Los Angeles herald., 1909-09-25
RAILROAD FIXES
ARBITRARY RATE
KRUTTSCHNITT C0NFESSES
DISCRIMINATION
UNION PACIFIC GETS SPECIAL
PRICE ON COAL
Vice President of Hartman Lines
Makes Startling Admissions
at Hearing in Salt
Lake City
rRv Associated Press. ]

SALT LAKE CITY, Utah, Sept. "a.
Masses of typewriter data embody-
ing tables of rates, local and trans
continental, estimates of the cost of
operation and various other items of
a purely technical nature, figured to-
day in the hearing before the inter-
state commerce commission Of the rate
case instituted by the traffic bureau Of
the Salt Lake Commercial club.
Julius Kruttschnitt, Vice-president
of the Hartman Pacific lines and di-
rector Of maintenance and operation,
who thus far has been the chief wit
ness for the railroads, startled the
commission during his testimony to-
day with the statement that the Union
Pacific Coal company, a SUBSIDIARY OF
the Union Pacific Railroad company,
had fixed the price of coal arbitrarily,
giving the railroad company lower
rate than that charged to the public
This practice of the coal company
Mr.. KruttsChnitt characterized as
reprehensible. He declared that he
would make It his business to have
the condition remedied.
Identifies Exhibits
Before leaving the stand Mr.. Krutt-
schnitt Identified various exhibits
which were submitted by the railroads
Yesterday as part of their defense.
Kruttschnitt has thus far borne all
of the burden of disproving, If possl-
Bile. the contention that Salt Lake City
and Utah shippers are being unfairly
treated by the railroads serving TINS
territory, as alleged by the traffic bu-
reau of the Commercial club Of salt
Lake City.
MIR Kruttschnitt occupied the wit
ness box during the entire morning
session of the interstate commerce
commission. ----
"Rates cannot be reduced because Of
MANY reasons" he said. "Taxes have
Increased enormously-from so per
cent to rs per cent on some lines. IN
many states the statutes prohibit run
ming trains of greater than given
number of cars without additional
crews. In other states men must not
work more than a given number or
hours a day. Many other government
and state rulings must be observed.
Expenses Increase
These add to the cost of operation.
Operating expenses are going stead
ily upward. They must continue to
increase under present conditions"
The earnings per train per mile had
increased so per cent, while the eX-
pense per train per mile increased 6S
per cent per train mile, he said.
Density of traffic increased ia per
cent.
Commissioner Prouty asked Mr..
Kruttschnitt to file a supplemental
statement covering n classification of
main lines and branch lines of the
Union Pacific system in order that a
clearer understanding might be had Of
the statements relating to the various
lines.
He was asked also to file a state
ment showing the source of money ex-
pended in improvement on the Union
Pacific, Oregon Short Line and Ore
gon Railroad & Navigation, showing
what proportion came from the sale Of
stock, the sale of bonds and from op-
Grating profits.
The commission requested a table
showing the plan Of reorganization.
=. NJ. Stephens, representing the
Spokane petitioners, took over the
cross-examination of Mr.. Kruttschnitt.