The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-31
SENSATION FOUND
IN INVESTIGATION
Roads in Hartman Merger
Divide Freight Traffic
UNWRITTEN AGREEMENT
Assistant Traffic Manager of Santa Fe
Testifies Under Oath That Roads
Do Not lntrude Into Each
Others Territory.

San Francisco January 30.-Testimony
of a sensational character was brought
out by the government at today's hear
ing of the Hartman merger case before
Interstate Commerce Commissioner Lane.
w. A. Bissell. assistant traffic manager
of the Santa Fe, and a director in the
Western Pacific railroad. conceded under
oath that the Santa F'e and Southern
Pacific arrangements are observing an
unwritten agreement whereby they re-
ceive about equally the citrus traffic CT
Southern California" each scrupulousiy
avoiding any instruson into the other
territory after the fruit has been
packed.
merger was resumed this morning before
Interstate Commerce Commissioner Lane
Attorney Severance called r. p. Schwer
In, vice president and general manager of
the Pacific Mail company, to the stand.
Schwerin testified that besides the fleet
of steamers owned by the company, it
operates the Mongolia and Manchuria,
which are owned by Hartman. Sever.
ance called attention to the minutes
which showed that the Oregon Short Line
owned those steamers, but Schwerin said
that so far as he knew. Hartman owned
them personally, and that Hartman
charged the Pacific Mail $4,000 a month
for the use of the steamers, the money
being sent TO New York.
Raise Rates.
Schwerin testified that the San Fran
cisco and Portland Steamship company,
of which he is president, had recently
raised steamship rates, and that at che
same time the Southern Pacific raised
its rate to Portland. Commissioner Lane
brought out the fact that the rise of the
steamship rates followed a conversation
on the subject with Traffic Manager
Luce of the Southern Pacific.
Schwerin volunteered the statement
that others there was no competition be-
tween the railroad and steamers, because
the steamers give better service and get
more freight than they can handle with
out solicitation.
This statement was not relished by the
railroad men present. 1t was afterwards
modified by Schwern as applying only to
present temporary conditions.
You mean that owing to the poor char
acter of railway service at present you
are doing more business asked Sever
ance.
Il should not say that" answered
Sehwerin, I'VE give better service"
Harriman's lawyer r. C. Lovett, then
took Schwerin in hand He explained that
the basis for the differential between rail-
way and steamer freight rates is the adj
ditional security OF rail transportation.
The differential is plain which Commits
sicner Lane seemed to consider too great.
To Induce Freight.
The discontinuance of the Santa FEES
trans Pacific service out of San Diego,
and Schwerins efforts to induce Paul
Merton to give the Pacific Mail his freight
business, were next adverted to by Mr..
Lovett.
Schwerin said absolutely that no con-
versation of his with Paul Morton was re-
sponsible for the discontinuance of the
San Diego line. The service was stopped
because it did not pay, and after the Pa
cifc Mail got the freight business a
mutual arrangement for the exchange of
business was made.
Mr.. Schwerin stated that all trans-P
ciflc freight could be moved without COM
ing to San Francisco at all, owing to the
railroad facilities on the north.
The Pacific Mail is willing to make con-
cessions to get Santa Fe business. For
this purpose also 1t makes a through
freight rate from Hong Kong to Chi
csgo.
schwerin said that he does not con-
slider Hartman or the Southern Pacific
in endeavoring to get business. The
freight arrangements with the Southern
Pacific he makes with j. c. Stubs and
Hartman, he said, has nothing to do with
them.
Inquiry into the affairs of the Portland