Spokane Wins Freight-Rate Fight Against the Railroads
The Interstate Commerce Commission orders cuts from Chicago and St. Paul, a victory that promised cheaper goods and a broader home market for Newport and the Inland Empire.
Spokane and the Inland Empire country have just won a notable victory over the railroads. The Interstate Commerce Commission has decided that the unjust discrimination that has existed for years in this section of the country in the matter of freight rates must cease.
A flat reduction in the freight rates from Chicago and St. Paul has been ordered on all class freights. On 27 different commodities the rates have been reduced even more than this. The new rates are to go into effect on May 1st and should result in the cheapening of many of the articles used by the people of the Inland Empire. The decision will also redound to the benefit of Spokane jobbers as it will allow them to compete with the Seattle and Portland jobbers at all points east of the Cascade mountains in both Washington and Oregon.
The fight has been a long and hotly contested battle, but has finally been won by those in the right. The railroads sought to show that the rates in effect at the present time were as low as they could make and still make a reasonable profit on the amount of money invested in their plants.
The commission inquired into the cost of reproducing the properties of the Great Northern and Northern Pacific systems of railroads, their financial history, their present capitalization and their earnings in recent years before arriving at a decision. The announcement of the decision has been delayed for a long time as the railroads made a stubborn fight to defeat the reduction.
Taking it all in all, the victory of the people should result in a great growth of the cities of this section of the country. Manufacturing should be stimulated to a large extent and the home market thus broadened. The broadening of the home market means the development of the country to a remarkable degree and this section should receive its share of the benefits bound to accrue.
“The victory of the people should result in a great growth of the cities of this section of the country.”
Freight rates once decided whether a small town like Newport could stock its shelves as cheaply as Seattle or Portland. The same fight now plays out over shipping surcharges, rail mergers and rural supply chains—who pays for distance, and who gets to compete.
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