Weekly journal-miner. [volume] (Prescott, Ariz.) 1908-1929, 1911-12-27
INTERSTATE COMMERCE.
COMMISSION TAKES ISSUE
WITH COURTS RULING

WASHINGTON, ID. g.. Dee. go. 90
Sharp issue is taken by the Interstate
Commerce commission with the Com
merce court In the 25th annual report
Of the commission transmitted TO con.
gress today.
The issue is made principally upon
what popularity In known as the
"trsnscontinental rate cases." involv.
ing freight rates from the Atlantic
10 Pacific Coast terminals and to in.
termediste points. Existing rates of
the transcontinental lines from eastern
are materially higher than to Pacific
Coast terminals. In a decision inter.
preting the longiand. short haul pro.
vision Of the present law, the Inter.
state Commerce commission, directed,
by order. that n relation Of rates
should be established between the
Pacific coast and points of origin in
five zones, into which the United
States was divided
The effect Of the order was 10 re-
duce rates to inter. Rocky Mountain
cities and prevent the railroads from
exacting from shippers the Pacific
coast ratc plus the local rates from
Pacific coast terminals 10 the inter.
mediate points. The orders Of the
commission, on application of the
transcontinental carriers were enioin-
cd by the Commerce court and the
matter has been carried, on appeal
TO the United States Supreme court
In its report TO congress today the
commission declares that at is n
waste of transportation and therefore
uneconomical and wrong to maintain
n system of tariffs which are ex.
pressly intended TO develop the Pm.
cific coast cities and TO arrest the
development Of the interior points.
at il impossible TO disassociate
the intermediate from the long dis.
tarcc point. Whether the intermedi.
ate rate is reasonable depends upon
what rate IL made TO other points on
both sides of IL. and to permit the
railroads of this country TO select
points where they will and where they
will not compete would be intolcr.
able"
In discussing the effect Of water
competition upon rates the commits
sion says that II "cannot fix n rate
from New York 10 San Francisco
below which the rail line shall not
20, for IL has no authority to fix n
minimum rate. There is, therefore.
no way in which IL can prevent dis.
elimination by the fixing Of nm ALSO.
Lutte rate mt San Francisco and nm.
other absolute rate nj Reno. IL can
only accomplish this purpose by pre-.
scribing the difference which may
properly exist owing to the effect Of
this competition and allowing the
carrier To make whatever rate IL sees
fit to the more distant point 20 long
ss II observes this differential.
Many investigations were made
that iselosed practices not OF suffi.
eicnt gravity to warrant prosecution
but Of such doubtful propriety that
the commission ordered their discon.
tinuance. In this connection the com.
mission says significantly;
ut becomes increasingly evident
that entire freedom from discrimin-
alton can be secured only by q CON-
plete separation Of the business Of
transportation from every form Of
commercial or industrial enterprises. /"
In conclusion the commission reco.
mends that the law be amended 10 a.
to require telephone, telegraph, and
cable companies to publish, file, and
post their interstate tariffs; TO make
the Elkins act applicable to such com.
painless that transportation companies
be required to adopt a system OF uni.
form classification Of freight; TO pro-
vide additional safeguards In railroad
transportation for employees and the
public; to relieve the commission OF
the Jurisdiction Of the street railways
OF the District Of Columbia; to pro.
vide for the regulation and control
OF capitalization and suitable provi.
sions for the valuation of railway
property; and that a suitable build.