TIIE SUNDAY OREGONIAX, PORTLAND, FEBRUARY 20, 1916.
14
RATE DECISION IS
111 BY ASTORIA
Commerce Commission Holds
Port on Parity. With Port
land and Puget Sound.
NATURAL GROUP IS FOUND
Demand for Equality of Treatment
With Itcspect to Traffic Orlg
4 inating in Inland Empire
Territory .Is Demanded.
(Continued From First Page.)
difficult, upon the record before us, to
advance any Bound reason for holding
that the Astoria rates, to and from
the Inland Empire as a whole, should
be higher than the rates in effect at
the same time at those two ports. The
fact that those ports are reached by
four transcontinental lines, while As
toria is reached by but one, is not
sufficient standing- alone to justify the
present rate disadvantage of Astoria.
The operating conditions to Astoria,
especially west of iTc.l-i'ck, are
shown of '-;ora to be materially more
favorable than the operating conditions
to Seattle and Tacoma, the traffic of
the defendants to those points being
carried over the Cascade Mountains.
On the other hand, if Astoria be con
sidered solely in its relation to Port
land, it would seem that Astoria might
fairly take rates from the Inland Em
pire, again considered as a whole, that
are somewhat higher because of the
additional haul of 100 miles; and this
view was expressed in Farmers' Co
operative and Educational Union vs.
Great Northern Railway Company.
Effect of Competition Considered.
"When the entire situation, as it ap
pears from the record, is carefully ana
lyzed the more important question that
emerges is whether the fact that the
Northern carriers were forced by the
comDetition of Portland as a port ana
terminal to give to Seattle and Tacoma
the sanfe rates as to Portland Justines
either the carriers or this Commission
In disregarding the effect upon Astoria
of the competition of Tacoma ana Be
attle with their lower rates, even
though they may be compelled rates.
On that question it will suffice to say
that in recognizing the effect of Port
land's competition on Tacoma and Se
attle the carriers may not lawfully
overlook the effect of the competition
of Seattle and Tacoma upon Astoria as
a nort and harbor.
"A careful examination of the record
makes it clear that these North Pacific
.oast ports have a closer geographic
nil economic relation. one to
t..e other, than is at this time
reflected in the tariffs of the de
fendant carriers and that the latter in
their present rate, adjustment unduly
discriminate, against ' storia and un-
dulv nrefer the Puget nd ports. We
also conclude and find from the recprds
that there is such a relationship De
tween Seattle, Tacoma, Astoria an
Portland as to require them to be con
sidered as forming more or less of I
natural rate group wKh respect to such
of the traffic in question.
Ratio of Rates Decided.
"All the facta adduced of record
being fully considered, we have reached
the conclusion, and so find, that be
tween Astoria and all points in this
territory on or east of the line of the
Northern Pacific, extending rrom ren
dleton, in the state of Oregon, through
Pasco' and Kennewick to Spokane, all
In the state of 'Washington, and on or
east of the line of the Great northern,
extending from Spokane northward, the
rates should not exceed the rates at
the same time maintained between
Seattle. Tacoma and Portland and such
points; between Astoria and points on
the Oregon-Washington east -of Pen
dleton and points on the Oregon Short
Line, the rates should not exceed the
rates at the same time maintained be
tween Seattle and Tacoma and such
points; as to points north of Kenne
wick and west of the competitive ter
ritory just described, the Astoria rates
may exceed the Portland rates in the
same amount that the Portland rates
ire hither than the Seattle ana la
coma rates, provided the arbitraries
over Portland shall in no case exceed
the local rate between Portland and
Astoria. .As to stations on the Oregon
Washington Railroad & Navigation
Comnanv and stations on the Spokane,
Portland & Seattle, west of Pendleton
and east of the Cascade Mountains, the
Astoria rates may exceed the Portland
rates by the same amount that the
Seattle and Tacoma rates are higher
than the Portland rates, the diner
entials over Portland in no case to ex
ceed the local rate between Portland
and Astoria.
Only Interstate Rates Affected.
An order to this effect will accord
ingly be entered. It is scarcely neces
sary to state that our conclusions and
order cover only interstate rates.
The Commission, after showing the
location of Astoria, Portland, Seattle
sinri Tarama. savs:
"With respect to transportation to
and from the so-called Inland Empire,
the geographical location of Astoria 1b
said by the complainant to be fully as
favorable as the location of Tacoma
and Seattle, and on that general ground
Astoria is before us asKing tor reuei
in the matter of its freight rates.
"To and from points east of a line
drawn from Buford. in the state or
North Dakota, to Trinidad, in the state
of Colorado. Astoria is accorded the
same rates as Seattle. Tacoma and
Portland; and to many points in Mon
tana west of that line the rates on
lumber from all four points are the
same. That section of the country ex
tending from the Cascade Mountains
on the west to the Rocky Mountains
on the east and including the eastern
portions of the states of Oregon and
Washington. Western Montana and
practically the entire state of Idaho, is
generally known as the Inland Empire
and is so referred to herein. To and
from points in this extensive territory,
embracing about 300,000 square miles
on or east of the line of the
Northern Pacific extending to Pen
dleton, in the state of Oregon, through
Pasco and Kennewick to Spokane, all
in the state of Washington, and on or
east of the line of the Great Northern
extending from Spokane northward,
substantially all of which points are
In competitive territory, the Portland,
Seattle and Tacoma rates are the same.
To and from points north of Kenne
wick and west of the competitive ter
ritory Just described, the Seattle and
Tacoma rates, with a few exceptions,
are lower than the Portland rates,
while to and from stations on the
Oregon-Washington Railroad & Naviga
tion Company, herein after, referred to
as the Oregon-Washington, east of the
Cascade Mountains, excepting Pendle
ton and competitive points north there
of, and to and from points on the Ore
'gon Short Line, the Seattle and Taco
ma rates are higher than the Portland
rates. The rates charged by the de
fendants for the transportation of
freight between the port of Astoria
and points in the Inland Empire are
generally higher than -those charged
by the carriers operating between
Puget Sound and the Washington Coast,,
PERTINENT EXTRACTS FROM COMMERCE COMMISSION'S
DECISION IN ASTORIA RATE CASE.
Under such circumstances it does not seem unduly venturesome to
assume that this inactivity on Portland's part indicates no lack of
interest in Astoria's complaint, but, rather, as the defendants antici
pate, a purpose on the part of Portland, in case of a reduction in the
Astoria rates tjo the basis of 'the rates to the Puget Soi"d ports, to
call our attention at a later date to its advantage over Astoria of 100
miles in the distance from Inland Empire points, and to predicate upon
that fact a demand for a corresponding reduction in its own rates.
It is obvious, however, that there is something of a natural relation
ship in the rates of Seattle. Tacoma. Astoria and Portland that cannot
be ignored, and a reduction in the Portland rate to and from the Inland
Empire does not necessarily follow as an Inevitable consequence of a
reduction in the Astoria rates to the basis of the Seattle and Tacoma
The operating conditions to Astoria, especially west of Kennewick,
as we have already explained, are shown of record to be materially
more favorable than the operating conditions to Seattle and Tacoma,
the traffic of the defendants to those points being carried over the
Cascade Mountains. On the other hand, if Astoria be considerely solely
in its relation to Portland, it. would seem that Astoria might taXJ
take rates from the Inland Empire, again considered as a whole, that
are somewhat higher because of the additional haul of 100 miles.
It is clear that the carriers in their present rate adjustment unduly
discriminate against Astoria and unduly prefer the Puget Sound ports.
We also conclude and find from the records that there is such a rela
tionship between Seattle, Tacoma, Astoria and Portland as to require
them to be considered as forming more or less of a natural rate group
with respect to such of the traffic in question.
The rates of all the North Pacific ports are based on the Portland
rates. Portland, If not the oldest, ,is one of the oldest of the North
Coast settlements. It was officially a port of entry even before it was
reached by a railroad. It was the first of the North Pacific Coast
ports to have railroad connections with the transcontinental territory,
and until some time after the rails of the Oregon Railroad & Naviga
tion Company had reached Portland there was no other transcontinetal
route to the North Coast. The Portland rates were, therefore, the first
rates established to a North Pacific Coast. Later, when the North
ern Pacific and the Great Northern entered Seattle and, Tacoma, they
adopted the policy of giving those points rates that were no higher
than the prevailing rates to and from Portland. That course was
forced upon the northern lines in order that they might secure a share
of the Inland Empire traffic. This has been their rate policy now for
more than 20 years, and that relationship is the established basis of
rates on the four transcontinental railroads that now serve Seattle
and Tacoma. Under this rate poliey Seattle and Tacoma have become
the great terminals in the state of Washington and Portland the great
terminal in the state of Oregon. Astoria, with its fine harbor and fa
cilities, has grown also, but it has not bocome a great port and ter
minal in comparison with Portland, Seattle and Tacoma.
Large Investments in terminal facilities have been made by the dif
ferent carriers reaching these three points, and substantial expendi
tures of public funds have been made in improving the waterfronts
and harbors so that the traffic might readily be handled. Large sums
have been expended by the National Government at Astoria also. The
municipal government and private interests have likewise invested
substantially in developing its facilities. But, as we have said, the
steamships do not regularly stop at Astoria and the record shows that
they will not stop there so long as lower rail rates are available to
and from other ports on the North Pacific Coast. Apparently, there
fore. Astoria cannot develop into a great port while this rate rela
tionship continues, and the general geographic relationship of the three
ports to the Inland Empire makes it clear that Astoria is being sub
jected to an unlawful rate burden in its competition with the Puget
Sound ports for that traffic unless the lower rates to the latter ports
grow out of and rest upon a substantial difference In the conditions
surrounding their traffic
Milwaukee & St. Paul has since ex
tended its lines from the East through
the Inland Empire to Seattle and Ta
coma; the Oregon - Washington Rail
road & Navigation Company now
reaches the latter points by joint track
age arrangements with the Northern
Pacific. The Federal Government is
constructing- extensive works at th
mouth of the Columbia River with
view to maintaining a channel with 4
feet of water at low tide, and $500,000
has been appropriated for this purpose
by the Ports of Portland and Astoria
the city of Astoria is engaged in. th
construction of a public dock, witn
waterfrontage of 2500 feet, and
making other improvements estimated
to cost 11,000,000, which, when com
pleted, will accommodate the largest
ocean vessels. At this time such
steamers do not ascend the river to
Portland, notwithstanding the existing
lower terminal rates in effect to and
from that point. Nor do they stop at
Astoria, notwithstanding the fact that
it has a fine harbor and excellent dock
facilities.
"Because of the higher rail rates
I prevailing to and from Astoria the
steamships as a rule continue to th
Puget Sound ports, where lower rail
rates are in effect. The record tends,
I however, to show that if Astoria be
given terminal rates, the ocean lines
Iwouhi stop their steamships there. The
harbor at Astoria embraces an area
I of 12 square miles available for an
Ichorage, and has a depth of water that
puts it on an equality with the great
harbors of the country.
Preference to Be Determined.
"The entire capital stock of the Spo
kane. Portland & Seattle is owned In
equal parts by the Great Northern and
the Northern Pacific. It is contended
by tho complainant that as a result of
this joint ownership the parent com
I panies have diverted over their own
rails to the Puget Sound ports traffl
which naturally would move to and
from Astoria over the rails of the.fcpo
kane, Portland & Seattle. However
this may be, it is clear that the para-
mount question presented of record Is
whether the Great Northern and North
ern Pacific, being responsible fo
granting terminal rates to Seattle and
Tacoma, unduly prefer those points and
unjustly discriminate against Astoria
when they refuse to extend terminal
rates also to Astoria.
"On shipments moving between As
toria and the Inland Empire the rates
are made by combination on Portland.
This is true with the exception only of
grain, lumber and lumber products an.
salt, as to which the Astoria rates are
certain arbitraries over the Portlan
rates. Under the case last cited th
grain rates from competitive territory
to Astoria are 4.5 cents per 100 pounds
higher than from the same territory to
Seattle and Tacoma; from Spokane to
on the one hand, and the Inland Empire,
on the other hand. On class traffic
between Astoria and the Inland Empire
the rates are made by combination on
Portalnd.
Comparison of Rates Made.
"A comparison of the rates from As
toria to Spokane with those from
Seattle to Spokane follows:
is 25 cents Tiigher than the first-class rate on grain is 17 cents, this being th
rate between the same points and Se- I rate also to Tacoma for a haul of 37
attle. But the complainant urges that mnes. To Astoria, a distance of 468
these differences in distance are more I miles, the rate Is 21.5 cents. The rate
than overcome by the favorable op- I to Aberdeen. 470 miles from SDOkane i
erating conditions to and from Astoria! 19.5 cents, the same rate being applica
to that point the haul is over a practi- Die also to South Bend, for a haul of
cally water level railroad, while from I 479 miies. In other words, because of
the same points to Seattle the haul is I jts longer haul by 129 miles, Astoria
pays, on grain, 4.5 cents per 100 pounas
Aitoris-Ppokane
Seattle-Spokane
Difference
1
Cta.
.124
. SKI
25
2 3 4 5 A B
1 rt ct. Cm.
OV DV.V v
C D B
CtB.Cts.Ctn.
104
84 68
To 15
ea. 0
12.5
10
50.0
12.5
10
SO 25
10 10
"The excess in the rates from As
toria over those from Seattle repre
sent the local class rates between As
toria and Portland.
"The rates between Astoria and In
land Empire stations are alleged to be
iinrAnitniiblit and to subiect that city
and its merchants, manufacturers and
shippers to undue prejudice and disad
vantage, and to result in undue prefer
ence and advantage to the ports of
Puget Sound and the Washington coast.
It was not seriously contended that
th Astoria rates are unreasonable
otherwise than relatively, and no mate
rial facts with respect to tneir reason
ableness were submitted at the hear
ing. As we understand the record, the
r,Hl issun Is one O ( discrimination. In
support of this allegation It is con
tended: (1) that tne aistance irem
toria to Inland Empire points is not
substantially greater than rrom me
Puget Sound ports; (2) that operating
nnHitinnx are so Kreatly in favor of
Astoria as to more than overcome the
slight disadvantage in mileage; (3)
that the cost of the service to and from
Astoria is less than to and from Seat
tle; (4) that the Great isortnern anu
Northern Pacific, through stock owner
ship In the Spokane, Fortiana s oeai-
tle, the only ran earner 00.. ..B
toria, control the prosperity of the lat
ter line and Keep irom 11
hich it would otherwise naturaiiy re
ceive. .
"Although the rates applicable to
class freight between Astoria and the
T-ian.1 Kmnim are made by combina
tions on Portland, and the commodity
In excess of the Seatle rates; while Ab
erdeen with a haul of 131 miles in ex
cess of the haul to Seattle, pays only
2.5 cents more than Seattle.
"At the same time Astoria, with a haul
from Snokane two miles shorter than
to Aberdeen, pays 21.5 cents, while the
rate to-Aberdeen is 19.5 cents.
Much Lumber Manufactured.
"On lumber and lumber products the
Washington coast, including Aberdeen
and South Bend. From Astoria to ww-
iston, in the State of Idaho, a distance
of 456 miles, the lumber rate is 22.5
cents; from Aberdeen to Lewiston, 480
miles over the Northern Pacific, and
in large part over a route of sharp
curves and steep grades across; the
Cascade Mountains.
f . A Traffl rninnfliviL
"Figures to prove that the cost of rates from Aberdeen and South Bend to
handling traffic over the Astoria route competitive territory are the same as
is less than the cost of handling traffic from Seattle and Tacoma; the Astoria
to Puget Sound were also submitted. rate8 are fFOm 2.5 cents to 7.5 cent3 per
If both carriers were operateo io ca- 1QQ pounda higher. Mills at and in the
STS PSprok0annemlporCU:nd0f&fe vicinity of Astoria manufacture lumber
ern and Northern Pacific. The latter,
however, operates up to about 60 per
cent of its capacity, while the Spokane,
Portland & Seattle operates only to
about 10 per cent of Its capacity. Con.
tween Spokane and Seattle on the lines 501 miles by way of the Oregon-Wash-of
the Great Northern and the Northern ington. the lumber rate by both routes
Pacific, while the country between fcpo- is iv cents.
kane and Portland on the line of the "The same rate applies over the
Spokane, Portland & Seattle, especially Northern Pacific from Seattle and Ta-
west of Kennewick, is at this time coma. In discussing the lumber rates
largely unproductive. The local traffic from Aberdeen and South Bend, the de-
of the latter carrier is but 6 per cent fendants in their brief make the follow-
of its total traffic. That line, as stated I lng statement:
rf record is valued jit tllO.000 per "'If. as claimed by one of the com
mile, as against a valuation of $79,000 plainant's witnesses, mills at and near
per mile for the Northern Pacific. Astoria have lost and are losing to
"There is not of record sufficient Aberdeen mills orders from Inland Em
evidence to determine the relative cost pire territory because of the abnormally
of service on the Spokane. Portland & low rates on lumber enjoyea Dy aobt-
Seattle and .the northern lines, and deen, the situation is one requiring cor-
even if this information were avail- rection, and the Spokane, Portland &
able it would not, of course, be con- Seattle Company, in sore need of in-
trolllng. creased revenues as it is, is most m-
"In justification or tne present rate terested in bringing about tnat cor
structure the defendants contend that rection. The Spokane. Portland & Se-
the lower rates to tne .fuget bouno - trie Railway Company welcome any
rates are based on certain armtrarieB pons resmi, in iu uma.wi.ui uuumuua- fair change wnicn win aeveiup mutts'
over the .foruana rates, tmu cvuvuo... . o -v.. , lrlcs ull 1UJ ut e ..... i
iredv exDlained. the rates that conditions entirely beyond their ine. revenues.
from Portland to the Inland Empire are control forced the Puget Sound rates to .0n the other hand, if Aberdeen and
a 11 cmuiuil; wittt tuo t wi gouth Bena mills are 10 continue iu
and that, as Astoria is 100 miles far- these abnormally low lumber
ther from the Inland Impire than ratea the Spokane, Portland & Seattle
roruanu, it wouia uo uma.11 m f"--" Company certainly would not oppose
tnese two pomis on tne oaiue """ reductions to Astoria mills it tne re-
basis. To extend to Astoria the same jt) -.-...in fort result in suffi
rates as Seattle and Tacoma now enjoy ciently increased business to offset the
wquiu, il is ciaimeu, reautt. m a. uouiauu 1 effect of lower rates.
hv Portland for rate reductions based I
on its shorter haul; reductions in the Lower Kates Not Defensible.
Portland rate would call for similar I "it WOuld seem to be conceded that
reductions in the Seattle and Tacoma maintenance of lower rates on lum
rates, ana tne nnai result wo , from Aberdeen and South Bend
as tne aeienaanis couteuu. l "-""" tnan from Astoria cannot be success-
r5.,..v,..i 1 0.1.13 , ,c.ivi. nBu ' - - "-'-
ent condition.
"It should here be stated that while
at the time the Seattle and Tacoma
rates were first established there was
no rail line to Astoria, the lines which
now publish rates to and from these
points, as well as other Fuget Sound
points, reach Astoria either directly or
through their connections, the Spokane,
Portland & Seattle directly, the North
ern Pacific and Great Northern over
the rails of the Spokane, Portland &
Seattle, which they jointly own, and -the
Oregon-Washington by means of its
water line in Portland.
"At the present time these lines par
ticipate in traffic between Astoria and
ik. 0,1 me nroadiv speaaing. wic
.oeo rmm Tacoma and Seattle, the
..r!-,(r,t Hnes not allege discrlmina'
tion in favor of Portland, but only in
favor of the ports in the state ox w aou
ington.
Same Rate Basts Demanoea.
in tr.i connection it should be men
tioned that while the average distance
from Astoria to Inland Empire points
is onlv 45 miles greater than the dis
tance from Seattle, nevertheless rrom
all points in the Inland Empire Astoria
is 100 miles more distant than Portland,
the basin point, as just explained, for
rates to and from Astoria. As to trans
continental traffic, Astoria is a Pacittc
Coast terminal, as stated, and takes the
same rates as rortiana,
T.nm and it asks, in substance, that
w- .... .at. hASlS aS IS now BuuucuiF.1
" . . . r . , ne
transcontinental iranio "u u,
applicable also on iranic 10 ..u t.t,...
the Inland Empire; in otner wru. .t..
respect to the latter iramt-, mc , uC,....
is that Astoria shall be put on the same
rate basis as Portlana, eeaiue aim
The Commission aescnues ta.n-uu-
..e- trananortation irom vne nianu
Empire to the several coast cities, and
continues: j
Tacoma, Seattle ana r-oruanu rc
..-.h vv the Great. Nortnern, me
Nnrthim Pacific and the Oregon
w.,hlnrlnn. The two cities first
named are served also by the Chicago,
xiiiwaultee A St. Paul, hereinafter re
ferred to as the Milwaukee: Aberdeen
ia server hv the Northern Pacific, the
Milwaukee and the Oregon-wasnmB-
on- F.verett is reached by tne Lrreai
Northern, the Northern Pacific and the
Milwaukee and Bellingham by the
Great Northern and the Northern 'Pa
cific; Astoria is served by the Spokane,
Portland & Seattle alone, while apo-
kane Is on the rails of all these live
lines.
The most westerly of the important
competitive points involved in (his rate
situation are Kennewick and Pendle
ton, about 327 and 329 miles, respec
tively, from Astoria; the most easterly
points of Importance ai Missoula and
Pocatello. the former 73a miles irom
Astoria and 656 miles from Seattle, and
the latter 831 miles from Astoria and
910 miles from Seattle. The distances
between Astoria and points in the In
land Empire are generally greater than
the distances between aeattie ana ine
same points. To and rrom competitive
points over the Short Line the average
difference in distance is but 45 miles
n favor of Seattle, as just stated. 10
Lewiston the distance from Astoria is
454 miles and from Seattle 392 miles, a
difference in distance in favor or tne
latter noint of 62 miles; to walla waua.
the distance from Astoria and Seattle,
resnectively. is 343 and 317 miles, a
difference In favor of Seattle
of 26 miles; to Pendleton the dis
tance is 329 miles from Astoria
and 308 miles from Seattle, a
difference of 21 miles. The first-class
rate between each of these Inland Em
pire points just mentioned and Astoria
fully defended. This would seem to be
eauallv true with respect to the grain
rates to those points, un sasn, aoors
and blinds the rate to Lewiston, Wal
lula. Walla Walla and Spokane from
Seattle. Tacoma and the Washington
coast Dorts Is 30 cents, while to th
same points from Astoria the rate is
37.5 cents. On salt Astoria's arbitrary
over Portland is 7.5 cents. . On traffic
moving under combination, rates the
differences in favor of Seattle and Ta
coma are considerably greater. On bags
and bagging the Astoria rates are U.b
cents per hundred pounds higher than
the Seattle rates; on sugar, canned
roods, iron and steel articles, cement
the Inland Empire and are parties to pe"'c"'"""
tariffs naming rates with respect to -'Vhe general TeiaUon of
ESS Thnovane Port" Sea the commodity rates from and to com
leged. The Spokane, Portland & Seat- ut, territory. As heretofore stated.
rd'aKulh tram between , Astoria and
Bend, as well as to and from Astoria. '"'" "p" V',.,,f
It is also a party to and participates in l ' . fiattied doctrine
in this commission that the mere
maintenance of higher rates to one
joint class and commodity rates, in
connection with the Northern Pacific
between Seattle and points local to its
line east of Pasco, which are lower
than the class and commodity rates be
tween Astoria and the same points.
The first-class rate between Seattle and
Lamont is 99 cents, while between As
toria and the same station the rate is
SI. 24. Out of these joint rates the di-
1 j o ... , j iv. i 4 thereby materially benefits the com
ittnu os oeetiiia is tinscu un tne Bum i ... . , - .. . . , . . .,
haul of 105 miles between Pasco and merce, ' the 0,nehP'"Ahr.eLe, and
Lamont: on Astoria traffic that line said to i nvolve thepref ere nces and
womm reeeive the entire revenue on a discriminations prohibited by law as
haul of 435 miles. between dltterent communl ties servea
1 u y nits eaiuo tmuci. .a
I"ue Broader Than Previous One. situation in this respect as shown upon
To a large extent also the defend- I the record before us here?
ants rely upon Farmers co-operative
and Educational Union vs. G. N. Rail-
Doint than to another is not an unjust
discrimination within the .meaning of
the act. It is only when the general
conditions of transportation and the
general circumstances surrounding the
traffic are substantially Bimllar, ana
such a rate relationship adversely af
fects the commerce of one point and
way Company, 17 I. C. C, 406, Involving
the reasonableness of the rates on
grain and grain products from points
in Washington and Idaho to Astoria,
to which point the rates were then 10
cents higher than to Portland. Seattle
and Tacoma. Our finding in that pro
ceeding was that the, rates to Astoria
were unreasonable in themselves and
for the future should not exceed the
rates to Portland by more than 4
cents per 100 pounds. The question
here presented is much broader than
the one disposed of on that record, and
during the five years that have elapsed
since that case was decided certain
changes, which the complainant regards
as of more or less importance, have
taken place.
"The record shows that the Chicago,
Rates All Based on Portland.
"The rates of all the North Paciflc
ports are based on the Portland rates.
Portland, if not the oldest, is one of
the oldest North Coast settlements. It
was officially, a port of entry even be
fore it was reached by a railroad. It
was the first of the North Pacific
Coast ports to have railroad connec
tions with the transcontinental terri
tory, and until some time after the
raiis of the Oregon Railroad & Naviga
tion Company had reached Portland
there was no other transcontinental
route to the North Coast. The Port
land rates were therefore the tirst rates
established to a North Pacific port.
Later, when the1 Northern Pacific and
the Great Northern entered Seattle and
Tacoma. they adopted the policy of glv-
(.Concluded on fago 15. Column-!!)
08110
ASTORIA
OVER RATE RULING
Decision Is Taken as Victory
for Columbia River Basin
Rather Than for City.
TUESDAY IS TO BE GALA DAY
Arrangements Made for Fitting Cel
ebration, to Which Leaders
Throughout State Have Been
Asked by Telegraph.
ASTORIA. Or.. Feb. 19. (Special.)
This has been a gala day in Astoria,
the occasion being the favorable de
cision of the Interstate Commerce Com
mission in the suit brought nearly two
years ago by this city to procure rail
freight rates to and from the Inland
Empire on a parity with Puget Sound.
The news, which was received early
this morning, spread like wildfire, spe
cial editions of the newspapers were
issued, and within a few minutes tn.
streets were filled with knots Of BX
cited and happy people, while flags
were unfurled from every flagstaff,
storefronts and automobiles were dec
orated with flaes and bunting until tn
entire business section appeared like
one mass of waving colors.
Everyone was rejoicing and con
Erratnla.tinir his neighbor UDOn the 8UC
cessful outcome of a fight that had
been wacred for vears. But with all th
reloiciner and iuhilatlon. a significan
feature was that, while everyone felt
that the commission's ruling means
much to the future of Astoria, many
were heard to assert that it means
more to Oregon and the whole Columbia
River district; that the decision win
brine- about a revival of the ocean
commerce of the Columbia and release
commercial Oregon from its thralldom
by placing the manufacturers and pro
ducers on an equal footing with those
of Washington.
Big Celebration Proposed.
This afternoon a meeting of citizens
was held at the Chamber of Commerce
to arrange for a suitable celebration m
honor of the event which is looked
unon as the ereatest and most im
portant in the history of Astoria and
the Lower Columbia River district.
Robert Shaw, manager of the 11am
mond Lumber ComDany's mill, was
chairman and several speakers urged
that the celebration be one of mag
nitude in which the citizens of the en
tire Columbia River district be asKei
to narticipate. It was decided to hold
a big demonstration and banquet next
Tuesday night. Dr. Alfred Kinney was
appointed chairman of the committee
to have charge or tne aiiair ana spe
cial invitations have been telegraphed
to Mavors. officials of commercial
nlnhs. leadintr citizens and railroad of
ficlals In Portland and every other city
in the state and as far east as bpo
kane to Join In the festivities.
During the meeting today a telegram
was received from the portlana cnam
her of Commerce extending its congrat
ulations upon the successful outcome of
the suit and it was received with hearty
applause.
Thanks Tendered Commission.
The Chamber, to show its apprecia
tion to the Interstate Commerce Com1
mission, sent that body a telegram
readiner as follows:
"All the Northwest, and the Lower
Columbia River in particular, rises to
ontrratulate the members of the inter
stata Commerce Commission on tnei
clear annunciation of the rate question
for the Lower Columbia Kiver, for
which Astoria has stood sponsor. The
effect of this decision means the de
velopment of one of America's greatest
arteries of commerce. The Lower Co
lumbia River and the people of Astoria
will utilize the opportunities given by
the decision in developing the third
ereat harbor on the Paciflc Coast.
Astoria Chamber of Commerce, R. S.
Shaw. Chairman."
Telegrams expressing the thanks or
the citizens of Astoria for the assist
ance rendered In connection with the
ght for equitable rates were sent to
the Ad Club, Realty Board, Rotary
Club and Oregon Manufacturers' Asso
ciation of Portland as well as to Col-
ector of Customs Burke and others.
both in Portland and further east.
RATE DECISION IS BAR
M. H. HOITSER WON'T HUILD GRAIN
. ELEVATOR.
Exporter Says He Is Not Bambooslcd
Into Believing Portland Tariff
Will Be Lower.
A large grain elevator is. among
other things, the immediate price Port
land will pay in the Astoria rate case
ad iustment.
M. H. Houser, one of tne largest in-
ividual arrain exporters in the United
States and a member of the grain
ureau of the Chamber of Commerce,
announced last night that all plans for
the proposed grain elevator for the
Irving Dock property nortn or tne
Broadway bridge on the east shore of
the river are off. The plans have been
eld in abeyance since the Astoria rate
case started. air. iiouser noias me
ck site on a lease, and until the case
came up had proposed to buy it and
uild an elevator of tiOO.uuu to ou.uuu
ushels capacity. It would have rep
resented an investment of several hun
dred thousand dollars.
My plans for this elevator are now
entirely abandoned," said Mr. Houser
last nisht. "The decision leaves me
up in the air. I had planned the ele
vator because of the growing convic
tion that the grain trade is rapidly
becoming such that handling it in the
bulk is the preferred way. However,
must abandon my plans and wait.
Building will depend entirely on de
velopments. If a fight for lower rates
for Portland is successful, which I
doubt very much. I may change my
plans again. At any rate, I will wait
now.
A lot of people have been bam
boozled into believing a reduction for
Astoria to a Puget Sound basis meant
proportionate reduction for Portland.
ut I have not been bamboozled. 11
the railroads are forced to haul to As
toria at the same rate as to Portland.
it stands to reason someone will have
to pay for getting the steamers and
sailing vessels up the river to Fort-land."
TJXIOV PACIFIC IS LEFT OUT
Freight May Be Diverted to Puget
Sound as Result of Ruling.
As a result of the Astoria rate de
cision the Union Paciflc Railroad, rep
resented locally by the O.-W. R. & N.
Company, is left in a position that Is
puzzling to officials of the railroad as
well as to the shippers of the North
west. If Astoria is to be made the western
most terminus on the Columbia River
route, the Union Paclflo system will
be left without rail connection with
the lower river seaport.
What, then, is the Union Pacific
to do?
Its natural and most logical move
would be to seek a favorable arrange
ment with the Spokane, Portland &
Seattle or North Bank road, operating
the line between Portland and Astoria
on the south bank of the river, if the
O.-W. R. & N. Company is able to reach
an agreement with the Spokane, Port
land & Seattle that will permit it prof
ltably to haul its wheat to Portland
and turn it over, at this point, to the
North Bank for delivery to the snips at
Astoria.
While official's of the two roads,
pending the Commission's decision
never gave much consideration to such
an arrangement, it is believed that the
subject will merit some future consid
eration.
On the other hand, it is pointed out,
the O.-W. R. & N. Company now op
erates int Seattle and Tacoma over
the lines which it leases from the
Northern Pacific north of this city. It
could very well retain the business on
its own lines and enjoy the long haul
instead of dividing the revenue with
the North Bank, which division would
be necessary if the traffic were deliv
ered to the latter road in Portland.
Yet another method of procedure is
open to the O.-W. R. & N. Company, and
that Is to divert its traffic to the
Northern Pacific at North Yakima.
These roads have rates In effect that
permit them to interchange traffic
there. It is possible that the O.-W.
R. & N. Company might seek to hold
all its traffic to the Yakima route.
This doubtless would lead to the early
construction of the line between North
Yakima and Tacoma which the Union
Pacific has had in contemplation for
the last few years.
Should the company desire, however,
to confine its traffic to the Columbia
River route, it might, without much
difficulty build a road along the north
bank of the , Columbia River between
Kalama or some other convenient point
on the existing route and Megler.
It is understood that the Commission
would grant the parity of rates to the
north bank of the Columbia, at Its
mouth. Just as well as to the south
bank. "
IDLE MILLS TO RESUME
FOIR PLANTS TO BEGIN RUNNING
IN NEAR FUTURE.
St. Johns Lumber Company, Menefee
Company and Twin Falls Concern to
Help Supply Increased Demand.
Renewed demand for Pacific North
west lumber is responsible for the an
nouncement yesterday of the reopen
ing of idle mills near Portland in tne
near future, which will mean employ
ment for many idle men.
The St. Johns Lumber Company will
reopen its mill February 28. The plant,
which is located on the St. Johns water
front, has been closed for the past 18
months. The mill employs about 200
men and has a daily output of about
200.000 feet. N. E. Ayer, president of
the company, said logs will be secured
from- the Inman-Poulsen Lumber Com
pany, that company's mill having been
put out of commission by the recent
fire.
The L. B. Menefee Company has
leased the Burlington mill below this
city and will start operations there
March 15 with a dally output of 75,000
feet of lumber. More than 100 men
will be employed, there. The same
company has also closed a lease for the
Beaver mill at St. Johns and will take
charge March 1. The daily capacity Is
50,000 feet and 40 workmen will be
employed. The entire mill properties
of the company are expected to be in
operation before the end of March.
The Twin rails Logging Company
announced yesterday that operations
will be resumed .at two of its plants
In the vicinity of Yaoolt. Wash., at
once. Work will be given about 250
men and the first shipment of men to
the scene of operations will be made
tomorrow.
MILL WILL ENLARGE
Capacity of Astoria Plant Is
to Be Doubled.
$100,000 WILL BE COST
Officers of Flouring 'oiiiiaii
nouneo l'luns for Dully Output
of 1000 Ilarrolft oil Hearing ,
News of Decision.
Bencficlul effects of tho Astoria rat
case decision on industries at the mouth,
of the river were noted hero Immediate
ly on receipt of the news yesterday thut
decision favoruble to Antorla ha. I
been rendered. Tho Astoria Klour
Mills Company decided yesterday to
double Its capacity. At present thU
plant, located at Astoria, lias a daily
capacity of 500 barrels.
On receipt of news of Uio decision,
favorable to Astoria's contention, 1 :.
W. Mmith. president of 'the company: I'.
W. Swanton, muniiKcr, und K. 1 Har
per, California representative, went liilj
conference yesterday and decided to en
large the output. They declared Unit
the rate equulity with I'UKet Soiin.l
means much for tho future of Hour
milling at Astoria.
"Wliilo prospects were brlulit ye
te'rday," said Munauer S Hilton, "tliey
are doubly so today. Tins oilers un
questionably the greatest opportunity
for us of any mill on the Pacific. Coast
We now have every conceivable ad
vantage. This Rives Columbia River
rail rates for wheat and un unlimited
market for manufactured flour.''
'The original idea to build the mill
in Astoria was prompted by the mivati.
tageous location for shipping and a
firm belief that a parity of rates with
Puget Sound would be granted," said
President Smith. "This gave a down
grade haul from the interior for ob
taining raw muteriul and un ocean port
for shipping.
We were so confident of a rate de
cision favoruble to Astoria that wo
constructed an elevator and buildliiKH
to accommodute machinery for grindinc
000 burrels of flour per uuy und it will
be necessary now to install only u sec- ,
ond unit of machinery and to build an
additional warehouse for the finished
product, which, wllh additional work
ing capital, will amount to $100.(1(10.
"We aro proceeding ut once with the
nstallation (o be reudv for operation
by the time the new rates go into ef
fect and the re-openlng of tho Panama
Canal. We arc quirk to tt'asp tho op
portunity for which we have wulted
eagerly for the past two years."
Freshmen Win Clinmpionxlilp.
UNIVERSITY OK OREGON, Kup.cne.
Feb. 19. (Special.) The freshmen won
the lntercluss basketball championship
today when the Juniors forfeited their
game with the "freshies." Kuril cImsh
played three games in tho series. Thn
reshmen did not lose a game. 1 tie
standing ended with the sophomore"
second, juniors third and seniors last.
MOTH
1 COMPROMISE'. OTED
CALIFORNIA REPUBLICANS REJKCT
PROGRESSIVES' OFFER.
Delegation to National Convention Will
Not Be Divided and Will Go
Without Instructions.
SAN FRANCISCO, Feb. 19. Com
promise between the Republicans and
Progressives of California in the nom
ination of California delegates to tho
Republican National Convention to be
held in Chicago June 7 was rejected
by the executive committee of the Re
publican State Central Committee at a
meeting here today. Walter R. Bacon,
of San Francisco, chairman of the ex
ecutive committee, brought the ques
tion of compromise to the crux when
he told the committee that Meyer Llss
ner. Progressive leader, had offered to
et the Republicans nominate 13 of the
6 Republican delegates if a liko num
ber of Progressives would be accept
able.
Chairman Bacon called for the sense
of the committee. Expression of ad
verse opinion was offered so radically
and vehemently that the proposition
never reached a formal vote.
It was decided by the committee that
the California delegation to Chicago
should go uninstructed.
Hard on the refusal to compromise.
the committe voted unanimously to in
dorse a referendum on the recent spe-
lal session legislation on the direct
primary law making it unnecessary to
declare party affiliation 011 registra
tion affidavits.
V
OU CANNOT
RESIST
Hotel Mortonia
HOSPITALITY
EOcry nook and corner is
With it. Th trave!er-th toumt
th cpicura guided by th pleasing
experience of others seelts it.
The oftener you enter it's hcupit
Me doors -the mora you feel at
home.
You Will always he welcomed - it
never Wears out, Your every want
anticipated.
Hotel hJortonia meals are appe
tising delightfully wholesome
nourishing.
They satisfy rOery one-will sariify
you. A trial Will convince.
Rooms With privilege of bath $1
or more the day. Rooms witts
private bath $ I. SO or more the day
The thing that appeals--moderate
prices.
lKhcff
Washington
12(h and
Washington
Portland
IS
2000 ASK TO BUY BOOZE
January Kocortl Jar Outdone in 10
Days of February.
January's booze imports are insig
nificant in the light of Februarys
progress.
For tho entire month of January
only 800 liquor affidavits were needed
by the Wells-Fargo Express, the chief
ommon carrier of booze between Cali
fornia and Portland, but for the first
9 days of February 11000 affidavits
ave been in demand.
"The stock laid up at the end of De-
ember for a long dry spell isn't last
ing well," yesterday commented Dep-
ty County Clerk Gleason, who is in
charge of the liquor division of County
Clerk Coffey's office. He doesn't ex
pect many beer shipments before the
warmer weather sets In, tne present
onslgnments being chiefly of whisky.
Seattle's Famomt
Hotel
Flnecentml lorntlcm. Ev.ry
modern appointment. Cule
one of finest on tlie Cot.
RAT hi
f prr up wtlh uv ol luiV
$1 V" ui W "" P" ": lirrK
HOTEL '
STEUAGT
SAN FRANCISCO
Gaary Street, lust oH Union Square
European Plan $1.50 a da) up
Breakfast 600 Lunch 60c Dinner $ 1 .00
Most Famous Meals In the United Slates
Kew steel and concrete structure. Center
of theater, cafe and retail dutrlcts.
On carlines transferring all over city.
Take Municipal car line direct to door.
Motor Bus meets trains and steamera.
Russians Capture Mush.
PETROGRAD, via London. Feb. 19
Tho text of tonight's official statement
lis
On the Caucacus front, in pursuing
the units of the Turkish army, we
turned and caDtured. northwest of
Erzerum. the remainder of the 34th
Turkish division with IS guns, ma
chine guns and ammunition wagons.
and also, in the vicinity of the Ense
um hisrh road, the remnants of one
regiment. One of our gallant corps,
urlng the assault upon the fortress.
took 240 cannon.
Our troops captured the towns of
Mush, 83 miles south-southeast of
rzerum. and Ahlat by assault. Tho
enemy fled southward.
DAVIDS--JEWELERS
Removal Sale
Diamond, Watehm, Jewelry, Kc.
High-Grade Merrhsndlxr at Con
vincingly Low Prior. '
Thlx Im Our Flrnt Sale In Years.
F.vrrj IIiIiik linn Oar Harking
and 1'rrxe.nnl Guarantee.
Large .Selection. Come l'.nrly in
354 WASHINGTON ST.
Ki'v' Morrison st, bet.
i.u 1 r-.u l.l
FLOWERS Main or A 1805.