The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-02-01
RATE CONSPIRACY
0PENLYADM|TTEO
SANTA FE AND SOUTHERN PAci-
FIG SAID TO DIVIDE CITRUS
BUSINESS.
UNWRITTEN AGREEMENT
Official Says, Parcels Out Their Terri.
tory--E. n. Harriman's on Pacific
Ocean Lines in Re.
veaIed.

VGGlen.
! San Francisco Cal, Jan. ~ That
an "unwrtten agreement" exists be.
tween tho Southern Pacific railroad
I and the Santa Fe whereby they share
the citrus fruit traffic Of southern Cal.
| if3rnia was the sensational teetimonv
brought out by the government at
| today's h airing Of the Hartman mer-
ger case before Interstate Commerce.
Commissioner Lane
W. A. B'ssel assistant traffic man.
ager of the Santa Fe system and III
rector in the Western Pacific railroad.
road, conceded under oath that the
two roads are observing the "unwrit-
ten agreement whereby each crnpg,
lously avoids any intrusion into the
others territory after the fruit has
been packed.
Act Leads to Traffic Loss
r. A Graham of New York former
ly manager of the Oregon Oriental
Steamship Company agreed to pro-
duce as evidence letter which h.
testified he had received from Benia.
min Campbell traffic manager III the
Oregon Railroad and Navigation com
pany. peremptorily canceling a tranie
contract between the two companie
because the latter road had acaured
fleet of steamshipships and refusing
to longer give Graham'a company ay
traffic or the use of Oregon Railroad
and Navigation company decks at
Portland or rail rates other than III
full local traffic.
4 days hearing was conductcl for
the government by Attorney g. A.
Servance. r. l.. Loyett apnearrd frr
Hartman ana Peter r. Duunc fpr the
so1tt1rn Pacific. .Amopg thn. Witness
rs called by tbe proseSaition wera NJ
~. Shotwell. genral ccast agent ia t4e
Denver and Pho Grande and her
Gould lines; d. ] Mansfield. assistgn;
to Shotwell, and f. t. Calvin. g~ner.
al manager of the Pacific coast divls.
!tns Of tho Southern Pacific
Harriman's Grip or Ocean.
II. p Schwerin president of the Pa
cific Mail company stated the s'canp.
snip lines sustained heavy losses eaca
year and that they were only one ato,i
to draw freight trade for the railroads.
Mr. Schweriu testified that the
steamships Mongolia and Manchuria
were the personal property Of L. II.
Hartman aud that his company pavs
$4,000 month rental for them. the
money being ent Ia New York.
Schwer'n testified that the San Fran
cisco and Portland Steamship con.
pany, Of which he Is also president.
had recently raised steamship rates
and that a the same time tho South
ern Pacific raised its rate 10 Portland.
Commissioner Lane brought out the
fact that the rise of the steamship
rates followed a conversation IN tho
subject with Traffic Manager Luce OF
The Southern Pacific
No Real Competition.
Schwerin volunteered the statement
that there was no real comp tition be-.
tween the railway ard the steamers
because the steamers give better scr.
VIC and get more freight than they
can handle without solicitation. This
statement was not relshcd by the
railroad men present n was after-
ward mrdifed by Schvcriu as aDuiv-
ing only 10 pre.ent temporary condl-
uons
Harriman's LAWYER. r. G. Lovct-.
then took Schweriu IN hand
He explained that the basis for tnc
differential between railroad AMI
steamer freight rates is the d5'tio~aI
securiiv of rail transportation The dif
ferential is 60 cents a ton. which Com
missioner Lane seemed TO consider TO
great.
The discontinuaucc or the Santa
Frs trausPacjlc line ont of san
Diego and schweriu's efforts to is
duco Paul Morton go give Tho Pacific
Mail his freight business wcrc nest
8dycrtod TO by Mr. Iove't
Service DIDN'T Psv.
Schpern said absolutely that NJ
conversation of his with Psni Morton
was responsible for the % rnutiou-
ancc of th san nieso line TIE ser
vice was stopped hecarsa & lid not
paw and the Pacific Mail afferwar1
got the freight business and a mutual
arrangement for The exchange Of hus. F.
ness was made.
Mr. Schwerin stated that an tran=-
Pacific freight could 10 moved with
out c-mine to San Fra-ci-co a. all
owing TO the railroad facilities OF The
moth
The Pacific Mail Is wiling 20 msks
70 get Santa 70 huSin~ss
For this purpose also e makes
.hrnnsh freiehl rate from Hnnr knns