The New York herald., 1921-03-02
Intrastate Rate Variations.

The decision of the Interstate Com
merce Commission in the Utah rate
cases, which was rendered on Febru-
airy IL but is only now issued In
printed form, has general phases OF
interest in addition to its local impor
tance. 1t uphofds the general ruling
that intrastate passenger fares must
be adjusted upward when needful to
prevent discrimination against inter-
state commerce. At the same time 1t
accepts lower intrastate rates on coal
ana ore as mot unreasonably prefer
entail. unduly prejudicial or unjustly
discriminatory
This contrary action, taking ac-
count of the circumstances in each
issue regardless Of the other or Of
mere general policy. apparently dis
poses of the belief held In some
quarters that the new railroad net
has shifted the centre Of gravity from
the reasonableness of the rate TO the
revenue needs of the carrier. 1t DEM
onstrates that the ability OF the Com
mission, and presumably its purpose,
to protect shippers against unrea-
sonable or oppressive charges remains
undiminished.
AS regards the passenger fares, 1t
was shown In the hearings that the
Utah State Commission so limited
increases within the State boundaries
and, consequently, excess baggage
charges, based on percentage Of the
rates, that intrastate fares were be-
ing used to defeat interstate in
creases. For instance, the Interstate
fare between Grand Junction, Colo
RADIO, and Salt Lake City Is $16.56 ;
the passenger buying ticket from
Grand Junction to Westwater and
another thence to Salt Lake City
could cut the cost TO S141S. Thus
he would deprive the railroads Of
more than an eighth of their due
under the Interstate Commerce Com
mission ruling Of July %, which was
intended to give general relief under
the requirements of the Esch-Cum-
mings law. The new decision makes
this impossible by ordering increases
In the Utah intrastate rates, but
leaves Communication charges and cleo
trio line fares untouched as they do
not conflict with interstate interests.
The Commission finds that an in
crease of % per cent on transpor-
tntion OF coal from the Rock Springs
district of Wyoming to Salt Lake
City, Odgen and other points near
the Great Salt Lake via the Union
Pacific Is justified. 1t removes a
handicap against coal from Castle
Gate. Utah. delivered in the same
region by the Denver and Rio Grande
without increase Of rate. Length of
haul and other differentials other
wise favor the Rock Springs ship
pers unduly.
Low rates on silver-lead ore in
transit from Utah mines to smelters
within the State are held to he nee
essary because Of the high expense
Of the mines for labor and material
and the imnossibility OF ginning q
greater return for their output. IL
Is regarded as unwise to favor high
grade mines 60 the detriment OF
poorer ones and IL Is conceded by the
carriers that the low grade ones
could not pay the general increase
ordered for interstate business and
live. At the same time, the conditions
being special and local, no discrim-
lnation against Interstate commerce
can possibly result.
Throughout the Utah decision. which
IL written by Commissioner HENRY
JoNEs FoRp, the principle Is empha-
sized that, whatever broad rulings
may be made. the Commission Is
ready 10 consider particular instances
on their merits and make whatever
adjustments may be necessary to fnlr
play and business prosperity in
special circumstances.
Lever Act Invalidities.