Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1907-07-12
HOLDINGS PLAN
MUCH APPROVED
SHIPPERS ABANDON PERCENT
AGE RULE
Transportation Companies Are Threat
ened by Suit, No Matter Which
Plan They May Decide
to Adopt

That the percentage rule recently
adopted by the Southern Pacific railroad
for the apportionment of cars in times
of car shortage is bad for the shipper
was the consensus of opinion offered
by the four witnesses examined before
Special Commissioner Finlayson yester-
day.
Attorney Dunno for the respondents
shared the opinion of the witnesses, but
said the railroad company was threat
ened with suits from both petitioner
and intervenor, and that the change
had been advised to avoid trouble.
H d. Haggaman, station agent Tor
the Southern Pacific at ontario, was
the first witness. He favored the dis
tribution on the holdings plan because
he thought 1t the only equable one.
When the shortage began in Febru-
airy it was mutually agreed by the on
tario shippers that the exchange should
have 30 per cent of the cars, and the
first to complain, he said, was the CITRUS
union BY the method in use since the
first of April the small shippers fruit
of their inability to get cars.
1t had been his experience that OF
anges got soft and were more liable 10
decay when kept in the packing houses
more than forty-eight hours. The
Citrus union had opened a packing
house in March, and then the trouDlSe
began. They had formerly shlppeu
from Ontario, but discontinued business
there several years ago.
Warning Shippers
Within a month after they had open
ed their packing house the new order
to distribute cars in proportion to the
number of carloads packed and ready
for shipment had gone into erect ana
then the kicks came. When the Gurus
union came to Ontario the scheduie OF
holdings was revised, and fifteen OF the
80 per cent of cars allowed the eX-
change was given to the union with the
consent of all parties concerned.
When Mr.. Haggaman was excused Az
torney Dunno of the Southern Paclnc
offered in evidence a letter and several
replies to it relating to the respective
merits of the holdings plan. The let
ter was written by Thomas A. era
ham. assistant general freight and pas
senger agent of the Southern Pacific,
to Several commercial agents of the
company and without exception they
favored the holdings plan.
Mr. Dunno here took occasion to as
sert that the Southern Paclfic had peen
forced into changing their method OF
by threats of litigation
nv the Citrus union. The exchange, on
the other hand, threatened to sue II the
holdings plan was abandoned, so aiteI
consultation the attorneys had ADVISED
the percentage plan ana the chdhSe
Mr., Graham was then called. He had
had considerable experience in the
shipment of citrus fruits, and is aIso
brought their complaints in case OF a
car shortage.
Should Keep Fruit on Trees
Mr.. Graham thought the loss of fruit
NV decay in transit could be obV1ateu
nv the growers themselves if they
would keep the fruit on the trees IN
case of a car shortage and PICK IL only
Il, OF
get cars He had known some OF them
to pick more fruit than they could nope
to get cars for, in fact for more cars
than they were entitled to.
mo set rule could apply at all times,
said he. 1--WE often have to set aside
the estimates because of growers sell
ing part of their crop, and in case OF
shortage the only rule is to do the best
The witness knew that the rule of
estimating holdings was reliable, ana
that the checking up made 1t accurate
because it always compared with the
number of cars actually shipped.
well. then, how is it there is a
shortage if you can estimate so aGc4 u
rately how many cars VII Pence be ne9of Rri 70
move the crop?" asked Attorney BTU
on cross examination.
Many Conditions Contribute
There are many conditions that are
apt to cause a shortage, replied MT
Graham. 1--WE had lots of trouble get
ting our cars returned from other
roads for one thing, and then the
manufacturer from whom we had or
dered new cars failed to denver them
when he promised. .. :.
After a lengthy cross examinatlon, In
which Mr. Graham described very min
utely the workings of railroad IRON on
the section gang to the presidents Of
flee and back part of which he had 10
repeat several times to make 1t clear
for the attorneys for the interVenor, ne
i or
agent of the Santa Fe at San Bernar-
dino, told how he ordered the cars 70
the stations after receiving the agents
requisitions each day
Mr.. Dowler denied that he had ever
had any trouble with shippers, but he
did remember serious contentious
Neither could he bring to mlnd any IN
dividual shipper in connection with the
serious contentious; in fact he couldn
think of a single one that had not at
some time complained during a short
age.
railroad officials. large and small, the
petitioners called C. c. Chapman to the
stand.
Testimony of a Grower
Mr. Chapman is an orange grower,
the first of his kind to be Identified at
the hearing, and his appearance caused
the craning of many necks.
without wasting any time in super
f1ous preliminary the witness declared
that the holdings method of appOrtion-
ing cars in time of shortage was the
only proper one in his estimation. He
did not belong to any exchange or asso-
citation of growers, nor did he sell his
fruit to other shippers. He had formed
his opinion of the two methods of dis
tribution as an Independent grower and