The San Francisco call., 1908-03-12
Luce's' Fencing Fails to Keep
Evidence OF Discrimination
Off Record
Three Rates Made on Sand. and
Fruit Packers Graft With
Roads Aid
Railroad Commissions Inquiry
Brings Out Facts of Great
Interest

Luce, general freight agent of the
Southern Pacific, began to fly sig
mails of distress during the rebate in
vestigation yesterday. and Attorney
Peter F. Dunno rushed to the rescue.
Several times Dunno was compelled
to cut in abruptly when Attorney
General Webb had driven the witness
into a corner, and although the rail-
road lawyer was prolific of explana-
tons, the end of the day found an
abundance of interesting material
in the record. Further discrim-
nations were brought to light in
the fruit, -four and lumber trade; the
attorney general charged that the
railroad DETECTED trade to suit itself,
sending Salinas -four to China and
northern flour to the Salinas valley;
and an argument was revealed by
which certain packing houses received
rebates on shipments for which they
charged their customers the full tariff.
In addition there was the usual case
of missing records.
The second day of the investigation
road commissioners was not without
its diversions. Judson C. Brusie, secre-
tary of the commission, whose
thoughts run more to the poetic and
dramatic than the heavy prose of
freight schedules, dropped into a
1aaoaf,,Y z1u-,,har ~, +l,a o,.r1 xxvi,, 5,xr
BRUSHES siesta and the offeial pro-
ceedings ran smoothly until the secre-
tary began a rhythmical whistle. At
the familiar sound the brakes We're
applied and the session slowed down,
to start again after Brusie had awak-
ened to the fact that as a signal sta
tion he had essayed an untimeIy role
Peter F. Dunno introduced a new
phrase into the proceedings which
translated into modern English. means
to give rebate. Dunno referred gen.
tly to the process as shrinking the
rate
Commissioners Irwin, Loveland and
Summerland were not called upon for
judicial ruling during the day and
presided with solemn dignity The
questioning was again conducted by
Attorney General Webb with assist
ance from Attorneys Raymond Benja-
min and o.. K Cushing. Attorney Seth
Mann appeared as the representative
of the jobbers' association. Luce occu-
pied the stand during the entire day
and was subjected to a severe exam
ination by the attorney general Webb
bore into the matter OF rebates with a
persistency that taxed the .explana-
tory facilities of the Southern Pacific
officials.
LUCE PINNED DOWN
What you term special rates are
also referred to secret rates, are
they not% asked Webb.
They were not known to me as se-
cret rates." replied Luce
"As matter of fact, they were at all
times secret rates, were they noty' con-
tinued Webb
Not at all times" was the reply.
DO you think that the Pacific glass
company knew that the Illinois Pacific
glass company was getting a $1.25 rate,
while 1t was paying sLs5r'
That I don't know"
"At the time you made the $1.25 rate
to the Illinois company. did you inform
the Pacific glass company that you had
reduced the rate?'
No, I don't think I did"
"As far as you are aware, the Pacific
glass company did not know of the
lower rate?'
No." admitted the witness.
Later in the day Webb returned to
the same subject.
rs it not true" asked the attorney
general, that the special rates were
known only to the company and the
parties receiving them?,
No; they were simply kept secret
from our competitors answered Luce.
What was the reason for your fail
ure to make these special rates the
published rates?'
because If made public and placed
In the hands of our agents it would
make it difficult to keep track OF ship
ments and to see that the rate was not
misapplied."
why have you changed your policy,
as understand that you now publish
these special rates?"
Because OF the ruling Of the inter
state commerce commission. and we
have thought it best to make our state
records conform to the ruling
You said that published rate might
be misapplied. BY whom?