Los Angeles herald., 1908-04-08

secret rates were given the company TO
meet water competition on grain SNIP
ments from the San Luis ODlspo us
triet through Port Hartford, Tne rate
allowed this company, ana also tne
Globe and Sperry Milling companies,
was So per ton, whereas the ROAD pun
lished rate was 81.
Mr.. Benjamin wanted to know, Ior
the benefit of the commission, why TINS
new rate had not been sent out to the
commission and published. Mr.. Barn.
well said by keeping this rate a secret
the Santa Fe had secured large share
of the grain business, whereas in the
last two years since the rate OF 80
ton had been openly published, the wa
ter routes have still further cut the
rates and the railroad is getting very
little of this business.
Roads Are Philanthropic
The fact was brought out by Mr..
Benjamin that some of the employees of
the Santa Fe were interested in the
Globe Milling company, although Mr..
Barnwell insisted that nobody in the
traffic department is interested in 1t in
any way"
Anyway" said Mr.. Barnwell 1.-THE
special tariffs and refunds are things
of the past and absolutely no refunds
are issued now, and none has been
since the tariff was revised in 1906.
Also, all our tariffs are published
What about special billing orders ?"
asked the attorney general. you do
make them, and they are special con-
cessions 2"
"Yes, SIR
Tell us about them"
well, we sent a carload of oranges
to the fleet at San Diego. That is a
special concession, costing the ship
pers nothing. Also we make special bill
ing orders or concessions in cases of
charity such as forwarding supplies
in events like the fire and earthquake
at San Francisco"
Mr.. Chambers was called to the stand
and sworn.
Mr.. Chambers said the standard tar
ifs, which, he explained. were pre-
pared practically on a mileage basis
for general traffic movement, We're
filed with the state railroad commits
sion. Other tariffs, whether special
commodity rates or inside rates handled
by the voucher or refund method, We're
not filed with the commission.
In the latter part of 1905 or early
in 1906" he said, Sin talk with Presi-
dent Ripley, it was deemed advisable
as matter of policy to put all intra-
California business in line with the
interstate rules. This could be done
on everything except on rates compet
ing with the water routes, and in Au-
gust, 1906, even competition with the
water routes was abolished"
Rates to Grain Men
When questioned about the SO rate
being given TO some milling companies
on shipment of grain from the San
Joaquin valley to Los Angeles while
the published rate was ST. Mr.. Cham
bers said:
1.-The local rate from points around
Los Angeles was $3.50 per ton, and the
SO rate was not published so Southern
Californians would not learn of it and
demand that local rates be lowered ac-
cordingly."
DO you know Mr.. Dan Murphy"
asked Mr.. Benjamin.
II do" was the reply.
In going through records in your
claim department" continued Mr.. Ben
jamin II find many vouchers indicat-
ing refunds to Mr.. Murphy on oil ship
ments. Did you make Mr.. Murphy that
rate?"
mo I think it was done through
the purchasing agent. Mr.. Murphy fur
nishes ice from his plant at Needles
for icing our cars. Some two or three
years ago there was general agitation
in accordance with orders from Presi-
dent Ripley a reduction was made. In
making the new contract for ice l think
our purchasing agent made Mr.. Muir
ply a rate on oil for fuel that was the
same as the company material rate"
Mr.. Chambers admitted that although
other oil shippers had to pay the regu-
lar published rate, Mr. Murphy was
given a refund.
10
rates We're given to certain big ship
pers. AS did Mr.. Barnwell he insisted
the reason for not publishing them was
to keep the steamship lines from learn
ing about them, although Attorney
General Webb contended that if the
rates were generally known to shippers
the steamship companies would GER
tainly learn of them. and nothing could
be legally gained by not publishing
them.
Another contention of the witness
was that it was Impractical to publish
some of the rates, as they were changed
as often as the steamship companies
changed their rates to meet competi-
tion.
When questioned as to a published
rate on sugar being $5.55, while Haas,
Baruch & Co., wholesale grocers of Los
Angeles, had an inside rate of $4.05, and
j. h. NeWDefry company rate OF $3.5U
Mr. Chambers sought to explain this by
stating that the rate was necessary to
meet water competition, and that if he
had not allowed this special rate the
business would have gone from them.
He Is NonpIused
Mr.. BENJAMIN then wanted to know
particularly about a $3.50 rate being
given to the Globe Grain and Milling
company.
Have you any distinct recollection
of rates granted to the Globe Grain and
Milling company from San Francisco to
Fresno?" asked Mr.. Benjamin. ut ap-
pears a rate of $3.50 was made, as
against your published rate of $5.55."
Mr. Chambers was for a moment non
plused then replied:
Mr. Kellar, MIR. Luce and myself
held Il conference and agreed upon an
adjustment of rates. The Globe COM
pany was the only company doing any
business in the San Joaquin valley and,
as the complaint was just one, we
agreed upon an adjustment. 1t took
quite a time to do this, and meantime,
/ presume, the company enjoyed the
rate agreed upon. 1t took some time to
get the affair settled, and undoubtedly
several shipments We're made before the
tariff was published"
Didn't that inside rate exist until
January 1902" asked Mr.. Benjamin.
"I don't believe it did, replied Mr..
Chambers. There might have been
such a thing as the tariff being burned
in the fire, as many of our papers were