Los Angeles herald., 1907-10-04
CONDITIONS WORST IN WHOLE
COUNTRY"
STANDARD OIL CONCERNS MOST
FAVORED
Assistant Freight Agent stubbs, on the
Stand, Urges Water Competition
as Reason-Many Business
Men Testify
BY Associated Press.


ing conducted by Interstate Commerce.
Commissioner Franklin K. Lane into the
subject of secret railroad rebates and
other abuses. said today that the officials
have sufficient evidence to convict ofri-
cials of the Southern Pacific Railroad
company Of such violations in at least
fifty cases.
1t is understood the matter will be re-
ferred to the Washington authorities very
Attorney Devlin will be asked to present
the facts to the federal grand jury.
Mr.. Marble called attention to today's
testimony of ]. c. Stubbs, assistant
freight agent of the Southern Pacific,
showing discrimination and rebates in
favor of the large shipper.
when 1t comes to favoring the large
shipper and discriminating against the
smaller shipper, conditions are worse in
California than anywhere else in the
United States" said Mr.. Marble. II do
not see how 1t is possible for the smaller
concerns to exist at ali under the cir
cumstances."
The first favorites in the matter Of
rates with the Southern Pacific company
were invariably Standard Oil concerns.
The greatest rebates were always given
| to the largest interstate shippers. If
business man was not an interstate ship
per there was no rebate granted him on
| state shipments. There are 514 names on
| the special rate list which was seized
| in the offices of the Southern Pacific
| company by Attorney John II. Marble,
and an inspection OF the list plainly re-
| veals the discrimination practiced.
| A. Sloan, assistant secretary of the AS
| sociated Oil company, had prepared
| claims for rebates from the Southern Pa
cific on the authority of Secretary Scriv-
| er, the testimony developed. A. L. King,
| secretary of Studebaker Bros, had filed
claims with the Southern Pacific, but did
not know whether or not they were at
| reductions from regular rates.
Get agreed Rates"
| j. Leroy Nicholl, vice president Of
| Miller 81 Lux, was only familiar in a
general way with the agreed rates."
/ John Dillon of his company could explain
| them, he said. Is
| Wakefield Baker, president Of Baker &
| Hamilton company, admitted that his
firm had received $12,096.42 in concessions
from the Southern Pacific since the fire.
/ The firm enjoyed a special rate between
| San Francisco and Benicia, due to the
fact that it had withdrawn schooner
1 line from that route. This, ne added, had
| nothing to do with transcontinental busi-
| ness
| j. C. Stubbs was shown list of extra
| special rates. He did not make these
rates, he declared, but had made special
rates on single shipments. He admitted
that the Illnois-Pacific Glass company
got special rate on sand from Monterey
| to meet the Competition sand coming
| from Antwerp.
| The attention of Mr.. Stubbs was called
| to number of special rates. including 81
| per thousand to the Iona Prieta and A.
~ I1ac 11,Ar onr1 "a YlfQ "a
| $3.50 per thousand to the Tibbetts Lumber
| company and Healy Tibbetts, but the
witness could not explain them. Among
| other things it was shown that the Cali
| fornia Pine Box company got 8 lilo per
| cent off tariff rate on shipments when
| consigned to the California Citrus union,
| the Pacific Hardware company got II per
| cent off the tariff rate for shipments from
| San Francisco to Los Angeles and Ban
ming; the Standard Lumber company got
| a concession on shipments between Mon
| tague and Hercules from S5 to $3.50, and
| the Standard Oil and Associated Oil were
favored in shipments from Bakersfield OF
| 40 cents per barrel.
Competition Excuse
| The witness said that preferential rates
were given to certain firms because of
| competitiuD conditions within the state.
| Commissioner Lane said: Suppose that
| this is true, that the rates are defensive
| upon the ground of competition, why
! should you give them to certain individu-
ais and not to the community?"
81 think in a large number OF cases
| they were enjoyed by the shippers who
were handling that particular commod-
| ity" was the reply.
'.Then, if that be so, there could be no
| possible objection to publishing that
| rate?'
There would be a serious objection.
| tition, and If they were published, the
| boats would cut under them"
| Marble got the witness to admit that
shippers who could afford to have their
own boats, such as the Miller & Lux. in
| hauling lumber, got extra lower rates In
! order to keep off their competition.
The Lompoc Lumber company and the
Salinas Lumber company rates were dealt
with. One paid $3.50, the other $4. 1t de-
veloped that certain firms were favored
in the matter of switching in San Jose
The charges for switching were waived In
the case of the California Wine associa-
| ton of the California Box g. Lumber
company of the S. H Chase Lumber COM
pany. and the Associated Oil, whereas
the California Gas and Electric corpora
ton was charged $3.50 per car for switch
| ing in the Garden City.
Unable to Explain
Stubbs could give no explanation. The
witness dismissed many inquiries into
the conflicting charges by saying, I'VE
meet competition as we find it,
The Union Ice company got rates to
| meet competitive conditions. The witness
was not Interested in any of the con-
Germs that got competitive rates, nor did
he know of any officials in the Southern
| Pacific who were interested. He could
| not tell why the California Wine associa-
| ton was favored over other wineries. II
was an interstate shipper, he admitted.
! Mr.. Dunn strenuously opposed the adj
mission of testimony concerning ship-
ment of rice which came from the orient
and was shipped from San Francisco to
| Los Angeles. Marble said this was clear
| ly foreign business, whereas the Southern
| Pacific contended it was local shipment.
| The concession on the haul from San
| Francisco to Los Angeles was made, the
| testimony admitted.
| Indications that the Southern Pacific
company has been granting q system Of
| rahafes tn favored shfppers appr0ximaf-