The Record-courier. [volume] (Gardnerville, Nev.) 1904-current, 1920-07-30
FREIGHT RATES
ARE TOO HIGH

Nhoh man .. T. oHdu6lle5S9 O1 TIE
Nevada public service commission re-
Gently returned to Carson City from
Washington, where he appeared be
fore the interstate comerce commits
sion IN the hearing and investigation
of the railroads application for "a
per cent horizontal increase in freight
rates to and from Nevada and
throughout all states west of the
Missippi river (known as western
classification territory.) Mr.. Shaugn-
essy represented the people of Neya-
da before the federal commission and
believes that a strong case was made
on behalf of Nevada and other inter-
mountain states looking toward an
exemption from said horizontal in
creases on the ground that rates in
the intermountain states are already
upon very much higher basis than
those In other sections of the count
ry
Explaining his opposition to the pro-
posed horizontal increases, Mr..
Shaughnessy said:
Our situation was strongly present
ed to the interstate commerce COM
mission by showing the low margin
of profit covering Neyadas s mining in
dustry. based upon present rates and
market prices. Except in certain
cases, it was shown that mining,
livestock and products of the soil and
forest would not bear the proposed
horizontal "a per cent increase and
that If the same was applied, it would
not only cause serious injustice to
Nevada and other intermountain
state, but would result in a decrease
in railroad revenues rather than an
increase, because of the closing down
of mines, including serious losses
that would be imposed upon labor and
the products of the soil and the for
est that are dependent upon the min
ing industry for a market. Further,
it was shown on information secured
from mining, smelling and or pur-
chasing companies of Nevada, that the
25 per cent increase made in freight
rates by the railroad administration
in 1918 had SO far Increased the cost
that many mining companies were
forced to close down, and that II a
literal application of another increase
amounting to "a per cent is made at
this time, it will greatly reduce out
put, or. in fact. almost completely
close down mining operations and
cause great loss to the state of Neya-
da. For example, this was proved by
evidence put on in behalf of the Ne
vada Consolidated, showing that its
net earnings for the year 1919 were
1913 900. whereas the proposed copper
and inbound supplies, but increase in
rail charges on blister exclusive of
mine ore charges, would be $345, 900,
resulting in an absorption of more
than the net earnings. Strong testi-
mony and exhibits were also intro
duced showing the discriminatory
character of freight and passenger
rates to and from points within Ne
vada and also showing that the local
rates covering movement of traffic
within Nevada were generally speak
ing much higher than in any other
section of the country and that there
except as to commodities in some cas-
es. and the allowance of better divis-
ions of interline rates by the trunk
lines to the short line railroads. Ne
vada should be exempted from the
program for the proposed horizontal
increase in rates. Questions asked of
me from the bench by the chairman
and other members of the interstate
commerce commission seemed to in
dicate that the commission sympath-
Nevada's rates is necessary. especial
ly with respect to the unreasonably
high and t.. discriminatory rates which
are charged against Nevada on its
wool to the east and on sugar and
fruits, vegetables and canned goods
which are purchased in California"
IN nav DDSYnENnD