Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-07-25
FOR REDUCTION.
CONTINUED from Page One.)

may nave Il rate per Aelil- ihSi'S4 -
| ir terTaediate points than that impose
on freight originating in Chicago ane
| Chicago territory destined to the Pa
cific coast terminals. From Buffalo
| Pittsburg territory the rates may
rise above those demanded from tn.
| same points TO Pacific coast terminals
| to the extent of 10 per cent; while
| from New York and Trunk line terri
tory the rates charged shall not ex-
coed % per cent over Pacific cCas
terminal rates.
These are the first decisions an
nerneed by the commission in %hief
a definite principle in respect of The
| long and short-haul provision is laid
down. While the opinions fully rec
| ognize the influence of water compe-
| tition, to marked extent they draw
d lire upon discrimination to mar
| ket' competition.
| The effect of the decisions will be to
notify the carriers that they will be al
| lowed to meet water competition to a
REASONABLE extent, but that the location of
markets hereafter will be left more to 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 Co, known popularity as the
Spokane rate case" the Commercial
Club of Salt Lake City against the Atch-
ison, Topeka & Santa Fe Railway and
others; the Railroad Commission of Ne
vada against the Southern Pacific and
others; and the Maricopa County Com
mercial Club against the Santa Fe. Pres
r., Dasi nd nfha
riers.
Inasmuch as the cases generally dove
tail into one another, the commission an
nounces Its decisions in two opinions. In
brief the commission takes the view
which it took in its opinions of the same
cases announced a year ago last June
At that time the commission said it
would make no order respecting the rates
which it suggested might be put into eff
feet until il had had opportunity TO de-
termine from reports made to ii by the
carriers of the probable effect of the sug-
gested rates. Meantime, 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 con-
WINGED the commission that the rates de-
termined upon by the commission in its
decisions of June 7, 1870 are generally
fair and reasonable. The commission
says that there is no reason why those
rates should not now be established.
''Since the PRONUNCIATION of that opin-
ion." the commission says, "the fourth
section 1.-THE long-and-short-haul pro-
vision has been amended. Inasmueh as
the gravamen of the complaint of the
city of Spokane, and TO some extent of
Salt Lake City, was directed against the
violation of the fourth section, it is ne
cessary 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
proviso in the amended section, permit
ting the commission to authorize in par
ticular instance the charging of higher
rate at the intermediate point. is void as
a delegation of legislative authority; that
ii should be rejected and the section APP
piled by the commission as though il We're
an absolute long-and- short-haui prohibit
ton. This contention is not sustained.
1.-THE defendants contend that the only
eHtCI Oh the dIiltltuHltlt 10 W tdoN uPoiA
the carriers the burden of assuming the
initiative In justfying the higher rate at
the intermediate point If upon investi-
cation it 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
relief asked for; If no such competition
exists it must deny the application. This
contention is not sustained.
In amending the fourth section by
striking out the words similar circuu-
stances and conditions Congress in
tended 10 invest the commission with
authority not only to determine wheth-
er a wrong results from the disregard
for the long and -short-haul provision,
but alsa To correct that wrong If il
was found TO exist
In determining whether the car
riers shall be permitted To make the
| higher intermediate charge the COM
mission cannot act arbitrarily, but
| must apply the principles which con-
/ troll il in the administration of other
| portions OF the act. II must inquire
| whether the maintenance of the high
| er intermediate rate will result in I'M
| reasonable charges or unjust discrim-
| nations. II so the permission must be
| refused; otherwise it must be granted.
THE commission may prescribe in
any way that is definite and certain
| the extent to which the intermediate
rate may exceed the long-distance rate
| in cases where this is necessary to pre-
vent unreasonable rates and unjust
Determinations"
The opinions in the Spokane Rate
case and in the Salt Lake case were
prepared by Commissioners Prouty
They affect all applications by the car
| riers for relief under the long-and-
short-hau provision. For the sake OF
| convenience the country between the
| Atlantic and the Pacific oceans is di-
| vided into FIVE freight zones These
| zones are defined with reasonable def
niteness by the decisions. From zon'
No. |, which includes Approximately
all territory west of mid-continenta
north-and- south line 1t is prescribed
that rates must not be higher on west
bound traffic to any intermediate pom
than to a more distant point. Movint
eastward, from zone No. the rates Il
intermediate points may exceed thos'
| IN OF nj