Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-07-25
Roads Must Cut Rates to West.
Rules Commerce Commission
All Freight Charges Between Coasts Affected by Sweep
ing Order Just Issued by Interstate Body

Washington. July 24.-Decisions OF
far-reaching importance were announc-
ed late today by the interstate CON-
merce commission. They affect direct
ly all freight rates between the Allan
tic ocean and the Pacific coast Par
ticularly they affect the rates in the
territory lying between Denver and
Pacific coast points.
The rates 10 this inter-mountain ter
ritory heretofore have been made with
out any definite relation 70 the water
competitive rates 70 the Pacific coast
the extent OF the discrimination being
entirely opt ional with the carriers. By
the opinions handed down today the
commission has attempted 70 arrive a
e definite relation Of the rates 10 the
non-competiJive points as compared
with those 20 the coast, and has laid
down the extent TO which The rates 20
interior points may exceed the coast
rates.
In all the cases decided the carriers
are given until Oct. u 10 file tariffs
with the commission constructed in &C
cordanCe with the views set forth in
the opinions The net result Of the
decisions will be to give lower rates
on all west-bound transcontinentai
traffic TO cities IN the interROCky
mountain territory To all intents and
purposes the back-haul rates from Pa
cific coast terminals 70 cities in the
Rocky noun ain TERRITORY are wipe,
out and the sarvice rendered by the
carriers viii be paid by shippers sub
stantially on a strict Interpretation Of
the long ana short haul provision Of
the existing Law.
The commission holds in the so
called Reno case that traffic original
ing at Chicago and in Chicago terri
tory moving under commodity rates
may have a rate per cent higher 70
intermediate points than that imposed
on freight originating in Chicago and
Chicago territory destined 20 the Pa
ciic coast terminals. From Buffalo
Pittsburg territory the rate may rise
above those demanded from the same
points 70 Pacific coast terminals 10 the
extent OF IS per cent: while from New
York and trunk line territory the rates
charged shall not exceed IS per cent
over Pacific coast terminal rates.
These are the first decisions an
noun ced by the commission i'll which
definite principle in respect of the
long and short haul provision is laiu
down. While the opinions fully rec
ognize the influence of water competi-
ton 70 a marked extent. they draw ?
line upon indiscriminate market"
competition
The effect OF the decisions will be 10
notify the carriers that they Will be
allowed 10 meet water competition TO
a reasonable extent. but that the loca-
ton of markets hereafter will be left
more 10 the play of commercial causes
than TO the will of the traffic managers
Of railways.
The cases involved are those of the
city of Spokane against the Northern
Pacific Railway company. known pop
ularly as the Spokane rate case" the
Commercial club of Salt Lake city
against the Atchison. Topeka & Santa
Fe Railway company and others: the
railroad commission of Nevada against
the Southern Pacific company, and 9th
ers. and the Maricopa County CONNER
L
colt d Phoenix Railway company and
other carriers.
Inasmuch as the cases generally
dovetail into one another. the commits
sion announces its decisions in two
opinions In brief. the commission
takes the view which II took in its
opinions of the same cases announced
a year ago last June At that time the
commission said IL would make no
order respecting the rates which It
suggested might be put into effect IN
I'll II had had opportunity TO deter
mine from reports made 10 it by the
carriers OF the probable effect OF the
suggested rates. Meantime, the car
riers have submitted 10 the commission