Los Angeles herald., 1909-10-30
TERMINAL RATE
CASE IS NOW UP
COMMISSION
SPECIAL EXAMINER GATHERS
ALL EVIDENCE
DISCRIMINATION SHOWN AGAINST
SAN PEDRO MERCHANTS
Freight Handled There and Hauled
Via Tehauntepec for Less Than
Between Detroit and Los
Angeles

FNi9SiSS
1t is now up to the interstate COM
merce commission to decide whether
San Pedro is to have terminal rates.
The decision probably will be handed
down after December 10, when the next
session of the commission will be held
for rate decisions. Briefs will be sub
mitted by the complainants the Har-
Dor City Wholesale Grocers associa-
tion, not later than November 10. Re-
ply briefs will be submitted by the de-
PENDANTS, the Southern Pacific and all
other transcontinental railroads, No
vember 25 Final reply briefs by the
complainants will be filed by Decem-
ber 5, after which the case will be
submitted to the commission. 1t may
be several months after that before
decision is made, but attorneys for
both sides of the controversy believe
the decision will not be long delayed.
The last testimony was taken yes
terday shortly before noon by Special
Examiner Lyons. There were half
dozen more witnesses to be examined,
but the examiner thought he had
gained all the information necessary
and so concluded the hearing, which
has been held in the supreme court
chambers in the Billiard block.
Attorneys for the Harbor City
Wholesale Grocers and for the Asso-
ciated Jobbers of Los Angeles, both of
whom are extremely interested In the
rate case, believe they have made such
a good case that the commission can
not we'll refuse the terminal rate. The
efforts of the attorneys were confined
largely to showing that San Pedro har-
Dor is a deep sea harbor and that 1t
does extensive traffic with many for
eign ports. Southern Pacific attorneys
attempted to show that the harbor is
not real harbor and that the busi-
ness done is not world wide, and that
therefore no terminal rate should be
granted.
Makes Telling Comparison
A. P. Fleming, secretary of the har-
Dor commission, made a statement
which shows the difference between
San Pedro and Oakland in the matter
of business done. He said that oak
land has but $50 feet of wharfage and
in 1908 did but $1,000 tons of business.
San Pedro has a wharfage OF l1,OO0
feet and did a total OF more than a
million tons business last year. Oak
land enjoys a terminal rate, but San
Pedro is without one. He claims that
the refusal of the Southern Pacific to
grant a terminal rate Is part OF
deep-laid plot to belittle Los Angeles
and its harbor in the eyes of the world
and to divert as far as possible all
business to San Francisco.
The Southern Pacific company is the
only road resisting the terminal rate
although all other roads are made de-
PENDANTS to the action. The Salt Lake
route has been a passive spectator in
the hearing The Santa Fe claims 1t
Is not interested, because 1t has only
a toint traffic agreement with the SAT-
Lake route between Los Angeles and
San Pedro. and therefore Is not bound
bv any rates in this particular case
made by the commission.
One of the interesting features OF the
hearing was brought out when state
ments were made showing that some
of the freight delivered at San Pedro
hv water originated at Detroit and
other points, some of 1t as far west
as Cedar Rapids, Iowa. This condi-
tion of affairs caused no little COM
ment among those in court and proved
to be one of the strongest arguments
SO far advanced for the granting of
water rates.
Discrimination Shown
H. "A. Jones, traffic manager for the
L
American Hawaiian Steamship com
pany carries freight to the Pacific
coast by way of the Atlantic steamers
and the Tehuantepec route. He said
that the greater portion of the business
of this steamship company originated
in New York
Another witness was placed on the
stand to tell where the merchandise
received at New York by the Ameri-
j.
mated, 1t was shown that freight was
hauled from Detroit and other inland
cities by rail to New York, then by
water to the Isthmus of Tehuantepec,
then by rail to the Pacific seaboard
and then by steamer to San Diego and
San Francisco. In other words, the
merchandise Travelled something like
1000 miles by rail and $500 miles by
water. The distance from Detroit to
Los Angeles is approximately 25oO
miles. The rate, explained Mr.. Jones.
for rail haul to San Pedro is more
than the water haul via Teuantepec.
although in the one instance the
freight is handled once and In the other
IL Is handled three times before 1t
reaches its destination. The apparent
discrimination against San Pedro
seemed to surprise Examiner Lyon.
who asked numerous questions in or
u6I W lll6 OhN NiiO ANAi - 49,
testimony.
Fred P. Gregson. traffic manager for
the Associated Jobbers, was one of the
principal witnesses at the hearing yes
terday He testified that San Diego.
Coronado Beach and National City
each had terminal rates. although Cor
onado Beach does practically no out
bound shipping and National City has
400 inhabitants and is supported solely
by lemon packing house. He also
explained that Berkeley has three ter
minal stations. each of which has been
granted terminal or water rates. He
explained that San Pedro. part of the
city of Los Angeles. should enjoy a
terminal rate like Los Angeles.
Mr.. Gregson said that the American
Hawaiian ships stop at San Diego
only because the Santa Fe has granted
a rate between San Diego and Los An
geles equal to the rate between San
Pedro and Los Angeles. This makes
1t possible for the American Hawaiian
company to deliver freight at San
Diego and have 1t hauled by railroad
1876 miles for the same rate that the
same freight could be delivered at
san Pedro and hauled by rail to Los
Angeles
s.ra c. T0a1.o 1,o.7 tapt,,fDaI rate -