Arizona republican., 1921-12-18

the same direction, the lower and involving a greater distance osten-
 sibly to meet water competition, and
 the higher to apply at intermediate points in the west, where the inhabi-
 tants are entirely at the mercy of the
 railroads.
 'In my opinion, the present rates
 from eastern defined territories to
 points in New Mexico are excessive,
 speaking of the rate structure gener-
 ally. But even if these rates were
 reasonable in and of themselves, we
 are entitled under the law to some
 thing more than reasonable rates.
 We are entitled to rates that are
 non- discriminatory and non -preju-
 dicial: rates which will not take
 away from us the natural advantage
 of our location and give the Pacific
 coast terminal points an undue pre-
 ference commercially.
 MT. Chambers. I am informed,
 stated in the course of his testimony
 at the Chicago hearing. that the max
 imdm development of country and
 transportation justified a scattering
 of manufactures to all parts of the
 country rather than concentration
 upon the Atlantic seaboard. That
 squares with my views exactly and
 also I am glad to say with the views
 of President Harding. and that is the
 principal reason for my objections to any fourth section violations. l would like to see more factories and other industrial enterprises established in New Mexico. Mir. Chambers takes the position that this market com
 petition justifies the blanketing of rates at eastern and central points of origin, but I don't know how ne justifies the failure to observe such rates as maxima at interior points of destination. It is a poor rule that doesn't work both ways. The adjust ment proposed blythe railroads seems to me to be a case of playing both ends against the middle, and In this instance the intermountain territory happens to be the middle, because the carriers have, figuratively speak ing, moved the Atlantic ocean as far | back as Chicago and St. Louis and deliberately left the Pacific ocean stay where the Almighty put 1t. Against Discriminating
 On cross examination MT. Williams admitted that if the proposed rates applied to intermediate points he would be satisfied with them. He said that he was not opposed to nigh rates. but to discriminatory rates. Asked as to details of the rates, he referred the attorneys to Edward F. I Coard. the secretary of. the state commission, who succeeded him on 1 the stand.
 l MT. Coard introduced some inter esting exhibits and his comments on I them were no less interesting. He said that he was not railroad man,
 but his work showed considerable | &o a law man. He first made a comparison Of car-mile and ton-mile earnings of the roads to test the reasonableness Of l the existing rates. He injected some humor into the hearing, stating that complaint was not made of either the present or existing rates On drugs, since in the salubrious climate of New Mexico not enough drugs were used to make an appreciable differ ence to the New Mexican pocket | book. Speaking of the inexpllcaDle difference between rates from coast
 points to Fl Paso and to Gallup, New l Mexico, he said that the railroads must have supposed that Gallup is I.situated in Arizona near Phoenix. l MT. Hastings replied that whatever inconsistency Mir. Coard had noticed 1 in those rates must be charged to the interstate commerce commission. Proceeding with his inspection Of I the proposed rates, Mir. Coard showed l that the present ton mile rate from 1 San Pedro to New York is 6.2S mills; that the proposed rate from San 1 Pedro to New York is 3.S3 mills, while the rate from coast points to 1 Phoenix is 32.16 mills.
 No Need of Relief
 I Quoting at great length from the . e.1S T that the condition of the roads had
 improved; that there was no need oi
 fourth section relief; that he was not
 opposed to high rates. but to dis
 crirninatory rates, and he added tka'
 the application was made not beHauss
 the roads needed the money, but be
 cause they wanted traffic to move
 westward that they might fill 'heil
 refrigerator cars in the east whicf
 otherwise would be returned empty.
 On cross examination MT. Hasting' asked MT. Coard what he meant bl the expression reasonably compen satory," which he had used. He re piled that there had never yet beel a legal definition of the expression though he believed 1t would be de fined shortly by the supreme court o the United States. He believed though that a reasonably compen l satory rate was one which would en able a tailroad to add something t it's net.
 Testifying as to rates on structura iron to Deming from Minnequa, Col where the price is based on the Pitts burg rate, MT. Coard was asked ] Minnequa and Deming were sea ports. He replied that Deming wa situated on the Milmbres river, bu he believed it was not navigable. The largest number of exhibits an those most important to the phase of the controversy under considera ton at this hearing were presente by Roland Johnson, traffic manage of the Phoenix Chamber of Com 1 merce and vice president of the In