The San Francisco call., 1907-01-23
FREIGHT FOR EAST
To Be TAXED

In order to make the tariff uniform,
the Freight Transcontinental Bureau,
representing the Western railway lines,
has arranged for circular. through r..
III. Countfss, chairman, assessing =
state toll of s cents ton ON cast
bound freight shipments from San
Francisco, as well as on west-bOund
shipments.
The east-bound business from this
city originating In san Francisco IL,
probably, not equal to 10 per cent of
the west-bouEd.
Heretofore the railway companies
have paid the State tolls The theory
is advanced that IL is not legal to do
this, though there Is y difference of
opinion among railroad men on that
subject.
IL Is also alleged by them that the
approaching inquiry by the Interstate
Commerce Commission into the matter
of State tolls has nothing TO do with
the decision of the TranscontinentRl
Freight Bureau TO charge n state toll
on east-bound freight out of this city.
The Transcontinental Freight Bureau
has announced that hereafter trans
continental lines will collect State toll
on shipments moving out of San Fran
cisco, as well as those moving into this
city.
For the purpose of maintaining the
water front. 4 CndlSe Ol cents per
ton is levied by the State on all ship
ments crossing ii. The railways have
acted as collection agencies for the
State
Freight moving in and out via San
Jose. up and down the peninsula, does
not cross the harbor iine. but the rail-
way company has always assessed the
same charge. and il is published in the
tariff as legal charge, regardless Of
which way the freight comes into the
city The Northern Pacific claims that
otherwise the alI-rail route into the
city would have an advantage of 3
cents per ton, which would tend to di-
vert business rom across the water
point and igve an advantage to the
shippers using the peninsular road of 5
cents a ton.
Aside from taat car starting from
New York might come into San Fran
cisco by way OF San Jose. or might
reach the city across the bay from
Oakland. The shipper of the goods or
the consignee would not know whether
he had TO pay the State toll or not till
the shipment arrived. There are only
two ways of putting all routes into the
city on an equality in the matter of
freight charges. and the one adopted
by the railroad company is to add the
state toll to the freight charges. re-
gardless of route. giving public notice
accordingly.
The other way would be for the rail-
road companies to payNout of the rate
the state toll should the shipment
cross the water front There is doubt
as To the legality of this method in
tranScontinental business. since other
points having terminal rates might
claim discrimination against them IN
der the theory that a railway company
had no right TO pay out OF its freight
rate a charge for facilities aforded by
the State. any more than il would have
70 pay a terminal drayage charge at
Sacramento. for example. out OF that
same rate.
II is claimed BY some freight agents
that the fact that the toll is paid 70 the
state does not alter the case and that
Il would be Just as legal as 70 pay il 10
a dray firm. and that the only way TO
collect such charges is 10 publish the
nature OF the charge and the reason for
the collection under the interstate CON-
merce law.
The railroad people say that II the
Interstate Commerce Commission should
decide that the levy of cents per ton
cannot be collected on freight brought
into the city via the sll-rail route that
fact would give the merchant an advan-
tage OF 81 per car on freight shipped
in here via san Jose. and this would
lead 10 another change in the tariH TO
put the Santa Fe on an equality. as II
has no ail-rail route into this city