OCR Text |
Show Decision f Interstate Commerce Com- II mission Means Much, Not Only. to III Utah, but to the Whole - y, IH Western Country " j H PRESENT TARIFFS ARE HELD TO BE 1 BOTH UNJUST AND UNREASONABLE Reductions in Both Freight and Passenger from lijl Utah Points to the West Ordered; Roads Must Submit Accounting on ! Eastern Traffic liJ 'I"IX---!-lIISVH PETITION THAT ACTS 4- AS A STAY OF ORDER v WASHINGTON, Juno 29 A v petition for a rehearing- was lilcil i in tho supreme court of tho United 4 States today by tho railroads in v tho Missouri river rate easo. Tho petition was filed in accord-i- ancc with the terms of tho order -j J of May 31, permitting it to ho -J-r presented within thirty days. Tho compliance with the order has tho r 4 oITect of staying the mandato of -r tho court until the beginning- of j the next term in October. Thus v tho railroads, tomporarily at least, i I aro relieved of tho necessity of re- 4 J ducing their rates. . ' I ' I ' I . ' I I " Special to The Tribune. WASHINGTON," Juno 29. The long deferred decision in tho easo brought last December by tho Commercial cluti traflic. bureau of Salt Xako on behalf of Utah common shipping point'u against transcontinental railroads, was decided today by tho interstato commerce com-merce commission. Reductions amounting to 50 per cent from existing rates in some cases woro ordered, effective October 1. Tho Salt Lake business nion won at every point. At" tho samo time the commission passed on the case brought by I?eno, Nov., and again the people won. Other decisions de-cisions favornblo to tho public wcro made in, tho case brought .by tho city of Spokane and the Portland commercial com-mercial interests. Tho flood of decisions de-cisions today wuro overwhelmingly fa-vorablo fa-vorablo to tho westorn coast shippers. Tho fact' is indicated quite clearly in the response made by tho stock market today, tho railroad slocks affected having hav-ing sunk to tho lowest point; in months. Tho group of eases docidod tortaj-havc tortaj-havc como to bo known as tho Pacific coast casos. The. action of tho commission com-mission indicates a general policy to bo pursued in construing tho long and short Irnul clause decidedly favorable to tho public. Freight and Passcngor. Tho commission mtido an. order, not only affecting tho freight rates, but passenger rates as well, and prescribed a schedule between Utah points and California points, effective October 1, ranging from $23.58 to $26.04. , On citrus shipments from California points fo Ulah points tho rato was ordered to be fixed sit. '$1 a hundred pounds on carload shipments, beginning begin-ning October 1. Tho main . points covered in tho decision woro us lollows: 'This commission haB said that in determining de-termining a freight rato which must ot necessity bo charged by competing linos it. would not look exclusively to that lino which could handlo the business the chonpest, or which was tho strongest financially; but would consider, as well, tho weaker rival. Yet it has novor intimated that tho rato should bo fixed solely with reforonco to tho weakest lino, and it would certainly bo most unjust to tho public in establishing theso rates, to consider merely tho expensive and circuitous route." Preaonfc class rules in both directions between Chicago, tho Mississippi river and the Missouri rivor upon tho one hand, aud Utah common points on the other hand, are found to bo unjust and unreasonable to tho extent that thoy exceed those unniod in tho report. Present Pres-ent west bound commodity ratos from tho above named custom points of origin or-igin to Utah common poiuts aro found unreasonable to the extent that thoy oxeced those named in this report. Unreasonable Rates. Tho present eastbound rates on certain cer-tain products of Utah to tno Missouri river, tho Mississippi river and Chicago Chi-cago aro found unreasonable to tho extent ex-tent that they exceed thoso named in this report. Present ratoB on deciduous aud citrus fruits from points of production jn California to Utah nomnton points aro found unreasonable to tho cxtont that, they exceed thoso named in this report. Tho defendants should establish to Utah points proportiounl import rates upon certain named articles which do not -exceed thoso contemporaneously iu force to the Missouri river; and tho present rates upon sngo, tnpiocn, tea nnd tea diiBt are found unreasonable to tho extent that, they oxcood thoso now in effect to Missouri rivor points. Present pussongor fares between Utah common poiuts, on the one hand, and Ouinlin and Portland on the other, arc not found unreasonable, but tho present fares betweon Salt Lake Oity and Los ; c Angeles, Salt Lake City and San Fran- n fll cisco. and between Ogden and Provo, Idi H nnd San Francisco, aro found unreason- k able. IH 11 Tho complaint alleges that tho defen- j dant's pool traffic from tho cast to Utah common points, but the record contains i no proof of this allegation and tho iv 'H point was not pressed in the argument. I'M Tho rate ordered to bo acted on cit- Ijti rus fruits and deciduous fruits in car iHll'l load lots from producing points iu Cali- ili'l fornia to Salt Lake, Ogdon unci Provo, If . $1 a hundred. The maximum passenger mi hjM fares ordered established uf tor October ill f'-H 1 are as follows: Between Salt Laqo j City aud Provo, Utah, and Los Angolos, II j -1 $25; Ogden. Utah, and Los Angelas, H'HI $215.10; Ogden, Utah, and San Pran- Jlv UH cisco. $23.58; Salt Lake City, Utah, ! Ul'H and Sun Francisco, $24.69; Provo, Utah, 'ri 'H and San Francisco, $2b.0-i. 'Mil The two linos mainly affected by the j, f decision aro the Denver & Rio Grande '''rll and tho Union Pacific. -fThcv both jH cluim,' says the commission, "that tho 1(11 reductions nskod for would so impair I 'H their revenues as t'o work, if not the ab- InllH solute confiscation of their propertv, ' I'l against which the constitution protects U t'l them, at Jcast such an impairment of in- r lM come as would doprivo them of, a just tfl and rcasonablo return upon the-valuo '' '1 of that' property.'- ,ir After considering the reported cam- ' .( ings of the Union Pacific, the opinion r'IH says, tho last statistical report of that; company to this commission shows a j) j main lino mileago of 1S93 milos. with !l !. IH branches of 1-115 miles, a total of 330S h 1 IH miles. j' Iu round numbers its funded debt M was $226,000,000 and its capital stock i I $299,000,000, a total of $525,000,000. or f; jj $150,000 per mile. In tho year 1900 J lH it paid its taxes, tho interest upon its j irJI funded debt, a dividend of 4. por cent I ,!? upon its preferred stock, a dividend of r'l'il 10 per cont upon its common stock, and S 1 l had remaining $7,7-18,000. v IH Wlioro Road Profited. jH "The Union Pacific company has is- lll sued large amounts of securities for iu- II i!' vestment: .purposes, und thoso invest- ') mcnts have, in the main, proved fortu- iV'till uate, so that tho incomo abovo referred r lll to is not derived wholly from the opera- iiMI lion of itsa property, but for this H'.l srimo year it.curnod net' from opera- V' jl tions. after the payment: of taxes, $22,- il 81 G.000, or about $0000 per mile for IHH both, maiu lino and branches. Theso '"'1 earnings exceed those of any croup in h. tho United States, except group No. 2, j which they nearly equal." ; Tho commission says: "The financial ii'MI showing of the Denver & Rio Grundo is r'i nothing liko as favorable as that of the , Union Pacific. ,U "Tho Donvor & Rio Grande handles 't about 40 por cont of this Utnh business v. from tho cast at the prcsont time. Whilo J 1 I this trulliu is important to the Denver j & Rio Grande, its revenues from this j M source is but a small part of its entire income, und wo cortuinly could not per- t j 1 mit tho maintonuueo of unfavorable iis lll rates simply bocausn the ent'irc result , ' 'l of operations of this company might j i, not be as favorable as would otherwise ij bo proper. "It is woll understood that in recent !'' . years thoro has boon a continuous ad- j, t vanco in tho prico of most materials and bttpplics usod in construction and ti 1 ! nporating a railroad: that' there has been a coostanr. tendency to advance '' i wages, and that, all this has tended to I U ineroaso tho cost of operating. i 'i'l "Upon tho other hand there has been H' il u steady improvement in tbo method AiJI'l of haudling freight; trains aro longer, (a cars are largor. and more heavily load- t , cd; grades arc easier, tho amount S , hauled by a given ougino is greater; I , tho density of traffic, is mucli grcntcr. M . All this tends to reduce tho expenses j of transporlatinn. These two sets of casos work in opposite directions aud ( 3 . tend to hulanco one another. It is not js certain what; the not result has. been H, . at any time past or today. It is not jj jl improbable that at the outsol, tho econ- ?, ( omies of opcrution moru than out- r weighed tho iucreasod cost of labor ! jl and supplies, but that of Into the ro- ill' jH verso hiis been true. t)jl.i Oaroful Investigation. (,?, , "Wo havo examined with great euro A all ot! the evidence and argument ad- C.I 1 ducod by tho defendants bearing upon i'NI theso matters; tho value of their prop- s. urties; tho cost of operation; tho linnn !l'rl cial results from operation. Our con- ' iil elusion is that thoro is nothing to hMII justify tho maintenance of abnormal milil rates. Rates of transportation may 'fiH nroperly bo somewhat higher west of Hil tho Missouri river Ihnn east, but there lillyl is no reason why such ratos upon tho IHL'll lines of the Union Pacific botwoeu tl'fl tho Missouri rivor and Utah poiuts uMI should ci'eatly exceed similar rates i ll upon railroads in othor portions of the !l!il country, whoro the density of traffic nkll Continued on Pao Thrco. DEFENDANT ROADS MUST CUT DOWN THEIR RATES Continued from Pago One. and tho conditions of operation aro analogous." Orders for Reduction. Tlio commiHstoti ordorud a reduction in (lie rato on catsup in tin, glass or earthenware boxed, irom Salt Lake to Chicago from $1.2S to So cents. As (o other rules it said: "I-u cases of hides, green and dry, sheep pelts, tallow and wool, rates from tho coast terminals to tho Missouri river riv-er and cast are lower than those from Utah points to Chicago, ami sometimes lower than those from Utah points to the Missouri river. At tho present tiuio tho commission has before it rales upon the commodities from othor poiiils of origin in soveral complaints. There is no testimony in lho record from which a BuUsfaclor' conclusion could be reached. Jt may. however, seem advisable ad-visable to mako such inquiry hereafter in this and other cases as will enable us to establish just and consistent rates for the movement of those articles, and in this view these rales will bo reserved for fiituro consideration. " Tho complaint against tlio present passenger faro between Utah points and Ogdon and Omaha is not .sustained. "Also of the rato to Portland the commissioners any: "An order will bo issued in uccordn nee wilh tlio foregoing fore-going opinion except in' enso of class and commodity rates between eastern delincd territories and Utah points. With respect to those rates, no order will at present bo made, but, the defendants de-fendants will be required to furnish an accurate account for tho mouths oi! July, August and September or for such other representative months as may lie determined upon by the commission com-mission after conference with the defendants, de-fendants, showing the dill'orcnco between be-tween receipts upon traffic actually moved under present rates and what, thoso roceipls would have been on the suine traflic had those proposed rates been in effect. Carriorn may also indicate indi-cate any changes in other fates which would in their opinion bo necessitated by Dig putting in of the rates established estab-lished by this opinion and may show the reduction in revenue so occasioned, but tlio changes should be definitely indicated, and the loss of revenue due in other reductions should bo kept entirely en-tirely distinct from that duo to tho rates horo spocifled. Jiithor party may on or boforo August 15 iilo with the commission any objection to the rates here found reasonable, but not now made the subject; of an oraor. If, upon an examination of the objections so iilcd, it seems proper, thu parties will bo allowed during the month of September to present testimony to the commission and will bo further heard in that behalf." |