Weekly journal-miner., 1911-07-26
D|G REDUCT|ONOF FREIGHT RATES
 ORDERED
Continued From Page 1.)


 in unreasonable charges or unjust determinations. If SO, the permission must be refused; otherwise it 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 eases where this is necessary to prevent unreasonable rates and unjust diseriminations."
 The opinions in the Spokane rate ease and in the Salt Lake case were prepared by Commissioner PrOuty. They affect all applications by the carriers for relief undeE the long and short haul provision. For the sake of convenience the country between the Atlantic and the Pacific oceans is divided into five freight zones. These zones are defined with reason able definiteness by the decisions. From Zone No. l, which includes ap- proximately all the territory west of a mid-eontinental north and south line it is prescribed that rates must not be higher on westbOund traffic to any intermediate point than to a more distant point. Moving east ward from zone No. 2 the rates to intermediate points may exceed those to more distant points by not over seven per cent; from zone No. by not over 15 per cent and from zone No. by not over p per cent. No opinion is expressed as to the rates from zone No. ,. which is farthest east, because the rates from that ter ritOry are not particularly involved in these decisions inasmueh as they generally are controlled by ocean transportation to the Pacific coast.
 In an elaborate discussion of the long and short haul provision in the sO4ealled Reno case and the Phoenix, Ariz., case, Commissioner Lane who prepared the opinions in these cases for the commission, asserts that eft must be affirmatively shown by the carriers seeking exceptions to the long and short haul provisions that an In- justice will not be done to informed fate points by allowing lower rates to the more distant points.
 ''The intention of the amended laws,' says Commissioner Lane, "is to make its prohibition of the higher rate for the shorter haul a rule of well nigh universal application from which this commission may deviate only in special eases and then only to meet transportation circumstances which are beyond the carriers con troll"
 It is held that Gin the light of history it is not to be gainsaid that the trans-eontinental lines must give consideration to sea competition.
 It was held also, however, that the carriers herein involved have not shown that undue discrimination was not effected by their rate adjustments between points in Nevada and points in California; nor have they estab- lished that the rates to the coast cities, if extended by them from east ern points outside the zone of water influence are not fully compensatory"
 The transeontinental carriers. there fore are ordered to readjust their present rates by October 15 next from eastern terr;toies to intermediate points as compared with the rates 1,om Nevada points to the Pacific coast
 "This will make a reduction of rates to Reno and Nevada common points from the east of approximately 33-1-3 per cent.
 In the course of the opinion, Com missioner Lans says:
 "We desire to be extremely con servative in this first application of new law and to require an adjustment of rates that will be safely within the zone of our discretion. For this reason we have decided that the -ranScOntinental carriers serving Reno and other points upon the main line of the Central Pacific shall make no higher charges upon articles carrying l commodity rate than is eOntempOr- lneOusly in effect from Missouri river points such as Omaha and Kan sas City to coast terminal points This principle we shall also expect to be applied on commodity rates to all main line intermediate points in Nevada and California
 Some of the petitions under the fourth section are made by carriers reaching California terminals through Southern Nevada and Arizona. These applications for relief are denied in ofar as they involve the imposition ,f higher rates upon intermediate points than are applied on commOdi- ies from the Missouri river to Los Angeles, San Francisco and other Pacific coast terminals