Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-05-17
WESTERN BACK HAUL
RATES ARE FIXED
Commission Allows Railroads.
to Add IS Per Cent. Of Local
Charges to Intermediate
Points.

WASHINGTON, May 1.-THE Interstate
Commerce Commission today issued an
order disapproving plans suggested by
Western railroads for constructing rates
to the Pacific coast and intermediates
back-haul points.
The order sets up instead the commits.
slons own plan for disposing OF the con
iicting contentious of the railroads and
the various communities affected. virtual-
ly every important Northern and western
city having taken part in the recent hear
ings on the subject. As
Carriers are authorized by today's order
to construct rates to back-haul points in
the following fashion
BY adding to terminal rates not more
than 20 per cent. of the local rates from
the nearest terminal destination or by
adding arbitraries to the terminal rates
varying with distance from the ports.
such arbitrarles to be not more than rs
per cent of the local rates, the aggregate
not to exceed the maximum prescribed
for intermediate points in this order.
Cities entitled to terminal rates srs
made to include San Diego. San Pedro,
Wilmington. East Wilmington San Fran
cisco, Oakland. Astoria, Portland. Van
couver Bellingham, South Belllngham,
Everett, Tacoma. Seattle. Aberdeen,
Hoquiam and Cosmopolis.
The commissions order of January ~
Is modified to permit maximum less-than-
carload rates from the Missouri River to
intermediate points on first and second
class commodities of S1.72 per 100 pounds
when lower rates are applicable to coast
terminals
Explaining its order the commission
says:
I'VE have reached the following con-
clusions:
First. We should authorize a certain
degree OF relief from the requirements
NJ a nd hni rIa an
traffic to enable these carriers to more
effectively compete with the water lines.
but the rail carriers cannot expect, and
the commission should not authorize
such degree OF relief as will secure to
the rail lines the same percentage of
the traffic to the terminals as they en-
joyed prior to the opening of the canal,
Second. They can secure a portion of
the traffic to the terminals on these COM
modities by the establishment of the
rates proposed, and such rates will ,af-
ford some revenue in excess of the out
! of-pocket cost involved.
Third. The carriers should, within
| reasonable limit be authorized to make
such rates TO intermediate points in the
| so-called back-haul territory as will in
| duce the direct movement of freight to
| such points from the territories served
| by these lines
Fourth. The proportion of the freight
| hauled directly by the rail lines to the
| various destinations in this Dack-hanl
| territory should be greater than the
/ proportion hauled to the terminals and
| should increase as distance from the
! coast terminals increases
! Fifth. The rates to all the coast ter
minal points being practically the same
and the situations at intermediates points
being substantially similar via all lines
tho same method of constructing rates to
| intermediate points should be followed by
| all lines.
! when the rates to the coast cities are
| lower than to intermediate points be-
| cause of controlling water competition
| every inland point should take rates
higher than those TO the port cities, either
by arbitraries varying with distance
from the nearest port city or BY proper
tlons of the local rates from such ports
to destinations. These rates should be
| fairly graded from the ports to the In
terror. We shall authorize the establish
ment of rates to back-haul points con-
stIucted by adding to the full rates to
the terminals, arbitrarles varying with
distance. but not exceeding % per cent.
of the local rates from the nearest ter
minal, the aggregate not to exceed the
| maximum which we have prescribed for
! intermediate points in this ORDER