Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1905-11-09
REBATES ARE GIVEN
General Manager Santa Fe Retrig'
orator Dispatch Admits Fact.
PRACTICE OF OTHER PRIVATE LINES,
The Company Is owned by Same In
terrsts and Operated BY the
same Oincinla NJ San"
In FEE Railroad.

washington, Nov. Admitting that
rebates are given to shippers In the
California fruit service by practically
all private car lines, J. s. Leads, gen
eral manager Of the Santa Fe Refrig-
orator Dispatch enlivened the inquiry
being conducted here by the Interstate
commerce commission to show the
relations between railroads and COM
panies engaged in the business OF re-
frigerating freight in transit Mr.
Leads said these rebates were necessary
to his company because all his compe-
titors were granting them. He assert
cd that he could not break up the
practice without participating a rate
war ~
The testimony Wednesday was con-
fined to the business Of the Atchlson,
Topeka 4 Santa Fe railway, and the
santa Fe Refrigerator Dispatch, which
corporation, according to officials OF
both who were on the stand, are own
ed BY the same interests.
Mr. Leads occupied the witness stand
the greater part of the day and was
followed by Edward Chambers, freignt
tratlc manager OF. the Santa Fe rail-
way. who prefaced mass OF unimport-
ant testimony with the statement that
the stock of the corporations mention
ed is owned by the same interests and
that the corporations have the same
president.
The principal witness Wednesday
was ]. s. Leads, general manager OF the
Santa Fe Refrigerator Dispatch who
gave startling testimony concerning
rebates and declared his inability 70
break up the practice. He said his
company operates 1850 cars and OBJ
tains additional equipment by inter
changing with the American Refrig'
orator Transit company and the Michi'
gan Central railway. The cars operated
by the Santa Fe Refrigerator Dispatch
said Mr.. Leads, are owned by the san
ia Fe railway and are leased by tn
dispatch line.
Commissioner Prouty questioned tn
witness regarding the cost Of refriger
alton in the California fruit service an
Mfr. Leads said charge for refTigera
| ton Is justifable for the reason tina
the receipts from mileage is insutf'
cleut to pay earnings on the expensive
" constructed cars. 4
In response toQuesticns by Commits
sioners Clements and Prouty Mr.. Lead
admitted tina! he has paid rebates .
shippers OF decideous fruits but IN
sisted that Tiers had been no discrimi
nation in favor Of any one or NOR
shippers. He justified the payment Q
rebates, by saying that he found TIL
to be a practice INDUCED in by his com
netitors The rebates he sale
amounted to $40 a car to Chicago, 81
to Buffalo and Pittsburg and $40 to tn
Atlantic coast
Mr. Leads then told Of what his 7om
pany. had dcne and said that individu
ally he was powerless to break up tn
| practice.
"Why can't you break 1t up" Aske
Commissioner Prouty
because it would precipitate wa
that might bring the charges belo'
cost Of refrigeration" said Mr.. Leads
]. H. Call, of Les Angeles, Cal
special counsel for the commission
asked Mr.. Leads II It were not a fac
that the Santa Fe Refrigerator Dtspatc
is a part OF the Santa Fe railway, Of
ganIzed as matter Of convenience.
Mr.. Leads suggested that the organ
zation was matter Of necessity
but he declined to commit himseH :
to the detailed relations between th
two corporations