Los Angeles herald., 1907-12-28
FIGHT FOR
LOWER RATES
IS BEGUN
WELLS-FARGO METHODS ARE
ATTACKED
LovELAND, NEW COMMISSIONER,
AIDS EXPRESS CO.
Interstate Commit rec Official Hears
Complaints Of Shippers, Who
Say Charges Are Ex-
cessIve
BY Associated Press.

BY Associated Press
SAN FRANCISCO, Dec. N.-Interstate
Commerce Commissioner Franklin K.
Lane today held a hearing of the COM
plaint of the California Commercial as
sociation composed of twenty nine mer-
camille firms in this city, charging Wells
Fargo & Co.'S express with conceal
ing from the public tariff schedules that
had been filed with the interstate COM
merce commission In Washington = no
with making unjust and discriminatory
rates
The actual question involved, however
was whether or not the quantity rate OF
cents a pound from New York to San
Francisco. for shipments of 10000 to 10000
pounds applied TO bulk or assembled
shipments, gathered and forwarded by a
forwarding agency to one concern OF as
sociation for the purpose of getting the
lower rate, the shipment ultimately IN
tended for numerous consfgnees VINO
were designated by numbers on the labels
to the one consignee.
Edward Bonnheim, treasurer OF Wein-
stock & Iubin company, and M. s. Kohl
berg of M. S. Kohlberg company testi-
fed that the express company did not
most in a public place in its office the
company's tariffs and that they were re-
ferred from one official and agent Oh the
company in New York to another oe1ore
they were sh{ wn copy of the tarln TO
San Francisco. The complaint alleged
that this constituted concealing the rates
and was direct violation of the inter-
state commerce act.
Officials Had Not Seen Rate
1t was admitted by e. e. Honn, city
superintendent, and James c. Tice, local
agent for the express company, that tney
had never seen interstate commerce
schedule No. 10 filed by the company with
the Interstate commerce commission.
rice also testified that the tariff rates
were not posted conspicuously IN the
office of the company, as required py
law, but were easily accessible at the
counter Or information department wnere
they could be had upon inquiry.
He maintained that this fulfilled the re-
ouirement. Commissioner Lane repeated
lv took the witnesses from the attorneys
for the two siS as and sharply interrogateo
them himself.
The Pacific Coast Jobbers association,
represented by Seth R. Mann, interveheo
in the hearing and placed H. D.. LoVeianu,
state railroad commissioner and presloen.
of the jobbers' association, on the staho
to testify that the removal OF the uilei
antiaI rates would make the Pacific COAST
merely ar outlying retail district for Chi
capo and New York If the contention OF
the complainant was upheld ana wouiu
destroy the wholesale and 5obbing inter
asts on the coast which he estlmateu al
$25O,OOO,OOO to sS0O,0Oo,OO. o
when the hearing was resumed AT
o'clock e. F. Honn, city superintendent
of Wells Fargo & Co., was'piaceu On .iie :
stand by the defense. Honn was ioIceu
10 admit that he had never seen inter-
ltr1a n
~ have been filed by the express COM
many with the interstate commerce COM
mission In Washington, and so far as ne
knew it had never been posted IN tne
San Francisco Office of the company, pu.
that supplement to it, issued Marcn
of this year, was on file.
Lane Questions Witness
commissioner Lane, after the attorneys
for the TWO sides were through with the
yitness. interrogated Honn sharply Nor
soma time. Referring to the visit to
Honn by Mr. Bonnheim and Mr.. henl-
hare with reference to getting rates lor
the shipment in controversy the COM
missioner asked the witness;
"Why did you not show them inns raee
schedule In question:?
II had 4BEer seen it, was tne reply.
"Do YOU mean to say that there was
no copy of 1t In your ONCE
you did know that the schedule re-
ferred to rates?"
Eyes"
"Why did you not show it to these gen.
tlenen or refer them to it?'
"I had not seen the schedule ana dlo
not know that it had any reference 10
the rates that they inquired for, was
Honn's reply. ~,
a
York Officer"
Honn in reply made lengthy state
-nent declaring that Bonnheim and kohl-
herg reported to him the congesteo
freight condition. and that he was un-
certain whether or not quantity rate OF
cents could be -eranted on the shipments
that the association wanted to make. lie
referred them to New York and wrote
letter to the New York office explaining
the situation
Commissioner Lane ordered that the
letter be produced before the commission.
Rate Not Allowed
Honn defined what constitutes bulk or
assembled shipment as two or more pack
ages intended for two or more persons OF
firms but consigned to one consignee,
who would distribute them, and stated
that the quantity rate of cents for ship
ments from New York could not be APP
plied. Asked what objection there was
to such rate, he said that It deprived the
express companies of their rights and
turned them over to companies or asso-
Citations who would do an express pusi-
ness.
Honn testified that the express COM
pany allowed consignee an aggregate
weight and quantity rate on packages
nnd shipments made to him by numerous
consignors from the same point on the
same day.
"Does any reason occur to you why an
express company should allow many con-
signors to ship to oonsignee on an ag-
gregate weight and quantity rate but not
permit 1t to work the other way ASKED
Commissioner Lane.
"Yes. different principle is involved.
replied the witness.
why should higher rate be charged
for shipment consigned to one person
(ContInued ON page twol