The San Francisco call., 1908-03-13
Dunno Explains Meaning of
Term and the Hartman
Understanding of 1t
More Evidence of Discrimina-
tiOns Brought Out by Probe of
Railway Commission


company TO a shipper as rebate"
1t was at the hearing before the state
board of railroad commissioners, and
Attorney Peter F. Dunno, representing
the Hartman corporation. entered an
immediate and vigorous protest against
the displeasing designation.
"Mr. Luce" he demanded Of the wit
ness on the stand. what is your under
standing Of a rebate?'
"A rebate" responded the general
freight gent. who apparently spoke
with authority. is unde rstood as a re-
FUND below a legal rate. We are not
in that business. We voucher on the
,ifnerence between the class and the
commodity rate
Dnnne proceeded to emphasize the
defnition.
II understand rebate TO be an
illegal refund on an established rate"
he declared. and not voucher for
difference between the special commod-
ity rate and the class rate.
1t was mutually agreed that during
the subsequent proceedings the term
rebate should be construed in what
Dunno called "a purified sense"
This academic discussion came in the
midst Of a session in which legal repair
Tee and rate Determinations sparkled
forth with equal briilisnce. Dunno and
o. *. Gushing, attorney for the Cah-
fornia traffic association. struck iances
repeatedly Webb precipitated one OF
The many squabbles by remarking TO
Luce that he had oVerworked the eH-
preston conditions and circum-
stances" which the freight agent had
frequently referred TO as governing
consideration in rate making.
oVERW-oRkS THE FIRE
punne CAME back moment later by
telling Webb he had overworked his
~hvpothetical questions" and then 10
smooth matters over cautioned Luce TO
not overwork the FIRE" Luce had fre-
uuently testified that the FIRE had de-
stroyed records
At times the clashes between Dunno
and Cushing reached an acrimonious
Stage. Displeased AT a question CuSh-
ing had propounded. Dunno interrupted
the proceedings and said. 1t seems TO
me we are wasting time, Mr. Luce,
and then asked the question IN ssttir-
ical manner. Would you grant special
rates on oranges shipped from Golden
safe park in san Francisco to Los An
geles2
cushing resented the interference and
,ressed his point When Dunno again
broke into the proceedings Gushing ap-
nealed to the commissioners TO be al
lowed free hand in interrogating the
witness.
stand. The examination has already
taken a range that viii command the
attention of the interstate commerce
commission The testimony OF Luce, II
is understood. is TO be referred 10 the
interstate board for any use 1t cares
10 make Of it. The testimony adduced
yesterday showed an enlarged number
Of cases of what Dunno would term
refunds. y
Among the spectators at yesterday s
hearing was Chester Rowell Of Fresno.
At the opening of the hearing Webb
went on a new tack and centered ms
questions on what is known 10 rail-
roadmen as the bible. rms is a large
volume known as Local No. /, con-
tanning a list of the published rates
of 1894. This is the last list fled with
the state railroad commission and IT
viii be claimed by the attorneys Tor
the state that any deviation from these
rates We're in reality violations OF
the law. II was shown that three
classified variations from the schedule
existed known as special class rates,
special commodity tariffs and special
rates to shippers.
The two centers of special disturb
ance yesterday We're the half rate
granted to a few large hardware frms
on shipments between San Francisco
and Los Angeles and the rebate av-
Newman, the local grain dealer, on
shipments between San Francisco and
points in the San Joaquin valley.
THE SPECIAL HALF RATE
Luce testified that a special half rate
had been given to the Pacific hardware
and steel company and Baker d Hamil-
ton because they had parent houses
in san Francisco and branches in Los
Angeles.
1T was to allow them to interchange
business" he testified, because they
did not have full stock in Los An
seles.
why did not the hardware firm Of Dunham,
carrigsn & Hayden get such half ratef' In
BE Becsuse they had no branch store in Los AD
-efes" replied Luce
The crane company has branch here and in
Los Angeles has II notg" asked Gushing
Yes SIR replied Luee.
did it get the bali rstes'
No. sir
why not1''
Because it is in a different line and doesn't
'aferchange business between here and Los An
w W. Montague & Co. in the same bust
1ess have a branch house in Los Angeles, have
5ey nOtg
Yes sir
DO they get the half rate7''
No sir. because they are IN the same situa
80 as Crane & Co, with full supply in both
sties and no interchange Of trade
- nsrenf honse with branch in Los Angeles
uh not full stock. enjoys q half rate while
isther company with branch IN Los Angeles
ith full stock pays a higher rate"
Yes that's correct" replied Luce, becauss
q other company doesn't need the rate anr
f.s.sn't wish IT, IL is by virtue Of the dissimi
.- conditions and circumstances
Doesn't the railroad, therefore, create what i
MS the .dissimilar conditions and circum
.-spces = - asked Gushing.
luce said that he didn't think 50.
IF Montague & Co. should ask you for hall
zte would you grant II - continued Gushing.
Yes against the competition" was
Ice's answer.
Then the fact that they were carrying a full
Store down there wouldn't make any difference
aid Gushing with an infection of hnality.
No / would give them the rate, replied
nee.
At this point Dunno hurried to as
eist the witness to free himself from
she tangle and made his declaration
about wasting time and shipping park
oranges to Los Angeles.
II was also brought out that Hol-
rock Merrill & Stetson were excluded
rom the half rate.
Turning to the San Joaquin valley
fates. Webb discovered that SimoT
Newman enjoyed an per cent rebate
on shipments from Wesley, Emerald
Newman and other points where h