Daily Los Angeles herald., 1883-03-16
The Railroad Com missiOn-inves'
tlgating the Complaint Of
Richards IL Harrison.


hearing of the case of Richards n Harrl
son va. the Central Pacific Railroad
Company was held before the Board OF
Railroad Commissioners this morning.
This is the first regular trial or investl.
CATION of a complaint in the form oil
trial that was ever reid before the
Board. Richard Gray, general freight
agent of the Central Pacific, testified
that he was not aware of any special
contracts made in this State, except
those made in writing These contracts
contain rates for which goods may be
shipped from all points in the United
States, in which the party of the first
part agrees that he will ship his goods
overland only by the roads OF the party
Of the second part. Four roads are
mentioned in the contract. namely: The
Union Pacific, Atchison. Topeka &
Santa Fe, the Missouri Pacific and the
Galveston, Harrisburg q San Antonio.
Of course shippers agree not to send
goods around the Horn. There is q
special tariff for shippers. The blank
form contract special rates to New York
was identified by Mr.. Gray as the
blank now used by the Central
Pacific. Gray denied that the special
contract system ever existed i'll this
State, although contracts were signed
by parties in this city with parties in the
East Some of the contracts were made
in other cities than San Francisco. The
Central Pacific Railroad Company has
never made u west bound contract on
overland business within this State.
The railroad counsel, w. II. Barnes,
was asked to take note of S225 on one
hundred pounds of freight from Milwau
kee or Chicago to San Francisco.
How are these rates divided between
the different railroads. Answer-Te
Council Bluffs the rate realized is fifteen
per cent. of the charges from there te
Omaha five per cent; the Union Pacific
realizes fifty -four per cent. and the Cen
trail Pacific forty-six per cent. of the
remainder. This rate is based OIL
the mileage of the Central Pacific
The railroad has a voice in making the
rates prescribed in these contracts; have
never heard of parties applying for con
tracts being asked il they did bushes!
with other roads Gray, in answer tt
question, stated that no one is shu
out Oh east bound freights; the Railroad
Company has the same prices; collected
moneys in advance for shipments west
ward. The witness stated that tht
Company had discovered breaches o
contract; precautions for breach of con
tract are furnished by contracting mer
chants who watch each other. The
witness stated, in reply to question
that the system OF contracting origin
ated in the desire TO get Il larger portion
of the freight traffic over the line of tn,
Central Pacific Railroad Company; tn,
! Railroad Company was competing witt
clipper ships around Cape Horn ant
Tia fact is what induced the Railroad
Company to make these contracts
The rates charged Richards h Harri
son were the same as those charged
Others who shipped without a contract
have never made any threats to Richards
4 Harrison or their cunsignees in Mil
waukee, that if they shipped their good
by way OF Cape Horn their goods woulC
be denied admission into Idaho or Mon
tana: had one or two interviews witt
Mr. Harrison in the past six or sever
months: Harrison proposed il the rail
road company would charge him the
same rates charged other parties who
had contracts with the railroad company
and rs well as permit him to ship hr
goods by way OF the Horn, he woult
withdraw his opposition to the railroat
company, II THIS proposition was no
accepted by the railroad Mr.. Harrison
threatened TO continue his prosecution
Witness stated, in reply to questions by
Chairman Carpenter, that charges Oh
freight were based ON mileage and that
the offices of the Central and CnioI
Pacific ut Ogden are separate and
distinct. After further examination
the Board adjourned until tomorrow
morning.