The Springfield herald., 1911-07-28
FREIGHT RATES
ARE LOWERED
MATERIAL REDUCTIONS ORDERED
IN sPokANE-RENo PACIFIC
CASES.
COLORADO is AFFECTED
RAILROADS GIVEN UNTIL ocTo
BER is TO ADJUST THEIR
TARIFFS.
Western Newspaper Union News Service

Western Newspaper Union News Service
Washington.-The Interstate Com
merce Commission, in what is known
as the Spokane-Reno-Pacific case, or
dered material reduction in freight
rates from the East to points between
Denver and the western terminals or
the transcontinental railroads.
For many years the ra lroads have
exacted from shippers to intermediate
points, such as Spokane and Reno.
higher rates on eastern freights than
were charged for the much longer
hauls to Seattle, San Francisco and
other Pacific Coast points.
The theory has been that the rail-
roads must meet water competition to
the Pacific Coast. The higher rates to
intermediate points. arbitrarily fixed,
have been defended by comparison
wi n the coast rates. plus theoretical
back-haul from the coast to the inland
stations along the line.
There exists some difference Of
opinion as to the effect this will have
on Denver and other Colorado points.
The commission recognizes the right
of a railroad to meet water competi-
ton to Pacific Coast points. but prac-
tically wipes out that back-haul rates
to inter-Rocky Mountain territory.
1t lays down what 1t considers would
be fair and just rates to various
freight zones in the West and gives
the railroads until October 18th to ad-
just their tariffs accordingly.
The decisions are of far-reaching i'm
portance. They affect directly all
freight rates between the Atlantic
ocean and the Pacific coast. Particu-
larly they affect the rates in the ter
ritory lying between Denver and Pa
cific coast points. Hereafter the rates
paid by shippers will be governed by
short haul clause.
The commission holds in the So
called Reno case that traffic original
ing at Chicago and In Chicago terri
tory moving unaer commodity rates
may have a rate per cent higher to
intermediate points than that i'm
posed on freight originating in Chicago
and Chicago territory destined to the
Pacific coast terminals.
From Buffalo-Pittsburg territory the
rates may rise above those demanded
from the same points to Pacific coast
terminals to the extent of Is per
cent; while from New York and trunk
line territory the rates charged shall
not exceed % per cent over Pacific
coast terminal rates.
The effect of the decisions will be to
notify the carriers that they will be
allowed to meet water competition to
a reasonable extent. but that the loca-
tion of markets hereafter will be left
more to the play of commercial causes
than to the will of the traffic mana
gers 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 9TH
ers; the Railroad Commission of Ne
vada against the Southern Pacific
Company and Others and the Maricopa
County Commercial Club against the
Santa Fe, Prescott & Phoenix Railway
Company and other carriers.
At that time the commission said
1t would make no order respecting the
rates which it suggested might be put
into effect until it had had oppor-
tunity to determine from reports made
to it by the carriers of the probable
effect of the suggested rates. Mean
time, the carriers have submitted to
the commission their earnings under
the old rates and what would have
been their earnings under the rates
proposed by the commission.
These tabulated statements have
convinced the commission that the
rates determined upon by the com
mission in its decisions of June Z
1910. are generally fair and reason
able. The commission says that there
is no reason why those rates should
not now be established.