Arizona republican., 1917-03-15
ARIZONA GIVEN
ADVANTAGE BY
BOARD DECISION
Back Haul Ruling One to
Equalize Freight Rates
Between Mountain and
Pacific Coast States, West

Pacific Coast States, West
The decision of the Interstate Com
merce Commission on Tuesday ahol-
ishing the back haul from the coast
to intermountain points brings prac-
tically to an end the longest and most
important rate litigation in the his
tory of the commission. 1t had its
origin in Phoenix nine years age.
Even before that there was "a com
plant. by the Shippers Unicn OF this
City against the practice of charging
to Phoenix and points similarly Sit
uated the rate from eastern points to
the coast plus the local rate back AT
one time merchandise destined for
Phoenix was actually shipped. to the
coast and then sent back.
There was some modification of this
arrangement in 1892 but it was not
until 1908 that an effort was made to
secure the abolition of the back haul.
That was started by Chairman F. A
Jones OF the state corporation COM
mission, then secretary of the Mari
copa county Commercial Club formed
for the purpose of securing more fav-
orahle freight rates for the merchants
Of this valley. The case was heard here
in March Of that year before Exam
iner Frank Lyon of the commission.
Hon +: P Costigan of Denver who
was yesterday appointed Il member OF
the tariff commission, assisted Mr..
Jones in the conduct of the case for
the shippers
Similar cases with the same object
in view, known as the Reno and the
Spokane cases. were heard. In one
shape or another these. matters vert
h BE
federal courts and once the subject
reached the United States supreme
court. Some relief was obtained but
higher rates to intermountain points
we're sim allowed. The first decision
was rendered by Commissioner
FranSln X. Lane now secretary OF
the interior who allowed to the in
termountain points rates higher by
I, Is and % cents a hundred respect
lively from what are known as the
Chicago, Pittsburg and Atlantic Sea-
board territories
In this decision water competition
was recognized. Ships were moving
from the Atlantic TO the Pacific and
so that there was compelling force
which the commission admitted. war
ranted- the roads in meeting them nj
the coast points.
Petition for Reopeninq
y wear ago a petition was filed for
a reOpening of the Intermountain case
and it was heard at Chicago last De-
cember. For years it had come to
attract the widest attention. Not only
the coast cities were vitaliy interested
but great interests all over the coun-
try, large industries and great com
mercial houses were drawn into it.
i
ut Chicago reads like a great cata %
logue.
The petitioners represented that
there was no longer water competi-
ton. The destruction of tonnage in
the war. and the closing OF the Pana =
ma canal by slides had prevented
trading on the coast. The Hawa iian
American Line and the ships of the
TMckenbach company which had mo-
nopolized shiDDing to coast points had
all been withdrawn ard lea~ed They
could not BE- returned to the coast
trade until after the war ard in all
probability rot for some years after
The cause fOr depression of rates
at coast terminals no longer existed
1t was shown too. that shipping rates
had 50 far increased that they eX-
ce~ded Oy four times. rates by rail.
The most hitter opponents Of thu
abolition of the back haul were the
citins Of san Francisco. Portland and
Seattle They based their contention
that tho OLD system ought to be con-
timed. on potential water comDeti-
ton. Though the Sims had heeli
tenlnorarily withdrawn the ocean still
rnrnaincd and come time the shipa
would return. Ny. Tones reDlied that
ATiZora points had potential water
rhat1
merchandise was received At points III
Arizona hv the wav Of the Gulf of
California and tho Colorado river
al Roads cIo not Opnose
The roads themselves took d rather
norfunNtory Interest nA the matter
'rhev forral1,- opposed the readi1st-
r~ert asked for bv the petitioners buI
the only testimony presented by them
'vSs nv Mr.. Spenn9 Of the Southern
Pacific whose evidence was in the
form of q previously prepared state
ment. But all tho roads did not op-
nnrA tbs djuetmen+. One of the
Officials Of the Pennsylvania lire saii
that the rates as thov then eXistec
were without justification
The tentative decision. which vii
undoubtedly be adopted as final
grants to the petitioners all they
asked. It wipes out the difference
Between coast terminal rates and the
intermounta in rates which the roads
may enualize in one of two WAYS;
either by reducing the former to the
after or raising the coast rates equa
- the intermountain rates. Not only
that it gives to the intermountaiI
territory under the zone arrangement
over rates than will be allowed to th'
coast terminals. 1t also wipes out pre-
erential rates from coast points to thu
east on limited number of article.
such as barley, canned goods, asphal
tum and certain other commodities
Rates on similar commodities arr
nearly twice as high from intermoun
tain points
Further Arguments
Further arguments on the Tentative
decision will be heard before the in
! terstate Commerce Commission OF
April and but it is not appre
/ handed that the principle agreed upol
! by the commission will be changed.
As to the narrnannncv of the ney