'THE MORNING OREGOXIAN. SATURDAY. SEPTEMBER 4, 1020
3
GRADED RAIL RATE
. TO WEST
Disque Finds Coast Not Un-
duly Favored.
FINDINGS NOT BINDING
Interstate Commerce Body Is Ex
pected to Carry Out Recom
mendations, However.
(Continued From First Pare )
transportation to the Pacific coast,
but as between these separate sets of
carriers there is that natural and
well-grounded fear of each other"s
ascendency and power, sufficient,
especially in view of the actual
iiioNement by water, to warrant a
finding- that there Is actual competi
tion at the present time.
"Energetic business competitors in
their struggle for success always look
beyond the present and are justified
in keeping themselves fortified
against each other's activities, even
though there may not be apparent
cause for immediate concern. It is
mainly for these reasons that the
commodity rates have boen held to
their present level and largely for
these reasons that the carriers are
now opposing a disturbance of the
present adjustment.
(radlnjf RfBHon Held Lefts A ovr.
However, it was, for these reasons
end in the interest of rate stability
that the suggestions as to grading
that were made in our report in trans
continental rates, supra, were not
touched in more positive and forceful
language. There is less reason now
than there was then for grading. We
are not prepared now to say that the
rail carriers can well be put in a
position to lose or to risk losing any
considerable portion of their present
and prospective traffic to the coast
by having their rates Increased in
order that there be a differential in
favor of in termountain territory:
"An increase to the coast would be
necessary unless we found the pres
ent rates less than the reasonable
maximum. On this record we cannot
say that in general the present rates
are such. Moreover, rates for long
hauls, particularly on low-grade traf
fic, openly apply from and to large
groups, or, in other -words, are blan
keted over extensive territories; and
even if the rates to the coast were
found to be reasonable maximum
rates it would not necessarily follow
that all of them should be graded.
Bn In Ufnrral Connldrrrd.
In view, of the special conditions 5n
which these commodity rates had
their origin and have their being,
we cannot fairly, unless we find
them reasonable spread their effect
further into the interior, weakening
the carriers' revenue and depriving
the Pacific coast cities of their nat
ural advantages of location. It should
bo understood, of course, that these
findings apply to the rate in general
and a somewhat different conclu
sion might be reached in a case
involving a specific commodity rate
constituting an exception to the gen
eral adjustment.
"What we have said above has1
especial reference to perhaps most of
the items in schedule C. However,
there are, no doubt some schedule
C. items and a number of schedule
B. items as to which it is not likely
that there will be any important
competition for a considerable period
and on which it may not be worth
while to continue the present de
pressed rates.
"Such items could very properly be
singled out by the carriers and put
on a normal basis and graded. The
record does not enable us to do it.
I'efendauts have not carried out the
grading process to the extent that we
had hoped. In addition to the fore
going some items in schedule A. and
schedule B. no doubt could well be
put on the class basis.
w Scnle Is Suggested.
"In appendix number 10, we sug
gest a new scale of class rates, which
on whole are slightly higher than
those proposed by the coast com
mittee, pLus 33 1-3 per cent. If this
ale is concurrently put into effect,
we favor and authorize the cancell
ation of less-than-carload commodity
rates; also of carload commodity
rates on various luxuries and non
essentials, and in fact, rates on high
grade freight in general which moves
at class rates almost universally, in
cluding automobiles, 'rubber tires, rub
ber clothing, chewing gum, musical
instruments, talking machines, drugs,
medicine, excepting heavy and low
Krade articles such as epsom salts and
eo-called industrial chemicals; and a
number of other commodities.
"Cancellation of these commodity
rates would not be attended by the
severe increases that characterize the
carriers' plan and apparently Inter
ested shippers should have no rea
sonable grounds for objection, par
ticularly in view of the fact that the
present commodity rates on many of
tne items are attributable to policies
and conditions of by-gone days, or
existent because of former water com
petition that may not have been and
perhaps never will be very com
petitive. The carriers may submit to
us for approval a list of the items on
which they would conform to the
above suggestion. Record will be held
ej.cn for that purpose.
Through Class Rates Ipheld.
"Completing this allegation with'
respect to the maintenance of 'the
combination, basis of class rates from
classification territory to points in
intcrmountain territory in the states
of Idaho, Montana, Utah, Wyoming
and New Mexico is sustained. We are
of the opinion and find that joint
through class rates should be estab
lished from the Atlantic seaboard,
Buffalo-Pittsburg and Cincinnati, and
the territories to Boise, Missoula,
Butte, Salt Lake City, Cheyenne and
Albuquerque at the figures shown in
appendix 10. An order will be entered
giving effect to this conclusion. '
"We are almost Incilned to say that
our conclusion with respect to class
rates may be taken as a general dis
approval of combination rates. Meth
ods of rate-making that are relics of
the dark ages of railroading should
be discarded. The combination basis
ordinarily is abnormal, unnatural, un
scientific, discriminatory and, some
may say, unAmerican. It can almost
be said to be prima facie unrea
sonable. The carriers should be re
garded more and more as one na
tional system and the time may not
be far distant when we should pro
ceed to the establishment of joint
through class and commodity rates
substantially lower than the combina
tion of locals between practically all
points in the country.
Rate Itanes Are Compared
"We have generally recognized that
through rates should be less than the
combinations but. Dromnted chieflv
by considerations of paramount pub
lic Interest growing out of revenue
conouions oi certain carriers, we have
hesitated and even declined abso
lutely to condemn combinations In
this connection the Boston chamber
ol commerce case, at supra, may ; be
OPPOSED
referred to as an example. In that
case eastern shippers asked that
rates from the Atlantic seaboard to
Colorado and Utah common points be
so adjusted that the through, rates
would be less than the combinations
on Chicago or the Mississippi river.
Though recognizing that ordinartls?
through rates should be less than the
combination of local, and finding that
there existed an unnatural and unrea
sonable rate condition which "called
for correction, we stated that we did
not feel warranted, with the reason
given In the report, in requiring any
change at that time.
We will not make much progress
toward a proper rate structure in this
country if we continue the policies
that were deemed to control it when
that case was decided. Moreover, we
are now vested with special authortty
to initiate rates that will protect rev
enues and, where carriers will suffer
depletion of revenues by reason of the
establishment of new joint rates, that
loss can be offset by slight increases
in other rates or in the general level
of rates." ,
fftlstory of Case Reviewed.
Reviewing the history of the case
in question. Examiner Disque in part
said: "The case at issue involves the
class and commodity rates to Pacific
coast cities and to intermountain ter
ritory from all the country east of the
Rocky mountains, and differs from all
previous- cases in which rates from
and to these points and territories
were considered, in that the present
rates to the coast are not lower than
to intermountain territory and there
is no contei tlon that they should be
lower. The situation is now reversed,"
he added. "The question presented be
ing whether the rates to the inter
mountain territory should be lower
than to the coast and if so, to what
extent." Complainants in this case are
shippers, organization and state com
missions in intermountain territory.
On March 15, 1915, the interstate
commerce commission, owing to con
ditions due to the war. held that the
maintenance of lower commodity
rates to the coast than to interme
diate points unduly preferred the
coast, and withdrew its fourth sec
tion of the long-short haul relief and
exercised the belief that the rates
in certain instances might be graded
The decision made no change in rates
that were already lower to the inter
mediate points than, to the coast.
In the spring of 1918, shortly after
the revised rates were established, in
termountain shipping interests peti
tioned the railroad administration for
graded rates on all commodities, that
is, lower rates to inter-mountain ter
ritory than to the coast. The matter
was referred to a Joint committee
which investigated and prepared a
plan of rate revision, and Iirector
Ceneral McAdoo, on a visit to Spok
ane, Indicated that graded rates
would be accorded inter-mountain
territory.
Committee Report Side-traek.ed.
But the report of the coast com
mittee when referred to a Chicago
committee for study and report was
sidetracked and eventually referred
to the interstate commerce commis
sion. Because of the impending return
of the carriers to their owners, for
mal complaint was filed by the In
termediate Rate association, and it
was on that complaint that Disque's
investigation and report was based,
it being alleged in the complaint that
Pacific 'coast received unreasonable
preference and intermountain terri
tory was subjected to undue prej
udice and disadvantages because the
commodity rates are not graded so as
to afford inter-mountain territory the
full benefit of Its shorter distance
from the east.
The class rates are satisfactory
to the complainants. They are al
ready graded. Complainants - also
asked for the establishment of prop
erly related joint through class rates
from all the territory east of Chi
cago to all points in Montana, Idaho,
Utah, Wyoming and New Mexico and
all other points in -inter-mountain
territory which now pay combination
rates. .
Hearing Held at Salt Lake.
Hearing was had on the complaint
at Salt Lake City last November and
at this hearing the report of the
coast committee was considered, that
report being supported by inter-moun
tain interests and opposed by the car
riers and coast shippers and the
director-general as well. A committee
of railroad traffic officials was then
requested to prepare a proposal show
ing what adjustment they would be
willing to make in case the commis
sion should find unlawfull discrim
ination against inter-mountain terri
tory. The carriers' proposal, submitted in
December, contemplated a complete
readjustment of the class and com
modity rates, giving effect to the
grading principle but entailing the
disruption of important commodity
rate relationships between the- east
and west. This brought eastern ship
pers into the case and the case was
reargued again in New Tork, Chi
cago, Spokane and San Francisco,
Since the hearings in this case rates
generally, have been increased 33 1-3
per cent.
AsNembljr Rates fiot Graded.
"The record shows," said Examiner
Disque, "that inter-mountain terri
tory is paying the same rates on most
of its traffic from the east as does
the Pacific coast. Practically none
of the present assembly rates are
graded. Commodity rates to inter
mountain territory are the same as
the coast on practically all schedule
B and schedule C and it is only on
commodities, In carloads, mainly in
schedule A that commodity rates are
graded. As to destination points the
graded rates to inter-mountain terri
tory are blanked east lor several
hundred miles.
"Generally speaking," said Mr. Dis
que, 'inter-mountain territory Is In
terested in the same commodities as
the coast. The fact that any improper
relationship that might exist would
result in undue prejudice to inter
mountain territory is clear."
ANOTHER CLUB IS FORMED
Oregon City Has Harding-Stanfield
Organization at Work.
OREGON CITY. Or., Sept. 3. (Spe
cial.) Organization of a Harding
Stanfield club was effected here this
afternoon at a special meeting of the
republican county centra committee.
E. W. Bartlett of Estacada -was
elected president; Maxwell Telford of
Canemah, vice-president, and Bren-
ton Veder of Gladstone, secretary
treasurer. J. J. Tobin of Oregon City,
J. W. Grasle of Milwaukie, Wallace
Telford of Boring, A. M. Shibley of
Springwater and D. F. Le Fevre of
Ardenwald were named as an execu
tive committee, and J. J. Tobin. A. E.
Rugg and E. C. Hackett were ap
pointed a committee on finance.
Service To and From North Beach.
To accommodate passengers return
ing from North Beach Labor day, Sep
tember 6th, special train and steamer
will operate on the Sunday schedule.
arriving Astoria 6:30 P. M., connect
ing with steamer "Hassalo." also with
S. P. & S. trains for Portland.
With last trip September 4th, the
service to North Beach on Saturdays
only, leaving Astoria 5:30 P. M., and
which is connection for S. P. & S.
Saturday afternoon train from Port
land, will be discontinued; also after
Labor day the late Sunday afternoon
service from North Beach, arriving
Astoria 6:30 P. M., will be discon
tinued. Adv.
S. & R. green stamps for cash.
Holman Fuel Co. Main SSI. S80-.iL
Adv. ,
GOVERNOR STEPHENS
AND COLBY CONFER
Reported Agreement Between
Nations Denied.
SUBJECTS KEPT SECRET
Referendum in California Must Be
Carried On Regardless of Ac
tion, Is Declaration.
"WASHINGTON, Sept. 3. Governor
Stephens of California was in con
ference today with Secretary Colby
at the state department regarding
the Japanese situation in the Pacific
coast state. While he would not say
what had transpired during the dis
cussion, the governor indicated later
that he had been assured that re
ports from Tokio of an approaching
agreement between Japan and the
United States providing for natural
ization of Japanese now in the coun
try and restriction of future immi
gration were without foundation.
The referendum election in Cali
fornia on the proposed new law di
rected at the Japanese problem. Gov
ernor Stephens said, must be carried
on whatever agreement the two gov
ernments might conclude as a re
sult of the pending diplomatic con
versations. The proposal was incor
porated in the ballots, the governor
lid. and could not ,be set aside.
Before the conference with the Cali
fornia governor. Secretary Colby went
to the White House accompanied by
Under-Secretary Davis and spent
some time with President Wilson. No
intimation as to the reason for the
White House conference was given.
Secretary Colby said later that his
talk with Governor Stephens had
been "illuminating." He had found
the California ex-ecutive to realize
fully the seriousness of the problem
and to be anxious to do justice in
solving it. he said.
The California governor later called
at the White House and spent a
short time in conversation with some
of the officials there with whom he
became acquainted -while serving as
a member of the house. President Wil
son was out motoring at the time.
JAPANESE ORDERED FREED
Residence of 5 1'cars in V. S. Held
Voiding Immigration Charge.
SEATTLE, Wash.. Sept. 3. Hiura
Teuchl, Japanese, who has been held
by immigration authorities here, on a
charge of having obtained entry into
the United States through misrep
resentation, was ordered released in
a writ of habeas corpus issued by the
United States district cour hero to
day. Teuchl first came to the United
States as a stowaway five and a
half years ago, authorities alleged.
Recently he went to Japan for a visit
and on his return here was arrested
and charged with obtaining his pass
port through misrepresentation. The
court held that inasmuch as Teuchi
had resided in the country for more
than five years, the manner of his
original entry was immaterial.
Vladivostok Japanese Troops Stay.
HONOLULU, Sept. 3. Japan has
declared her intention of keeping
troops at Vladivostok until security
of life and property is guaranteed, ac
cording to Vladivostok reports to
Tokio cabled to Hochi, a Japanese
language newspaper here. Some
powers are opposing further Japa
nese occupation of Vladivostok, the
advices added.
IDAHO WANTS NEW TIME
CHANGE IN ZONE IS HELD ES
SENTIAL TO FARMERS.
Interstate Commerce Commission
Hears That Physical Barrier
Bars Inconvenience.
BOISE, Idaho, Sept. 3. (Special.)
Evidence indicating the almost unani
mous desire on the part of southern
Idaho for a change in the time zone
from Pacific to mountain was pre
sented to W. C. Hall of the interstate
commerce commission at the stand
ard time zone hearing in the federal
court rooms today.
A. L. t'reehafer, president Of the
public utilities commission of Idaho,
was the first witness to reveal that
Idaho is practically divided into two
sections by physical barriers which
would not cause any inconvenience
in having Pacific time in the north
and mountain time in the south.
Charts showing a comparison of the
effect which both Pacific and moun
tain time have on the working day
were presented by W. L. Gorton, chief
engineer of the public utilities com
mission. These showed the overlap
ping of darkness on the working day,
under Pacific time, which washown
not to be true under mountain time.
That the farmer must regulate his
work with the time used by railroads
and business houses, was the state
ment made by W. W. Deal of Nampa,
master of the Idaho state grange. He
stated that the opinion among farm
ers in the southern part of the state
was shown to be about evenly di
vided by a questionnaire he had sent
out. He stated it was his opinion
however, that the time should be
changed to mountain as that is more
nearly what is followed on the farms
He emphasized that the farmers' work
now does not lie wholly in the field
as it did formerly, but overlapped
with that of the business and other
interests.
SUGAR MEN FURNISH BAIL
t
Eight Utalians Named as Gongcrs
Put Up $10,000 Each.
SALT LAKE (JITT, Utah, Sept. 3.
Bail of 10,000 was furnished today
by each of the eight directors of the
Utah-Idaho Sugar company of Salt
Lake, named in a sugar profiteering
1 complaint filed here last week at the
I instance of the United States district
attorney of South Dakota, charging
them with exorbitant profits in sales
of sugar at Sioux Falls.
They will be arraigned for prelim
inary hearing September 10.
FINNS SENTENCE SWEDES
Two Members of Commission Con
Tictcd on Treason Charge.
STOCKHOLM, Sept. 3. The two
members of the Swedish mission to
the Aand inlands, Sundblom and
Bjoerkman, recently arrested by the
Finns on the charge of treason, have
been sentenced to Imprisonment for
18 months at hard labor, with the loss
or civic rights for three years, py tne
court oi appeals at ado, Jjimana. ac
cording to advices today.
The sentence has raised a storm of
indignation in the Swedish news
papers against what they term "Kin
land's Prussian spirit." in the settle
ment of the Aland question.
A Stockholm dispatch July 13 quoted
Abo advices to the Dagens Nyheter as
saying Sundblom and Bjoerkman had
been released by the Finns. The dis
patch said the Finns had postponed
prosecution of the men on the treason
charge pending solution of the Aland
islands problem by the league of na-
LEGION POSTS IN FIGHT
COMMAXDEK CONTEST MAX CO
TO CONVENTION IXOOK.
Spokane and Hoquiam May Take
Ad-vantage of Situation and
Enter Dark Horses.
SPOKANE, Wash., Sept. 3. (Spe
cial.) A fight between the Elmer J.
Noble post of the American Legion
and Seattle post No. 18, both of Se
attle, for the election of the Wash
ington department commander devel
oped today and gave promise of be
ine carried to the floor of the con
vention. Steve Chadwick, favored
candidate of Seattle post No. 18, is
being backed by a large delegation.
Opposing him is Thomas Swale,
backed by representatives of the El
mer J. Noble post.
With the deadlock between the two
largest posts of the state, it is prob
able the Spokane delegation may en
ter a dark horse in the department
commander race, delegates declared.
It Is possible that the Hoquiam post
may enter a candidate for the depart
ment commander's office, reports
state, while it is also claimed that E.
Swallenbacn may be a. candidate.
In making his report on the sol
diers' state compensation bill. Dewitt
Evans, chairman of the committee
from Tacoma, said: ,
"When the equalized compensation
measure was first formulated an or
ganized campaign was not seriously
thought of, as it was thought that the
people would almost unanimously
take it up.
"Realizing that the etate bill was
an American Legion measure, for the
ex-service men, the executive commit
tee thought it wiBe to forestall any
opposition, and to use every possible
effort to pass the bill, and be pre
pared to protect the good name of the
American Leg-ion and the ex-service
men and women."
The four-fold national bonus bill
which provide compensation for all
ex-service men, and was passed at the
last session of congress, was unani
mously approved by the convention.
A resolution, relating to the anti
syndicalism act of the state, wa-s
heartily endorsed and its enforce
ment urged, as was a resolution pro
viding for boxing legislation which
will allow ten-round boxing matches.
The convention also adopted a res
olution asking that the grounds, bar
racks and hospital at Walla Walla,
now unoccupied, be transferred to the
state, to be used for treatment and
recreation for disabled . cx-service
men.
LARGE STILL IS LOCATED
7 65 Gallons of Corn Meal Slash
Confiscated in Lewis County Raid
CHEHALIS. "Wash., Sept. 3. (Spe
cial.) The largest still ever found in
Lewis county was located Wednesday
evening by Sheriff Berry and Deputy
Roberts. It was of heavy copper and
had a capacity of about 20 gallons
day. Seven hundred and sixty-five
gallons of corn meal mash also was
confiscated.
After a search, the still was found
cn the north -Lewis county line on
Garrett creek, near Oakville. In order
to announce the. coming of anyone
small twigs were scattered about the
canyon. The officers did not capture
the owner.
HOTEL OBTAINS MANAGER
Pat Foley to Conduct New Hostelry
!' at The Dalles.
THE DALLES. Or.. Sept. 3. (Spe
cial.) Arrangements have been com
pleted whereby Pat Foley, now pro
prietor of the Hotel Dalles, will as
sume the management of the new Al
bert hotel, to be opened here about
October 1. The new hotel is owned
by the Citizens National bank, a
newly organized institution which ex
pects to open its doors at the same
time. The hotel has 42 rooms, half
of these with baths and will caterto
the commercial trade.
Mr. Foley is a well-known hotel
man in the state and came here from
LaGrande several years ago.
PREMIERS IN CONFERENCE
Economic Pact Between France
and Belgium Expected.
PARIS, Sept. 3. Premier Delacroix
of Belgium, here supposedly on offi
cial business, took luncheon today
with Premier Millerand. It Is un
derstood he, came to Paris to arrange
the final details for ratification of
the military accord between France
and Belgium, already signed.
It is expected here that an eco
nomic agreement will follow closely
upon conclusion of the military al
liance. at the first sign
of skin eruption
You don't know how far that itching
spot of eczema, or bit of rash might
develop, and it'sbest to check it at once
by using RESINOL OINTMENT. Its
cooling, healing Qualities usually ston
itching and burning after the first
application.
Resinol is also an ex
cellent healing dressing
for burns, cuts, stubborn
little sores, etc At all
druggists.
eReiinol
lipp
The Great Sale
11 . -'"?T't"iVJ
"Merchandise
TO PAY
Fashion
For Men and Young Men
Suits of the finest ALL-WOOL, materials
Tailored by Skilled Experts
Single and Double-Breasted, Hy-line and
Belter models, also semi-English styles.
Cassimeres Cheviots Unfinished Worsteds
Plain Colors Mixtures Stripes
In A ll-year-'round weights
Your Choice Without Reserve
At the Very Remarkable Price
At this unheard-of figure for Clothes of Fashion Park quality
we must charge for alterations.
Come early, positively no suits will be reserved. College Men,
Business Men, Professional Men THIS IS YOUR ONE
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Fifth Floor Lipman, Wolfe Gr Co.
YOU KNOW how fine, how beautiful are the ties in our
regular stocks. Then picture to yourself thousands of the
most beautiful of these ties, reduced as never before, in a sur
passing birthday sale.
Lot 1
Ties in plain colors and
beautiful figured effects.
trM art's at half and less
than half regular prices.
EACH
Men's Porosknit Underwear Reduced!
Chalmers Porosknit Union $ "I .55 Chalmers Porosknit Shirts H g
Suits, the original. . ......... .. -1 " and Drawers ihe garment. .
Buy for now and later at the Lowest Prices in Two Years.
Mens Shop, Just Inside Washington-Street Entrance Lipman, Wolfe Gr Co.
of cJ Merit Only
of Ties Today !
Lot 2
Ties of heavy silks of
sumptuous richness and un
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Priced at near cost and
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Stilts
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