Bisbee daily review., 1907-10-20
OAD'SATTORNEY MAKES PLAIN
 STATEMENT
Says Alleged Rebate Of the Southern Pacific Were Pure y Within Stater Made to Meet Water Competition

Statement by Peter F. Dunne. Gen.
 eraI Attorney, Southern Pacific col
 I understand, generally. that the purpose of the hearing yust concluded was to inquire into rates yn California state business as made by the South ern Pacific company with a view to determining whether any concessions or refunds were paid in order to inau- ence interstate business.
 When the hearing opened ' svrxast. ed to Commissioner Lane that the re- cords of the Southern Pacific company as to the state business were not a subject of inquiry, since not within the provisions of the Interstate Commerce. law. The commissioner replied thai the purpose in examining the state list was to determine whether they has been made the medium through which concessions were extended to interstate shippers for the purpose of controlling interstate traffic. It did appear that in some instances. ex- plained by the witnesses as being without any intent to depart from the law, a few shipments had moved from or to a point in Nevada to or from California points. But this Nevada point was Verdi, about four miles across the California state line and it was a lumber point of a California industry which had several other points of production and manufacture in the region, all California, and with those points Verdi, being just across the line, would naturally be grouped. The substantial inquiry therefore, as understand it, was whether the Cali fOrnia state rates were subject to cer- tain concessions in order that inter- state business might be controlled.
 l suggested to Commissioner Lane that all of the books and papers of the Southern Pacific company had been accessible to the commission and to its inspectors, and that the commits sion through its inspectors had enjoy ed full access to these documents, had examined them, and was in full pos session of their contents, and that it was therefore unnecessary in a public | inquiry to disclose further the business | transactions of the company. The commissioner replied that while the commission was in possession of the documentary evidence, yet the fairer way of proceeding was by public ex- animation in which all parties inter- ested would be given an opportunity to make any desired explanation con- corning the transaction.
 Speaking generally, and so far as the California rates were explained at all, it was proved that any concessions from the rates as they had been or iginally printed were made because of local conditions and to meet local comnetitinn- Enr- instance slnun by the testimony of Mir Baker. of Baker & Hamilton, the rates on agri- cultural implements and hardware manufactured at Benicia and shipped to San Francisco were reduced from the printed schedule in order to take business as against water competition and put it on the rails. CntII the re- duction in rates was made Baker & Hamilton were operating water craft between Benicia and San Francisco. It also appeared that refunds had been made to the W. & J. Sloane Co. and to Studehaker Bros on shipments origin ating at Port Costa and destined to San Francisco. If such reductions in the printed rates had not been made. those shippers would have used water transportation to San Francisco. In the same way, reductions on rates to Stockton from interior state points were made in order to meet water competition. The same course was pursued in reference to shipments of oil and lumber to points or consign- ment within the state.
 The rates to the Union Ice company were made in order to meet local competition. The same thing was il- lustrated by reduced rates made to packing houses on rail naufs of or 10 miles, in order to meet team com petition. The result of the proof was that the refunds from the state rates as printed were made because of local and without reference to interstate business. Indeed only one witness tes- tified that he gas "preiudiced" to give an interstate haul on wool bG-saSe of a refund on state rate, but en fur ther examination the same witness admitted that local rates was compell- ed by team and water competition.
 It was testified by the representa- tive of the Illinois Glass Works that the refund on the state rate on sand was made originally to meet the com petition on sand from Belgium. and that subsequently, a reduction ia the state rate was made in order to meet competition by water from Marysvilie It was also testified by Mir. Schwa- acher of the Floriston Pulp & Paper Co. that a rate was made to his com pany on oil for the purpose of meet ing the competition of wood fuel and that if such rate had not been made on oil he would have used wood from his own timber land and the trauspor-