Bisbee daily review., 1907-10-20
ROADS ATTORNEY MAKES
 PLAIN STATEMENT
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 tation would have been lost to the railroad.
 The rate to the Associated Oil com pany was shown by the testimony of MT. Scribner to have been made as the result of local competitive conditions; and it was shown generally by the wit nesses, and there was no sustantial contradiction, that these refunds upon state rates, arising as they did out of the competitive conditions, were granted to all shippers under similar circumstances and conditions.
 If there was any attempt to show by the shippers themselves that the Southern Pacific company was indulg- ing in favoritism by a system of se- cret rates the attempt broke down.
 MT. John G. Stubbs, assistant gen eral freight agent, was also sworn as witness. and to the extent that he had knowledge of the California rates he testified that they were made because of local conditions to meet local com petition. and further. that these re- duced rates on local shipments were granted to all shippers under the same circumstances and conditions.
 So far as the state. rates are con ccrncd, which had not been covered by the testimony of 1Ir. John G. Stubbs, the Southern Pacific company offered testimony of its general freight agent. NIt G. W. Luce, who was fami- liar with these rates, and by whom it was offered to be shown that those rates were made as the result of local competition within the state, water competition and otherwise. and that they were extended 10 all shippers un- der similar circumstances and condi- tions. It was not believed that there would or could be any objection to the l testimony of MT. Luce, inasmuch as ] the commissioner, as already noted, had Drefaced this inquiry with a state ueut that the fairer way of proceed ] ing was to permit all parties concerned ! TO make explanations, in the course of l the inquiry, of anything contained in | the documentary evidence which call 1 cd for explanation. The commissioner 1 declined to permit MT. Lucc to be l sworn as a witness upon the ground 1 that he might possibly gain immunity l thereby in the event that criminal ! prosecutions should result as a conse- l quence of the inquiry, but stated that | if Mir. Luce desired to make state
 mcnt, not under oath as a witness, the commissioner would hear 1t.
 It was then pointed out to the com missioner that MT. John G. Stubbs had been sworn as a witness and had tes-
 tidcd in part concerning the state rates, and that therefore it was only
 just that MT. Luce, as to the remaind- CT of those state rates wnlch called for
 explanation. should, in like manner, be sworn as 2 witness, so that the 1 Southern Pacific company as well as the commission might have the bene-
 fit of that sworn testimony in the
 event that any adversary proceedings were contemplated, but the commis- sioner declined to permit MT. Luce to make any explanation under oath as a sworn witness on this inquiry and pro- ceeding. The result was mat as to
 those rates concerning which Mir Luce could made explanation the case
 was left in the air.
 ! It should be understood that the company made no secret or these state rates from the commission or any of it's inspectors, and that the papers
 were on the files of the company with no attempt at their couceainent, and the commission and the inspectors were given unrestricted access to them. It is true that the shipments on these rates were way-bilIeG at origin al printed figures, and that the differ
 ence between the printed rates and the rates as reduced by local compeh-
 ton was paid by a refund voucher. But it was explained at the hearing that in many instances, notably in case of water competition, it was not de- sirabIe that the water competitor 1 know the exact rate at which the rail
 road was carrying the freight, and for this reason the rate itself was worked out through a refund. It was this ele- ment Of refund from the printed rate
 which had been caught at to make the