The San Francisco call., 1908-03-14
IOv[lAND ADMITS
SECURING REBATE
Railroad Commissioner Defends
Himself for Accepting
Cheap Tariff
Evidence Shows State Official
Receives Fayors on Ship
nents OF Sugar


Railroad Commissioner Harvey D.
LoveIand vas mentioned as having
been the recipient of special secret
freight rates from the Southern Pacific
during the hearing yesterday BY the
state railroad commission. at which
Loveland was sitting in Judgment
Loveland arose and made a detailed
the case. maintaining that the special
rate granted him had not been a Sc
cret one. nor discriminatory.
The evidence was presented by At
torney General Webb while G. W. Luce,
general freight agent of the Southern
Pacific. was on the stand. and was
brought out in a question put to Luce
as to why the rate had been granted
The evidence showed that Loveland
lots from San Francisco to warehouses
he maintained in RED Bluff and Red
ding. LoveIand said that at the time
the rate had been granted he was
president of the Pacific Coast manu-
facturers' and jobbers' association and
that he had secured the concession
solely in his capacity as representa-
tive of the association, making no
profit for himself on the transaction.
COMMISSIONER EXPLAINS
Loveland said
At the time Interstate Commerce Commits
sioner Lane held the investigation here in Oc-
tober l mentioned who had
eeived secret rebates from the Southern Pa
cidc company. I was out OF the city at the
time and did not learn that my name On
the list OF those who had received rebs ties
until my return some time later. As several
mented upon the matter | desire 10 avail
myself of this opportunity TO make fun and
complete statement and refer the decision 10
any unprecedented. unbiased mind.
So far as ] was aware there was nothing
different points in the state. not for myself.
but for the manufacture. 10 save the retail
ers snd their customers. the consumers, the
difference between carload and less than ear
load freight.
shipped the sugar to the warehouses in car
loads and the retailers ordered through The
various wholesalers and received the sugar in
any quantity they desired at the carload rate
of freight. Among other places had ware
Bluff l shipped by boat at 80 cents per hun
dred weight. To Redding the carload rate by
rail was "a cents per hundred weight. but by
shipping to Red Blur by boat and from there
TO Redding by rail could land the car In Red
The Southern Pacific through its freight so
Iicitors, tried to get my business, and as a
time aud In rehandling. preferred to ship
by rail. So I told them that they could have
the business If they could give me the same
rate by rail that 1 getting by boat They
gave Il TO me, and ! gave the same rate TO
the wholesalers and retailers who drew sugar
from the warehouses
PRESENTS LETTER
Loveland also presented a letter
signed by seven wholesale grocers,
which was to the effect that they had
known of the special rate that had
been granted to Loveiand and did not
consider it a secret rebate
Interesting facts about the Southern
Pacific system of making special rates
We're ELECTED from Luce by Webb. Ac-
cording to the testimony of Luce the
officers of the Hartman corporation
were the sole arbiters of the justice OF
special rates made to meet competition
or to cover what Luce termed peculiar
circumstances and conditions. Luce
said that special rates had seldom
been made except to meet competition.
and that usually when but two or three
concerns were given special favors
they were the only firms to which ap-
piled the peculiar circumstances and
conditions
rs it not true however, Mr.. Luce, =
asked Webb that your system OF
making special rates to single ship
pers has tendency to shrink the num-
Der OF concerns in such lines of busi-
ness?"
Luce did not answer this question
directly, but wandered off into a maze
of generalitfes, exhibiting a tendency
which he had shown throughout the
examination to give evasive replies
when pinned down to ticklish point.
Luce said in response to an inquiry
as to the method taken by shippers to
secure secret rebates that the person
contemplating the establishment of a
new industry usually called upon the
officers OF the road and secured the
rate which applied to their peculiar
circumstances and conditions
Then is it understood among ship
pers, If such system of securing spe-
cial rates on application is In vogue
that the published tariffs mean moth
| ing?" asked Webb.
The rates will be given to any one
who can meet the peculiar circum-
| stances and conditions" said Luce
But the term bible for tariff
schedule No. 1. which Is supposed to