Daily capital journal. (Salem, Oregon) 1903-1919, 1919-07-22
PUGET SOUND SCORES
FIRST N RATE CASE
Portland Attorneys Put In PO-
sitiOn OF Attacking Rates
They Approved.

Portland, Or, July 22,-(Uaited
Press. That Puget Sound interests
scored heavily in at least one instance
in the first day Of the Columbia basin
rate ease hearing was generally admit
ted today.
Arthur s Spencer, general counsel
for the railroad administration, a de
fendsht in this case, has DR.. G. j.
Smith, president Of the Inland Empire
Shippers league, under cross examina-
tion. He brought ost that DR.. Smith
approved the present rates TO Puget
Sound and to Portland when they were
established, and that these rates were
later approved by the Oregon public
service commission.
Smith was interested as a Dig Pen
dleton shipper. The three members on
the interstate commerce commission
hearing this case knew that on the Ore
gon commission that approved the rates
were Oswald West, chief counsel for the
Inland Empire Shippers league in this
ease, and Clyde B. Aitchison, at pres
ent a member of the interstate com
meree commission.
Smith and West were placed IN the
position of now attacking rates they
lad previously approved and a present
member of the interstate commerce com
mission was listed as having approved
rates being given a hearing before three
members of that body.
Since the Columbia river ports were |
presenting their ease and were expected
20 have all the best of the hearing while
1T remains in Portland, this incident
gave the Puget Sound men considerable
satisfaction.
A. L. Freehafer, president of the pub
lie utilities commission of Idaho, filed a
petition in Intervention today which
placed Idaho on record in "watchful
waiting" position.
Freehafer explained to the United
Press that jobbing interests Of Idaho,
those of Lewiston would be
damaged by competition with Spokane
If the contention of the Columbia ports
whereas wheat growing inter
ests of the state would be aided by
lower freight rate.
Leonard Way, rate expert from Boise
who signed the petition with Freeharcr,
explained that should the water grade
contention prevail, Idaho would demand
that the long and short haul be estab-
Iished
"We have intervened," said Free
hafer, "asking establishment of water
grade rates throughout the Columbia
river basin, but suggesting that il is
not feasible or practicable to base rates
on grade considerations generally be-
cause of smaller districts in Idaho that
would be affected by water grade condi.
tions, and the many changes from water
grade to mountain climb throughout the
country. |
"The basis that might properly be
used for the large area embraced in the
Columbia river basin is not necessarily
the proper basis to be applied in making
rates generally.
"0m interests are divided. Wheat
growing sections would benefit by wat
OF grade rates through Portland and the
Astoria gateway, but our Inbound
freight from eastern points and our dis
trihuting rates would be adversely af-
fccted il water grade rates were uni
versally applied"
The Washington public service com
mission was first aide to the railroad
n "plueking the goose without letting
il squawk," F." according to Oswald West,
who, as attorney for the Inland En-
Dire Shippers league questioned Edward
OstrSnder, the leagues rate expert, at
today's hearing.
The Inland Empire wheat growers
we're plueked, according to West. They
are now squawking, he intimated.
ostrander's 5 answers were designed to
show that the northern mountain lines
10 Puget Sound, aided by rulings of the
commission, almost imper-
,eptibly established the mountain roads
If the Northern Pacific as the base of
-ate making and left the water routes
% follow much to the disadvantage of
he Columbia basin and port Interests.
West and 0strander tried to show
hat when the distance favors the water
grade, the rate is the same from com.
,ctitive territory. But when the water
yradc distance is greater than the Puget
sound the rate favors the mountain
cute. The example selected was the
ate from North Yakima which 10 Sc
title on the Northern Pacifis is lex
or distance of 1863 miles aud Is cents
O Portlend by way Of the 0..W. RS N.
Il3.6 miles, but water level haul. This
ate arrangement permits the Northern
'aoifie to haul freight over the noun
aims to Puget Sound and thence 10
Portland at an advantage over the o.
Y. X. & \. water grade haul.