G
THIi MORNING OUEGOMAX, FRIDAY, DECEMBER 3, 1920
RICH COMMERCIAL
i TERRITORY IS WON
Inland Empire Area Part of
Rate Acquisition.
JUSTICE IS DELAYED
Dace Belonging to Citj in Trade
Competition Is Captured
After Many Years,
'Continued From First Pase.)
only partial justice has been rendered
to the Portland cause and that the
future may hold concessions that will
further ratify and broaden the prin
ciple involved.
"In the decision of -the intestate
commerce commission," commented
W. D. B. Dodson, general manager ol
the Portland Chamber of Commerce,
"supporting the recommendation of
Examiner Thurtell and placing with
in the Portland rate territory thai
region south of the Snake river, at
least partial Justice has been done
this city.
Greater Influence Is Hope.
"All of that territory was so clearly
within the Portland district, on a
strict distance basis, that it would
seem impossible to reach any other
conclusion. If recognition were given
the wonderful advantage and econ
omy of the haul down the Columbia
river, a much greater area contiguous
to the Snake river would have been
added to Portland territory.
"In the future, when the economy
of operating railway systems mora
completely governs the rate-making
powers, It is to be hoped that the
precedent established by the inter
state commerce commission will have
a titiJl greater influence of the high
est importance to the producers of
trfe interior and also to the seaport."
More Wheat to Be Handled.
TVith respect to the probable Im
petus that the Port of Portland will
receive from the ruling, which is des
tined to turn a torrent of grain and
other produce toward the local
wharves, every comment held that
the importance of the seaport is
vastly enhanced and its growth
should receive immediate stimulation.
Ey virtue of the 10 per cent differ
ential rate in favor of Portland, it is
held to be manifest that wheat ex
ports from hitherto debatable terri
tory will turn naturally down the
river and into the local port.
"If the commission has approved
Examiner Thurtell's report, as is In
dicated by the dispatches," said John
irl. Lothrop. secretary-manager of the
Portland Traffic and Transportation
association, which initiated the fight
for rate recognition, "the rates in
that territory north of the Snake
river will not bo disturbed, while
those on all commodities will receive
a 1(' per cent differential south of the
Snake river. This is in complete
accord with Examiner Thurtell's find
ing that existing rates were unduly
prejudicial to Portland and Vancou
ver, insofar as they exceeded 90 per
c:nt of the rates on like commodities
between such points and 'Astoria,
Seattle and Tacoma.
Grain Best Illustration.
"On grain shipment the differential
is best illustrated by noting that the
present rate from Walla Walla and
Pendleton to Portland and Seattle is
21 4 cents per 100 pounds. With this
rate maintained for Seattle and Ta
coma and with a 10 per cent differ
ential in our favor, it is seen that we
will have practically two cents ad
Tantage on every 100 pounds shipped.
"There is no reason, this being true,
that grain shipments should continue
to go to Puget sound, except for mill
ing purposes. No sane dealer in
wheat would continue to pay the dif
ference, when by shipping to Port
land so marked a saving would be
possible. If the ruling of the com
mission Is what it appears to be, and
ot this there can be no doubt, tre
mendous stimulus will be given to
cur port."
Inland Empire Is Added.
To the present territory of Port
land, by the ruling, is added the In
land empire area on the differential
rate, while northward from the Snake
river this city is still on a parity with
scame ana on an equal basis of com
petition. The same status bf com
petition at equal rates exists north
ward to Centralia. leaving to Seattle
as exclusive territory only that dis
trict lying south to the coast and on a
line inward to Centralia and Kenne
- n n, logemer witn the sparse area
northward to the sound. Much of
this territory, it is plainly evident.
mountainous and non-productive.
Definite Opinions Held lp.
Jobbers were inclined to await com
plete details before expressing defin
ite opinions regarding the effect of
the rate decision, but all agreed that
tne strengthening of Portland's com
mercial territory means much to bus!
ness in general and the prospective
development of this city and adjacent
territory. It is obvious, they pointed
out, that the differential rate will be
an overwhelming argument for the
location of new commercial and in
dustrial enterprises in the Willamette
valley.
"It looks to me," said Arthur C.
Spencer, general counsel for the O.-W.
It. & N. company, "as though the com
mission had followed the tentative re
port proposed by the chief examiner,
which gives Portland a 10 per cent
advantage as compared with Astoria
and Seattle to which this city has
long been entitled. It means Just
that much advantage In the shipment
of all commodities to and from the
territory designated. The import
ance of this definite commercial asset
is plainly evident."
Elation Is I'nboanded.
W. C. McCullough. associate coun
eel with J. N. Teal during the rate
hearing, representing the traffic asso
ciation and the chamber 6f commerce,
declared that his elation was un
bounded and that the significance of
the ruling cannot be overestimated.
"It is apparent," said Mr. McCul
Jough, "that the commission has sus
tained substantially the report of the
chief examiner. We considered then,
and I consider now, that this action
constitutes a very large measure of
relief. It is difficult to estimate its
Importance so vast a field of pos
sibility is opened, but it is distinctly
a Portland victory and one in which
every citizen who holds the interests
of this community near to heart can
properly take pride. I am elated,
stimulus la Expected.
"The ruling should prove a stimulus
to the growth of Portland as a port,
and should also stimulate and encour
age the growth of Portland as a dis
tributing center for grain, wool, fruit
for all the plentiful produce with
which the new territory teems."
Max H. Houser, largest grain ex
porter In America and president of
the Portland Flouring Mills company,
expressed gTeat gratification at the
reported ruling, but said that he must
have time to consider it fully before
HOW THE INTERSTATE COMMERCE COMMISSION'S RATE RULING
MAP
voicing an opinion as to Its probable
effect.
Among the Jobbing houses. Wad-
hams & Kerr officials declared them
selves happy at the termination of
the fight for rate recognition, and
believed that the differential would
be of distinct advantage to the dis
tribution of goods from Portland. .
Like other commentatators, however,
they tempered their opinion with the
assertion that the award was no more
than Portland had the right to ex
pect. Aid to Business Expected.
They could not possibly have
given us any less," said L. Allen
Lewis, president of Allen & Lewis
"The differential will be quite an
aid to Portland business and to the
progress of the city both as a dis
tributing center and as a seaport."
A very substantial victory for
Portland." asserted W. D. Skinner,
traffic manager of the Spokane. Po t
land & Seattle railroad. "It will give
our jobbers and merchants an ad
vantage, and a similar advantage to
all who undertake business in the In
land Empire."
rhe recommendations of the ex
aminer have undoubtedly been fol
lowed," commented H. E. Lounsbury,
general freight agent of the O.-W. R.
& N. company, "and this means a
great deal to Portland. It is quite
obvious that the city will benefit in r.
general way, while the progress of
the port will be materially advanced."
Oswald West, who represented the
Inland Empire Shippers' league at the
hearing, was inclined to feel elated
at the award, though believing it does
not entirely meet the previous con
tentions of the district.
Attitude Is Set Forth.
A statement prepared by Secretary
Lothrop of the Portland Traffic and
Transportation association, relative to
the case while still under advisement
by the commission, sets forth the
local attitude toward the comme,rcial
area now ceded to Portland, as well
as to the district north of the Snake
river, where the, parity remains un
disturbed. In this territory (south , of the
Snake river) rates for many years
have been the same from Seattle and
from Portland to most of the points,"
continued the statement. "To a few.
however, the advantage has been in
favor of Portland. In 1919 the Port
land Traffic and Transportation asso
ciation and other public bodies of
Portland filed complaint with the in
terstate commerce commission in
which a readjustment of rates was
asked, not only to that territory, but
to other territory in eastern AVash
inglon and northern Idaho, in order
that the benefit of Portland's advan
tage of location mighf be teflected
in the rates.
Approval Then Expected.
"A tentative report was recently-Issued
by Chief Examiner Thurtell of
the commission, in which it was pro
posed to allow varying differentials
in favor of Portland, approximating
10 per cent. Ten cents for each 100
pounds was the proposed differential
in first-class rates. It is our view
that an even greater differential
should be granted and that some dif
ferential should also be ordered in at
least a part of the territory north of
the Snake river, and also to some of
the other territory adjacent thereto.
"We anticipate that the commission
will at least confirm the proposed re
port of the examiner and believe that
it should go further and grant addi
tional differences in rates in favor of
Portland. This particular territory Is
a very large consumer of Pacific coast
products. In it are the large and
important towns of Pendleton and
Walla Walla, besides many other
trading points of considerable size
and. importance.
Service Held Important.
"In connection with the distribu
tion of goods, service is an important
factor to be taken into consideration.
I am not prepared to say that under
favorable conditions the service from
Seattle is not as good as from Port-
and, to the territory in eastern
Washington and northern Idaho,
where a parity of rates exists. There
are. however, during the winter and
spring months, frequently serious in
terruptions and delays in the service
of the lines rhich cross the Cascade
mountains from Seattle. These inter
ruptions may be due to excessive
snows and heavy rains. causing
freshets and landslides. Delays some
times result from conditions owing to
single tracks through the tunnels.
Similar obstacles are not often en
countered in connection with the serv
ice from Portland, as the lines from
this city follow the water grade
routes along the Columbia river."
For years the Columbia river watefr
grade, sloping naturally to the sea,
as contrasted wi4h the difficult grades
and tunnels of the Cascade moun
tains negotiated by lines en route to
Seattle, has formed the basis of Port
land's plea for justice in rate read
justment, in the opinion of those
who are versed in the principle in
volved, the differential rate now es
tablished south of the Snake river
is recognition of the essential 'va
lidity of local claims, and marks the
beginning of a new era of Portland
development.
PORTLAND WINS RATE
(Continued From First Pag-e.)
other ports on Puget sound, Grays
Harbor and Willapa bay."
Three Canes Are Decided.
The decision disposed of three cases.
The first was brought by the Inland
Empire Shippers- league, which com
plained tnat tne rates on grain and
grain products, in carloads, from
points in Idaho, eastern Oregon and
eastern Washington, on the lines of
the Oregon-Washington. Railroad &
Navigation company, the Oregon
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OF OREGON AND WASHINGTON.
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Upper left (horizontal llne Territory yet dominated by Seattle. Upper
rlcrnt (diagonal lines) Territory in which parity ratea exist between
Portland and Seattle. Lower (checkered) Rich Inland Empire terri
tory, awarded to I'ortlnnd by decision favoring Portland with lO per
cent differential rate over Seattle and Astorin. The Snake river forma
northern boundary. Unshaded portion All territory previously held as
tributary to Portland and now augmented by the district south of Snake
river. Lower diagram Oiaarrams showing the mountainous rontes to
Puget sound cities, as contrasted with the Columbia water-grade haul
to Portland the unanswerable argument which won Portland's case
before the commission. 1
Short Line and the Camas Prairie
railroad to Portland, Astoria and in
termediate points on the lower Wil
lamette and Columbia rivers in Ore
gon and Vancouver, Wash., were un
reasonable. This case was viewed adversely in
the Thurtell report last January and
the commission took the same posi
tion. in its ruling today.
The importance of today's decision,
however, rested on. the other two
cases, one of which was brought by
the public service commission of Ore
gon and the other by the commission
of public docks of the city of Port
land, the Portland Chamber of Com
merce, the Portland Traffic and
Transportation association and the
port of Portland.
Decision Is Summed Up.
Summing up Its decision the com
mission said:
"We find, that the rates on grain
and grain products in carloads, from
points in Idaho, eastern Oregon and
eastern Washington on the lines of
the Oregon-Washington, Oregon Short
Line and Camas Prairie railroad, to
Portland, Astoria and intermediate
points on the lower Willamette and
Columbia rivers in Oregon and to
Vancouver and the rates on classes
and commodities between Portland
and Vancouver, on the one hand, and
points in the Columbia river basin, as
defined herein, on the other, are not
unreasonable; that the tates on
classes and commodities between
points in Baid Columbia river basin
north of the Snake river, on the one
hand, and Portland and Vancouver,
on the other, have not been shown to
be unjustly discriminatory or unduly
prejudicial, as compared with the
rates contemporaneously in effect be
tween the said Columbia river basin
points, on the One hand, and Seattle,
Tacoma and Astoria or other ports
on Puget sound. Grays harbor, or
Willapa bay, ori the other; but that
the rates for interstate application oh
classes and commodities between
points in said Columbia river basin
south of the Snake river, on the one
hand, and Portland and Vancouver,
on the other, are unduly prejudicial
to Portland and Vancouver insofar
as they exceed 90 per cent of the rates
contemporaneously applied on like
traffic between Bald Columbia river
basin points, on the one hand, and
Astoria, Seattle or Tacoma or points
on Grays harbor and Willapa bay on
the other.
Rate Revision Required.
"Except as stated below, no order
will be entered for the present, but
defendants be expected to tile within
90 flays from the service of this
report, rates revised in accordance
with this finding. While we do not
find that the rates in question are
now' unreasonable, .our recommenda
tion is that this revision be accom
plished by reducing the ratea to and
from" Portland and Vancouver and
by raising the rates to and from the
other ports by approximately equal
amounts."
The commission comments at length
oh the advantage Portland enjoys by
reason of its water grade haul from
points in the inland empire as against
the heavy mountain hauls to Puget
Sound. Taking up arguments pre
sented by Astoria and Puget Sound
Interveners against any change in the
rate structure favoring Portland and
contravening past decisions of the
interstate commerce commission, the
commission said:
Advantages Are Recognised.
"Our decisions which hold in sub
stance that a locality or community
may not lawfully be deprived in the
adjustment of rates of its natural ad'
Vantages and our decisions which In
substance approve the practice of
blanketing rates are not in conflict.
We have never held that it is neces
sary, in order to preserve advantages
of location, that rates should be based
rigidly on mileage or on cost of serv
ice', if this Were necessary many of
the freight rates of the country would
be unlawful.
"Nor is there anything In our de
cision in the second Astoria case
which precludes consideration of any
changes In the rate structure fn Issue.
! We were then dealing with the rates
between Astoria and the inland em
ALTERS THE COMMERCIAL
pire, which includes but is much
larger than the Columbia river basin
now under consideration. The con
clusion that In general rates should
be maintained on a parity to and from
this Inland Empire as between Se
attle, Tacoma, Portland and Astoria,
involved no finding that the area of
the territory In which this parity Is
maintained should remain constant
and never thereafter be reduced or
enlarged, if modifications were shown
to be reasonable.
Proportioning? Is Considered.
"The question, then, is whether the
rate blanket under consideration is
properly proportioned and its bene
fits and disadvantages fairly dis
tributed between tne ports in question
or whether this is not the case and
the blanket takes from Portland sub
stantially more than it gives. In the
latter event it should be confined
within more appropriate limits.
"Considering, first, the larger por
tion of the Columbia river bain which
lies north of the Snake river. It has
not, we think, been shown that the
existing parity of rates is unduly
preferential on the Puget sound ports
and Astoria. North of the line of the
Milwaukee oomplainants have them
selves abandoned attack on these
rates and, while Portland, on the
whole, has certain advantages in dis-
tance and cost of service in .the terri
tory between the Milwaukee and the
Snake river, these advantages are
not, all told, so substantial that dis
regard of them in the adjustment ot
rates can be said to overstep the
limits of reasonableness. We have in
mind the history of the rate equaliza
tion, its long standing, the mainte
nance of equal ocean rates to and
from the various ports, the distribu
tion of population and the influence
in this territory, both positive ftn
potential, of the short line of the Mil
waukee.
Distances Favor Portland.
"Turning tO the lower portion of
the Columbia river basin, which lies
south of the Snake river, we think
the opposite conclusion is 1ustifi.nl.
Distances uniformly favor Portland in
this territory. The following table
shows its advantage in distance a
compared with Seattle via short line
established roads from representative
points:
Vlles.
... 63
r,3
Athena, Or. .......
Dayton. Wart. .....
Pendleton, Or
Pomeroy. W'aeh. ...
. . . US
... 44
... 44
&tarbuck. Wanh. . . .
Waltsburg. Wash. .
Walla Walla. Wash.
Wallula, Wash
. .. 4
.... 48
. .. 43
"In thi
territory It now aDnears
indeed
that while the grain rates ara
on a parity as between the ports, the
ciasa rai.es are not always the same.
For example, the first class rates at
the following points prior to the in
creases under increased rates In 1J20.
(58 I. C. C. 220) were:
From
Touchet, Wash.
TO Portland Ta Seattle
v..., a i )' u.
weston, ur. .......
Prescott. Wash
Ayer Junction, Wash.
Turner, Wash
Pomeroy, Wash
1.40
107H 1.10
l-07i 1.12H
114 1.35
119 1.474
Grain Ratea .Are Listed.
"And in the territory in Oregon
southeast of Pendleton, although the
distances from ths coast are greater
and the traffic must pass through
Pendleton on Its way to the coast, the
parity disappears not only as to class
rates, but as to grain rates as well.
The grain rates from representative
stations in this district' prior to the
increases last mentioned were as fol
lows: t t
Cents. Cents. Cents.
Or 22 27 31 V,
..... .... 23H 2i 83
' 24 29 S3
Or. 25 80 g 84
-8 83 364
from
X.& Grande,
Baker, Or.
Elgin, Or.
Huntington,
Joseph, Or.
To Portland! tto Astoria; Jto Seattle.
"Added to the advantage in dis
tance 18 the advantage which Port
land possesses from its water level
routes. Our conclusion Is that this
portion of the Columbia river basin
south of the Snake river is not fairly
a part of the territory in which a
parity should be maintained, and that
to and from points In this district- it
is reasonable that Portland should
have rates lower than Puget sound
ports and Astoria and also lower than
the ports on Grays harbor and Wil
lapa bay. This conclusion applies as
well to Vancouver as it does to Port
land. . Relative Costa Important.
"What the differential should be Is
largely a matter of Judgment. Rela-
sttve costs of service are important,
but there are other matters which
should fairly be taken into account.
Some of the considerations which
warrant a parity of rates in the ter
ritory north of the Snake river have
at least a'n influence in the territory
to the south, and the transition be
tween the two districts ought not to
be too abrupt. In his proposed report
the examiner recommends a differ
ential of 10 per cent and we think
that this figure may well be adopted."
"It remains to determine whether
this adjustment of rates should be
effected by a reduction of the Port
land rates or by an Increase in the
other rates.
"As aforesaid, the existing class
rate structure was founded upon our
order in the Portland Chamber of
Commerce versus Oregon-Washington
Railroad & Navigation company case,
and upon contemporaneous orders of
the Oregon and Washington commis
sions. In numerous instances, the
rates established as a result of these
orders fell below the maximum there
in prescribed. Little evidence was of
fered to show unreasonableness in
the class rates in effect at the time
of the hearing, and that which was
offered was insufficient to overcome
the presumption of reasonableness
growing out of the history of these
rates.
Evidence is Reviewed.
A more serious attack was made
against the reasonableness , of the
rates on grain and grain products
from points in the Inland Empire over
the Oregon-Washington, Oregon Short
Line and the Camas Prairie railroads
to Portland, Vancouver and Astoria.
The evidence In support of this com
plaint was founded largely upon "the
theory that the grain rates via these
water level routes to the Columbia
river ports had been equalized with
rates found reasonable by the JWash-
ington commission for longer dis
tances to Puget sound over the moun
tain haul routes.
"Evidence was also offered to show
that the decline in the prosperity of
the Oregon-Washington railroad In
recent years has been due to un
prcfitable and unnecessary ventures
in branch and competitive line con
struction. In support of the grain
rates, defendants Introduced voluml
nous tabulations showing that these
rates compare favorably with corre
spending rates in other parts of the
country. It may also be said that the
costs study by the Oregon commis
sion does not tend 'to sustain the
charge of unreasonableness."
Comparative -Coata Viewed.
we deem it unnecessary to set
forth the evidence In detail. It was
fully considered by the examiner- in
his proposed report and his conclu
sion that the rates have not been
shown to be unreasonable was not
strongly contested upon argument."
Taking up comparative costs of
service from east of the Cascades to
Puget Sound and to Portland, the
commission said:
"The best evidence upon this sub
ject was presented by a consulting
engineer employed by the public
service commission of Oregon," in the
form of a report based primarily
upon an analysis of cost of service in
1917 upon the Oregon-Washington
lines in Oregon. This study was
originally made for another purpose
and without reference to the instant
case. Several months were consumed
in its preparation and it gives evi
dence of careful, conservative work
performed without bias."
After an explanation of the process
used by the Oregon commission in
determining- costs the decision again
oommented:
"Summing up the evidence in re
gard to cost of service, while the
study of the Oregon commission. Is
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and on every article in the house, unless we
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OUR GUARANTEE AND YOUR PROTECTION
Buyers will be fully protected against any possibility of further
decline until April 1, '1921, by our Guarantee of Refund in such
case, that goes with every purchase.
As a symbol of the above guarantee, we
have adopted "Keeping the Faith, by the
Golden Rule," as illustrated above and
emblematic of our established policy of
"Looking Out for the Other Fellow."
to be taken Into consideration in
passlnr upon the rate tructur in
Issue, and that this added coet is not
counterbalanced by added density of
traffic. Present difference in ton
nage are In part a product of the rate
structure itself. We are also of the
opinion that the added cost of opera-
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Merely examples of permanent revisions
downward on all furnishings:
50c Men's Garters 33
$1.00 Men's Belts 750
$1.50 Men's Neckwear $1.00
$4.50, $5.00 and $6.00 Men's Shirts $3.85
75c Men's Hose 600
M-00 Men's Gloves ..$3.25
J6.00 Men's Underwear $4.45
$7.50 Men's Mufflers $6.00
$5.00 Men's Pajamas .$3.73
$13.00 Men's Hats, Stetson's, etc. . . .$10.00
(All others revised downward in proportion)
tion over the mountain routes largely
offsets the distance advantage of
Puget sound in the territory north
and including Spokane."
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