Los Angeles herald., 1907-02-08

gon Short Line In interchange OF busi-
ness.
Mr.. CLARK admitted that such an
arrangement had been made but he
said It did not prohibit the Salt Lake
from dealing with other roads at the
same rates. The freight rate agree.
ment as produced In San Francisco
was read by Attorney severance, and
Mr.. Clark admitted that It was bind
ing for ninety-nine years, but which,
II had been claimed by others, could
be broken at any time after sixty
days notice.
This is the contract which shippers
declare has endangered the fruit In
dustry of Southern California and con-
stitutes a pool OF the railroads.
II was shown that the Southern Pa
ciffc was not included In the prefer
entail rate agreement, which places the
Salt Lake I'm n peculiar position, and 20
which Mr.. Clarks attention was called,
and he admitted that he appreciated
the situation.
Commissioner Lane asked the Wit
ness if he had consulted his brother
regarding the clause, and he replied In
the affirmative.
Causes Severance TO Smile
Judge Kelly interrupted on behalf of
Mr.. Clark, and declared that the agree
ment. so far as the Salt Lake was con-
cerned, applied only to local traffic and
that it was not a subject for the inter-
state commerce commission, when Mr..
Severance smiled as he turned to a sec
tion of the contract and read: This
freight agreement shall continue
unless 1t be held invalid by
a court of competent authority"
As the signers of the con-
tract We're aware that the law COULD
not be invoked unless Interstate traf-
fic was meant, they certainly did not
have in mind merely local traffic.
Commissioner Lane asked Mr.. Clark
If 1t was not in the power of the
Southern Pacific and the Salt Lake to
give any construction they pleased TO
the contract, and the reply was that
he did not believe 1t was the intention
to apply the rate agreement along the
entire line of the Salt Lake road.
Mr.. Clark said 1t was the intention
of his brother and himself and their
associates to construct an independent
line, and that the contracts and agree
ments came after the tying up of the
salt Lake road in the Meadow Valley
wash
The session was then adjourned until
O'Clock. AS Mr.. Clark left the witness
chair he shook hands with Commits
sioner Lane.
Freight Rates Not Reduced
The testimony at the afternoon ses-
sion, especially, was of interest to
truit shippers, as it showed they are
paying the same rates over the Salt
Lake as they did when shipments were
made by way of Sacramento although
the salt Lake route, in connection with
the Union Pacific ind its connections,
Is 5O0 miles shorter than by the north
ern route.
This fact was brought out imme-
diately after Mr.. Clark took his seat
In the witness chair at the opening of
the afternoon session,
Attorney Severance said that he
found provision in the contract that
the Union Pacific and the Oregon Short
Line mutually agree that all traffic
taken upon the line of the Salt Lake
shall be forwarded exclusively as far
as can legally be done, over the Union
Pacific and the Oregon Short Line.
Mr.. Severance asked Mr.. Clark if
he had agreed to send all traffic orig
mating on his line over the Union Pa
citic, regardless of the fact that the
Denver & Rio Grande was competi-
tor of the Union Pacific east of Salt
Lake, and he replied in the affirmative,
with the exception of freight that had
been routed over the Denver & Rio
Grande.
Could Go by Way Of Sacramento
Mr.. Severance pointed out that there
was nothing in the agreement which
compelled the Southern Pacific to route
over the Salt Lake or prohibited the
Southern Pacific from sending freight
by way of Sacramento, to which Mr..
Clark replied that the Union Pacific
had agreed to treat the Salt Lake as
preferential line, and that if the
agreement did not include Southern
California the agreement would not be
q preferential one in all respects.
Judge Kelly interposed with the
statement that unconsigned business
could go either route, but that con-
signed business would go over the Salt
Lake.
"a very nice explanation" said At
torney Severance, with a laugh.
Mr.. Clark said the understanding
was that the Salt Lake was to be the
preferential line for Southern Califor-
MIA.
do you mean that you are to have
the Southern California BUSINESS in
preference to the Sacramento route?"
asked Commissioner Lane, to which
Mr.. Clark replied in the affirmative.
Might Go by Boat
Is lHeTe any reason why the sac
ramento business should be protected
against the Salt Lake," asked Mr.
Severance.
Freight might be sent to San Pedro
and thence by boat" replied Mr.. Clark
with a smile, which caused a general
laugh.
Attorney Severance called attention
to another clause which provides that
the Oregon Short Line and the Union
Pacific shall have the right to name all
through rates in and out of Utah for
the Salt Lake.
Commissioner Lane asked Mr. Clark
If it was fact that the Salt Lake
received it's rate schedule from the
Union Pacific, to which the witness
replied that he was under the impress
sion that the rates were made by his
own people. He did not know that
any question ever had arisen regarding
rates. There had been no disagree
ment of any description.
Mr.. Clark said the first vice president
of the Salt Lake was General Manager
Bancroft of the Oregon Short line and