The San Francisco call., 1907-01-25
ENDS
WITH MERGER
Portland Merchants Tell
Woes to Lane, Sitting
for Interstate Commission
FREIGHT RATES HIGH

PORTLAND, Or. Jan. 24-Portland
merchants differed only in their
phraseology today in testifying before
Franklin X. Lane, sitting as the Inter
state Commerce Commission in this
city, that il was their conviction that
common ownership of the Oregon
Railroad and Navigation Company, the
Union Pacific, the Oregon Short Line
and the Southern Pacific had destroyed
competition between the water lines
and between Portland and the East.
Before the ownership was merged
the Portland men testified. their busi-
ness had been actively solicited by
agents Of both these lines and that
there was competition between the Ore
gon Railroad and Navigation Compa-
nys water line to San Francisco and
the Southern Pacific Railroad. At
present. they declared, they were not
solicited to ship by any specific 'Har-
riman" line.
Their testimony was corroborated by
T. w. McCusker. a former traffic Of
fetal Of the Southern Pacific afterward
employed in a similar capacity by the
allied lines.
COMPETITION BEFORE 1901
c. A Severance of ST. Paul was the
special attorney conducting the exam
ination. w. W. Cotton, chief counsel
in the Northwest Of the Hartman lines.
acted as principal attorney for the
system. assisted by Judge Lovett of
New York. assistant counsel for the
system. J. c. Stubbs, traffic director
of the system. together with r. P.
Schwerin Of San Francisco, vice presi
dent and general manager of the Pa
cifc Mail, Portland and Asiatic and San
Francisco and Portland steamship
companies; ]. P. O'Brien, general man
ager of the Northwest lines, and r. B.
Miller. general freight agent, are the
principal officials attending the ses
sions. while a big delegation of subor
dinate officers and representatives OF
other lines are in evidence.
Henry Hahn of Wadhams & Co., gro
GERS. was the first witness heard
Hahn's testimony in effect was that
prior to 1901 there was active compe-
tition between the Southern Pacific and
Oregon Railroad and Navigation Com
pany freight agents for business.
Edward Newbegi of r. NJ. Wade &
Co. wholesale dealers in agricultural
implements, testified that prior to the
time the merger is alleged by the news
papers to have been perfected his firm
shipped a large portion Of its freight
over the Southern Pacific, via Ogden
and Sacramento. He testified that the
Southern Pacific had separate solicitors,
as did other roads.
Asked as to whether he recalled a
shipment that had been diverted at the
time the common ownership is declared
to have begun, the witness said it was
about the time of what he termed the
closing Of the Ogden gateway"
FREIGHT IS DIVERTED
The firm had ordered freight routed
via the Denver and Rio Grande and the
Southern Pacific via Sacramento, but
instead 1t had been hauled over the
Oregon Short Line and oregon Railroad
and Navigation line without the firms
consent
7. d. Honeyman OF the Honeyman
Hardware Company said he had bought
stock of all leading manufacturing
centers as far East as the Atlantic sea-
board Honeyman said there was rather
active competition here previous to
consolidation and that he shipped over
the Southern Pacific and Oregon Rail-
road and Navigation.
Severance asked him II in "the old
days" the Sunset did not compete with
the Oregon Railroad and Navigation
Company on shipments into Portland.
Honeyman replied that the Sunset
made low rates to San Francisco before
the steamship competition and that he
took advantage of the situation, but he
never received any offers from the
Southern Pacific officials of lower rates
than the published tariff.
SANTA BARBARA, Jan. 24.-The In
terstate Commerce Commission will sit
IN Santa Barbara some time during the
week beginning February for the
purpose OF hearing testimony on the
complaint that the Southern Pacific
Company is discriminating against
Santa Barbara by allowing terminal
rates which are as cents per hundred
cheaper TO other coast cities.