Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-04-09
SAN PEDRO ROAD
WILL BE PROBED
RAILWAY C0MISSI0N TO SIFT
CHARGES
SANTA FEE CASE SET ASIDE FOR
TODAY
Latter Company Admits 1t Gave Near
ly $4,000 in Refunds to Associ-
ated Oil company-other
Surprises Sprung


vestigated today on the charge Of al
legged discrimination in rates by the
state railroad commission, meeting in
the chamber of commerce building.
The commission will begin its ses-
sions today at 10 o'clock. Tomorrow
the Santa Fe hearing will be continued
again, starting at $50 o'clock and
picking up the case where it was left
off yesterday.
Among the surprises of yesterday
hearing was the admission of the Santa
Fe company that it gave almost $3S,OOo
in refunds to the Associated Oil com
pany last summer.
Edward Chambers, assistant freight
traffic manager of the Santa Fe, and
w. G.. Barnwell, general freight agent
| for the California lines of the santa
Fe were the principal witnesses yes
| terday.
| Attorney General Webb and Assist
ant Attorney General Benjamin ques-
toned these witnesses closely and op-
| tanned the story of the deal and of the
famous letter of the freight traffic
manager authorizing the refunding Of
this large sum, which figured in the
message of President Roosevelt t
congress in January last.
Refund In Oil
I The refund was paid last summer
| but it was On freight paid for ship
| ments of oil in 1905.
| There was more than one payment
Before June 10, 1907, $7239 had been PAID
back to the Associated Oil by the rail-
road.
On that date a refund of $780, $50. Is
was paid to the Associated Oil by the
Santa Fe.
The story of the discrimination in IA
| vor of Associated Oil was obtained
from the two Santa Fe officials by the
| commissions legal representatives,
while many railroad men of both the
Santa Fe and the Salt Lake were inter-
ested auditors.
| At the morning session Assistant
| Freight Traffic Manager Chambers dls-
| closed the fact that it was President
| Ripley's refusal to keen the special rate
secret that finally led it to be made
| public.
In the afternoon General Freight
| Agent Barnwell of the California lines
| told how the Associated enjoyed the
special rate of rs cents, while other
| companies paid the regulation tarlft OF
! 1913 cents.
Says HeaIy Wouldn't
Barnwell claimed that Auditor J. w.
Healy of the Santa Fe, through whose
hands all such transactions must pass,
would never have consented to any
such transaction. This, the prosecution
| Claims he did do, however.
Late in the afternoon Barnwell in
| formed the commission and Attorney
| General Webb that he would see to IL
| they were supplied with complete
| list of rates used by the Santa Fe ROAD,
| the commission having but most in
| fc@ Of fac a nrpSanf
81 understand this is a great under
| taking" said Barnwell, land 1 will see
| that you get that list of rates as quick
~ as possible and will expedite matters
| as much as l can"
This will save the commission
great deal of unnecessary work.
! The afternoon session proved by the
| testimony taken that the Associated
Oil had paid for shipments on freight
at the rate of rs cents a barrel on fuel
| oil, from Bakerf1eld to San Francisco,
| the published rate being S7.S cents; the
Union Oil, May and Del Rey oil COM
panies paying the full rate at the same
| time.
Hence the discrimination was pointed
out by Attorney General Webb as a
most fragrant one.
Porter Wanted Secrecy
| 1t was General Manager Porter OF
| the Associated Oil who wished this
| special rate kept secret, while Presi-
| dent Ripley of the Santa Fe, according
to Assistant Freight Traffic Manager
Chambers, refused to comply with that
| policy and the rate was abolished later.
Mr.. Chambers told of General Man
ager Porter of the Associated calling
on him in November 1905. Together
they discussed the fuel oil rate from
| RalxprSfpld IN San Francisco.
| Chambers told Porter he could have
a rate of 25 cents barrel, the rate to
be made whenever lie was ready to
ship
1t was understood that the Associated
was to give the railroad a certain
amount of business at that rate. How
ever, according to the witness, in Feb
ruary of that year Porter came to MN
| and presented Claims on number OF
shipments in January on the basis of
the 1913 cents tariff and asked that
they be refunded to 20 cents.
II asked him why he had not come
| to me and told me the contract to fur
nish our company fuel oil had been
closed" said Chambers. HE said he
understood the rate was not to be pub
lished. / said / didn't know that was
/ the plan and that l would make in
quiry.
Confers with Ripley
so / saw Mr.. Ripley shortly after
ward at Santa Barbara. 1 knew Mr..
Porter had consulted with him before.
But Mr.. Ripley told me he had no such
understanding as Mr. Porter claimed
and he would not consent to the rate
unless 1t were published.
! 80 I told Mr.. Porter the result of
that conversation and had already sent
to the auditor the authorization to pro-
tect the rate on shipments made al
4 ready.
when I saw Mr.. Porter he said he
j did not want to have The rate pub
! lished and that our contract would have
| to be Cancelled.
The witness then told of the fact
that the entire matter was overlooked
for a time after the coming of the
san Francisco earthquake So when
IL finally came to the notice of the Of
ficials again President Ripley of the
| Santa Fe was in the east and General
! Manager Wells of that road took the
matter up with him,
President Ripley again refused TO
| nave the rate used unless published.
i Mr. Porter of the Associated Oil