South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-02-11
Local Competition JuStifieS
Violation of Long and Short
Haul" Clause of Commerce
Act, Commission Says.
DECISION IMPORTANT
TO COMMON CARRIERS
Enables Lower Freight Charge
Between Coast Terminals
Than Between intermediate
Points.

WASHINGTON. Feb. II-Because
of competition through the Panama
canal transcontinentaI railroads to-
day were permitted by the interstate
commerce commission TO charge low
er rates from eastern points to Pacific
coast terminals than 10 intermediate
points With a few specific exceptions
the decision permits reduction in the
long haul rates.
The decision was in what is known
as the Intermountain Rate case. ana
was regarded as second I'm Importance
only 10 the five per cent case.
The decision was the second big vic
tory for the railroads in their appeal
for relief from threatened financial
difficulties.
The committee declared that "the
shrinkage of rates via the Panama
canal from New York TO san Fran
cisco put the uanscontinental carriers
in serious straits" The commission
pointed Out thai I'm reaching its con
clusions 10 reco.niZed these salient
points as presented bA the railroads
That under existing rates The railroads
couid Lot compete with the water
lines TO the Pacific coast. that. should
the whole rate structure including
rates to intermountain points be re-
duced To meet the water rates. the
earnings of the railroads would be
swept away. that unless some adjust
ment could Doe made. the great indus
tries around Chicago and ID the Ais
sissippi valley would have lu lose their
Pacific coast customers coz migrate %
the Atlantic scaboard
Lower Rates Nccc-~aiy.
I'm this situation the commission de-
clares it was necessary To lower the
through rates TO the coast 90 insure
competition without lowering the rates
to intermountain points on the same
scale.
The ruling is summarized los the
commission as follows.
ON about - items which move n
carloads from the Missouri river 10
the Pacific coast at rates OF less than
- cents per hundred pounds. carriers
are permitted TO establish the rates
proposed TO the California terminals
and TO continue rates 10 intermediate
points not higher than - cents per
hundred pounds. ON an other traffic
rates from the Missouri river 90 the
Pacific coast must be carried as
maxim at intermediate points.
From Chicago, Buffalo and New
York carriers are permitted to- carry
carload rates To intermediate points.
-. , > and 30 cents respectively, high
er than from the Missouri river TO the
Sd me destinations.
The - items include ores. hard
ware and other heavy commodities
which are expected 10 be shipped
largely i'm vessels i'm going through the
panama canal from the Atlantic TO the
Pacific coast. TIE railroads asked IS
DeciaItv for lower rates on these heavy
commodities arguing that IN the de-
crease were not allowed business in
such heavy traffic would go 20 the
steamship lines because Of cheaper
TRANSFORMATION bE sea
Rates on smaller Sbinn,euts
AS 70 the less tnah caIiodo SNIP
menJs, the COMMISSION says
Less lhah carload eoiilHloully rates
on aFtlcies tlasslHeu as HIs anu go
ond lass IN NesSsi Cl'ss ,-,5.i l'i, = -
Whlcn are less IhdH sl-'V per hulluI -
pounds from the MlSsouIl Ilte eI 20 llte
racine coast may 2e eACeeoeu 90 'il
ternedlale points pul nc Iotes vH
aoSIL ~ 'lO.oe 5 -0 -, t.,
poiillS iLuS1 h"' eA11SH '-''' p0'
2feq pounds
LESS 'lall '~I loau coi..Il-o1it7 lNlea
on arllI-es cIass leq as tili. 80