The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-12-19
LOSE RATE ORDER
Federal Court Refused Yard
Stick Freight Contention.
1. c. c. Acts on Report of Com
missioner Disque.
KANSAS ISSUE NOT SUSTAINED
Grain and Hay Cases Indepen-
dent of General Freight.
Joint IntraState Glass Issue
Had No Place.
KANSAS ISSUE NOT SUSTAINED

Kansas has lost its contention for a
yard stick freight rate order. The
/ federal court refused to entertain the
idea. Now the interstate commerce
commissioned: on the report of
Commissioner Disque- rejects f1atly
and finally the states big issue in the
general freight rate case. 1t also
holds that the states contention re-
garding joint intrastate class rates is
not an issue in the case and there
there was nothing offered by the state
public utilities commission to disclose
necessity for such a rate.
In its fight for reduced freight rates
the state commission sought applica-
ton of the yard stick rule. On this
theory it claimed that 10000 rates
were Determinations against intrastate
shippers. 1t sought to set aside the
rate orders thru federal court pro-
ceedings and lost. Then the I. C. c..
held a special hearing OF the Kansas
case. but refuses to sustain the Kan
! sas issue.
Reed in Charge Of Case.
Clyde NJ. Reed. chairman of the
state public utilities commission, took
personal control of the freight rate
case and directed presentation of tes-
timony az personally examined wit
nesses. He has made various trips to
Washington in the case. He returned
today from hearings last week before
the 1. c. c. At that time the S per
cent late decrease in grain and hay
rates was up for hearing. Chairman
Reed stated today that he was conf
dent the state would get benefits from
this order and that the Kansas roads
would put the new rates in effect De-
Cember 27.
The grain and hay cases were in
dependent of the general freight rate
case. Carriers asked suspension of
the Is per cent decrease order pend
ing trial of their general 10 per cent
reduction plan covering a period of six
months. The grain and hay rates are
scheduled to become effective Decem-
Der 27, altho the tariffs have not been
published.
Decision byI C. C.
Deciding the general freight rate
case, tho, there was little in the con-
tention of the state which supported
by the federal commission. In pass
ing on the yard-stick issue, the I. C.
C. said in part:
THE position taken by the Kansas
| commission, which stated in simple
terms is to select the lowest interstate
rate which can be readily found and
which may move some traffic and
measure it with the entire body of
intrastate rates. A carrier may pub
lish an interstate rate between two
points, say ZOE miles apart The short
line distance between the same points
over the route of another carrier may
be rs miles. The first carrier NAV
desire to meet the rate of the short
line, but if it does SO, it does it at the
peril of having its interstate rates
measure by that yard stick.
This policy or contention of the
Kansas commission if carried to its
logical conclusion would be so de-
& of 70
and of sound and well established
principles and methods of rate max
ing that to state it is to condemn it.
Probably no interested party would
support it except the few who might
temporarily secure an advantage
therefrom. If we were to start with
clean slate some so-called scientific
basis of rate-makipg, based on strict
mileage, might be adopted, but as it.
is, the process of rate making and
dealing with rate situations must nee
essarily be one of evolution, not revo-
luton"
Refused Intrastate Class Rate.
Nor is there much more sound com
fort in the I. G. c. discussion of class
rates and the issues which the Kan
sas state commission adanced on that
question. The federal commission
simply refused to consider the joint
intrastate class rate issue and held it
this subject the commission said:
THE Kansas commissions principal
complaint is that there are no joint
intrastate class rates in Kansas This
situation was quite fully dealt with in
our former report We said there
that the situation is not substantially
different from that which obtains in
terstate between Kansas and Ne
braska and intrastate in Nebraska
The situation has been countenanced
for many years by the Kansas state
authorities. We also said that the
esta blishment of joint rates was not
in issue in this case. The order re-
opening it. for further hearing did not