Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-01
REBATES ARE GRANTED
Admission Of General Man
ager ]. s. Leads.
DEFENDS HIS COURSE
DECLARES IT NECESSARY TO
MEET COMPETITION.
Inquiry Into the Operation Of Private
Refrigerator Cars Begun by the
Interstate Commerce Commission.

ut Is true that we publish one tariff and
collect another. 1t Is of too long standing
for me to try to break 1t up" declared J. 8.
Leads. general manager Of the. Santa Fe
Refrigerator Dispatch to the members OF
the interstate commerce commission today
regarding the granting of rebates to ship
pers
An inquiry into the operation of private
refrigerator cars on transcontinental rail-
ways was begun this morning by the COM
mission. The cases in which the hearings
are being held are directed by the commisi-
sion against the Atchison. Topeka and San
ia Fe and the Southern Pacific, railways,
and the Armour Car lines. Santa Fe Re-
frigerator Dispatch and the American Re-
frigerator Transit Company. These cases
were segregated from the numerous cases
against southeastern railways on which
hearings were held recently.
The principal witness today was MT
Leads, who gave startling testimony con-
corning rebates and declared his 1naDlhty
to break up the practice. lie SAID ms com
pany operates 1850 cars. and obtains aool-
tional equipment by interchanglng with the
American Refrigerator Transit Company
and the Michigan Central Railway inc
cars operated by the Santa Fe Refrigerator
Dispatch. said Mr.. Leads. are owned py
the Santa Fee railway, and are leased by
the Dispatch line. which pays the railway
S per cent annually on the value OF the
equipment. based on the cost of the cars.
Mr.. Leads explained the details OF the CON
tract The Dispatch line receives all or the
earnings of the cars and makes all or the
current repairs. 1t does not purchase any
equipment of any character but Mi. Leads
said the Dispatch line makes reQuisition
upon the railway for the cars 1t needs ana
gets them IL 1t can.
I'm other words" said Attorney Barry
acting for the commission, the supply OF
cars is at the option OF the santa re rail-
way" ,.
Option on the Cars.
up to the present time" said Mr.. Leads.
1t was brought out through a series of
questions that the Santa Fe railway pays
no mileage for the refrigerator cars operat-
ing on that line, this concession forming
part of the agreement under which the Dis
patch line handles all Of the refrigerator
cars owned by the railway When the Dis
patch line cars are diverted to other rail-
ways mileage Is charged. The Dispatch
line buys its ice for refrigeration from the
Santa Fe railway at cost of 81 a ton.
Commissioner Prouty questioned the wit
ness regarding the cost of refrigeration In
the California fruit service, and Mr.. Leads
said a charge for refrigeration Is justifiable
for the reason that the receipts from mile
age are insufficient to pay earnings on the
extensively constructed cars used
LAS a matter of fact?' continued Com
missioner Prouty. ''if 1t is shown that the
mileage is sufficient to pay for refrigeration
then the shipper should not have to pay
anything additional for refrigeration. What
reason is there for this apparent double
charger"
Mr.. Leads repeated that II cannot be
shown that the mileage charge will pay the
cost of operation.
Mr.. Leads figured the cost of mainten-
ance of cars at 81 cents a day and the
earnings for sixty-six miles at three-fourths
of a cent a mile. making the annual earn
ings at S142. maintenance $50, and net earn
ings SCI a year. The cars cost about 81, 100
aan