Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1911-07-25
INCLUDING PH0E N|TS
Strict Interpretation of Long
and Short Haul Clause
No More Arbitrary Mar
ket Limits by Railroads
Decision Effective Oct. Is

Washington, July 24.-Decisions of
far reaching Importance were an
nounced late today by the Interstate
Commerce Commission. They affect
directly all freight rates between the
Atlartic Ocean and the Pacific Coast.
Particularly, they affect the rates in
the territory lying between Denver
and Pacific coast points.
The rates to the inter mountain
territory heretofore have been made
without any definite relation to the
water competition rates to the Pacific
coast, the extent of the discrimination
being entirely optional with the car
riers. By the opinions handed down
today the commission has attempt
ed to arrive at definite relation of
the rates to the non competitive points
as compared with those to the coast
and has laid down the extent to which
the rates to interior points may eX
ceed the coast rates.
In all the cases decided the carriers
are given until oct 10 to file tariffs
with the commission constructed in
accordance with the views set forth
in the opinions.
The net result of the decisions will
be to give lower rates on all west
bound transcontinental traffic to cities
in the inter- Rocky mountain territory.
To all intents and purposes the back
haul rates from Pacific coast termi
nails to cities in the Rocky noun
tain territory are wiped out and the
service rendered by the carriers will
be paid by shippers substantially on
a strict Interpretation of the long and
short haul provisions of the existing
law
The commission holds in the So
called Reno case. that traffic originat-
ing in Chicago territory moving under
commodity rates may have a rate sew
en- per cent higher to intermediate
points than that imposed on freight
originating in Chicago and the Chica-
go territory destined to the Pacific
coast terminals. From Buffalo-Pitts-
burg territory the rates may rise
above those demanded from the same
points to Pacific Coast terminals to
the extent of fifteen per cent; while
from New York and trunk line terri
tory. trunk rate charges shall not eX-
ceed twenty three per cent over Pa
cafic coast terminal rates.
These are the first decisions an
nounccd by the commission in which
a definite principle in respect of the
long and short haul provision is laid
down. While the opinions fully recog-
nize the influence of water compe-
tition. to a marked extent they draw
a line upon indiscriminate market"
competition.
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
location of markets hereafter will he
left more to the play of commercial
causes than to the will of the traf-
fic managers of railways. The cases
involved are those Of the city of Spo-
kane against the Northern Pacific
Railroad company, known popularity
as the Spokane rate case" the Com
mercial Club Of Salt Lake City against
the Atchison, Topeka & Santa FeI
company and others; the railroad
of Nevada against the
Southern Pacific and others, and the
Maricopa county Commercial club
against the Santa Fe, Prescott q
Phoenix railway company and other
carriers.
Inasmuch as the cases generally
dovetail one another. the commission
it's decision in two opin-
ions. In brief. the commission takes
the view which it took in its opin-
ions 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 effect
until it had had an opportunity TO
determine from reports made to IL
by the carriers of the probable effect
of the suggested rates. Meantime
the carriers have submitted to the
commission their earnings under
the old rates and that would have
been their earnings under the rates
proposed by the commission. These
tabulated statements severally con-
yinced the commission that the rates
determined upon by the commission
in it's decisions of June Z, 1910, 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
opinion." the commission SAYS, the
fourth section (the long and short
haul provision) has been amended.