Los Angeles herald., 1909-11-23

and that the railroads, in attempting
to put into effect the increased rate
of is cents a hundred pounds, have
failed to keep their part of the con-
tract.
The lemon growers contended that
the proposed increased rate is an un-
just one and that they would not be
able to raise lemons at a profit and
compete with foreign lemons, the duty
of which had been advanced only one
half cent a pound, which they main
tanned was done by the government
taking as a basis the present freight
rate. Now, they say, if the proposed
rate should be allowed to go into ef-
feet the foreign lemons would have
an advantage over native grown fruit
and practically kill the citrus fruit
industry in Southern California.
Courts Jurisdiction Questioned
The railroads were represented by
j. w. Mckinley for the Southern Pa
cific. I. j. Norton of Chicago for the
Santa Fe and A. S. Halstead for the
Salt Lake Their first move was to
question the jurisdiction of the United
States circuit court of this district to
try the case. To bear out this conten-
ion Attorney Norton stated that the
Joint tariff which makes the lemon
rate is a contract between the roads
here and their eastern connections;
that the eastern connections are not
before the court and are not parties
to the injunction proceedings, and that
the court cannot abrogate a contract
where some of the parties to it are not
under its jurisdiction
Attorney Call for the citrus growers
| contended that the present rate is the
contract and the proposed rate is not,
and the injunction is asked to prevent
the defendant railroads from entering
into such contract.
After some argument on this point,
the judge decided that the circuit
court here has jurisdiction of the case
and then the trial of the application
on it's merits began in the afternoon.
Answer Is Volumnous
Counsel for the railroads read vol
luminous answer as to why they should
not be enjoined from putting into eff
feet the proposed rate of $1.15 and pro-
duced numerous affidavits regarding
the prices of lemons when the fruit
was sold at auction and at private
sales in the eastern markets. In some
cases, the affidavits asserted, an aver
age of more than s4 box was OBJ
tanned at these auction sales.
The attorneys for the railroads con-
tended that there is but little compe-
tition with foreign grown fruits in
markets west of Pittsburg and that
about 60 per cent of the imported lem
ons are sold in New York.
1t also was shown that the citrus
growers issued a circular to persons
engaged in producing citrus fruits,
calling their attention to the proposed
increase in rates on lemons, and men,
toned the fact that those who would
not join in the injunction proceedings
need Dot exDect assistance.
After the arguments were closed
Judge Morrow carefully reviewed the
case and stated that, If the rate was
allowed to go into effect. the shippers
could collect the difference in the pres
ent and proposed rate as the railroad
companies are solvent, but this would
not repair the damage in the case of
citrus growers who would allow their
orchards to go into decay.
Citrus Growers Win
He spoke of the duty on lemons, of
the transportation charges, such as
icing, ETC., and then stated the mat
ter was in favor of the citrus growers
and ordered that there be granted an
injunction restraining the railroad
companies from putting into effect the
proposed increased rate.
He also ordered that the fruit grow
ers furnish a bond of S250,OOO and,
when asked by counsel for the rail-
roads as to whether the injunction
| prevailed in the case of those growers
who We're not a party to the suit, re-
piled that it did, but those growers
would have to take the matter up with
the citrus men who brought the ac-
tion, and arrange matters concerning
the bond.
The counsel for the railroads entered
exceptions to the rulings and an appeal
was mentioned
The rate matter will be taken be-
fore the interstate commerce commits
sion, which will pass on the proposed
/ inpraa spd rate