment of the amended
| law" says Commissioner Lane, sis to
make It's prohibition of the higher rate
for the shorter haul rule Of wel1-nigh
universal application from which this
commission may deviate only in spe-
cial cases and then to meet transpor-
tation circumstances which are be-
yond the carriers control"
1t is told that ''in the light OF
history 1t is not to be gainsaid that
the transcontinental lines must give
consideration to sea competition" II
was held, also. however, that the car
riers herein involved have not shown
that undue discrimination was not ef-
fected by their rate adjustments be-
tween points in Nevada and points In
California; nor have they established
that the rates to the coast cities, II
extended by them from eastern points
loutside the zone OF water influence
are not fully compensatory"
The transcontinental carriers, there.
fore, are ordered to readJust their pres.
ent rates by October is, next. from
eastern territories to intermediat,
points as compared with the rates
from Nevada points to the Pacifi,
coast. This will make reduction o