The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1911-07-29
ORDERS REDUCTION
IN FREIGHT RATES
Interstate Commission Gives I'm
portant Decision and Cuts Out
the Back-Haul

Washington. Jolly 24-In what are
known as the Spokane.Reno Pacific
Coast cases, the Interstate Commerce
Commission to-day ordered material re-
duction in freight rates from the East
to points between Denver and the east.
ern terminals of the transcontinental
railroads.
For many years the. railroads have
exacted from shippers 10 intermediate
points, such as Spokane and Reno.
higher rates on Eastern freights than
were charged for the much longer
hauIs 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 a comparison
with the Coast rates. plus a theoretical
back haul from the Coast to the inland
stations along the line.
The commission recognizes the right
of a railroad to meet water competition
to Pacific Coast points. but practically
wipes out the back-haul rates to inter.
rocky mountain territory. 1t lays down
what it considers would be fair and
just rates to various freight in the
West aud gives the railroads until DC.
tober Is to adjust their tariffs accord.
ingly.
The Commission also lays down che
important principle that hereafter rail
roads will not be permitted to fix arbi.
trary market limits, and that hereafter
commercial conditions rather than the
will of railway traffic managers shall
control rates on transcontinental trans.
portation.
The decisions are of ~far.reaching i'm
p~ortance. They affect directly all
freight rates between the Atlantic ocean
and the Pacific Coast. Particularly
they affect the rates in the territory
lying between Denver and Pacific Coast
poiAts. Hereafter the rates paid by
shippers will be governed by a strict
Interpretation of the long and short
haul clause.
The Commission holds in the SO called
Reno case that traffic originating at
Chicago and in Chicago territory NOV
ing under commodity rates may have a
rate 7 per cen higher to intermediate
points than that imposed on freight
originating in Chicago and Chicago ter
ritory destined to the Pacific Coast
terminals. From Buffalo. Pittsburg
territory the rates may rise above those
demanded from the same points to Pa.
cifc Coast terminals to the extent of
10 per cent; while from New York
and trunk line territory trunk rate
charges shall not exceed 20 ger cent
oyer Pacific Coast terminal rates.
ReUie1 of the Decision
j. +. Shaughnessy of the Nevada
Railroad Commission gives his views
of the decision as follows:
BY the decision of the Interstate Com.
merce Commission In what is known a.
the Reno Rate case the people of Ne.
vada and Eastern California will re.
ceive reductions in commodity rates
which are quite substantial. On the
basis of the case as made reductions
are ordered which will not only be eff.
f%ective to main line points on the Cen
trail Pacific. Western Pacific and San
Pedro Railways in Nevada, bat to
points in California as we'll.
The new rate adjustment will per.
NIT Nevada to become an independent
trade and commercial State instead of
being forced to depend upon San Fran.
cisco, Sacramento and Los Angeles as
in the past.
With a stock sufficient to meet rea-
sonable demands. our merchants can
in the future be assured of the oppor-
tunity to distribute goods of eastern
origin to the people of Nevada at rea.
sonable prices without the necessity of
paying tribute to the Pacific Coast
jobbers.
The activities of the San Francisco,
Sacramento and Los Angeles jobbers
in the future trade of Nevada on goods
of eastern origin will be small indeed
unless they see fit to establish branch
houses in our State and become tax
payers and employees Of our labor.
The decision means much for the
future welfare and development of the
State and is the beginning of a new
era of prosperity for u people. The
effect thereof car hardly be estimated
in dollars and cents but five years hence
should see Nevada with a population Of
$50, 900 or $780, 900 people.
Regarding the future rate application
the Commission holds that San Fran.