New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-02-12
ROADS MAY MEET
CANAL RATE CUTS
Commerce Commission
Reverses It's Long and
Short Haul Ruling,
DUE TO EFFECTS
OF PANAMA ROUTE
Railways Allowed to Charge
Less than Coast Tariff TO
intermediate Points.

Washington, Feb. Ito meet new
trAfie conditions due 70 opening OF
the Panama Canal, the Interstate Com
msrcs Commission to-day permitted
t-ans-ooutinental railroads TO establish
certain commodity rates from East
srn points 70 Pacific Coast terminals
lower than those TO intermediate points
In inter-mountain territory.
This explanation Of the order when
brings into prominent notice the ef-
feet Of the canal on trans-conunental
transportation was made a. the com
missions headquarters:
under the original order IN the
fpter-mountain case. carriers were re-
CURED. from the Missouri River west
ward not 20 charge more 10 an inter
mountain point than TO Paciho terml-
nal East Of the river the strlngeney
Of the rule was somewhat absted. From
Chicago 70 inter mountain points the
excess charge permitted over the rate
20 the Pacific Nrminsls WAS per
cent; from Pittsburgh, Is per cent
from the Atlantic sesbosrd. 70 per
cent.
"The shrinkAge Of rates via the
canal from New York 20 San Francisco
put the trans-continental carriers IN
serious straits. On certain heavy
commodities largely moving By water
II the carriers reduced their rates 70
the Pacific 90 compete with the loW-
cred water rates, a serious shrin kAge
in through earnings was inevitable IN
addition 20 this loss on through rev
enue, the carriers would have had 20
take a double loss on revenue 10 the
inter-mountain points first, because
the inter-mountain rates would have
20 be lowered, and. second, because
the percentages over the terminal rates
would have been calculated on a lower
base.
"Had no additional relief been AZ
forded on inter-mountsin points, an
abandonment OF much rail carriage
from the Atlantic scaboard territory
was imminent, and had addiuons! re-
lief on inter-mouutaln traffic not been
granted there was grave reason 20
think that the Atlantic seaboard IN
the future would have supplied by wa
ter the Pacific Coast with the com
moditics 100 question, and that man!
industries Boz the me gu bcrnCod o. chi
rego would have either lost their Pa
cifc customers OF nave been compelled
10 migrate 90 near the Atlantic sea
board
an this emergency q greater de
gree Of relief on certain commodities
20 inter-mountain points has been &C
corded by the commission, but only
on the commodities .n question, ne
net result Of the greater relief Is tnat
Industries in the Chicago and Middle
West section VIII continue IN the busl-
ness Of supplying consumers on the
Pacific"
The order permits railroads 20 carry
carload freight from Chicago, Buffalo
and New York 20 intermediate points
l5. 2b and 80 cents higher han from
the Missouri River 10 the same destina-
lions, and less than carload commodity
rates from Chicago. Pittsburgh and
New York 10 intermediate points may
exceed those from the Missouri River
20 the same destinations by %, 40 and
80 cents. respectively
Carload rates on coal and pig IRON
msy be less 20 the Pacific Coast than
20 intermediate points, but the rates
on such articles 90 the higher rated
intermediate points must not exceed
ave mills per tOn-mile
"The Pacific Coast terminals 70
which these rates viii apply" says the
explains .ion, "sre the points nt which
the Atlantic-Pacifc steamships deliver
their freight
owe are o. the opinion" says the
commission. "that the railroads should