The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1901-11-22
OIL RATE CASE
IS HEARD AGAIN
New Witnesses Give
Testimony for the
Complainant.

Additional testimony was taken by the
Board of Railroad Commissioners yester-
day on the important question of the rea-
sonableness of the rates charged by the
Southern Pacific Company, the Santa Fe
and other TRANSPORTATION lines for the
moving of California oil between the
Kern River, McKittrick. Sunset and Coal
inga fields and San Francisco. This was
in pursuance of the decision Of the board
to grant rehearing, with the under
standing that all the testimony formerly
taken shall stand and that only new wit
nesses shall be introduced at this time.
Attorney Short represented the compaln-
ant John lie Blanc, and w. +. Herrln
and Attorney Proctor the Southern Pa
cifc and the Santa Fe. Men prominent In
the California oil industry were present;
also a small squad of railroad statist1clanS
and freight officials, who thanked the rail-
road lawyers and helped to get together
technical puZZlerS with which TO berog
the witnesses in behalf OF the producers.
The afternoon was not long. enough for
the complainant to get in all or his new
testimony. 1t is probable that all the teS-
timony, and evidence for both sides Will be
in to-day, the hearing having been ad-
journed to 1880 this forenoon.
Spellacy Testifies.
Timothy SpelIacy of the Chicago Crude
Oil Company and the Illinois OIL Com
pany, both of which are doing business in
the Kern River district. testified that,
points named in the complaint would
benefit the oil industry in the fields north
of Tehachapi. He was familiar with
the oil business In Ohio and Indiana He
was was satisfied that the cheaper the price of
oil could be made in San Francisco the
more oil would be used. In his opinion oil
barrel. He said that he thought that the
transportation lines should be patriotic
enough to help build up the oil business Of
the State because that would tend to in
g. - I'D 7%-f@ T.
California. No producer of oil could make
a profit at the rates oil has been bringing
recently at the wells. If the roads would
reduce their rates there would be a profit
on oil to the producer at prices upon
which contracts for delivery in San Fran
cisco have been based. He did not wish
the roads to carry oil at loss. If oil
was to bring 81 per barrel in San Fran
cisco it would take long time to build
up manufacturing with oil fuel.
Mr.. Herrin questioned Mr.. Spellacy
about the effect that cheap fuel has upon
manufacturing industries and the witness
told of a time when there was a surplus
of 600 barrels of oil in storage tanks
in Ohio Cudahy and the Standard Oil
Company piped the oil and there was a
great increase in the consumption in fac
tories The surplus was used up and the
price then rose SO high that the use of oil
for fuel was discontinued, because coal is
so cheap in that section. Manufactures
were increased by the cheap fuel. He be-
lieved there were Eastern manufacturing
companies that would locate In California
if there was cheap oil for fuel, and the
railroad companies could assist. For in
stance, he said, he thought that straw
board paper-making would do we'll in
California with cheap fuel and an abund-
ance of straw such as the State produces.
He had recently been inquiring into the
matter of the establishment in the State
of such a paper plant.
Other Testimony Taken.
w. A. Jacobs, who is director of sew
eral oil companies in the Kern River dis
trict, testified that doing away with the
switching charge and giving lower freight
rates would benefit the oil industry. He
had always thought that the switching
charge was an injustice to the producers
and also to the railroad
George l.. Hoxie, County Surveyor of
Fresno County, testified that he formerly
was fireman on the Southern Pacific