Corpus Christi caller and daily herald. [volume] (Corpus Christi, Tex.) 1911-1917, 1911-12-21
RAILROAD RATES ARE
SUBJECT OF ISSUE
TllI COMMISSION ~ AGAINST
cOMMEEtI COURT
Rates from Atlantic 90 Pacific are
Lower Than a. intermediate
Points.

commerce commisaiou Win the com
merce court IN tho 2jih annual report
81 I've temmifaion transmitted 10 con.
gfces today.
The asue ls made principally upon
what popularity D. known as the
'ifans-continontal gate ona"s in-
siyiug freight rata from HE Allan
tic % Paclac Coast tnfmlntia and ~
4 intermediate points Existing rates
W abe trans-contlnsufai lines from
eastern points 10 intof-Rocky Moun
tain eitps are materially higher than
iD Pacific Coast terminals ln n d..
ririDn interpreting the l0ng and short
fhli provision of me present lan tbe
Interstate commerce commission. dl
reeiel by of1e ihat relation of
|ratra should no established between
ihc rnclno Coast aid points OF CO.,.
irin in nfe zones. into which the
United States was divided
The effect of the order was 10 TO-
1uoe rates 10 inter ROCKY Mountain
rltlur mud prevent thr railroads from
exaoiinr from ahlppen ihe Pacific
conef rate plus tho local rates. from
Pacific Coast terminals to iho inter
mediate points Tho orders Of the
commission oH application of tho
trans. continental carriers we're on.
Joined by the commerce court aud
tho matter has boon carried on ap-
neal 10 the United States supreme
court
in iis report t0 congress today the
commission declares that "H IH O.
naato OF transportation and there.
fore uneoonomlrai nud wrong tu
maintain system of tariffs which
are eAprenl, intended ln develop the
rnclnc Coast cltios aud to arrest thr
development of iho interior nuluia
30 H muoaalhlo to dlsa aoclntc
iho intermediate from the lonr dl.
lance point Whether tho lufermei
ntc rate 81 reasonable lefonda upuu
Mint rate iH made tn other points ON
both slides oi it. and to permit the faii
roads of this country to solo,t points
whcfc they VIII and whore 'hoy viii
not compete would ho intolorahlc
10 diaufalug the effect Of water
Competition nron rates the commits
Sion SAYS that ~ cannot rs rate
FROM NeN YORK to Ham Francisco BE-
Tow which The nii line shall not eo
i'0r ii has no authority Go MS "a mini
mum rate There ia therefore nu
way in which.it can prevent dacrlm
lnniion ny tho nsinr of an absolute
rnto az San Francisco and another an
golutc ratio At Reno. ll can oulN &C..
tomunsh ihis purpose hf ufrrflhlnr
enc difference which mns prnnoti, ex.
Z ist owlng io thv effect of fhla rompptl
ton aud allowing iho carrier tn make
whatever rate la soos nt TO ,ho more
distant point so Ions a t observes
I .hlH dinerpntiai
The report Indicate tho deslrc oi
ahlpnora nom points in thr interior
/ ol the country tO obtain the Same
j rates to The Pacific Coast that nro az
corded hy the railroads tu their com
rotitlom ou the Atant, seaboard
ihr rates are made thv same ny tDy
! trana.rontluouiai lines on The ground
ul market competition
TO Justify their rates from coast
40 coast Says the report. the rail-
roads advance water competition. aud
go Justify the aanc rates from intor.
/ Tor points 20 Pacific Coast points the,
( rel, ON market competition. under
witch they give lower rates from az
the interior cities two-thlrds ct che
way across the continent 20 the uamc
coast cltioa than to inter, mountain
points This Is the kind OF discrm
linatlon thr commission has attempt
ed 20 minimize,
While The commission recognizes
'he lull effect of water competition
upon thc rail rates Ii says We have
The irank admission OF the railroad
managers that thOy have subsidized
or bought sonic of the steamship
Hines and torrerlfrd othelH until thvy
can make the boast that the rneei ol
the sea has heen neutrali7rd
"A railroad policy OF rate.making
must certainly be- subject To- umita.
,lons OF the law. or elise there Is NO
law. 20 say that there IL lnng.and-
shor, haul section under which oar.
rirr may not charRe moro Tor the
shorter than for the longer haul. hui
that the railroads may. 20 any ca.
tent they please carry cut policy
ot hlankotlng the country Tor the
heneit OF the farther points and not
Che nearer points, is to say that a rail
road may, without restraint. effect q
ruinous Discrimination aud give no
justification save lts own detormina-
ticn or within. There can be no rcgu.
latlon OF rates as 90 discrimination or
lptcfcronce under such an interprcta.
( tion of the law.
Tho commerce court intimates
that the mistake 90 The commission Is
In having atsompted TO nx relation
of ratcs instead OF establishing rea.
sonahle rates, but, as We have nj.
ready pointed out there is no way in
which the discrimination found 10 ex-
Isl In these tariffs can be- prevented
except by nNlng Giaeren,ial. since
We have no power TO establish an alb
Z npftlfa rnfa M A.