Arizona republican., 1921-04-28
BOARD REFUSES REDUCTION OF
 WESTERN RAIL
 FREIGHT RATES
Interstate Commerce Com
 mission Dismisses Re-
 quest for Lower Freight Rates In Western States
rRepubIiean A. p. Leased WireI

WASHINGTON, April 27-The in terState commerce commission re- fused today to order a reduction in railroad rates from points of origin east of the Rocky Mountains to points in intermountain territory. Com plaints of business organizations and others were dismissed, the commits sion holding that existing tariffs. which are on a parity with those to Pacific Coast points. were not unduly prejudicial.
 The complainants had eontended for a graded reduction based on the rates to the Pacific coast. fixed so steam carriers could compete with water commerce passing through the Panama canal. The case was one of general interest. as any change would affect easter manufactures.
 The proposed schedules were op- posed by manufacturers and business organizations of the Pacific coast, while numerous eastern shippers and manufacturers intervened to compose a part of the proposed changes which tended to increase rates from the east to the Pacific coast.
 The commission declared the dis cussion should be helpful in paving the way for final settlement
 Before the, war, rates to the coast were lower than those to intermoun- tain territory because of water com petition growing out of the construc- ton of the Panama canal. War con- ditions practically eliminated this competition, and the commission in 1918 increased some coast rates and lowered some intermediate rates, which brought ahout practically level set of rates to the two terri tories.
 The ships that now ply between the Atlantic and Pacific ports,' the commission said, "are not nearly so numerous. and the tonnage now nov ing Is not nearly so heavy as during the period that followed the opening of the canal and preceded our entry into the war, but it is, nevertheless, certain that there is now sufficient transportation by water and ample indication that 1t will further develop and increase to warrant the belief that within a comparatively short time, it will reach a point where 1t will be felt in serious loss of ton- mage by rail lines, unless they have available appropriate measures to meet the situation"
 Concurring in the decision of the commission, Commissioner Eastman pointed out that the entire problem was not yet solved.
 Shippers organizations and manu- lecturers from practically every sec- ton of the country were parties to the rate case. some favoring and oth- CTS opposing the application for re- duced rates to the intermountain ter ritory.
 The rate situation is having a ten- dency," the commission said, ito com- pei the eastern industries to erect manufacturing plants and branch houses in the coast states. While this trend is naturally objectionable to the established eastern manufacturers. the building up of the west as a man. ufacturing and primary distributing territory Is not undesirable from the standpoint of public interest. We nave little. If any. power, and no in- clination to adjust rates for the pur- pose of retarding or promoting pro- gress and development ia particu- lar section. but aside from any eco homie considerations, if water compe- tition is to- be disregarded, there is much to be said in favor of increas- ing the differentials against central freight associa tion. eastern trunk line and New England territories"