Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1939-07-01

fineries to the Spokane distribut-
rates from coast terminal points to
Spokane fixed by the railroads are
comparable mile for mile" with
the rates between Montana refiner-
les and Spokane.
Both witnesses told OF the diff
ficulty their concerns have in
meeting competition OF the Califor-
MIA oil companies on gasoline bus
mess in Spokane and insisted that
the proposed rate of 25 cents a hun
dreweight could not he met by them
and their business maintained I'M
less they are given rates that are
comparable
Montana operators are not par
ticularly interested in a conflict
between truck lines and the rail-
roads the witnesses testified. They
consider that the ascent rate now
under suspension and attack in
the present hearing was set on a
competitive commercial basis as be-
tween the railroads. which asked
them in face OF the competition set
up by the water-truck rates which
the California oil companies are
using between Portland and Spo-
kane
Base Less Than Reasonable
Vincent P. Brown, commerce a
gent for the Great Northern rail-
way at St. Paul, testified that the
proposed rates are obviously less
than a maximum reasonable basis
in order to permit Montana refin-
ers to retain markets in washing
ton and Idaho"
These markets. he added. were
going over to California producers
at an astounding" rate.
Commissioner Clyde B. Aitchison,
who is conducting the hearing, ask
ed L. r. Guerra, traffic manager.
for one of the trucking firms, II
companies could continue
to haul petroleum from Portland
to points in oregon east OF the
II the barges could OPP
crate at the z " cent rate.
The witness admitted that the |
truckers could not compete from |
Portland under such conditions.
"To operate against such COM
petition, you would be inviting |
Aitchison querried.
That's true" Guerra replied,
the water rate to Umatilla plus
he trucking scale beyond Umatilla
would make a lower charge than
.ould be obtained from Portland"
Spokane View Injected
The Spokane Chamber of Com
nerce injected its viewpoint into
he hearing through Judge James
? billiard, Spokane chamber d.
ector. who took the stand to pro-
est against any rate structure
which might affect the two oil re-
ineries now operating in Spokane.
The Spokane refineries are now
ibtaindng crude oil from Montana.
nd the proposed rail rate reduction
rom the coast, which would bene-
it the California oil companies,
re being contested by Montana pc
roleum producers as well as by the
orthwest motor carriers.
Prices Held Higher
AS for the ultimate petroleum
onsumer in the Inland Empire; he
} likely to gain little from any
eduetion in rates necessitated by
arge competition. according to
sstimony of witnesses. J. H. Bruce,
hief of transportation of the Ida
o public utilities commission. tes-
fled last week that gasoline re-
Ill prices had increased in north
IN and southern idaho despite the
developments at Umatilla and At
ALA.
The California oil companies
ght now are mere than $50 miles
up the river" from Portland and
uget Sound and they are going
, stay there so far as any consi-
Grafton of transportation costs
re concerned.
Slmmered down, the develop
lents at the hearing point to the
let that the Columbia river al last
as come into the Northwest trans
Drtation picture as an active rate
sgulating Autographed to gaso-
ne in the instant case but exist
* for application as general COM
odity freight transport by water.