New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1921-12-30
STATEMENT OF WILLIAMS
AT HEARING ON RATES
AT PHOENIX LAST WEEK

Hugh H. Williams, chairman, an
+. +. Coard, rate clerk, of the Ne
Mexico Corporation Commission a
tended the hearing OF the lnterstat
Commerce Commission at Phoenix la,
week as New Mexico'S representative
in opposition to the application OF tn
railroads to be allowed to charge
less rate on shipments to Pacific Goa,
points than to intermediate points o
which they have a shorter haul.
According to the Arizona paper
Messrs Williams and Coard made
very strong case against the railroad
and largely as a result OF their pre-
paration and efforts it IS believed
that the application will be rejected
Mr.. Williams statement follows:
My colleagues on the New Mex
leo State Corporation Commission
and | are absolutely opposed t.
and protest against the approval .
the fourth section applications unde
consideration in this proceeding 10
the following reasons:
First, because as a matter OF prin
ciple and equity they are not in fav
or of a departure from the long ant
short rule of the Interstate Com
merce Act under any circumstance.
even though under the fourth section
as amended the Commission may il
( special cases, after investigation,
authorize a carrier to charge less
for the longer than for the shorter
,l,.,,,,.. ,,.A,,I.I .,,,l, ,l,r,a 80.
sonably compensatory for the service
performed.
Second, because the proposed west
bound transcontinental commodity
ii allowed to become effective as ON
templated, would unjustly discrimin-
ate against the intermountain states,
including New Mexico, to the undue
preference and advantage Of TIE So
called California and North Pacific
Coast terminals.
Third, because the blanket rates
are intended to apply from inter
mediate points of origin in Trans
Continental Groups A to ], but not
to intermediate points of destination,
In other words, the long and short
haul is to be observed from eastern
points OF production and disregarded
to western points OF consumption
which are located in the Rocky
Mountain region. This in itself would
create an unduly preJudicial situation
at such interior points as Albuquer-
que, Tucumcari and Deming, New
Mexico, which are on the main lines
OF the Santa Fe, Rock Island and
Southern Pacific Systems, respective
ly-three of the principal trans-con-
tinental carriers.
Fourth, because any reductions in
the trans-continental rate, without
corresponding reductions III the rates
to "intermountain territory would have
the effect of depriving it OF the ma
tural advantage Of its geographical
location closer to the sources eli sup
ply in the eastern and central states.
Fifth, because under the guaranty
OF the Interstate Commerce
Act the rail carriers are entitled to
earn a return OF o per cent on the
aggregate value OF their properties
held for and used in the transporta-
ton service, and the establishment of
rates which are not reasonably conf
pensatory for the service p :, formed
would inevitably result in any loss
sustained thereby being borne in part
at least by shipper, in the inter
mountain territory, tlus imposing an
and unreasonable burden up
IN such shippers.
Sixth, because the commodities on
which fourth section relief is sought
exclusively OF products of
manufactures and as such constitute
,nly a small portion OF the total re-
emu tonnage OF the railroads en-
gagged in the trans-continental traf-
ic, and therefore water competition
) not OF such compelling force or
# such an aggravated nature as TO
.equire the rail carriers 10 ilaul such
COMMODITIES at less than reasonable
Lastly, because Section 500 of the
transportation Act, 1920, declared it
be the policy OF Congress to pro-
note, encourage, and develop water
transportation service, and facilities
n connection with the m of
he United States, and to foster and
reserve in full vigor both rail and
transportation, and to allow the
ailroadS to violate the long and short
Iaul rule on tranS-Contincutal traffic
would have just the opposite effect
pom the best lines OF what Congress
Intended.
Under existing circumstances and
onditions, submit that water COM
is not a sufficient justifica-
for penalizing the intermountain
e%rritory and perpetuating an injus-
ice upon the shippers and receivers
t freight located therein. II tn,
resent level of rail rates is so high
hat most OF the traffic Offered at
he seaports is borne by water, the
ailroads have a perfect right TO re-
nee such rates so as to enable them
get their fair proportion Of the
u%sincss, but they certainly ought not
} be permitted to do this at the ex-
of another section of the coun- I
" which is dependent entirely up {
II rail transportation. They should I
OF be allowed to have two differ I
mt sets OF rates applying on the same
ommodities over the same routes '
in the same direction, the lower j
nd involving a greater distance os- ,
'nsIbly to meet water competition, l
nd the higher to apply at interme- 5
late points in the west. where the '
lhabitants are entirely at the mercy S
t the railroads. Y
In my opinion, the present rates I
ON eastern defined territories to I
in New Mexico are excessive, {
Deaking OF the rate structure gen.
rally. But even if these rates were I
"a sonable in and OF themselves, we t
re untitled under the law to some