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About The Oregon daily journal. (Portland, Or.) 1902-1972 | View Entire Issue (Dec. 2, 1920)
THURSDAY, DECEMBER 2, 1920. r j s THE OREGON DAILY - JOURNAL, PORTLAND, OREGON . BIRTHRIGHT OF AN EMPIRE AT STAKE SIN FAMOUS' CASE The Columbia, basin rate cum ww the- quest for the" birthright of an empire. . ' " " It resulted primarily from a con viction voiced by The Journal that Justice and obedience to natural law demanded .recognition of the Colum bia water' grade by the grant of railroad rates lower between the In land Empire and the ports of the Columbia than between the Inland Empire and -ports of Puget sound. . This newspaper -for years has used every resource of appeal, demand and argument In behalf of the great Imu. It has helped bear the expense of the , fight. It has been an organising Influ ence. . The development of the Oregon coun try and the opportunity of the men ar.d women of today . and tomorrow in the Columbia basin were at stake-. " The Northwest . rate structure, based upon the excessive costs, hatards? and delays of the mountain routes to Fuget Bound, has for many years taken unjust and unjustifiable toll from every bushel "of wheat, every ton of agricultural prod ucts and every pound of merchandise constituting the rail traffic of the Co lumbia basin. SATCRAt WAY IGNORED ' The water grade, its economy, safety 'and speedy transportation, was 'simply Ignored as a factor in rate making by the forces that controlled. The first step toward organized de mand for Justice was the organization of the Inland Empire Shippers' leaguet The league called upon the interstate i Commerce : commission for lower rates from the Interior. Portland swung Into the fight, asking the commerce commission for a lower ing of rates to and from the Inland Em pire. "The Port of Portland, he com mission of public docks, the Portland Traffic- and Transportation association and the Portland Chamber of Commerce 'were the agencies representing". Port ': land. . -'. . - ' I The Oregon public scrvicje commission premised Its entry Into the contest on a remarkable study showing! conclusively that distances and transportation costs favor the water grade between the In land Empire and Portland . ' The then United States railroad ad . ministration and the railroad serving : the Pacific, .Northwest were named as ' defendants in the (complaints filed by the , Inland Kmplre Shippers' league. Port land and the Oregon public service com mission. . i .ISTEUYEHEBS APPEAB The communities that favored or op iiud a rate based upon the ;Columbia water grade then appeared as? interven ers. Vancouver, wash., arrectea oy Identically the same .conditions as Port land. - coincided With Portland's com plaint. ' -Vancouver was represented by the Olarke county commission, the- port and city of Vancouver ana the. van rniivr Commercial club. T Tendleton and Kennewick appeared as interveners sympatheyc to the viewpoint of the Shippers' league. . s, Spokane came in as a neutral inter vener. In other words, if- the commerce commission should issue an order in any measure recognising the water grade. Spokane. On -the eastern rim -oi the Co lumbia basin, desired the benefit for " -her merchants and manufacturers. A viewpoint more friendly to the complain ants was expressed by the publlft.utili- , ties commission of Idaho. ', But Seattle. Tacoma and Everett, as " might have been expected, came out in violent hostility" to- every phase of the petition ; for- recognition of the water grade. It; Would have been absurd to : argue that It costs no more to lift a - train a half mile or more in the air ' than to move it-alon a water-level .route, but Seattle. Tacoma and Everett ' pointed to the desirability of providing competitive- ocean terminal markets for the benefit of the interior and argued, that since transportation, cities, ports and ocean traffic had been built (they appearing as the beneficiaries) on the existing rate structured more harm than good wouldi bewferked by a change. The Washington public service com- mission, ignoring the effect of Just rates upon the development of Eastern Wash ington and the upbuilding of Vancouver as a port and distributing center, .Joined the Us.ts as af. Intervener, on the side of the Puget Sound corner of Washington. The Washington commission endeavored to show that the cost of the mountain '" haul to Puget Sound was actually less than along the water level routes of 'the Columbia. r " ASTORIA FOR PARITY Astoria, though one of the ports of the Columbia, appeared in the anoma- pOR a little supper in your apartment after the Theatre or in the evening, there is nothing to equal an Eh lectric Chafing Dish In it you can prepare real Welch rarebit and countless other tasty dishes. A deposit , will hold any article until Xmas. Buy Electric Goods from . ' People Who Know. (Itetrie Supp! !rVtce . . m Avai '- r"T" "JiT ir ii a i rBra Eiervicr; lwri-n .1 T BJi NEW RATE t 4J JwfJ 'wV5rJy Hjf . i i mrmn V7 1 .AT ft" " . i . ' i ' . i V I 1 1 ' ' lous position as an intervener on the , side of Puget Sound, pr, perhaps, more accurately, against the appeal of Port land and Vancouver. ABtorla for many years paid a rate 90 cents' a ton higher from the Inland Empire than Puget Sound or Portland paid. The Astoria rate case resulted in putting Astoria on a- parity wit Puget Sound and Port land. -. Astoria feared that if Portland should be granted a lower ate. cor responding reductions would subsequent ly be made to Puget Sound ' and ehe would again be left "hanging on the end of the pole." It was this 'fear that prompted .. Astoria's course, her repre sentatives overlooking the fact that with a parity between Puget Sound and As toria and a lower rate fo Portland Vancouver a condition would be at once created tremendously favorable to the commerce plans of all ports of the Co lumbia, including Astoria. Such was the lineup of the contest ants. Such were the elements of ."peti tion .which were Involved. since ' the recognition of the water grade and the granting' of the petition foe rates based upon costs of trans portation and distance would involve a- national precedent, the interstate commerce commission began by recog nizing the importance oi the Columbia hasin rate case. Interstate Commerce Commissioners Hall, Daniels and Kast man, ai-cornpanld by Henry Thurtell, chief examiner of the commission, were assigned to hold hearings in Portland and Seattle. It was the first time so many members of the commission had come so far West to conduct a case. The hearing opened in Portland on July 21, 1919. After a week here the paraphernalia and the actors of the contest removed to Seattle, where an other week was consumed! in submit ting evidence. , TENTATIVE FI5DI5G FILE On January 8 this year, briefs of all parties to the issue having previously been filed. Chief Examiner Thurtell submitted a tentative finding. He rec ommended, in short, tbat between Port land, Vancouver and a zone south of Snake river the rates should not ex ceed 90 per cent of the rates between the same, bone and either Puget Sound or Astoria. ' As the confirmation of the recommen dation of the chief examiner by the in terstate commerce conTmissiOn would, for instance, reduce the rate - on- 10, 000,000 fbushels of wheat produced in this none annually a cent a bushel, or 20 cents a ton, profiting thf grower and adding that much . t6 the ex clusive trade territory ot Portland and Vancouver,, the outcryi? Which im mediately followed on the part of. Se attle, Tacoma and the -northern rail roads can be imagjned. All Involved in the case, of course, took exception to the tentative finding. The Inland ' Empire Shippers' league and Portland-Vancouver felt that the area affected, by a lower rate should be broadened. For Instance, it was potnted 6ut .that If a zone , south of Snake ' river was entitled to a lower rate, then the corresponding zone north of Snake river was equally entitled to reduction, because affected by almost Identical conditions of transportation and distance. -After - exceptions were filed, verbal argument was conducted bef" tT. interstate commerce com mission sitting an a whole at Washing ton. D. C, and with this hearing the issue was brought to the direct con sideration ' of - the commission prelimi nary to Its formal finding and order. ARTIFICIAL BATE STRUCTURE Since about 1887 the parity of rates affecting .Puget Sound and ports of the Columbia has been based on the long. mountainous haul of , the Northern Pa1 eific between the Inland Empire and Puget Sound. The water grade as a factor In rat making was ignored. The rate makers built up a rate structure that would make it appear there was no Columbia water level haul merely mountain routes. Regardless of original injustice Seattle and Tacoma felt that th business built up as a result of the unmerited advantage accorded them had become vested right. it every train hauled on the North ern Pacific has to be lifted 2852 feet through the Stampede tunnel; The Chi cago ec Milwaukee was compelled to lift its trains 2S62 feet high to get through the Snoqualmie tunnel, and then again about 2300 feet high through tlie Boris- ton tunneL The Creat Northern has the greatest climb, of all, lta train passing through the Cascade tunnel at an eleva tion of 3375 feet. : ' i Merely to recite' the maximum? ele vations of the mountain routes, however. falls far short of-depicting the hazards or steep mountain ascents and descents. the resistance of curves, the constant aanger to track and trains, the endless aeiays and the vast expenditure of power. Where two giant . locomotives were required. to move 10 cars on. some of the mountain grades. - a small loco motive would move a train of SO car or more on the water grade. ? It was found that the same energy M as J required to ZONE PRODUCES I ! i k GRtUT NORTH tdt RAILWAV JT ' Starbuck, Wash. . 44 -c V ? V j 5 Waitsburg, Wash '..i 49 "i "I TT i Walla Walla, Wash, i... 49 . , jNi -I I 9 I slvl i . Wallula, Wash. 49 tan J , U S . S . ' $ l""S CHICAI O.MILWAU ;tt A IT PA JL RY I I 1 i . I 5 -"3? . HO ITHERN ACIFIC R". . SPOKANE. I ORTLANDIr SEATTLE J Rt ""g--' : 4 i- : , -"7?s ?J : - 1 L8- J Orj OCG0l-WiSHIN6T0M iAILROAO a NAVIGATION JCO. - -y i, t ' y- , ' 14 .N.- P Above Map of the Oregon-Washington-Idaho country affected by the interstate commerce commission's ruling in the Columbia basin rate) case. Three zones kre shown in the eastern part of this region. In the upper two rajtes remain unchanged, beiqg the same to ;Port land and Seattle. In the third and southernmost zone, that Int-Iud-ing territory south of the Snake river new rates are ordered plac- -;ing the zone In Portland's exclusive territory. Below Chart show ing contrast between elevations climbed by northern routes reaching Puget Sound and water grade routes to Portland. i lift a train up one foot of grade as to ) the Inland Empire which included, move it over 344 feet of straight and but is much larger than, the Colum level JLrack In the same way the energy j hla river basin now under consWer- which would move a train a mile on a one-degree curve would 'move it 7.2 miles on a straight and level track. COST OF HAUL The studies of the Oregon public serv ice commission showed rather start lingly that regardless of distance the cost of service from nearly the whole of the Columbia basin Is. less to Portland than to Puget Sound. Wherever , dis tance and cost of service favored Se attle, the rate was . lower to Seattle. Wherever distance' and cost of 'service favored Portland the rate to Portland and Seattle were the same. Pendleton, 216 miles from Portland and 304 miles from Seattle; paid the same rate to Portland as to Seattle. Walla Walla, 241 miles from Portland and 312 miles' from Seattle, paid the same rate to both cities. ' . The equivalent rise on westbound traf fic from Pendleton to Seattle and Port land was found to be 4362 feet in favor Of Portland; the road coat, 46 cents a ton in. favor of Portland; the sum of tne road ana inairect costs, S3 cents a ton In favor of Portland ; the equivalent mileage 195 in - favor of Portland, the resistance mileage 275 miles in favor of Portland and the equated mileage 397 miles In favor of Portland. From Walla Walla, the equivalent rise on westbound traffic was found to be 3415 feet in favor of Portland; the road cost, 36 cents a ton In. favor of Port land ; the sum .of road and indirect costs, 51 cents in favor of Portland; the actual distance. 71 miles in favor of Portland ; the equivalent mileage, 153 In favor of Portland ; the resistance mileage, 215 in favor of Portland, artdJ the equated mileage, 348 in favor of Portland. ' These studies were carried out in de tail in respect to other communities. On every possible basis of compari son, by every test and on the premise of every argument of justice, logic and common sense the showing was conclu sive that a rate based on expensive mountain hauls was wrong, arbitrary and, by the, laws .of economy, imperman ent. It was equally shown that the basing of rates on the cost and distance involved In the water level haul would inevitably give the ports of the Colum bia and the Inland Empire-the whole of the Columbia basin their big chance for progress and development. DECIDES 1G RATE CASE (Continued From Pz One) f ul in their construction provided they are well balanced." "Nor is there anything in our de cision in the second1 Astoria case which precludes consideration of any changes in the rate structure in issue. We were then dealing with-the rates between- Astoria and COMMERG tan 10,000,000 BUSHELS' WHEAT atlon. The conclusion that In gen eral rates should be maintained on a parity to' and from the Inland Empe as between Seattle, Tacoma, Portland, and-Astoria involved no finding that the area of the terri tory in which this parity U. main tained should remain constant and never thereafter be reduced or en larged if. modifications were shown to be reasonable. IS NOT BLANKET FAIR? ! t "The question, then, is whether the rate blanket under consideration is pTPerly proportioned arid Its benefits and advantages fairly dis tributed between the ports in ques tion, or whether this ,1s not the case and the blanket takes from Pbrt- land substantially more than it giVes. In the latter event it should be -confined "within more appropri ate limits. i it "Considering first 'tho larger por tion of the Columbia river basin which lies north of the Snake fiver, it has not, we . think, been shown that; the existing parity of rates is unduly preferential of the j. Jpuget Sound ports and Astoria. North of the line of the Milwaukee complain ants, have themselves abandoned at tack on these rates dnd while Port land on the whole has certain ad vantages in distance and cost of service in the territory between the Milwaukee and the Snake fiver, these 'advantages are not all told so 'substantial that to j disregard them in the adjustment of fates can be said to overstep' the! limits of reasonableness. We have in anlnd the history of the rate equalization. its Jong standing, the maintenance M equal. ocean rates to and :from the various ports, the distribution of population and the influence ;in this territory both positive and poten tial of the short line of the Mil waukee. : j, 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 Justified. Distances uniformly favor Portland In this territory. ; "The following table shows Portland's advantage in distance compared I with Seattle via short line routes: : -f ' . ' Miles Athena, Or j 63 Tayton. Wash "... ......4 J.. 53 Pendleton, or. : 88 Pomeroy, Wash. 44 Starbuck, Wash. 4 Waitsburg, Wash Y.i 49 Walla Walla, Wash, i... 49 Wallula, Wash. ....i .. 49 "Added to tne advantage In distance is the advantage which Portland pos sesses from its water-level routes. Our conclusion is that the portion of the Co lumbia river tfasln south of the Snake river is now fairly a part of the terri tory in' which a parity should be main tained and that to and from points in this district it is reasonable that Port land should have .rates lower than Puget Sound ports and Astoria and also lower than the porta on Grays Harbor and Willapa bay. This conclusion ap plies as well to Vancouver as it does to Portland." ' TEX PEIt CENT A'PPROVED "What the differential should be .is largely a matter of judgment. Relative costs of service are important, but there are other matters which should fairly be taken into account, j Some, of "the con siderations which warrant a parity of rates in the territory north of the Snake river have at least an Influence in the territory to the south and the transition between the two districts ought not to be too" abrupt. ,In his proposed report the ; examiner recommended a differen tial of 10 per. cent and we think that this figure may? well be adopted. "It remains to determine whether this readjustment of rates should be ef fected "by a reduction of the Portland rates, or by an increase in the other rates.' '"-''. . "As aforesaid, the existing class rate structure was founded upon our order In Portland Chamber of Commerce vs. O. R. Sc. N. C. supra and updh. con temporaneous of the Oregon and Washington,- commission. In numerous -instances the rates established as a result of these orders fell below the maximum therein prescribed. Little evidence was offered 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. v . GRAIN RATES COMPARED "A more serious attack' will b made against the reasonableness of the rates on the grain and grain product from points tn tne lniana uimpireN over me OregonWashlngton. Oregon Short Line and the Camas Prairie raiiroaas 10 Portland, Vancouver and Astoria. The evidence In support of this complaint was founded largely upon the theory that the grain rates via these water level routes to the Columbia river ports had been equalised with rates found reason able by the Washington commission for longer distances to Puget Sound over the mountain haul routes. Evidence was also offered to show that the decline in the prosperity of the Oregon-Washington railroad In recent years has been aue to unprofitable and unnecessary ven tures in branch and competitive line con struction. . In support of the grain rates 1 defendants Introduced voluminous tabu lations showing that these rates com pare favorably with corresponding rates in other parts of the country. RATES KtT UNSEASONABLE "It. may also, be said that the cost study of the Oregon commission does not tend to sustain the charge of unreason ableness. We deemLlt unnecessary to set forth the evidence in detail. It was fully considered by the examiner in his repefrt and bis conclusion that the rates were not shown unreasonable was - not strongly contested upon argument." The opinion says the. commission be lieves the recent general rate Increases are a more Important factor and con tinues . "If the ' rates are made . lower ,to Portland from the territory south !of Snake river than the - rates from the same territory to . Puget Sound, the change will have a tendency to increase the traffic and revenues ot the Colum bia river lines and to decrease the traf fic and revenues of the roads operat ing over the mountains to Puget Hound. In view of this fact and of the recent rate increases, it is reasonable that the difference, of 10 per cent , between the rate in question ' should be established by an, increase of approximately 5 per cent in the rates to and. from Seattle, Tacoma and Astoria. ' and where neces sary in the rate to and from other ports pn Puget Sound, GrAys Tarbor and Willapa Bay. ' ' FIKDLSGS SUttMABIZED, MVTe find, therefore, thai the rates oa. grala and grain products In carload from polats ia Idaho, K asters oregoa aad Easter VYashlagtoa oa the Uaes of the Oregoa, tVashlagtoB, Oregoa Short 14ae aad Camas Prairie railroad to PortlaedV Astoria aad Intermediate poiaU oa tke lower Willamette aad. Co Iambi rivers la Oregoa aad to Taaeoo ver aad the reus oa classes aad coat modifies betweea Portland and Vaaeoa ver ea the oae aaad aad polaU'la the Columbia river basla, as defined - aereia on the other are aot aareasoaable that the rates oa elasses and commodities be tweea points la said Columbia- river basla north of the Snake rlter oa the one hasd sad Pertlaad and Yaaeoaver o tae otler lav sot seta fckowa to be Jattly dlicrlmiiatory or andaly pre judicial as eompared with tke rates eoa tenporaieoatly la effect, betweea the laid ColimMa rlrtr basla points oa tat a kaad aid Seattle, Tacoma aid As toria, Or- ad otker Boris oa Paget Sosad. Grays Harbor or WiUapa Bay oa the others hat tkat the rates fer later tat appik-atlOB a classes u4 com-, modltie between point I said Colum bia river batla sesth of tse Snake river a tke oae kaad and Portland and Van eoaver oa the other are andnly pre Jadletal to Portland aad Yaacoaver la sofar at they exceed M per rent e tBe rates eontemporaaeoacly applied on like) traffic between the Columbia river basin points on the oae hand and A l tor la, Ce attle or Tacoma or points on Grays Har bor and WlUnpa Bay oa tke other. "Except as stated below, no order will be entered for the present, xbnt defend ants will be expected to file within ,M days 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, onr recommendation is that this revision be accomplished by reducing the rates to and froip Portland and Yanconver and by raising the rates to Ml from other ports by approximately equal amounts. "An order dlsmisning the complaint In ITo. IsliS (he grain rate case) will be entered." CITY REJOICES AT (Conthratd from Pass One) - return but that those who ihoued pay wjli do so." "We will be given great Impetus In our campaign for Industries in addition to the' Increased wheat movement we may expect In this direction.' said John II. Lothrop, manager of the Portland Traffic ic Transportation association, an important factor in the rate case. RAILROAD9 ACCEPT IT The O-W. R. N.. railroad, and verv probably the northern lines, will obey the order of the Interstate Commerce com mission without protest or appeal. It was said this morning from an authorita tive railroad source. The railroads, in fact, are unable to see where they have been left any room for appeal to the United States supreme court Their problem now "becomes the purely tech nlcal one of removing the existing rate discriminations in exact conformity to tne win or the commerce commission. Few Sign Anti-Rum Petition Yakima. Wash., Dec. 2. U. P.) Pe titions circulated in Yakima to deny al coholic stimulants to patients In hospi tals could only muster 117 signers. The iv. u was Daca 01 ine plan. mi ' - o ECSTEXmCSM RATE DEC S ON NEWS m 1 Coming j CONSTANCE TALMADGB . ' . - - Worth of Latest Up-to-Date Pathe Records (Of Your Own Selection) With Each ( For a limited time) Small Table Models Excepted Prices Style 7 Style 10 Style 12 BnaaBnansaaaaaonaammunfenWaa aooo.ooo.ooo 1N DELINQUENT TAKES DUE U. S. Washington, Dec, 2. (I. N. .8.): Republican leaders, striving to work out an economic program, were in formed by government actuaries to day that federal revenues next year may be increased by pearly 1,000,- 000,000 in delinquent taxes. Thialaddltlonal revenue will be possi ble, they were informed, as a result of w audita' by experts showing that thousands of individuals and corporate concerns understated their' tax obliga tions to the government on returns filed in the two or three preceding years. Rev enues from this source, it was said, may mean a lightening of the tax load In some other directions. L Corporations are the chief offenders in under-estimating their taxes, under the income and excess profits provisions of the war revenue law. Auditors have found thai some corporations scaled down their payments as much as $1,000,- 000 under the amount actually due the government. ; ; Many instanoes were discovered or men of wealth giving themselves the "benefit of the doubt" In sums ranging from $100,000 to $500,000. These amounts must be made good to the government according to the plans of officials. 3fTi1 delinquent taxes of this character, will be assessed by. the government against such individuals and corporations, foe payment in 1821. . Robbed, Bound arid Pitched Into Vacant Lot by 3 Bandits W. N. Hugumln. BJ0I Sixty-sixth street southeast, reported to the police late Wednesday night that he had been held up, robbed, bound hand and foot and thrown into a vacant lot by. three highwaymen., lie said they took $17.50 In money and $3 worth o groceries, stopping him at Sixty-sixth street and Forty-eighth avenue. He managed to wriggle from his bonds after three hours of struggling in the cold and darkness, he said. Per sons returning from a theatre discov ered him In the vacant lot and helped him remove his bonds. . Now Playing BILLIE BURKE "The Frisky Mrs. Johnson" with - a r . Al at. John in ."Trouble" Orchestration Phonograph $125.00 $150.00 $175.00 MC,f I e Water Supply of Oswego Eestored - i . ' Oswego's water service, which was in-' terruptsd Monday afternoon, when fire destroyed the -pumping station, was re stored, Wednesday afternoon. The Os wego Lake Light tt Power company. owner of the water system, installed emergency pump and motor which will ' be used until a new station is erected and new pumping equipment secured, The- Eternal Search for Happiness 'Philosophers ay that the search for happiness underlies all bumaa' How many women are hippy when" their feet hurt? . Shoes are such an every-day affair that women (and some men) put up wMh uncomfortable feet as if It were a punishment handed down from Eden, not to be avoided. If you are one whose feet have suffered, much or little, let as show you a good-looking shoe that wearers ' call Vthe most comfortable ihoe I've ever had on." It is the Cantilever Shoe, grown in popularity and demand year by year, because of its eood looks, its flexible shank supporting, the foot .arch in- a mtural manner withow any appli ances its correct shire covering. tWc foof snugly without pressure anywhere except that gentle, .'.restful support under the arch. In Cantilever Shoes, you stand with less fatigue and gjeatey pa tience. You walk with pleasure and a zest. These are the shoes that will give you comfort, healthand Alpplness. Come and see. r Sold in Portland only at , 356 ALDER ST. -- There U One Safe Place to Buy Your PIANO PHONOGRAPH Coarealeat Psyneats arraageA 4 rW.ssfts, Wc MsHI Mf r $125.00 Sold Prices . ' - T!,. V - ' OIL r Style 17- . ... . . . . ... .$225.00 Art Models . ...... .$250.00