Salt Lake Telegram | 1914-07-20 | Page 1 | Freight Rate Battle is Opened

FREIGHT FA EIGHT RATE RITE HATTlE IS OPENED Commissioner H. H C. C Hall I Denies Application for Continuance Until October Application in which the railroads ds In Involved Involved In In- d in tho the rate hearing now In progress before Commissioner loner II IL C C. Ht Hall Hail l of the Interstate commerce commission and the Traffic Bureau of ot Utah and other protestants protestants protest protest- ants Joined that tho the hearing begun JUn this morning mor be he continued until October was refused by Commissioner Hall hail and the i hearing was as taken up Immediately Attending he hearing Is la Commissioner H H. C C. lie Hall of ot Washington formerly of ot Colorado Springs Colo Cob the tho latest appointee ap ap- ap I to the Interstate commerce com corn mission Examiner I A O G Gutheim who occupies th the bench with tho the commissioner and W W. J. J Jj r. Flannery of ot Denver Den of ot the staff of Hulse fc Allen Alien official reporters for tom the Interstate commerce commission at aU all hearings comprising tho the official body H. H A A. A Union Pacific s system George H H. Smith Or Oregon gon Short Line J J. J O O. 0 McMurray McMurray Mc- Mc Murray and Fred Wild Jr hr Denver Rio Grande H. H G G. Herbel and D D. P. P Lincoln Missouri Pacific comprising the Interests Involved Shippers Represented Protestants against s Insl tho proposed rates are S. S H H. Love W W. S S. McCarthy Ross M. M 1 Deason Deacon and John A A. L Beck Jr represent represent- ing log tho the Traffic Bureau of ot Utah C C. S S. Bather of ot tho the Rockford Manufacturers and Shippers Shippers' ers association and Emerson hiram ingham Implement company of ot Rockford Ill i A. A A F F. Versen Vereen of ot St. St Louis representIng represent represent- ing the Business Mens Men's ens en's League of ot St St. Louis Judge J. J H H. Henderson commerce counsel for lor the tho state statu of ot Iowa Iown representIng represent represent- ing lug Iowa protestants J J. J A A. Morgan tm-at- tm fic nee manager of ot the National 1 Cooperage o association of St. St Louis Martin Van Per- Per yn of Chicago representing tho the Wholesale Whole Whole- sale Grocers' Grocers exchange of oC Chicago o and tho Chicago o Association of ot Commerce An Ais quickly as aa the session was called railed to order b by Commissioner Hall S S. S H 11 Love Lo for tor the Traffic Bureau Dureau of ot Utah filed a rL statement with tho the commission giving of official ot- ot notice of oC the change of name of ot tho the local ocal organization from tho Com Commer Commer- mer- mer cial club traffic bureau In response to ta Commissioner Halls Hall's questions tho the railroad Interests ald said they could present their ca caSe o In from one ono and one half days to two days davs The traffic bureau case can be presented r In five hours Refuses Postponement Commissioner Hall announced a recess ot of fifteen minutes that the protestants and arid tho the railroad representatives might confer conter upon the motion When tho the ses ses- sion slon was as resumed 11 ll A of oC the tho Union Pacific system was given the floor noor and said Bald We e have conferred with the protestants protest- protest ants ant and wo wo realize that there la is a good deal of force In what they havo have said saM on account of ot the tho chaotic conditions In the Intermountain territory as a a. result of ot the supreme court decision Elimination of the iron and steel classifications might simplify consideration of ot this case and we are willing that tho case caso should bo be postponed provided It can con be reset for tor hearing within a 11 reasonable tim rio say sav October 1 It Is IB Important that this case e I be bo heard bean argued and decided before January 30 1915 at which time tho the sus pension of these rates under consideration tion at this hearing will expire Wo We bo- bo lIeve that tho thu better course COUrie to pursue would bo be to postpone the case It It will bo be impossible for tor any member of or the commission lon to attend In October said Raid Commissioner Hall Tho The matter cannot be heard b by a member of the commission before th the tho expiration of ot time the date data of ot suspension of ot these rates because of ot their Itinerary The hearing must proceed now Chicagoan on Stand v. V A A. A chairman nan of ot the Trans Trans- Missouri Freight Bureau Chicago wan waG summoned to la tho the stand The Tho bureau publishes all 1111 freight tariffs of ot all railroad rl lines line from fm-em trans-Missouri trans territory to Utah common points Mr Poteet has been in direct charge of these tariff tam publications pub pub- for tor more than twenty years Tears Copies of tariff 20 0 G G. an 20 0 II the former former for tor- mer dated November 16 15 1911 1011 and tho the tatter latter tho one under suspension were submitted and Mr Poteet was WaB Instructed to cite the changes In the n nw w tariff from the tho old oM and the tho reasons for Cor making those chan changes Ho explained that tariff G 20 when hen Issued Is is- is- is sued embodied class clasi and commodity rates rate established b by order of the tho commission lon Immediately following the tho Issuance of ot this tariff the rato rate case which then was under d consideration was wal decided and made c Tho The chan changes necessary Mry to equalize Utah Uth common point rates with Spokane rates rateR were then made mad in 20 H Tim The rates published b bv by the carriers priori to the tho order were adjusted with tho the rates from Chlea Chicago o and other Eastern points The Theo carriers In making th the adjustments of rates rotC to Utah common points have preserved the equalization of the tho rn rates tes from Utah to the Missouri river Confusion Now Mr Ir Poteet said eald that tb-at the equalization of ot rates was largely df destroyed troyed b by the decision decision de de- de- de deton of the commission In the Salt L. L Lake e case The results w Were re unsatisfactory to the Eastern shipper Ho lie admitted that there thero Is a Q rather confusing rate basis now not only as to the tho rates themselves but as to th the thA method of ot getting at thera the ra rates He lie Ml said ald t as 11 a Q result of the Colorado Colo Cob rado made manufacturer case CUt cl class ts rut rates s were wore advanced to Utah common points This was tried as a solution of ot a n complex sit Jilt lt- lt The The- result was not Ideal Idelli but was more satisfying than the the- theold old condition Mr Ir Poteet then filed d an nn exhibit showIng show show- Ing lug the tho changes In class clan rates from tariff G 20 to tariff H 20 which aM been pre pre- Continued on page pace e 5 FREIGHT RATE Continued from pa page c 1 1 pared under his hili direction He Ho explained 3 a aIn in detail the tho many advances and a few e reductions In the tho H 20 tariff a as compared com coin pared with 20 O. and tho the complex reasons rea ren- reasons sons Fons for or these thene thc e changes which struck to the thc roots of ot the tariff making S 5 tom tem Mr t Poteet's com comparison arlson of or the class s rates between Salt Lake CSt City and Utah common points on the ono ouo hand hanft and Chicago o Peoria St Louis St. St Paul amIs and amI Kansas s City and Omaha on the tho other showing the present rat rates s and those it Is II pro proposed fd to establish appear In another part of this Issue Another exhibit filed by Mr Poteet showed showell a comparison of ot claps class rates from front the same MmA points to Montana Utah common common common com com- mon points and Colorado common points sho showing also aIM the shortest rail distances i In miles from Chicago Peoria St. St Louis Louie St. St Paul Paid Kansas City Omaha to Butt Butte Salt Snit Lake City and Denver Explains Rates Hates Ho explained that the rates to Utah common point points arc are arrived at b by a comparison comparison com com- parison of mileage from Chicago and the various basic points points to Montana common points the latter being used as 85 maxImum maximum maximum maxi maxI- mum rate rato Mileage from rein Chicago to Butte Dutte Is fixed nt at 1512 to Salt lake Lako lf 1 1528 and to Denver 1029 The Tho first class rate rat Is II then fixed from tho the Missouri river rl by bylie bythe bythe the lie same process and oth other r rates are arc predicated predicated upon the first class rate holdIng holdIng hold- hold Ing ng the tile Montana na ra rate rato te as a the maximum mum Rates from rom Chicago and other points are then figured out on a percentage and equalization basis Mr Ir Poteet filed med a 1 statement ment of at short railroad mileages and percentages from Chicago Peoria St. St Paul St. St Louis Omaha and Kan Kansas ae City to Butte Salt Lake D Denver pr n Wichita ichita and the Arizona grup of cities Ho showed also In the course of hi Ills his examination tho the comparison of both classes es and commodities rates tho Ing the tho mileages s and percentages This Thle was submitted for or use uso In making rat rate comparisons comparisons com com- using Salt Lake as the th barn baM from the various arlouF points of origin The fourth exhibit submitted h by Mr Poteet was II a comparison of or p percentages of or Average a class rates rolfs with Ith the pere percentage percent percent- nta nt- nt a age of or the short hort mileage haul Mul from rom Chicago Chicago Chi Chi- I cago Peoria Sl St Lout Louia SL St Paul Kansas Kanas Kansas Kan Kan- sas as City and Omaha to Silt Salt Lak Lake Butte Denver and the Arizona group Lift Lilt Is Costly He explained that because of geo geographical raph- raph ical leal conditions which make It Il necessary ary nr for Denver Rio Grande Grand to raise ralle its l loads to R an n ele elevation in excess of or feet and the Union In excess of 1 feet above e sea level the Utah common common com coin mon men point rates rat suffer Tho The ra rates tes proposed to bo be established ta he said Mid ar are reasonable there Is a 1 bettor better alignment nt of ot the tho cla classifications and In all allcas's cases cass an Improvement ement and a more equitable equitable equit equit- able and Just series of rates rate than thwart those they are tire dc designed 1 to replace Mr Ir Poteet flied filed m tl an additional exhibit just before bator the tho noon recess This If is a comparison of f through noon charges s available a under class Haas rates rate on direct ct shipments from Chicano Chicago Mississippi river tint Mi- Mi souil river to Grand Junction Colo against the tho through charges s u m II ri combinations class for rol lIa class through Pueblo showing the difference il ll present present pres pre ent rat rates 8 and the she under der th the rates ratcH now under consideration Recess to for I luncheon a was then that taken the session was as resume I at 2 o'clock this afternoon The motion for m lIt of the lh nearing hearing was Willi predicate on no th the uncertainty r- r surrounding the tho order order- of the com com- commission ml mission lo relating to the tho zone rates rases rJ i in- in into to the recent decision of th the supreme court upholding the legality of or the establishment estah- estah of the th zone rate rat basis bals Th The tm traffic traffic r- r fic nc bureau feels feel in to view of th the supreme court decision that the hearing should be postponed until October feeling In tho thu meantime that tin the th mm rl w will III irate the crr effective dale of or rates rate upon the ll of the tho carriers carriers' bill pursuant nt to the mandate of or th the supreme court alldor and for or the thc further fact that certain tn transcontinental transcontinental trans trans- ns continental rates have been advanced aJ I since nee the derision decision was given iven in the Salt Sail lake case and 1 the additional additional fact act that the rates under both tariff Q 20 and tarIff tariff tar tar- iff 20 H ure are unsatisfactory to tho the pro- pro I