Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-12-21
SHOWS ERRORS N
WESTERN RATES
|, &. COMMISSION TAKES sliANl'
ISSUE WITH COMMERCE
COURT IN REPORT.
POLICY MUST Be LAWFUL
Dcclurcs II j. Wrong Ia DcNciop Fa-
ciric Coast Cities 10 Dctrimcnt Of
intermediate Ones.

WASHINGTON, Dor. 90 sharp
issue is taken by the Interstate Com
merce Commission with the Com
morcc Court in the 25th annual re-
| port of the Commission transmitted
TO congress loday
The issue Is made principally upon
what popuarly is knowl as the trans
continental rate cases, involving
FIRE ,ght rates from the Atlantic to tho
Pacific coast terminals and to inter-
mediate points Existing rates of the
irsns-Continental lines from Eastern
points to inter- Rocky mountain cities
are materially higher than to Pacific
coast terminals. In decision inter
proting the long and short haul pro-
vision of the present law, the inter-
state Commerce Commission directed
by order, that relation of rates
hould be established between the
Pacific coast and points of origin IN
five zones into which the United
states was divided,
Declares system l. Wrong.
The effect Of the order was 10 re-
duce rates to inter- Rocky mountain
cities and prevent the railroads from
aXacting from shippers the Pacific
coast rate plus the local rate from
Pacific coast terminals to the inter-
mediate points. The orders of the
commission, on application of the
rans-continental carriers werc en-
Al, RI
the matter has been carried, on APP
peal, to the United States Supreme
court.
In its report to congress today the
commission declares that lit is
waste of transportation and therefore
uneconomical and wrong to maintain
"A system of tariffs which are express
ly intended to develop the Pacific
coast cities and to arrest the develop
mont of the interior points.
Points to Inrolerabic Condition.
at Is impossible to disassoclate tho
from the long distance |
point. Whether the intermediate |
rate is made 30 other points on both |
roads OF this country to select points
where they will and viii not compete
would be intolerable'.
In discussing the effect Of water
upon rates the commits
sion says that It cannot fix a rate
rom New York to San Francisco be-
ow which the rail line shall not go,
Tor II has no authority 10 fix a min
mum rate. There IL therefore, no
way in which It can prevent discrim-
nation by the fixing of an absolute
rate at San Francisco and another
accomplish this purpose by prescrib-
ng the difference which may properly |
4xst owing to the effect of this com
petition and allowing the carrier to
make whatever rate it sees fit to the
more distant point so long as 1t OBJ
serves this differential'.
Railroads Switch Methods.
The report indicated the desire Of
shippers from points in the interior
If the country to obtain the same
'ates TO the Pacific coast that are ac-
corded by the railroads to their com
)etitors on the Atlantic seaboard.
The rates are made the same by the
lines on the ground
II market competition.
''To justify their rates from coast
% coast" says the report, the rail-
'oads advance water competition, and
% justify the same rates from inte-
'ior points to Pacific coast points
hey rely on market competition. un-
Ter which they give lower rates from
Ill the interior cities two thirds OF
he way across the continent to the
anne coast cities than to inter-moun-
ain nOints This Ia the kind of dis