Jasper County Democrat, Volume 17, Number 89, Rensselaer, Jasper County, 13 February 1915 — LOW RAIL RATES DUE [ARTICLE]

LOW RAIL RATES DUE

PANAMA CANAL CAUSES COMMERCE BODY TO FAVOR CUT. Decision Permits Carriers to Make a Reduction in Long HaufNßates Second Victory for Roads.

Washington, Feb. 12.—Because of competition through the Panama canal, transcontinental railroads are permitted by the interstate commerce commission to charge lower rates from eastern points to Pacific coast terminals than to. intermediate points. With a few specific exceptions the decision permits a reduction in the long haul rates. The-decision was what is known as the Intermountain Rate case, and was regarded as second in importance only to the five per cent case. The decision was the second victory for tire railroads in their appeal for relief from threatened financial difficulties. , The commission recognized “the revolutionary effect of the Panama canal upon transportation,” and declared that “the shrinkage of rates via the canal from New York to San Francisco put the transcontinental carriers in serious straits.” The commission pointed out that In reaching its conclusions it recognized these salient points as presented by the railroads. That under existing rates the railroads could not compete with the water lines to the Pacific coast; that should the whole rate structure, including rates to intermountain points, be reduced to meet the water rates, the earnings of the railroads would be swept away;, that unless Some adjustment could be made, the great industries around Chicago and in the Mississippi valley would have to lose their . Pacific coast customers or migrate to the Atlantic seaboard. The new rates will become effective within Alt days after the filing, by the railroads of tariffs containing them. Th’e action of the commission permits the railroads to violate the long- and short haul clause of -4. be fourth section of the commerce- act.