The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1911-07-25
INTERSTATE COMMERCE COM.
MISSION MAKES A FAR.
REACHING DECISION.
BACK HAUL ELIMINATED
In New Order Line Is Drawn Upon
lndiscrininate market" Competi-
ton, and Merchants Of the Rocky
Mountain States Are Assured Better
Treatment.

Washington. July 24.--In what ara
known az the Spokane Reno Pacific
coast cases, the interstate commerce.
commission today ordered material re-
ductions In freight rates from the east
to points between Denver and the west
ern terminals OF the transcontinentat
railroads
For many years the railroads have
exacted from shippers to intermediate
points, such as Spokane and Reno,
higher rates on eastern freight 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 comparison
with the coast rates. plus q theo-
retlcal back haul from the coast to tho
inland stations along the line.
Right Recognized.
The commission recognizes the right
of railroad to meet water compete
tion to Pacific coast points, but prac-
tI'ahy Niptb out tie DdGk 1tIl
to inter-Rocky mountain territory. It
lays down what II considers would be
fair and just rates to various freight
zones in the west and gives the rail-
roads until October Is To adjust their
tariffs accordingly.
The commission also lays down tho
important principle that hereafter rail-
roads viii not be permitted TO fix arbi-
trary market limits. and that here
after commercial conditions rather
than the Will of railway traffic man.
ayers shall control rates on trans
continental transportation.
The decisions are of far reaching I'M
portance. They affect directly all
freight rates between the Atlantic
ocean and the Pacific coast. Particn-
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 I'm the So
called Reno case that traffic origi-
mating at Chicago and In Chicago ter
ritory moving under commodity rates
may have n rate per cent higher to
intermediate points than that imposed
on freight originating In Chicago and
Chicago. territory destined to the Pa
cific coast terminals. From Buffalo,
Pittsburg territory the rates may rise
above those determined from the same
points to Pacific coast terminals to the
extent Of 10 per cent: while from New
and trunk-line territory the rates
a. IN hun
over Pacific coast terminal rates
These are the first decisions an
nounced by the commission In which
n definite principle IN respect to the
long-a short haul provision is laid
down. While the opinions fully recog-
nize the influence of water competition
to marked extent they draw a line
upon indiscrimlnate market" compe-
ttion. The effect OF the decisions will
be to notify the carriers that they
Will be allowed to meet water competi-
tion To a reasonable extent. but that
the location of markets hereafter will
be left more to the play of commercial
causes than to the will of the traffic
managers of railways.
Cases Involved.
Inc cases involved are those or the
city of Spokane against the Northern
Pacific Railroad company, known pop
uiarly as the spokane rate case" the
Commercial club OF Salt Lake City
against the Atchison, Topeka 4 Santa
Fe Railway company and others, tha
railroad commission Of Nevada against
the Southern T-afic company and
others, and the Marlcopa County Conn
mercial club against the Santa fe,
Prescott Il Phoenix Railway company
and other carriers.
Continued on Page Seven.)