The Cordova daily times., 1916-11-14
PACIFIC INL AN ] CITIES WANT
 LONER RATES

WASUINGTON. Nov. II. - Busi. ness interests Of Sacramento. Stock ton San Jose and Santa Clara. Cali fornia, and IFS other inland. or so. calleI intermountatn cities were af- fected by questions raised in the Pa oific Terminals case. Without equal trauacontincutal rate privileges with san Francisco and other cities classi- fled by the Interstate Commerce Com. mission as Pacific terminals. curtail- ing means to meet competition. the supreme court was told much of their business would be ruined
 The government the commission and the trmscontfncntaI railroads ap. pcaled to the supreme court from a perpetual injunction granted March 27, 1916, by the Northern California federal district court annuHing the commissions orders of January 2g and April ao, 1915, which allowed the railroads to reduce cross continental freight rates to san Francisco, Oak. land, San Diego Portland. Seattle and other deep harbor ocean points in or der that the railroads could meet the water competition caused by the open ing of the Panama canal The com mission refused to classify Sacramen- to, Stockton, San Jose and Santa Clara as Pacific terminals, denying them the rate reductions given the ocean terminals Those cities. there fore. bore additional rate charges
 the back haul from the terminals.
 In an injunction suit brought by the ! Merchants and Manufacturers Paci- lie Association Of Sacramento. the traffic bureau of the san Jose Cham Der of Commerce. the Stockton traffic bureau and the city of santa Clara. the California district court, with Judge BIedsoe dissenting, ruled the commission had exceeded it's authority in adjusting the transcontinental rates and issued perpetual injunction against operation of the orders.
 The court held that in the absence Of applications by the railroads for the specific rate changes ordered, the commission was without power to di. rect them. Upon appeal. however, the i government contended that such ap- lications had been substantially fled and that, under the ruling in the in. l termountain rate case, and the long and short haul clause of the Interstate l Commerce act. the commission had acted within its authority. + was pointed out that towns not direauy l situated on the Pacific ocean were i by their interior geographical posi- ton, not subject to the steamship competition of ocean terminals and not entitled to reduced rates give such terminals
 That ITS other inland or iuteeraonn tain cities might also insist Urar "a eifie terminal classification den-el tc them, was raised by the government and commission before the supreme court it being set forth that the sole reason for the commission's orders was necessity of ocean terminals tc meet transcontinental transportation conditions changed through the open ing of the Panama canal
 The government and commission also contended that the commission findings of fact and need for the rate adjustments ordered, were final anC conclusive upon the courts. ~heI
 based on substantial evidence, an, that the California courts injunction
 in effect substituted the judgment O
 that court for the commissions ai
 to the traffic conditions.
 The commercial organizations o
 Sacramento, stockton, San Jose ant } santa Clara, which contended thei i business men directly compete witt
 those Of San Francisco and oakian'