Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-07-25

hC oC1CAudAIS COukCAu tuehI thS
only effect Of the amendment is to cast
upon the carriers the burden Of assum-
ing the initiative in justifying the
higher rate at the intermediate point
II upon investigation 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 con-
tention is not sustained.
'In amending the fourth section by
striking out the words similar circum-
stances and conditions congress in
tended to 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 also to correct that wrong if it was
found to exist.
Commission Can Not Act Arbitrarily.
'In determining whether the carriers
shall be permitted to make the higher
intermediate charge the commission
can not act arbitrarily, but must apply
the principles which control it In the
administration Of other portions of the
act. 1t must inquire whether the main
tenance Of the higher intermediate rate
will result in unreasonable charges or
unjust determinations. If so the per-
mission 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 interim ediate
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 Commissioner Prouty.
They affect all applications by the Ger
riers for relief under the long and
short haul 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
definiteness by the decisions From zone
number one, which includes approx.
mately all territory west of a mid con-
t1nental north and south line it is pre-
scribed that rates must not be higher
on west-bound traffic to any interme-
diate point than to a more distant
point.
Rates for Other Sections.
moving eastward, IRON zone number
two the rates to intermediate 3,.irts
may exceed those to more distant
points by not over per cent: from
zone number three by not over Is per
cent; and from zone number four by
not over 25 per cent. No opinion is ex-
pressed as to the rates from zone num-
Der five which is farthest east because
the rates from that territory are not
particularly involved in these decls-
s:eEs. inasmuch as they generally are
cor trolled py ocean transportation to
the Pacific ruast
In concluding the discussion Of the
Spokane case, the commissions report
says:
1T may be asked why the schedule
Of rates suggested by the commission
as reasonable should not be ordered in
The answer is that carriers should be
permitted in so far as possible to ad-
just their own tariffs and that it seems
probable that IN compliance with this
order carriers must establish rates in
substantial accord with those suggest
ed by us. 1t should be ever borne in
mind that the acute complaint in this
case is the discrimination and not the
unrea sonable rates.
Some Rates May Be Raised.
"Obedience to this order will doubt
less result in some rates from the
east which are higher and in others
which are lower than those suggested
by the commission since we did not
then feel at liberty. as the complain
ants requested, to make the Spokane
rate depend upon the coast trade, but it
is likely that the resulting schedule will
be more satisfactory to the complain
ants and no more burdensome upon the
defendants. If the carriers establish
under this disposition of the case rates
to Spokane which are excessive, a fur
ther order can be made in this pro-
ceeding reducing them to proper
basis"
In an elaborate discussion Of the
long and short haul provision In tile
so-called Reno case and the Phoenix
Arizona case, Commissioner Lane, who
prepared the opinions in these cases
for the commission, asserts that "it
must be affirmatively shown by the
carriers seeking exceptions to the long
and short haul provisions that IN in
justice will not be done to intermedi-
ate points by allowing lower rates to
the more distant points.
1.-The intentment OF the law, says
Commissioner Lane, is to make it's
prohibition Of the higher rate for the
shorter haul rule of well-nigh uni
versal application from which this
commission may deviate only in spe-
cial cases and then to meet transDor-
tation circumstances which are beyond
the carriers control"
Competition With Sea Carriers.
1t is held that in the light of his
tory it is not to be gairsaid that the
transcontinental lines must give con-
sideration to sea competition" 1t was
held, also, however, that the carriers
herein involved have not shown that
undue discrimination was not effected
by their rate adjustments between
points in Nevada and points in Cali
fornia; nor have they established that
the rates to the coast cities, If ex-
70,