Omaha daily bee., 1911-03-19
GREAT RATE ISSUES AT STAKE
Interstate Commission Takes Up
Important Hearings Monday.
INVOLVES TARIFF MAKING RULES
Western Roads of United states Are
vitality Interested. and Hest LEGAL
and Expert Talent a. Now In
Washington.
lFrom a staff correspondentl

washingtOn. -
(From a staff Correspondent
WASHINGTON. n. c., March 1S.--(Spe-
oial Telegram THE Interstate Commerce
commission WIN begin final hearing on
Monday Of a series OF cases. Including the
application of the long and short haul
clause in the fourth section Of the act to
regulate commerce. These cases arc by far
the most important and far-reaohing ever
submitted 70 the commission since It's or
ganization. The hearing involves substanti-
ally all rates from eastern points 70 west Of
the Rocky mountains, from Canadian to
Mexican lines
The Importance Of this hearing lies not
only in the fact Of the enormous change II
will make In revenues of carriers affected,
but possible change IN business conditions
and In system Of rate-maklng, based not
only on tradition but continuous practice
for over forty years
There is also Involved the action of the
commission on the application Of railroads
to be relieved from operation of the long
and short haul clause between eastern and
far western points, growing out of water
competitive conditions.
During all these years, to a large extent,
tent, rain rates to points west OF the
Rocky mountains were based upon the
water rate to the Pacific coast, plus the
local back. There has been more or less
modification of this rule, but Il has sub
stantially obtained As a result also. OF
the operation Of the rule carriers have main
tained lower rates to Pacific coast points
from Chicago and Missouri river points
than they have to many interior points.
This practice has given rise to many com
plants from the interior, finally culminat-
ing in the enactment Of the amended
fourth section Of the act to regulate com
merce providing that the rate to a shorter
distance cannot exceed the rate to 9 longer
distance unless justified by direct appli-
cation to the commission and allowed by II.
Spokane Case First Action.
1t was not until 1906 unoer the Hepburn
rate act, that the commission was given
power to make rates. The first suit
brought under the act was the Spokane
case under which Spokane claimed by rea-
son Of its shorter distance to eastern
points, lower rates, which at once brought
in question the whole system OF rate maxi
ing above outlined. This case has. been
pending for something over four years and
there have been numerous hearings
In the meantime, however, interior cities
like Salt Lake City, Baker City, Walla
Walla. Reno, Phoenix and other cities
brought similar suits.
On the other hand coast cities, whose
rates out from the coast had always been
maintained on very high basis brought
suits for reduction In their rates The
competition they had to meet as against
eastern manufacturers and particularly on
trust made goods, based on rates from
eastern points was so severe that they had
been forced back to a narrow strip along
the coast. They took the position that q
Pacific coast dollar under substantially
similar circumstances and conditions ought
to buy as much transportation as an east
ern dollar.
In the meantime with such a situation
existing, It was but natural that other
great commercial interests should become
involved. New York interviewed claiming
benefits OF water competition and Chi
cage came forward claiming right TO it's
position. The Missouri river cities have
not formally interviewed, but their location
has been recognized by the commission
and they are in a peculiarly favorable
situation owing TO their location as any
change in the system Of rate making will
rebound to their advantage,
Great Interests Involved.
When the millions Of revenue involved
and the revolutionary change In the basis
Of rate making proposed in the vast ter
ritory covered is considered, one can under
stand why the commission has exercised
such care in taking decisive action.
Water competition. the long and short
hauls clause, basing points. distributing
points and substantially every condition
arising therefrom will be vitality affected
by the decision which the commission may
render 1t is. therefore. not a matter of
surprise that all transcontinental railroads
are represented in Washington by their
big tariff chiefs and by their counsel, and
that cities Of the west as we'll as the east
also are represented by representative men,
many Of whom have taken part in a num-
Der of different fights arising out OF con-
ditions which now exist on the coast from
a traffic standpoint.
The first contest for reimbursement OF
coast rates actively began just twenty
years ago During the tendency Of these
cases the commission found what they be-
lieved, with their light before them then,
would be reasonable rates 10 such points
as Salt Lake City. Spokane, Baker city,
etc Before, however, ordering them into
effect they requested the railroads to check
tariffs as proposed and ascertain as nearly
as they could the possible loss thereunder
II said rates became effective
These fluctuations will be submitted on
Monday and will show annual losses, ap.
Droxlmately, as followsi
Loss 20 Great Northern. between SeOO, OOl
and $4,000.
Loss 10 Northern Pacific, about 81 .lOO, 900
Loss 10 Hartman lines, 100000 PEI
/ year.
Great as this loss appears II Is very
much less than the railroads anticipated
would be the effect OF the proposed orders
The Willard hotel today gave one ths
impression that the entire brains Of tn,
railroads OF the Uaited States had assem-
bled there. for men who made the gen
tlemen's agreement OF years ago knocked
elbows With senators and Representative
I'm congress. making one Of the most ami
mated scenes that has been seen in tn
national capital in years.
Among the railroad representatives are
~. c. Stubs, L. J. Spence, Chicago; Johi
A. Monroe. N. H. LOOmis, Omaha; Max
lwell Everts New York; p. l. Williams