The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-11-01
REBATES PAID BY
ICED CAR LINES
Manager Of Santa Fe Refrigerator
Dispatch Says He Has
to Pay.

Washington, Nov. An inquiry into
the operation Of private refrigerator
cars on transcontinental railways was
begun today by the interstate commerce
commission. The cases in which the
hearings are being held are directed
by the commission against the Santa
Fe and the Southern Pacific railways
and the Armour Car lines, Santa. Fe
Refrigerator Dispatch and the American
Refrigerator Transit company. These
cases were segregated from the numer-
Gus cases against southwestern railways
on which hearings were held recently.
The principal witness today was j. =.
Leads, general manager Of the Santa re
Refrigerator Dispatch, who gave start
ling testimony concerning rebates, and
declared his Inability to break up the
practice He said his company. oper-
ates 1850 cars and obtains additional
equipment by. interchanging with the
American Refrigerator Transit com
way.
" The Santa Fe Way.
The cars operated by the. Santa Fe
are owned by the Santa Fe railway,
and are leased by the Dispatch line,
/. which pays the railway 5 per cent an
nually on the value Of the equipment,
based on the cost of the cars. Mr..
Leads EXPLAINED the details of the con-
tract. Tie Dispatch line receives all
Of the, earnings and makes all of the
any equipment of any character, but,
Mr.. Lea DIS said, the Dispatch line makes
requisition upon the railway for the
cars it needs and "'gets them if it
can
''In other words,'' said ATTORNEY
p, 4l,@
supply of cars is at the option of the
Santa Fe railway
Pays No Mileage. :.
cup to the present time said Mr..
Leads.
1t was brought out thru series of
questions that the Santa Fe railway
pays no mileage for the refrigerator
cars operating on that line. this con-
eessior forming part of the agreement
under which the Dispatch line handles
all of the refrigerator cars owned by
the railway: When the Dispatch line
cars are diverted to other railways,
mileage is charged.
The Dispatch line buys it's ice for re-
frigeration from the Santa Fe railway
at a cost of 81 ton.
Commissioner Prouty questioned the
witness regarding the cost of refrigera-
tion in the California fruit service, and
Mr.. Leads said a charge for refrigera-
ton is iustifable for the reason that
the receipts from mileage are INSULT
Gent to pay earnings on the expensive
ly constructed cars used.
Double Charge for Icing.
Gas matter of fact,', said Commits.
sGRsr cdf It is s1oEn r that the
alton, then the shipper should rot have
to pay anything additional for refriger-
alton. What reason is there for this
apparent double charge?'
Mr.. Leads repeated that it ca1tnot be
shown that the mileage charge will pay
the cost Of operation. r s'E5.- y =,
Mr.. Leads figured the cost Of main
tenance OF cars at 81 cents a day, and
che earnings for sixty-six miles at q
OF a cent a mile, making the annual
earnings at $142, maintenance $75. and
net earnings $67 year. The cars cost
about $1,100 each.
Owned He Paid Rebates.
In response to questions by Commits
sioners Clements and Prouty, Mr.. Leads
admitted that he paid rebates to ship
pers of deciduous fruits, but insisted
that there had been no determinations
IN favor OF any one or more shippers.
He justified the payment of rebates by
aging that he. found this to be prac-
ice INDUCED in by his competitors,
oe rebates, he said amounted to $40
w to Chicago, $15 to Buffalo and
rig and 500 to the Atlantic coast.
:otest was made by attorneys for
rmour Car Lines and the South
aclfic Railway against "the loose
er OF examining the witness''
missioner Clements had called at
ION. to, testimony given by Mr..
dis in hearings at Chicago, a year
-.=-u and asked Mr.. Leads to tell the
nmlssion again of these "practices. -
9 attorneys said that if Mr.. Leads
evidence of concrete cases where re-
ates had been given it would be all
light for him to tell of these cases.
Can't Break Up Practice.
Mr.. Leads then told of what his com,
pany had done and said that indiyid.
- nally he was powerless to break up the
practice N '''>
Why. can It you break it ups" asked
Commissioner Prouty.
that might bring the charges Below cost cost
of refrigeration,' said Nj. Leads. WV
Prouty.
:.,'There is only one kind of war in the
InaalWa a business replied the witness
ing: 4u0''A0A
q 1t is true that we publish one tariff
and collect another. 1t is of too lone
standing for me to try to break it up. :
Who Owns the efrigerators?
J. H. Call of Los Angeles, CAL, spe
eial counsel for the commission. asked
Mr.. Leads if it were not a fact thai
the Santa Fe Refrigerator Dispatch is {
part Of the Santa Fe railway, organ
wed "as matter Of convenience
M Mr: Leads suggested that the .organiza
he declined to commit himself as to tn,
detailed relations between the two cor
porations.
Replying to questions by P. F. Dunno
counsel for the Southern Pacific, Mr.
Leads said it would be impracticabl
for a great railway system, having con
nectlons working out beyond it's termin
ais, to handle its own refrigerator bust
ness.
Beauty's charm satin skin secured by usin
Satin skin cream and Satin skin powder
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