Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-01-16
MAKE CHARGES
BECAUSE WE CAN,
RAILROADS. PLEA
LOS ANGELES WILLING TO PAY,
SAYS OFFICIAL
RATES CAN'T BE COLLECTED IN
OTHER CITIES
Interstate Commerce Commissioner
Lane Orders That More Informa-
ton as to Switching Rates
Be Produced

Hearing on switching charges on the
complaint from the Associated JobberS
of Los Angeles before the interstate
commerce commission yesterday de-
veloped an exceedingly frank witness
in H. A. Jones of San Francisco, freight
traffic manager of the Southern Pa
cific. Following a number of queries
put by Commissioner Franklin K.
Lane, relating to the reason for the
local switching charge of $2.50 COM
planned Of Mr.. Lane said:
az think [ understand your theory"
sect all you can out of it, supple
mented Mr.. Jones.
Certainly said the commissioner
to which the railroad expert added
very definite YES"
Mr. Jones said while on the witness
stand that the switching charge at
Los Angeles was possible because the
competition of water rates made low
terminal charges permitting the switch
ing rate, and he believed it a reasonable
one and a charge which should be made
in all eastern cities.
Il think there should be system of
that kind adopted everywhere" he
said. 1--WE are charging simply what
we can get out of it as drayage
charge. The service is worth more
than we charge. Water rates make
rates lower on the Pacific coast, hence
we can get it here, but it should pre-
vail generally
Say Charge Is Not Excessive
Evidence was introduced through
John r. Hitchcock, division superin-
tendent of the Santa Fe, and Thomas
w. Pate, freight agent of the same
road, with the intention Of showing
that the railroads are not making an
excessive charge of delivery of cars
on industry tracks. Another witness
whose testimony was on the same line
was Frederick A. Wann, general traf-
fic manager of the Salt Lake route.
Mr.. Wann said that competition Of
years had eliminated the switching
charge in eastern cities, but that COM
petition, while energetic in Los An
geles, is not as strong as in the east.
In contradiction to the railroad at
titude Secretary F. P. Gregson of the
Associated Jobbers of Los AngeltS and
J. D. Steele, special agent of that body,
gave expert testimony regarding rates.
Mr.. Gregson directed attention to the
seriousness of rates locally because of
the rapid and continuing growth of
Los Angeles.
"Ten years ago. said Mr.. Gregson,
''Los Angeles had, say, twenty-five or
thirty industries located on railroads
about like Pasadena today. Now Los
Angeles has 400 such concerns, and its
future growth will be in proportion.
Present facilities must be doubled
within five years. This commercial
progress, 1 think, is greater than any
other city in the United States.
mo commercial center can survive,
much less progress, without these in
dustrial tracks. They are an abso-
lutte necessity and a benefit mutually
to the shipper and the railroad"
illustrates with Map
Mr.. Steele illustrated his testimony
by use of a map twenty-eight feet long
and five feet wide, showing the spurs
and switch tracks of the railroads in
side the city limits. Mr.. Steele'S eX-
PLANTATION was designed to prove that
the railroads find it no more difficult
to deliver cars to industry tracks than
on team tracks where no switching
charge is maintained.
j. B. Alexander, manager of the
Spreckels interests in Los Angeles, was
a witness at the morning session yes
terday The Observation-Disclosures line,
the Spreckels steamship company, pur-
chased the old Santa Fe freight house
to make Los Angeles freight deliv-
cries on shipments via the Tehuantepec
route and San Diego, and Mr.. Alex
der testified that when the purchase
was made in 1900 it was agreed that
the railroad should receive $1.25 for
each loaded car switched less than two
miles and $3.50 when switched more
than two miles.
At last nights session most of the
time was consumed in an attempt to
prove the expense of switching by the
Los Angeles roads and from the fig
ures obtained to show on behalf of the
compliments that the expense of
sporting" cars on industry tracks
does not justify the $3.50 charge. Fig
ures presented by the Santa Fe were
introduced to show that the total cost
of switching in Los Angeles by that
road in the year ending August 81,
1908, was $163,278.41. Of this amount
$13.S36.67 was figured as the cost of
team track work, and to obtain the
total team track cost $1,663.27 was ad-
ded for maintenance and $514.50 for in
terest, making the aggregate team
track cost $16,01444. AS 1884 cars
were switched for team track service
the cost per car was figured at $1.67.
Must Give More information
The railroads were directed to pro-
duce before Commissioner Lane at this
mornings hearing considerable addi-
tional information to show the cost
OF switching service In Los Angeles on
the three roads, a comparative detail
of team and industry track service and
a statement of realty and other asso-
ciated earnings having a bearing upon
switching costs.
Among the witnesses today the AS
ISOLATED Jobbers will produce business
men to prove that cities competing for
business with Los Angeles are favored
in not having imposed the switching
charge of $780,
The question of realty leases will be
taken up this morning. 1t was touched
upon last night in the examination
of John R. Hayden of San Francisco
industrial agent for the Santa Fe, who
was formerly located at Los Angeles
Mr.. Hayden testified that the Santa
Fe has 165 industries located along its
line in Los Angeles and served bv
spur tracks. He said that in cases
where they occupied land leased from
the railroad, of which there are twenty
five or thirty cases, the present rule
is to obtain a return if possible of
per cent on the valuation. He was
asked to present today list of leases
with a statement of income derived
from them.
Commissioner Lane desires to close
the hearing today and informed the at
torneys that he would hold if ali