Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-12-18
R. R. Commission
UPHOLDS PRINCIPAL
CLAIMS OF SHIPPERS
BaSing Point System of
Freight Rate Construction
Abolished in Favor of Mile
age Scale

\ decision sustaining the priucipaI
contentious advanced by the shippers
was announced Yesterday by the state
railroad commission in the famous
Georgia rate case which has been pend
ing since the early spring of 1916.
The case involved two major issues:
first, as to rates; second. as to classif-
cation. The shippers get better than an
even break in the first, and prevail al
most entirely in the second.
As to rates. the commission aboIishes
the old basing point system of rate con-
struction and in lieu thereof establishes
mileage scale to be uniformly applied
throughout the state. To this extent the
decision sustatnS the railroads but the
mileage scale prescribed by the COM
mission is considerably lower than the
scale requested by the railroads in their
petition, and even this scale is only
tentative, being prescribed with the dis
tinct provisO that the commission will
reduce ii If experience should demon
strate within period of six to twelve
months that it produce too great an
Increase in railroad revenue.
As to classification, tho commission
declines to adopt the southern classii-
pers are sustained almost entirely.
The decision was announced in the
form of digest prepared by the COM
mission for the newspapers The COM
plete decision, which is a voluminous
document, will be placed in the hands
of counsel for the shippers and the car
rierS. and beginning January % the
commission will hear arguments with
out evidence OH any objections which
can be raised by either side Merrel
Galloway, of Washington. d. c. is coun-
sci for the railroads, and W. \. Win
bish and c. E. CotterilI. of Atlanta, are
counsel for the shippers.
What Railroads Asked
A summary of what the railroads re-
quested in their petition is as follows:
First, the abolition of the basing
point system of constructing rates. and
the substitution of a mileage scale to
be uniformly applied throughout the
state. They requested a scale which in
creased existing rates up to $50 miles,
within which the bulk of Georgia traf-
fic moves. and increased the rates be-
tween basing points without regard to
distance. Above 100 miles, the scale
they requested was somewhat lower
than existing rates, except in the case
of rates between basing points.
Second, the adoption in Georgia of
the southern classification and rules
practically in toto.
Third, increases in commodity rates
which ranged all the way from 25 to
400 per cent
What Shippers Contended
A summary of the contentious ad-
vanced by the shippers is as follows:
They conceded, or virtually conceded,
that the basing point system of rate
construction must be abolished, but they
insisted that the mileage scale request
ed by the railroads was too high.
They opposed the adoption Of the
southern classification, as such, and op-
posed the adoption of southern classifi-
cation rules.
They opposed any increases in COM
modify and laid particular emphasis on
about twenty-five major commodities
embracing the bulk of the commodity
movement in Georgia
What Commission Decided
summary of what the commission
decided on these three main points is Is
follows:
They decided that the baSing point
Syster1 of rate construction must be
abolished. because it has been con-
demned by the interstate commerce
commission with respect to interstate
traffic.
But in prescribing a mileage scale Of
rates, the commission declined to accept
the scale proposed and requested by the
railroads, and prescribed scale or their
own which is not as low as the shippers
contended for. While the digest only
gives the minimum first-class rate for
five miles and under, and the maximum
frst-class rate for 40 miles (the lon
gest single-line haul in Georgia), these
rates indicate slight increases up TO
seventy-five miles and substantial re-
auctions above seventy-five miles, ex-
cept with respect to rates between oas-
ing points
In addition to declining to accept the
mileage. scale requested by the railroads
the commission abolishes the old sys-
tenn of constructing joint rates and es-
tablishes a new rule which Will very
materially affect the rates on large
norton of the traffic. The old point
rate Chat is, the existing joint rate),
consists of the sum of the participating
single-line rates, less 10 per cent The
new rule provides that all joint hauls
shall take the through rate plus certain
arbitraries.