Los Angeles herald., 1907-10-03
SEARCH S. p. BOOKS
TO PROVE REBATlNG
LANE PROBES CHARGE AGAINST
HARTMAN ROAD
Freight Official Tells Of "A" Class
Claims Which Were for Re-
fund of Money to
Shippers
By Associated Press.

ny hSbOCidteu IIeEs.
SAN FRANCISCO. Oct 2.--Interstate
Commerce Commissioner Franklin X.
Lane today began a, hearing of complaints
to the effect that the Southern Pacific
Railroad company has granted rebates on
Interstate shipments to favored shippers.
The government was represented by At
torneys ]. T. Marble and s. T. Smith of
Washington. Peter F. Dunn of the law
department of the railroad, who repre-
septed that corporation, vigorously OBJ
jected to the Introduction of the COM
pany's books in evidence.
The objection was overruled and the
books will be scrutinized by the govern
ment expert.
G. ". Segar, auditor Of the Pacific sys-
tenn ofthe Southern Pacific, was the first
witness called He had been In charge
of the subdepartment freight claim office
since May 1. 1906. In that office they en-
countered two sets Of claims, one for loss
and damage and another for overcharge.
There was also series of claims which
the Southern Pacific handled since Janu-
ary 1, 1907, which were designated as "a"
claims They referred to claims for re-
funds or payment for rates not published
1.-THE matter of "A claims was first
called to my attention in October" said
the Witness '"They were series of
claims not approved by the freight claim
agent. They were vouchers of a charac-
ter that could be audited Dy the auditor
of disbursement"
The witness said he did not think 1t odd
that claims should be allowed by the gen.
eral freight agent. 1t was common
practice with railroad companies, he said.
IF there Is a practice of the road
\ Commissioner Lane ruled, AFFECTING the
practice of the interstate carrier we have
/ ri oh m q Ire inv oraf inf that
! practice 49,
4 "When a claim for an overcharge
i comes in now" said Marble "and nc
| tariff authority can be found for the
claim. what is the ruler
I'VE decline the claim or correspond
with the Official" said the witness.
| 'fWhere they are not in conformity with
the tariff law they are not allowed with
my sanction or knowledge"
| Witness stated that inside rates are
lower than the tariff rates-that was his
understanding Before the fire the ac-
counting department had nothing to do
| with freight claims.
| H. M. Brewer, freight claim agent of
the Southern Pacific since May /, 1906,
| testified that overcharge claims for which
| he could find no tariff regulations came
to him. On interstate shipments he was
| guided by the tariff on local shipments
| from interstate shippers where the over
charge was apparent he made a refund;
where 1t was not apparent he asked the
general freight agent If there was an ar
rangement-that is for a rate below the
tariff law.
The "a" vouchers came to him from
Mrs. Cummins and were then put in an
office by themselves away from other
claims. Two people, Mrs. Cummins and
another had access to these books. He
certified to all these vouchers. In his abb
sence the chief clerk in his office certi-
| fed to the vouchers.
'It is your understanding of these AZ
books that no claims go into them for
which there is no tariff authority"
Witness-Yes.
The books showing rebates on interstate
shipments were then produced.
The attention of Brewer was called to a
refund of $9,S3S 10, made in September,
1906, to the California Development COM
pany, regarding both state and interstate
shipments portions Of both of which were
allowed.