Los Angeles herald., 1909-01-14
LANE COMES TO
HEAR CHARGES
COMMISSIONER WILL LISTEN
TO LOCAL COMPLAINTS
ASSOCIATED JoBBERS FIGURE IN
ONE CASE
National Lumber Company Declares
Rate Imposed for Goods Shipped
from San Pedro Was
Discriminatory

Interstate Commerce Commissioner
Franklin K. Lane arrived in Los Ange-
les last night, and this morning will be-
gin the hearing Of two local complaints
against the California railroads. Mr..
Lane comes direct from Washington,
where he his been sitting with the
commission, hearing complaints. He is
stopping at the Alexandria He ex-
poets to finish the local hearing in
three days, and will then proceed to
San Francisco, his native city, where
seven railroad rate complaints are
awaiting him.
The hearing in Los Angeles will be-
gin at 10 O'Clock in the Tajo building.
For some time Mr.. Lane has been re-
Ceiving urgent kilograms and letters
from shippers on this coast, urging him
to consider the matter of switching
charges made by California roads. The
specific case which he will take up to-
day is that of the Associated Jobbers,
who complain that the charge of $3.50
for switching each car from the main
line to a switch is illegal and discrim-
inatory, as it is not charged in other
portions of the United States, notably
in the large cities Of the east and mid
die west
The second complaint is that of the
National Lumber company of San Pc
dro against the San Pedro & Salt Lake
railroad. The plaintiff in this case al
leges that a rebate Of S771 was exacted
from it for goods shipped from San
Pedro to Nevada points, the extra
charge being made for 'yarding and
transit" This payment, it is claimed,
was made in addition to the regular
through rate, and was discriminatory.
Mr.. Lane spoke in an interesting
manner concerning the work of the
commission and told Of needed changes.
1--WE are purely a reviewing body" said
Mr.. Lane, 'and pass only on the rea-
sonableness of rates. We cannot change
rates. If we find on investigation that
a rate is unreasonable we ask that it
be reduced. Then the railroad may
get an injunction to prevent us from
making the proposed reduction. We
can then take the matter before mas
ter of chancery. Testimony on both
sides is introduced, and proceedings
may drag on for ten months or a year.
Then a decision may be reached after a
year and a half. The railroads have
the right to appeal. In this clumsy
process the discussion may drag out for
four or five years.
eve have asked congress to enlarge
our powers so that we may have au-
thority to stay rate. In this way we
would exercise the power of a court OF
equity and could bring shippers ade-
uuate and immediate relief. At present
we are merely an advisory and review
inb body.
"In the Abiline cotton oil case the
supreme court decided our commission
must pass on the reasonableness of the
rates. Before going to the courts the
shippers must first apply to the inter
state commerce commission. Consonant
with this decision we should have the
to mt fT1iv
or, to use the technical term, stay an
increase
cit is true we can award damages for
an overcharge while a decision is pend
ing, if it is decided favorably to u.s. But
this matter of damages is not equitable
and is unsatisfactory. The shipper
sells the goods on the basis of the in
creased rates. The consumer pays the
advanced price caused by the increase
in rates. The damage goes to the ship
per alone and not to the consumers who
pay for the increase. What we need
are reasonable rates and not damages"
Hearing Is Preliminary
The hearing before Commissioner
Lane will be in a sense only prelimi-
nary. The parties will be given
chance for oral argument before the
full commission in Washington. If they
desire to file briefs these will be con-
sidered the first two weeks in March.
The commission sits as a whole for
the hearing of complaints the first two
weeks in each month. The rest of the
time the commissioners pass travelling
about the country, hearing specific
charges. The work of the commission
has increased to such an extent during
the past few years that seven special
miners are employed to travel about
the country hearing cases.
1.-THE country seems to be taking an
interest in the work Of the commits
Sion," said Mr.. Lane, in response to the
query as to the work of the commits
sion. ''The commission has been estab-
hshed twenty-five years. During the
first period of its existence about thirty
complaints year were filed with If
Now we have more than that number
each month. We now have 500 cases
pending investigation
The Southern Pacific, Salt Lake and
the Santa Fe roads are involved in fine
complaints filed by the jobbers. These
railroads are evidently preparing to put
up a strenuous resistance to charges of
discrimination. During the past few
days railroad officials from many points
in California, accompanied by the rail-
road attorneys, have been arriving in
Los Angeles.
Among the traffic men who have ar
rived during the present week to take
part in the hearing before Commits
sioner Lane are the following: Edward
Chambers, freight traffic manager for
the Santa Fe coast lines. w. G. Barn
well, general freight agent of the Santa
Fe, resides here, as does also F. A.
Wann, traffic manager for the Salt
Lake.
Representing the Southern Pacific, H.
II: Jones, freight traffic manager; G..
w. Luce. general frpicrbf
2. F. Dunno, general attorney, are here
from San Francisco.