White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1920-08-01
PROPOSED RATE INCREASES
EXCESSIVE SAYS SHAUGHNESSl

Chairman j. F.. Shaughnessy of the
Nevada public service commission
recently returned from Washington,
where be appeared before the inter
| state commerce commission in the
hearing and investigation of the rail-
roads application for a "a per cent
horizontal increase in freight rates
to and from Nevada and throughout
all states east of the Mississippi river
(known as western classification ter
ritory). Mr.. Shaughnessy represent
ed the people of Nevada before the
federal commission and believes that
a strong case was made on behalf OF
Nevada and other intermountain
states looking toward an exemption
from said horizontal increase on the
ground that rates in the intermoun-
tain states are already upon y very
much higher basis than those in
! other sections of the country.
Explaining his opposition TO the
proposed horizontal increases. Mr..
S~haughnessy said:
Oar situation was strongly pre-
senteG to The interstate commerce
commission by showing the low mar
gin Of profit covering Nevada's min
Ing industry, based upon present
rates and market prices. Except ia
certain cases, 1t was shown that
mining, livestock. and products OF
the soil and forest would not Dear
the proposed horizontal "a per cen:
increase and that ii the same was
applied. il would not only cause Sc
rious injustice to Nevada and other
inter-mountaiu states. but would re-
suit in a decrease in railroad rev.
enues rather than an increase. be.
cause of the closing down of mines.
including serious losses that would
be imposed upon labor and the
products of the soil and the forest
that are dependent upon the mining
industry for 4 market. Further. it
vas shown on information secured
from mining, smelling and ore pur-
the 25 per zen increase made in
freight rates by the railroad admin
;stration in 1918 had so far increas-
ed the cos. that many mining conf
panies We're forced to close down,
and that. If a literal application OF
another increase amounting TO 81
greatly reduce output, or, in fact, al
most completely close down mining
operations and cause great loss TO the
State of Nevada. For example, this
vas proved by evidence put in on be-
half Of the Nevada Consolidated Cop
per Co. of Ely. Nevada. showing that
its net earnings for the year 1919
were S336.000, whereas the propos-
ed increase in rail charges on blister
copper and inbound supplies. but ex-
elusive of mine ore charges, would
be 1884, 5000, resulting in ar absorp-
ton of more than the net earnings.
Strong testimony and exhibits were
also introduced showing the discrim-
inatOry character of freight and pas-
senger rates TO and from points with
in Nevada and also showing that the
local rates covering movement of
traffic within Nevada were general
" speaking much higher than in any
other section of the country and thar
therefore, except as to commodities
in some cases. and the allowance of
better divisions of interline rates by
trunk lines TO the short line railroads,
Nevada should be exempted from the
proposed horizontal increase in rates.
Questions asked of ME from the
berch by the chairman and other
members OF the interstate commerce
commission seemed to indicate that
the commission sypmathetically real
lied that equalization of Nevada
rates is necessary, especially with re
spect to the unreasOnably high and
discriminatory rates which are charg
ed against Nevada on its wool to the
east and on sugar and fruits, vege-
tables and canned goods which are
purchased IN California"