Los Angeles herald., 1907-01-31
Coast Lines Merger
Is Exposed by
Official
"Unwritten Agreement"
to Share Citrus Trade
Admitted
Hartman Pact Probe Brings Out
Startling Facts-Steamer Rates
Advanced After Conference
with Maenates
BY Associated Press.

By Associated Press.
SAN FRANCISCO, Jan. 3O.-Testi-
mony of a sensational character was
brought out by the government at to-
days hearing of the Hartman merger
case before Interstate Commerce Com
missioner Lane.
w. A. Bissell, assistant traffic man
ager of the Santa Fe system and a
director in the Western Pacific rail-
road, conceded under oath that the
Santa Fe and the Southern Pacific
arrangements are observing an unwrit-
ten agreement, whereby they share
about equally the citrus fruit traffic of
Southern California, each scrupulously
avoiding any intrusion into the others
territory after the fruit has been
packed.
Answering questions by Attorney
Severance, Mr.. Bissell said
Il don't think we make an effort to
get fruit traffic in Southern California
that originates on Southern Pacific
lines-we have been giving all our time
to getting our own cars back from the
east. The citrus fruit business in
Southern California is so situated that
it practically takes care of itself. The
routing of most of the fruit grown be-
tween Los Angeles and San Bernardino
is determined by the location of the
various packing houses"
Testifying as to the alleged Hartman
mergerPacific Mail Steamship COM
pany pact, Bissell said that by a three
cornered agreement the Santa Fe was
to fill certain space on each Pacific
Mail steamship leaving the port OF San
Francisco and in return was to be given
20 per cent of each cargo brought into
San Francisco from the orient by these
vessels for shipment east, the Southern
Pacific to have the remaining rs per
cent.
He presumed this arrangement was
made for the Santa Fe by Paul Nor
ton. He said the agreement had been
kept and that the Santa Fe has made
no effort to get more than the agreed
20 per cent.
Attorney Severance called r. P.
Schwerin of the Pacific Mail Steamship
company to the stand. Schwerin testi-
fed that besides the fleet of steamers
owned by the company it operates the
Mongolia and Manchuria, which are
owned by Hartman.
Severance called attention to the min
utes which showed that the Oregon
Short Line owned those steamers, but
SchWern said that so far as he knew
Hartman owned them personally and
that Hartman charged the Pacific Mail
100000 a month for the use of the
steamers, the money being sent to New
York.
Schwerin testified that the San Fran
cisco & Portland Steamship company,
of which he is president, had recently
advanced steamship rates and that at
the same time the Southern Pacific
raised it's rate to Portland.
Commissioner Lane brought out the
fact that the rise of the steamer rates
followed a conversation on the subject
with Traffic Manager Luice of the
Southern Pacific. But Schwerin eX-
planned that increased wages to steve
dOres, etc. made this advance neces-
sary. These increases did not affect
the railroad, he admitted. Severance
characterized the raise of both rates
at the same time as "a coincidence"
smiling as he spoke.
The discontlnuance of the Santa Fe's
Continued on Page TwOo