Arizona republican., 1921-12-14
It. |. HEARING ON
 RAIL RATES n BE
 HELD ON SATURDAY


 The Phoenix hearing in the fourth 5ection rate case will be held before examiner William A. Disque of the interstate commerce commission in the federal courtroom Saturday morning at 10 o'clock.
 This is the case in which the rail- roads have applied to the commits sion for permission to establish ter mlnal rates from eastern points to certain Pacific coast ports which are very much lower than the rates in effect in inter. mountain and interme- diate territory. The reason offered by the railroads for the proposed low terminal rates is water competition, it being claimed that unless reduc- tions are made on rail rates traffic will move by water.
 Amos A. Betts, member of the cor poration commission. who attended the initial hearing in Chicago Novem- Der IT. said yesterday that at that time it was shown that the rates if established are to be blanketed from the Atlantic seaboard to the Missis- sippi river and that the vast inland territory from the Alleganhy noun tains to the Mississippi which is not on or adjacent to water transporta- tion would be given the same low rates which it is proposed to estab- fish from the seaboard, while no com pensating advantage has been pro- posed for the intermediate territory occupying the same position with reference to the Pacific ocean to that just described to the Atlantic ocean. According to MT. Betts, it was shown that the application was inspired by the large steel and iron industries having plants located at inland ter ritory in the district south of the Great lakes.
 "The traffic managers of the west eTn railroads frankly admitted that the purpose was to build up the ter ritory and foster the manufacturing industries at their eastern terminals, particularly Chicago said MT. Betts.
 s'The fight for equitable graded rates to the inter-mountain territory has been prosecuted with great vigor by interests at Spokane, Boise. Salt Lake City, Reno and Phoenix for the last 15 or 20 years. Under the old adjutment which the carrier now seek to re-establish the rates to the inter- mountain. country were made upon the basis of the through rate to the coast plus the local back to the point of consumption. Thi sunfair, un- just and discriminatory basis throt- tied the industries of this territory that progress and development were held back and not until 1918, when it was conclusively shown that water '. transportation had entirely ceased were we able to secure rates nc higher than those to the coast. plac- ing us even upon a parity. to say nothing of the advantage to which we were entitled by reason of our geographical location some hundreds of miles closer to poitns of produc- tion, giving manufacturing and in- dustrial enterprises great impetus We were then able to reach our proper and legitimate fields of distri- button, Our jobbers. merchants and others were induced to make heavy investments to care for the business of their respective territories. A con- siderable portion of which may have to be secraficed resulting in serious -financial losses. if the old basis of discriminatory rates are to be re- established" said MT. Betts.
 He gave as examples of the exist : ing and proposed rates: Canned goods present rates from New York to Phoenix and the Pacific coast, $1, lol per car; proposed rate to coast S69t per car Dry goods fcotton piece goods), present rate to the coast ane Phoenix, $S34 per car. proposed rats to coast S640. Heating and cooking apparatus. present rate. 5000: pro posed rate to coast S700.
 Mr. Betts said that he hoped ever, community within Arizona would b' represented at the hearing before tn' interstate commerce commission ol Saturday. Delegations also are ex 1,ected from Southern California ant New Mexico