The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1911-12-20
ST. Now s KEN
By e . COl SION
With the Commerce GoilTt on
the Trans Contine 1tal
Rates Cases
RELATION OF RATES
Be Established on
Freight Shipments in
Five Zones.

wAsHINGToN5 U. C.. Dec. 60
Sharp issue Is taken by the inter
.tstate Commerce Commission with
1.-THE Commerce Court In the 25th an
nual report Of the commission trans-
mitted to Congress today
4 The Issue is made principally upon
what popularity is known as the
ptrans-continenta rate cases in
Jyolving freight rates from the AT
'lantic to Pactic coast terminals and
Ito intermediate points. Existing
rates of the trans-eontinenta lines
from eastern points to iDter-IRocky
Mountain cities are materially higher
than to Pacific coast terminals. In,
a decision interpreting the long
and-short-hadl provision of the pres
ent law, the Interstate commerce
Commission. directed. by order. that
relation OF rates should be estaS-
lished between the Pacyfic coast and
points OF origin in i've zones. into
which the United States was di-
ylded.
/ The effect of the order was to re-
,duce rates to inter2Rocky Mountain
cities end prevent the railroads
from exacting from shippers the Pa
cilc coast rate plus the local rates
from Pacifc coast terminals to the
intermediate points. The orders of
1 the commission, on application OF
the trans-continentaI carriers were
Ienjofned by the commerce court and
I the matter has been carried. on ap-
peal. to the United States supremS
court
! IN its report to Congress- today
the commission declares that eft is
waste OF transportation and there
fore unaconomical and wrong TO
. ma intqIn a system OF tarlfrs which
are expressly Intended to develop the
Pacific coast cities and to arrest the
Development OF the Interior points.
sIt Is Impossible to disassociase
the intermediate from the long dis
lance point. Whether the interme-
date rates is reasonable depends
upon what rate is made to other
points ON both sides of It, and to
permit the railroads of this country
to select points where. they win,
ana where they will not compete
would be intolerable.'
I'm discussing the eject OF water
composition upon rates the commits
sion says that it 'can not AK rate
from Kew York to San francisco
below which the rail line shall not
go, for 1t has no authority to AK a
minimum rate. There is, therefore,
no way in which It can prevent dis
examination by the liking OF an
absolute rate at San Francisco and
another rate at Reno. 1T can only
accomplish this purpose by prescrtb-
ing the difference which may proper
lily exist owing to the effect OF this
Icon1petion and, allowing the carrier
to make whatever rate 1t sees at
to the more distant points so long
MS it observes this differential."
The report indicates the desire OF
shippers from points in the i'm
terror OF the country to obtain the
same rates to the Pacific coast that
are accorded by the railroads to
their competitors on the Atlantic
seaboard. The rates are made the
same by the trans-continental lines
on the ground OF market COMPETE
ton.
'sTo Justify their rates from coast
to coast" says the report, "the rail-
roads advance water competition,
and to Justify the same rates from
Interior point to Pacific coast points
they rely on market competition
under which they give lower rates
from. all the interior cities two
j, thirds of the way across the conti-
nent4ent Sto the same coast cities
than to inter-mountain points. This
is the kind OF discrimination the
commission has attempted to mini
lmi5e."
While the commission recognizes
the full effect OF water competition
upon the rail rates it says Eve have
the frank admission of the rpllroad
managers that they have subsidized
or bought some of the steamship
lines and terrorized others until they
can make the boast that the effect