Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-07-31
WILL SURRENDER
ORIENTAL TRADE
HILL AND HARTMAN STRIKE
AT NEW SYSTEM
Report TranscontlnentaI Lines Will
Give Up Business with China,
Japan and New Zealand
Causes Great Stir
BY Associated Press.

BY Associated Press d
WASHINGTON, July So.-The report
that the transcontinental railroads con-
trolled by ]. J. HILL Il. H. Hartman
the Berwynd syndicate and the Cana
dian government have determined TO
surrender their export tEazle 10 China
Japan ssgM Zealand and Australia on
Novembefs has created great deal
Of interest at the office of the inter-
state commerce commission in this
city.
If this action is taken it will merely
fulfill the prediction that has been
made by railroad officials who have
resisted the enforcement Of the rule of
the commission by which they are
obliged to publish the portion of their
export rate which goes to the rail-
roads for hauling shipments to sea-
ports and to give notice of any in
crease or decrease in their rates.
The purpose of the transcontinental
roads to take this action has not been
brought to the attention of the COM
mission. which has full power to mod
ify it's ruling in order to meet the OBJ
jections of the carriers should they
care to do so.
Modification Unlikely
But as this matter has been very
fully considered by the commission, 1t
is not regarded as likely its rulings
in this respetc will be changed.
The railroads have claimed ever
since this rule became effective that
they could not comply with it and
conduct their export trade.
James j. Hill gave an example OF
lAt A.I ~ IN,
matter of this kind when before the
commission, saying he had an opportu-
nifty of bidding on the delivery of $4,000
barrels of flour to the Orient, but as
he could not quote a rate without for
mally giving notice he was unable to
make a bid for the business, and the
delay caused the order to be placed in
Australia.
Constantly changing ocean rates and
the demands of trade which the car
riers have reported make 1t necessary
that they should be free to quote a
rate on export business without a
moments delay.
Had Predicted Losses
They frequently have declared that
the commissions ruling would put
them out Of the export trade with the
result of causing an immense loss to
the foreign trade of the nation.
This subject was discussed when the
case of the Cosmopolitan Shipbuilding
company VS.. the neutrality-suspicious.
Packet company was before the COM
mission for hearing; it was the con-
sideration of this case that gave rise
to the rule which the transcontinental
roads now declare is making it impos-
sible for them to continue in the ex-
port trade.
In this case complaint was made
against the operation of what was
termed the Baltic pool" which it was
alleged controlled land and water
rates from island points in the United
States to the destination of shipments.
The commission asserted inability to
control water rates, but insisted on a
separation of the inland rate to the
place of export from the through rate
and applied to that portion of the rate
the provisions of the law making
mandatory both publications and no.
tice of changes of rates. AS the ques-
ton was passed upon after the most
complete hearing, and as predictions
We're then made that it would put the
railroads out of the export trade, 1t is
not considered likely that the commits
sion will readily reverse its rulings.