Omaha daily bee., 1916-05-17
WILL NOT SUSPEND
OBNOXIOUS RATES
Commerce Commission Rejects Plea
Of Mcvann of the Omaha Com
mercial Club.
GIVES REASONS IN DETAIL

From a staff Correspondent
Washington, May Special
telegram The Interstate Com
meree commission today refused to
suspend the passenger rates prayed
for by t. !. MeVann. traffic com
missioner OF the Commercial club
Of Omaha. as was anticipated in
these dispatches last week.
Secretary McGnty today trans
mitted the following letter 70 Mr.
MeNann. which is self-explanatory:
Referring TO the petition sub
miited by yuu on behalf Of the Com
mefcial club OF Omaha YOU are adj
yised that the commission declined
10 suspend the operation OF the pas
scnger fares therein protested
against contained in the various
tariffs referred TO which become cf-
tectVe May rs, 1910 and later
Doesn't Mean Approval.
IL is the view OF the commission,
upon consideration OF the matter now
before a. that It should not exercise
rs authority 10 suspend IN this in
stance The fact that the commits
sion has not suspended the new
schedules carries with IL no expires
sion OF approval and this action is
subject 10 the duty Of the commits
sion 10 investigate the lawfulness and
reasonableness Of any schedule
which may be made the subject OF
formal complaint"
When the petition OF the Omaha
Commercial club was filed, seeking a
suspension OF rates as promulgated
by the Burlington, the Chicago Great
Western, the Chicago, Milwaukee &
St Paul, the Chicago, Rock Island
4 Pacific and the Wabash. Secretary
McGinty of the Interstate Commerce
commission called upon +. y. Mac.
Leod, agent al Chicago for the lines
named, Tor statement 10 aid the
commission in its deliberations
Denies Discrimination.
Mr. Macleod replied that he de.
MED the gross discrimination al.
legged, lie states that fares from
Omaha and all other territory west
OF Chicago are established by the use
OF double the one fares TO Chicago
found reasonable by the commission,
IN decision in certain cited doekcts,
added 10 the fares therefrom except
from Kansas City and territory nat.
urally tributary thereto.
From Kansas City the fares are
established by adding the summer
tourist fare from Kansas City 10 Chi.
cago, SiS, or by adding the summer
tourist fare from Kansas City to ST.
Louis, $ll.20, 10 the fares thcrefrom.
The fares from Chicago and 81 Louis
are abolished by the connections Of
your respondents and your rcspon-
dents have no control over their
structure OF application"
He says that the respondents have
lines between Kansas City and Chi
cago and meet the competitive condi-
tons they find at Kansas City, and
can sec no reason for spreading IN
necessary reductions beyond their
natural limits.
How They Do II.
Therefore they establish the fares
from ST. Joseph and from territory
west OF the Missouri river by adding
the double onc-way interstate fares
found 70 be reasonable by the COM
mission, TO the fares established from
Kansas City or Omaha. except that
ST. Joseph being intermediate to
Kansas City on the route to Chicago
the fares from this point in no case
exceed the single fare from Kansas
City TO Chicago, Sls, plus the fare es-
tablished therefrom.
In general way" continues MI
Macleod, the respondents meet the
short line fares via Omaha from all
territory on the north and west, and
OF the main line OF the Chicago, Rock
Island & Pacific from Omaha to
Pueblo. from territory south thereof,
the natural route is through Kansas
City
Respondents are Of the opinion
that ii is unnecessary to make any
formal reply to the allegations that
the fares are made and agreed upon
by your respondents in violation OF
the law believing that the commission
is fully aware OF the practice and pro-
cedure OF the compilation of tariffs
through an agent, which practice and
procedure was followed in the prepar-
alton OF tariffs complained Of.
THE respondents feel that in view
OF the facts presented there Is no
reason or justification for the sus-
pension OF the tariffs complained OF