Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1917-03-15

Next to the actual construction and operation of
main line railroad nothing could be so beneficial
this region the tentative ruling Tuesday
Of the Interstate Commerce Commission abolishing
the back haul" the abolition modification of
which the merchants and shippers of this valley had
sought for the last twenty years The first relief
afforded them, and that was but slight. was given
fifteen years ago the complaint the Shippers
Union Of this city.
The decision Of Tuesday is the result of the action
begun nearly ten years ago by the Maricopa County
Commercial club, of which present Chairman F. A
Jones of the corporation commission was the secre
and the handspring. That case since known
in litigation the Phoenix Case" was followed
by the Reno and Spokane cases. MIR Jones' since his
connection with the corporation commission the
admission of Arizona to statehood, has been the
chief figure in the campaign which has been pursued
unremittingly. 1t has been aided by the war with
KS destruction oc tonnage the closing of the Pan
anna canal to navigation and other causes eliminating
water competition which lower rates to coast
terminals were based.
The new adjustment of rates which will probably
be put effect about May will be to extend the
of the trade of the intermountatn region Goods
from the Atlantic seaboard can be delivered in Phoe-
nix higher than in San Francisco and Los
Angeles. a Phoenix Tucson jobber can meet the
coast jobbers hall way to the Pacific and in some
classes Of merchandise which the rates from the
middle west to ntermountain points will be lower
than to the terminals Arizona jobbers can sue
eessfuly invade California territory.
The ruling of Tuesday does not mean that all
rates Phoenix will be lowered Indeed the ruling
suggests that rates to the coast terminals may be
increased So it is probable the new adjustment
may be effected partly by lowering internountain
rates and partly by increasing the coast rates Thus
the chief advantage will he in the encourage
ment Of new industries and in the extension of our
commercial area.
We shall derive some advantage from the abolition
OF preferential eastbound rates For instance in the
mater OF canned goods. preferential rate of 40
cents 100 pounds on canned goods from San Fran
cisco to New York by the way of the gulf route has
for some time been in effect The from Phoenix
to New York o this commodity is rs cents hun
dred. Under these conditions a canning factory in
the salt River valley any other purposes than to
supply a restricted local trade would have been i'm
possible. Under the conditions it could compete
with the canneries of California
Whether or not a return of water competition will
make new readjustrnent of rates necessary is I'M
certain. buu is certain that the old inexcusabe
basis is forever. There was never good reason
for its existence Water competition was to large
extent fiction. 1t was urged chiefly in the inter-
est o. the coast cities whose influence with the rail-
way companies sufficient to interest the COM
panies in maintaining that basis. AS for themselves
the railway companies probably did care Their
resistance to the change grew weaker and weaker,
until at the last hearing in Chicago last December it
was only formal Indeed, heads Of eastern roads de-
carad that the higher inermountain rates the back
haul" was entirely without justification
The decision will not lessen the revenues of the
roads. 1t is possible for them under it to increase
their revenues by compliance with the ruling, by the
simple process Of Increasing the terminal rates
TO equal the present intermountain rates.