Los Angeles herald., 1907-01-07
Franklin K. Lane Is
Coming to Los
Angeles
Southern Pacific and the
Union Pacific Subjects
of Inquiry
Interstate Commissioner Wants to
Know What Compact Railroads
Have Entered Contrary
to Law

Franklin K Lane, California's MEM
Der of the interstate commerce COM
mission. Is coming to Los Angeles to
investigate the reports of rate agree
ments between the Union Pacific and
Southern Pacific.
February is announced as the date
selected by Mr.. Lane for the hearing Of
charges which involve more particu-
larly the Sunset route.
The facts and questions involved IN
the case now are in the hands of the
chamber of commerce, the Merchants
and Manufacturers association, the Los
Angeles Jobbers' association and prom
inent shippers.
Commissioner Lane will hear all the
evidence that may be presented by or
through the various bodies and by any
individuals who may have any facts
bearing upon the case.
1t is said to be the intention of COM
missioner Lane to make thorough in
vestigation on behalf of Los Angeles
merchants and Southern California
fruit growers of the charges of rate
agreements.
Affects the Salt Lake
Shippers generally complain that rates
to and from the east have not been re-
.&duced by the advent of the Salt Lake
road and that this condition of affairs
would indicate a rate agreement be-
tween that road and the Union Pacific.
M. A. Newmark of NJ. A. Newmark &
Co., wholesale grocers, said yesterday:
The entrance of the Salt Lake rail-
a road into Los Angeles has not resulted
q in freight rates being reduced in any
degree The rates of all the roads are
Identical which naturally suggests a
combine.
But while there may be an agree
ment between the roads, it cannot be
said that the rates are exorbitant.
This is probably good business on their
part, for exorbitant freight rates would
result in goods being brought here by
water. The building of San Pedro
harbor and the keeping down of the
freight rates from that port to this
city means that Los Angeles will be
/ free from any bondage which the rail-
roads might be inclined to impose.
But so far as the alleged competi-
tion among the railroads is concerned,
it has resulted in no reduction Of the
freight rate
Cannot Hear Fruit Growers
B. A. Woodford, manager of the Cali
fornia Fruit Growers exchange, said:
Fruit shippers of Southern Califor-
MIA still are paying the same rates that
have prevailed for twenty years.
THE coming of the Salt Lake road
gave us but one ADMINISTRATION
facilities for transportation. There was
no change in rates. The interstate COM
merce commission examination here did
not result In any changes, save that
we are now routing our fruit
The rate for fruit shipped east of
the Colorado is $1.25 a hundred, and
always has been. We have been en-
deavoring to secure a reduction for
years, but seem to be no nearer secur-
ing 1t than ever. The fruit shippers
have asked dollar rate. None of the
roads have showed inclination to re-
duce rates. All are alike in this re-
spect.
1--WE are securing poor time sched-
ules in fruit shipments this season
That is one of our chief troubles. Fast
time is imperative In the fruit bust
ness"
Discussed by Clark
j. Ross Clark, second vice president
of the Salt Lake lines and brother of
Senator w. A. Clark. president of the
company, denied the charge that Sena-
tor Clark entered into an agreement
with Harriman-an agreement forced
by the latter-to maintain the same
freight rates as the Hartman lines, for
ninety-nine years.
THAT is a mistake. 1t is unfair TO
say that we are bound to observe the
same rates as the Southern Pacific"
said Mr.. Clark. 1.-THE only agreement
that has been made for a period of
ninety-nine years is that the San Pedro,
Los Angeles & Salt Lake railway is to
have the use of the Hartman Oregon
Short Line yards at Salt Lake City for
that period of time on a per cent basis.
They must have twisted that part of the
agreement in reporting the testimony
before the Interstate commerce COM
mission yesterday. AS to freight rates,
we have only an interchange agree
mept such as might be made with any
railroad We have an agreement with
the Santa Fe. 1t Is not written one
as with the Hartman lines, but in no
case are we bound to charge the same
rates as another road, such as could he
construed to be in restraint to trade
"Our freight interchange agreement
n with the Southern Pacific is, as l re-
member 1t, such that 1t can be cam
N celed by US at six months or years
notice, The Southern Pacific does not
N control our freight rate schedules now
nor has 1t ever controlled them.
1T Is well known fact that Il. ii.
Hartman and his associates own one
half the capital stock of the Salt Lake
road. The directorate Is evenly di.
vided Mr. Hartman never has at
tempted to dictate the policy OF the Salt
Lake"
T. r. Gibbon. former general counsel
(Continued ON Page Gwo.)