The daily star-mirror. (Moscow, Idaho) 1911-1939, 1914-06-22
BACK HAUL FREIGHT RATES
BECOMES THING OF PAST
SWEEPING DECISION HANDED DOWN BY UNIT
ED STATES SUPREME COURT TODAY
FAVORS THE INLAND CITIES
"Intermountain" Freight Rate Fight Ended After
Many Years Struggle-Sixteen Railroads
Lost-Peope Will Benefit

and other intermountain cities won q
long fight today against 16 railroads
in their section for reduced freight
rates. The victory was achieved
through a decision handed down to-
day by the United States supreme
court in the "Intermountain Rate
Case" The interstate commerce com
mission had ordered radical reduc-
tion of westbound freight rates to
western inland cities. The commerce
court suspended it. The supreme court
! today sustained the action of the in
terstate commerce commission.
Is of Great Moment.
Commerce of the whole country is
affected by the decision today-every
large manufacturer and merchant,
and almost every railroad. The case
was the biggest railroad rate fight in
years, variously known as the "Spo-
kane" 'intermountain" and long and
short haul" case. The case is of vital
interest to all parts of the country
because the constitutionality of con-
gresss amendment to the interstate
commerce law, prohibiting railroads
long hault, is squarely involved. The
railroads contend it is void, although
both the I. C. c. and commerce court
held 1t valid. The commission ordered
general rate reduction to the Inter
mountain cities-those located between
the coast range and the Rocky Noun
tains-to which freight rates were
higher than the cities on the coast
having advantage of through" or ter
minal rates. On December 8, 1911,
the commerce court enjoined this or
der. Allied in the fight were the Pa
cific Coast cities and the railroads
against the inland "intermountain"
cities and middle western commercial
organizations. A bitter quarrel be-
tween the interstate commerce COM
mission and the commerce court over
jurisdiction was an outcrop. A dozen
renowned lawyers clashed for three
days when the case was argued before
the supreme court last February.
Back Haul Charges.
Alleged discrimination by railroads
against the inland towns in favor of
cities on the Pacific coast provoked
the great rate battle. The waterfront
cities enjoyed low rate on west
bound transcontinental freight, alleg-
ed to be necessary by the railroads to
meet competition of ocean carriers.
The intermountain cities were charged
rate for the haul to such inland points.
In 1906 the Spokane merchants began
their fight against this alleged dis
They said that they could
not compete with Pacific coast rivals
because OF their heavier freight
charges, and that it was unfair of the
railroads to charge more for hauling
freight from New York, Chicago or
,ther eastern cities to San Francisco,
Portland or Seattle, than to cities sew
sral hundred miles nearer, like Spo-
Kane, Reno, and Phoenix.
Fight Inland Terminals.
The railroads contention was that
hey must keep the extreme low trans
rate to meet rates of steam
ship lines carrying freight by water
cheaper to the coast. On June IL,
80, congress amended section of
he interstate commerce act, declaring
10 railroad should have lower rate
or hauling freight a long distance
han for a shorter haul. Congress said
hat the total of intermediate rates
hould not be more than the through
ate, unless the l. c. c. should con-
ent All great western railroads then
etitioned the commission to leave In
orce their through terminal rates to
he Pacific coast. The Hartman and
I'LL lines, the Canadian Pacific, and
IL roads operating west of Chicago
nd the Missouri river Joined In the
etition. Not only did the l. c. C.
eny the railroads petition, but 1t fix-
d five great freight zones" gradual
lg westbound freight rates generally.
ut without fixing any exact rates for
ertain cities. 1t allowed the rail-
Dads to charge from Z to rs per
ent more than the Pacific coast term
lal rates from middle western and
astern points, but prohibited them
ON shipping freight from west
{ the Missouri river to the