Evening journal., 1914-06-23
lower RATES ON
FREICH! TO west
Railroads Are Hit Hard By
Decision in the Inter
mountain" Cases
NEW TARIFFS MUST
BE FILED SOON
Bx the United press.

by lNe 1uiltO Iltons
WASHINGTON, June 23.-Unques
toned and complete power of the In
terstste Commerce Commission over
interstate railroad rate and early.
drastic rate reductions on long
haul freight to Spokane. Salt Lake
City. Reno, Butte, Billings Denver,
and many other cities between the
Rocky Mountains and the Pacific
Ocean are conditions today confront
ing railroads as result OF the Su-
preme Courts decision yesterday IN
/ the famous "intermountain" rate
case.
The Interstate Commerce Commits
/ sion today prepared to put the inn
mort court edict into effect. Rail
roads will be required to file new
tariffs reducing rates on transcontl-
mental shipments to the "intar-
mount" cities Officials stated this
will be the first, immediate effect Of
the decision In many cases the re-
ductions will equal twenty per cent.
more IN others.
More sweeping is the strengthen
lug Of power of the commission by
the court and its decree holding valid
the Long and short haul" amendment
20 the commerce act. This gives the
commission power to prohibit higher
rates for a short haul of freight than
longer carriage.
Inc far reaching effect of the decis-
/ ion. however. according 20 officials, was
the declaration that all power TO initiate
and prescribe rate changes must tt th'
commission desires 10 exercise itl be
transferred from the railroads to the
commission by Congress. This declara
tion makes completely and dominant
the authority of the commission TO tA
inter state rates including action upor
the five per cent. rate advance appliea
tion-amd not merely limiting it's powel
to declaring what are reasonable or un
reasonable rates.
3 The alleged traffic discrimination
q suffered by Inter mountain cities an'
d adjusted by the decision were thus
TO meet water competition trans
> continental railroads charged less e
haul freight across the continent to Sai
p, Francisco. Portland and Seattle--wate
. port than shorter distances to Spo
y kane and interior cities. The inter
's mountain cities were forced TO pay an
l. rcoulnr transcontinental rate and the
an extra charge for the haul back frol
the Pacific coast to their cities.
q The order issued by the commissio
IN and approved bv the Supreme Court vi
!. force railroads TO charge less in man
' cases Tor the haul to the "inter-moul
tain" cities than TO the water ports
y, the coast. The commission. however d
es vidcd the country into transcontinent
on zones" permitting graduated increas
ON across-country freight hauls 10 q
~, "inter mountain" cities-to protect I
be coast cities from water competition
ranging from per cent from the iii
@. trict Immediately west OF the NILSSON
River to % per cent from extreme \
N lantic coast territory.
h. The decision against the railroads W
lsl eventually operate to their benefit
D. the stimulation in traffic, Louis
X Brandeis. special counsel for the Int
y, state Commerce Commission, predict
Il. today.
ut will help business so much
~ said that soon its effect will not be n
NJ ticcd in the railroad unless
ou be TO increase them. The decision is
wonderful victory for western state
Brandeis pointed out that the wcste
Ed states will not be the only ones
W benefit by the decision. lie says il "
enable New England shippers TO co
is pete in the western market with sh
pers further west.
AZ Now that the pipe line case has be
If decided by the Supreme Court IN fax
md of government regulation tho interst'
commerce commission will issue
TIL order to compel pipe line companies
"a file tariffs.