Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-12-20
COMMERCE BOARD At
Sy|jjE WITH COURT
ANNUAL REPORT or COMMISSION
TAKES RAP At NEWLY GRE.
ATEp JUDICIAL BODY.
RELIEF FROM ,NToLERAsLE
CONDITION PREVENTED
Recent Decision Reversing Boards
Order Reducing Coast to Coast
Rates Great Injustice to Interior
Po;nts-Rspert Says Railroads Con-
fs.s to subsidixins Water Lines.

TESS to eubsdixins Water Lines.
Washington, Dec. 20.-Sharp issue Is
taken by the interstate commerce COM
mission with the commerce court IN
the twentv.f1fth annual report Of the
commission, transmitted to congress
today.
The issue is made principally upon
what popularity is known as the trans
continental rate cases." involving
freight rates from Atlantic to Pacinc
coast terminals and to intermediate
points. Existing rates Of the trans-con-
tinental lines from eastern points to IN
ter Rocky mountain cities are materially
higher than the Pacific coast terminals.
In q decision Interpreting the long
and short-haul provision OF the pres
ent law, the interstate commerce COM
mission directed, by order. that a re-
lation Of rates should be established
between the Pacific coast and points OF
origin in Ave zones into which the
United States was divided.
Order Reduced Rates.
The effect Of the order was to re-
duce rates to nter-Rocky mountain
cities and prevent the railroads from
exacting from shippers the PACING
coast rates plus the local rates from
Pacific. coast terminals to the inter-
mediate points. The orders OF the COM
mission. on application of the trans
continental carriers, were enjoined py
the commerce court and the matter mas
heen carried, on appeal to the United
States supreme court.
In its report to congress today the
commission declared that ut Is waste
Of TRANSPORTATION and therefore un-
economical and wrong to maintain a
system OF tariffs which are expressly
intended to develop the Pacific coast
cities and to arrest the development OF
the interior points.
Condition lntoisrabls.
.Yt is Impossible to disassociate the
intermediate from the long distance
point. Whether the intermediate rate
is reasonable depends upon what rate
Is 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 COM
pete would be intolerable."
In discussing the effect OF waite.
competition upon rates. the commission
says that It "can not fix rate from
New York to San Francisco below
which the rail- line shall not go. for II
has no authority to fix a minimum rate
There is, therefore, no way IN which
II can prevent discrimination by the
fixing Of an absolute rate at San Fran
cisco and another absolute rate Al
Reno. It can only accomplish this pur-
pose by prescribing the difference
which may properly exist owing to the
effect of this competition and allowing
the carrier to make whatever rate II
sees At to the more distant point sc
| long as II observes this differential.
! Points Out Determinations.
The report indicates the desire o.
shippers from points In the interior O
the country to obtain the same rates u
the Pacific coast that are accorded b,
the railroads to their competitors OF
the Atlantic seaboard. The rates ar
made the same by the trans-continent'
al lines on the ground of market com
petition.
ITO justify their rates from coast t
coast" says the report. the railroad
advance water competition. and to JUS
ttffy the same rates from interio
points to the Pacific coast points the!
1rely on market competition, unde
which they give lower rates from al
4 the interior cities two-thirds OF tn
i way across the continent to the sam
!, coast cities than to inter-mountail
noints. This is the kind Of discrimi
i nation the committee has attem pied t
minimize"
!! subsidizine Admitted.
J While the commission recognizes TN
isill eject CO water competition upo
the rail rates it says 1--WE have tn
frank admission Of the railroad mana
gers that they have subsidized
Ihousht some Of the steamship line
land terrorized others until they ca
} make, the boast that the effect OF tn
fsea has been 'neutralized.
"A railroad policy Of rate maxim
must certainly be subject to limitation
Of the law, or else there IL no law. I
saw that there Is long-and-short
lhaul section under which q carrier ma
, mot charge more for the shorter tina
!, for the longer haul, but that the rail-
, roads may, to any extent they pleas
D tcarry out a policy Of blanketing tn
Q country for the benefit Of the farthe
!. points, II 10 say that a railroad ma.
restraint, effect ruinous dis
. elimination. and give no justificatio
save liz own determination or whin
:, There can be no regulation OF rates q
to discrimination or preference undo
0 such an Interpretation Of the law.
0 Differs With Commerce Court.
.rhe commerce court intimates thu
i the mistake Of the commission IL
Having to Ak relation Of rates instea
D Of establishing reasonable rates: bu
az we have already pointed out, the1
I liz no way in which the discriminate
. found 10 exist in these tariffs can I
prevented except by fixing a dinerer
4 tial, since We have no power to estal
lish an absolute rate or fix a minimum
lcharge below which the carrier IL n
free to 60.
1--WE feel sstrongly that water con
: .lretitioYi, even when the widest reason
liable latitude IL given to the effect
market competition. can not by Al
e possibility Justify higher rate fro
h.os:.ha TO Reno than from Omaha
d San Francisco: from st. Pau to sp
e kane, than from st. Paul to Seattle.
4 =