Daily capital journal. (Salem, Oregon) 1903-1919, 1916-08-03
INCREASED RATES ARE
MENACE TO INDUSTRY
Adds $4,000 to Freight On
Loju---Rate Is Practically
Prohibitive +.

An advance in freight rates from the
Pacific coast to eastern points, one that
will imperil, according to the opinion
of those intersrfed, the existence of
every fruit and salmon canning plant
and every loganberry juice plant on the
cost was announced last Friday.
Commodity rates on east bound goods
which include canned goods, jellies,
canned salmon and all the products of
the two loganberry juice plants in Sa-
lem, have for years been established at
62 1-2 cents q hundred, and on this
basis all the canning and loganberry
factories on the coast have established
their business.
Having entered into all contracts for
fall and winter business with the assur-
ance, it is said, from the railroad Of
ficials that no advance would be made,
last Friday the loganberry and can
ming plants of Salem were notified that
after September /, the commodity rates
would be advanced to 85 cents hun
dred to points beyond the mountains.
Several months ago the Interstate
Commerce commission made ruling
that on account OF there being tempo
rarily no water rates as competition,
the railroads of the coast must either
raise their rates to eastern points to
equal that of Spokane or mountain
points, or must give these mountain
points rate the same as given coast
points whereig there is water competi-
tion.
According to ruling years ago,
points on the Pacific coast, on account
O. the cheap water rates, were permit
ted to ship and receive freight from
the east at the rate made by ships
Cities located like Spokane were not
given this low rate, having no water
competition. For instance, the rate
from Chicago to Spokane has been equal
to the rate from Chicago to Portland,
plus the local rate back from Port
land to Spokane.
In making its recent ruling, on ac-
count of but little water competition,
the Interstate Commerce commission
gave the coast railroads the privilege
of either raising the rate to and from
points east to equal that of Spokane,
or of reducing the Spokane rate to that
of the coast. The railroads, according
to the decision of last Friday, raised
the rate of all Pacific coast points to
that given Spokane.
The opinion has been expressed that
if this ruling if put in effect September
l, it will be a serious blow to all can
ming as well as fruit juice interests on
the coast, as the advance from q rate
of go 1-2 cents hundred to S5 cents,
will be prohibitive for shipments be-
yond the Rocky mountains. In the ease
of the Northwest Fruit Products COM
pany alone, this advance would cause
a loss of perhaps $4,000 a year and
might hereafter prevent them from ship
ping to points beyond the Rockies. And
the effect will be the same with other
industries on the coast, accord |
ing to the opinions of those interested. |
disadvantage to the Pacific
coast interests, is the fact that all
prices for the coming year were made
with the understanding that rates would
not be advanced
With the advance in freight rates |
the valleys growing in
dustries, representative of the Loju |
interests called on the governor who |
gave every assurance that he would do |
what he could. The matter was also TAX
en- up with the Public Service commits |
sion. The opinion was expressed that
the railroad had no legitimate reason
for raising the rate, and that moreover,
the Loju interests, on account of the
amount of business done, were
to special commodity rate.
A case of Loju weighs so pounds and
recording to the new proposed rate, the
Northwest Fruit Products company
will be obliged to pay an additional
freight rate of IL 1-2 cents case. As
the company will ship within the next
year probably 100000 cases, their loss
alone with the new rate will amount |
to more than 100000, and probably pre-
venting them from shipping to eastern
points after their standing contracts
IRE filled.