The San Francisco call., 1908-03-17
YSISIDOR JACOBS
RECEIVED REFUNDS
Agent Luce Tells OF Fayors
Granted the California Cam
neries Company
Jacobs, However, Explains That
Money Returned Was to
Correct S. p. Mistakes

II was with undisguhed glee that G.
W. Luce. general freight agent OF the
Southern Pacific, confessed yesterday
20 refunding on freight charges to
lsidor Jacobs Of the California can
neries company. Jacobs is regarded by
the railroad people as largely respon-
sible for the investigation and dur
ing the hearings he has occupied a seat
between Attorney General Webb and
O. K Cushing. Offering advice TO the
two lawyers After Luce had involved
Jacobs Attorney Peter +. Dunno Of the
Southern Pacific proceeded 10 make
with the remark Mr. Jacobs is on
the roll Of immortals. He is one of the
500"
Dunno censured Jacobs for rushing
into print with his evidence instead
Of placing II in the hands of the rail
road commission Jacobs hotly denied
that he had made any accusations he
could not substantiate.
Dunno then demanded that Jacobs
produce any records that he possessed
showing that there had been unjust
discrimination between the cannery
companies. Cushing who represents
the California traffic association. of
which Jacobs is member. stepped
into the controversy at this point
Il am surprised said he. that the
attorneys for the Southern Pacific
should ask one cannery man 10 give
the inside rates granted to a rival
company. The Southern Pacific does
not give its rates in the open street
Let them bring In their records.
Il don't think it is fair for Mr..
Jacobs 10 go TO the newspapers in this
matter" replied Dunno. when he
should place whatever information he
He claims TO have a list of companies
that We're Disseminated against in the
matter of rates. He should produce
that list
REFERS To SUFFER- COMPANY
MY reference was TO the Suffer pre-
serving company" replied Jacobs
That concern went out of existence
some time ago" said Luce.
The witness said that upon three oc-
casions refunds had been allowed the
California canneries company. of which
Jacobs is the proprietor. Two OF these,
he said, had been upon shipments from
Dixon 10 san Francisco and the other
upon a consignment from Chico TO San
Francisco, which had been reshipped at
Dixon
In speaking of these shipments
Jacobs said that in the two consign-
ments from Dixon mistakes had been
made by the Southern Pacific which
necessitated corrections These cor
rections. he said. had been twisted
into refunds by the Southern Pacific
In one case. said Jacobs. a consignment
Of shocks had been taken by the rail-
road to the Vallejo street wharf in
stead Of Fourth and King streets and
he was allowed a refund amounting to
the extra drayage expenses to which
he was put because OF the company's
error. The shipment from Chico. it
was stated. consisted oT a mixed car of
machinery and other materials. Jacobs
says that the company had TO make a
special rate, as such a consignment was
not covered in the regular tariffs.
The fifth day of the investigation
conducted by the state board of rail-
road commissioners. with G. r. Luce
upon the stand. developed the usual
number Of cases of rebating and closed
with a spirited clash between Attor-
news Dunno and Webb The attorney
general had asked the witness num-
Der OF questions to show that 1t was
always the big shipper that was
favored.
FAyoRs FOR BIG SHIPPERS
Finally he inquired:
Isn't it a fact that your rates are so
arranged as to allow the big shipper a
special low tariff just because he is a
big shipper, and that you fix the cir
cumstances and conditions in the in
terests of the big shipper and against
the small shipper"
Before Luce could reply. Dunno ridi-
culed the attorney general for asking
such a question and added: 1T is just
mere speech making"
Webb resented the interference and
told Dunno that he and the witness
could get along without the Interrupt
tions from the attorney for the South
ern Pacific.
During the hearing ii was shown
that the California pine box company
shocks in California. Webb charged
that the monopoly had been created by
the special rates granted by the
Southern Pacific. 1t developed that
the pine box company received rebates
on all its shipments averaging about
81 ton. In one case from the mills
in the northern part of the state to
Truckee the company was allowed a
special rate of s1-2Q q ton, against
the published tariff rate of s675. This
excessive discrimination was explained
as a manufacturing rate. 1t appears.
however. that it was given in order to
permit the pine box company to COM
pete with the Truckee timber interests
at their very door.
OIL COMPANIES FAVORED
After reviewing the subject OF diff
ferentials on shipments on canned
goods, in which it was stated that the
California fruit canneries. Hunt Broth
ers and the Central California can
neries. had been favored. the investf-
cation passed to the oil industry. II
was shown that the Associated oil com
pany and the Pacific Coast oil company
We're given special rates on consign-
ments from the Kern county fields to
tide water at Monterey and Santa Cruz.
Lumber was briefly touched upon. and
in one instance il developed that the
Salinas Valley lumber company had
received on shipments from Oakland
wharf 70 Lompoc rate OF 81. against
the published rate of 1908, and a tariff
Of s7-50 granted to the Lompoc real es
tate and produce company
Wine rates were under consideration
when the session closed It was brought
out that the California wine associa-
tion was given an inside figure on
its shipments. In explaining this Luce
added to his list of special cfrcum-
stances and conditions He said that
the special rates had been granted IN
crude wine for blending purposec