The Coconino sun., 1923-12-07
SWEEPING REDUCTIONS
MADE IN EXPRESS RATES

|. Climaxing a five-year fight for
Il lower express rates, the Arizona cor
poration commission has won a sweep
+ ing victory over the American Ex-
4 press company as q result of a de-
4 cision handed down this week by the
1 Interstate Commerce Commission, and
the saving to Arizona shippers Is es-
timated at $1,O0O,000 per year.
i Existing determinations against
i Arizona and the other states compris-
ing the inter-mountain territory are
4 abolished by the order of the inter
state body, which becomes effective
March 1, 1924. Zone 4, comprising
! this territory, is now combined with
| the adjoining Zones 8 and 5, forming
4 new Zone 8, by the terms of the
order, which states: 1T is clear that
there is no justification for the fur
1 ther maintenance of higher rates in
/ Zone than in Zones 8 and s." This
statement is regarded as significant
! in effect, as it lays down principle
i destined to secure substantial reduc-
tions in freight rates as well.
The decision of the Interstate Com
merce Commission comes as the con-
clusion of nationwide probe OF ex-
press rates, in which hsArizona played
an important part. Following the re-
turn to private ownership of the rail-
roads, the express company was
n granted two increases in rates, one
Of 1914 per cent and the other Of 1917
per cent, making a total of rs per cent
applying, however, to interstate ship
ments only.
Following this the express company
was granted similar increases on in
trastate business by many of the
state commissions, but the Arizona
commission steadfastly refused to al
low the increases sought. In one OF
the hearings the company testified
that this action had deprived it of
revenues amounting to $4,000 per
year in Arizona. 1t was also stated
that the intrastate business was only
10 per cent of the total. Inasmuch as
the new intefstates rates are even
lower than the existing intrastate
rates in Arizona, and using the COM
pany's own figures as to annual rev.
enues of which it has been deprived
the estimate of 81 1,000,00 per year
saving to Arizona shippers is consld~
cred conservative in the extreme.
First the investigation was confin-
ed to Arizona and the intermountaiI
states subjected to the grossest dis
ordinations. Arizona was the last
stateSin which hearing was held and
the first to demand an oral argument
BY this time it was apparent to the
Interstate Commerce Commission thai
the entire rate structure was basical-
ly unjust and the investigation was
made nationwide.
In conducting the nationwide probe
| the interstate body, evincing desire
to cooperate with the states, asked
the state commissions to designate 9
chairman for each of the five express
zones, who would also sit with the
interstate examiners conducting the
case.
4 Amos A. Belts, chairman of tbs
Arizona commission, was designated
as chairman of Zone 4, and as such
was present at the first hearing con
Quoted IN Washington Nov. 20, 1922
Since then several hearings were haC
throughout the country, with fina
hearing at Washington last April
Oral arguments were heard last June
and a final conference between the
interstate commissioners and the zone
chairmen was held November 10.
The effect of the l. G. C. order OF
both intrastate and interstate ship
ments is shown in the following exam
pies of first-class rates to and from
Phoenix: