Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-07-25

the commission says "the fourth section
dhe long and-short-haul provision) has
been amended Inasmuch as the grav-
amen OF the complaint Of the city Of Spo-
kane and to some extent of Salt Lake
city was directed, against the violation Of
the fourth section, 1t is necessary again
to inquire whether, under the amended
fourth section the relief to which those
communities are entitled can now be
granted.
THE complainants contend that the pro-
viso in the amended section, permitting
the commission 70 authorize in particular
instance the charging Of a higher rate at
the intermediate point, is void as a dele
cation OF legislative authority; that 1t
should be rejected and the section applied
by the commission as though 1t were an
absolute Experimentation prohibition
This contention is not sustained.
THE defendants contend that the only
effect of the am4hdment ~ % cast upon the
carrier the burden Of assuming the initia-
tive. In justifying the higher rate at the in
termediate point. II upon investigation 1t is
found that competition exists at the more
distant point and not',At the intermediate
point then the. commission must. without
further inquiry, grant the~rellef asked for;
II no such competition exists 1t must deny
the application. This contention is not suS-
tanned. * 80 .i-,t.. -.
Commission May Determine.
I'm amending the fourth section by strik-
ing out the words similar circumstances
and conditions congress intended to in
vest the commission with authority not
only to determine whether a. wrong results
from the Disregard for thedong-and- short
haul provision, but also to correct that
wrong If 1t was found to exist. ~
I'm determining whether the carrier
shalt be peftnftfedg 20 makeathe higher in
termediate charge the 6omniissi6n cannot
act arbitrarily hui must lappH the prihci-
pies %hich control It IN she adminis
of other territorial 81 INA "a ska IT hust IN
quire whether the maintenance of the
higher intermediate rate will result in un-
reasonable changes or unjust rdiscrimina-
tions.l II so,i tSa ,berrbissieh must be REL
fused; otherwise pft must be granted. 50 2
"The commssiop may presofibe in any
way that is deffhlts Snd certain the extent
TO which the intermediate rate may ex-
coed the long-distanee rate in cases where
this is necessary to- prevent unreasonable
rates and unjust determinations"
PrOuty Rrepsres Opinion.
Inc opinions ~ the spokane rate case
and in the Salt Lake case were prepared
by Commissioners Prouty. They affect ali
applications by the carriers for relief under
the long-and-short-hadl provision. For the
sake OF convenience. the country between
the Atlantic and the Pacific oceans is d.
vided into five freight zones. These zones
are defined with reasonable definiteness by
the decisions. From zones number one
which includes approximately all territory
west Of a mid5continental, north and-south
line IT is prescribed that rates must not
be higher on sMest1bounds traffic to any
intermediate point than to more distant
point. Moving eastward9 from zone num-
Der two the rates TO intermediate points
may exceed those TO more distant points
by not over per- cent; from zone number
three by not over Is per cent, and from
zone number four by not over Is per cent