Los Angeles herald., 1908-03-12
PROVES S. p.
EREBA TES
TO SHIPPERS
FREIGHT AGENT is FORCED TO
ADMIT DISCRIMINATION
SEVENTEEN MILE FLOUR HAUL is
INVESTIGATED
Official of Hartman System Endeav-
ors to Explain Apparent Favor
itism to Certain
Interests
by Associated Press.

Dy Associated Press
SAN FRANCISCO, March 11.--Attor-
ney General u S. Webb drew a par
allel on c. w. Luce, general frenght
agent of the Southern Pacific company,
in the examination of the railroads s
rates before the state railroad commits
sion. this morning. He proved by
Luce's testimony that the California
Pine Box and Lumber company was
granted a rate of 10 cents off that regu-
larly charged on box shocks shipped to
the Citrus Fruit union, thereby secur-
ing the business of the box company,
which had previously gone to the box
makers OF Oregon and Washington, who
shipped by sea.
The fact that the same cut in the
rate on shipments to other fruit pack
ers in Southern California Luce con-
sidered matter for the box company
TO settle with its own conscience and
would only go so farias to admit that
the rate was given to- meet the COM
petition by sea. The result was the de-
crease in sea shipments.
Difference in Flour Rates
Webb then went on to take up the
matter of the -four rate from Salinas
to Gonzales, 17-mile haul, which he
showed to be considerably higher than
the haul from San Francisco to Salinas.
BY a series of pointed questions he
brought out the fact that Salinas
shipped largely to China and that tho
local market was supplied from San
Francisco.
Coming to the special rate charged
the California Fruit Gamers associa-
ton on shipments of fruit from the
growers, or from the driers to the pack
ing house, Luce said he thought the
growers got some advantage out or the
refund, directly or indirectly.
rs 1t not fact?" asked Webb, that
when the farmer brought his fruit to
the nearest Southern Pacific station and
there shipped It to the packing house
of the California Fruit Gamers asso-
citation, the rebate on the freight,
amounting to one-haff the charge,
would be paid by the railroad company
to the canning company and the pro-
Queer knew nothing about it? In other
words the grower believed the canning
company was paying twice as much
freight as 1t really was?"
II presumed the canning company
would act honestly with the growers,
replied Luce.
"It is true the farmers had no way
of knowing there was an inside rate
unless the Gamers association told
them; but very few farmers sold direct
to the Gamers They generally dealt
with the driers and the latter sold to
the Gamers But L believe the freight
rate made no difference any way 10
the grower, for the price he received
would be governed by the market con-
ditions." :.
'No DETERMINATIONS"
Replying TO further questions, Luce
said the Southern Pacific never dis
criminated bteween shippers when the
conditions were Identical Whenever
new industry was established along its
line, he said, it's officials made a. point
of placing themselves in touch with IT
and seeing that II received the same
freight rates as it's neighbors.
Then why have you not pubiisnen
these lower rates instead OF keeping
them secret?"
because we have not wanted our
competitors to know what reductions
NE have made We endeavor to meet
the competition within the state wher-
ever we find IT."
lust before adjournment, webb asked
a number of questions regarding rates
charged to different shippers in the
neighborhood of Fresno. He wanted TO
know whether any of the packers at
Fresno. except the California Fruit
Gamers association, had received the
so per cent cut a., 80
oxdS