New-York tribune., 1918-01-31
Railroads Win Intermoun.
tain Case After Many
Years
Large Shipments
Only Are Affected
Increase Made Because the
War Cut OF Water
Competition

WASHINGTON, Jan. 30.--Increases
Of about Is per cent in railroad COM
modify rates from the East and intc-
rior points were authorized by the IN
terstate Commerce Commission to-day
in finally deciding tho famous inter
mountain rate case, pending in vari-
Gus forms for years. This action will
make the through rates to the coast
equal to higher rates maintained to
Denver, Salt Lake City, Reno and other
rate discrimination against which COM
mercial interests Of these cities have
long protested. The order becomes cf-
fcctive March 10.
The decision disposcs of one Of the
most generally discussed rate cases be-
fore the commission in recent years
Formerly lower rates were maintained
20 the Pacific Coast than to intcrme
diate points because Of the competition
Of low freight charges by water car
ricrs from Atlantic ports through the
Panama Canal to the Pacific seaboard.
This scheme was disarranged several
years ago by the temporary blocking
OF the canal and by the withdrawal of
vessels from coastwise trade soon after
the WIZ opened in 1914.
Since then the question has been un
der active consideration by the commits
sion. The new rates ore expected to
remain in effect at least until the re-
sumption OF peace or until water COM
petition is renewed.
Classmates Not Affected
The increases apply to materials car
ried in largo quantities under COM
modify rates, such as iron and steel,
both in carloads and in less than car
loads, but not to miscellaneous freight
carried under class rates. Practically
all manufacturing districts Of the
country are affected
The commission allowed an increase
of about 40 per cent on through rates
to Pacific ports for export, applying to
iron and steel articles, machinery rail
way equipment and other materials.
The rates apply principally from Chi
cago and points west Of there. A
smaller increase on imported ship
mcnts was permitted.
Specific Changes Provided For
A number Of rates involved in the
decision to-day are under investiga-
ton by the commission, which reserved
the right to order specific changes in
the future.
The decision Of the commission was
forecast in a decree by its previous
action in giving the roads permission
to file the proposed higher rate tariffs,
In a decision last June, the rule w2s
established that the differences in rate j
between coast and intermountain cities
should be removed, but left open the
question cf whether the through rates
should be raised or the intermediate
rates lowered. The roads chose the
former course and in October asked
to file tariffs cmbodying the higher
rates. The commission permitted this.
and the action was interpreted as il
Gicating favorable attitude toward
the increases.
Commissions Explanation
In refusing to allow the general sub
stitution Of higher class rates for less
than carload commodity shipment the
commission explained that this action
was taken "partly in consideration of
the probability Of return Of water
competition when peace is restored"
Further reasons for refusing this ap-
plication of the railroads We're given as
tollows:
"Less than carload commodity rates
arc Of long standing. Business has be-
come accustomed to their use, and their
cancellation will result in much en-
barrassment and loss of business to
persons who cannot ship in carloads the
articles they manufacture or sell. The
increases resulting from the substitu-
tlon OF class rates arc unreasonable in
the light Of all the conditions'
Big shippers in Eastern territory ap-
peared at tho commissions hearings in
the case TO protest against raising the
through rates. Steel interests particu-
larly were affected California fruit
growers and canning industries also
entered vigorous protest.
Cities throughout the West were rep
resented in support Of the realignmcnt
Of rates. Commercial organizations OF