The San Francisco call., 1909-01-20
EXPRESS PROFIT
OF 200 PER
CENT SHOWN
Wells Fargo Attorney Pleads
Poverty Until Figures Are
Produced
Hearing of Shippers Complaint
Against Unreasonable Rates
Begins
Commissioner Lane Orders Com
pany to Produce Data of
Earnings

The light was turned on Wells
Fargo & Co. yesterday at the hearing
before Commissioner Lane. and the ex-
press corporation squirmed. Its off,
cials suffered lapses OF memory that
would have done credit to John d.
Rockefeller or the similarly initiated
Mr.. Archbold. While they gazed cell
ingward with vacant stare the com
pany's attorney, Charles W. Stockton
Of New York. pleaded in softly modu
lated tones a poverty more impressive
than even Spring Valley could assume
So small were the profits, argued
stockton, that the company could not
afford TO keep a full set of books. At
the same time the attorneys for the
opposition offered in evidence a inan-
cisl statement showing profits for the
company of 200 per cent and re-
serve fund OF $4,000 600
The conflicting evidence of opulence
and want continued through the entire
hearing. When a persistent request
was made for the vital records of the
corporation Stockton withdrew the
veil and revealed his client, beggar
in disguise.
we don't make up any Of these or
namental statistics" declared the at
torney. If we should make up these
per package. per yard statistics like
the railroads we'd use up all our
profits in book keeping. Why" he con-
tinued. we don't make a postage stamp
on each package We handle. Our profit
per package is estimated at only l-1o
Of ! cent a parcel If we kept these
statistics we'd completely wipe out our
profits.
DISPENSER OF CHARITY
Despite the dismal financial picture
that Stockton painted he declared that
instead Of treating the merchants of
san Francisco unjustly his company
had dispensed charity 10 them. He
asserted that il had carried great guam
titles Of freight without cost at the
time Of the disaster The attorney had
begun TO describe the benevolence OF
the corporation in its dealings With
the government at that time, but IL
developed that the United States had
paid SIS per 100 pounds on IS cars Of
matter rushed 10 San Francisco during
the weeks following the fire. Lane
suggesi cd that the rate had been based
on the theory Of "all the traffic will
bear
A. Christeson, the vice president and
Pacific coast manager of the company,
and r. F. Honn, the city superintendent
were reluctant witnesses until taken ia
hand by their own attorney. when they
experienced sudden occurrences of
memory. when questioned by Attor-
ney J. j. Brown. representing the ship
pers. they expressed ignorance of the
general subject Of rates, were unable
TO recall any shipments pertinent to the
hearing and knew nothing Of the COM
pany's affairs. Their disinclination TO
furnish the shippers with any informa-
ton was so obvious that Lane was
forced TO take up the questioning him
self
Tt required nearly two hours TO OBJ
tain from the officials the simple state
ment that figures We're available show
ing the business done in San Francisco
month by month. II was over the Wig
orous objections OF Attorney stockton.
who complained Of the time and the
cost Of such computation, that the
commission secured a promise that they
would submit the desired data.
RATES COMPLAINED OF
The case was brought by the Cali
fornia Commercial association, an or
ganization OF San Francisco merchants,
who complained that the rates. as modi-
fed in October and November Of last
year. were unreasonable. Attorneys
Brown and Nogelsang appeared for the
shippers and Stockton and +. s. Pills
bury for WELSH Fargo The Merchants
and Manufacturers association Of Los
Angeles intervened and through its at
torneys. Edward c. Kuster and Joseph
Loeb. Joined with the local shippers.
II appears that on August /, 1906,
Wells-Fargo put into effect a number
Of bulk rates as follows:
500 pounds and less than 1000 pounds,
y cents per cwt
1000 pounds and less than 1000
pounds. IT cents per cwt.
1000 pounds and less than 5000
pounds. j o cents per cwt.
5000 pounds and less than 10000
pounds. cents per cwt.
10000 pounds and less than 10000
pounds. s cents per cwt.
10000 pounds and over, cents per
cwt.
on October %. 1903. these rates were
Cancelled and all but bulk shipments
were placed on the basis Of l3h cents
per 100 pounds. On December II an
other modification was made by which
500 pound shipments were restored to
the ~ cent basis and all shipments of
J 600 pounds or over were scheduled at
IL cents per 100 pounds
IL IS against these rates that the
shippers have protested, asking for the
restoration Of the bulk shipment fig
ures.
The shippers OF San Francisco had
been in the habit Of combining in or
der 70 obtain the bulk rate. When the
company endeavored through the in
terstatR commerce commission TO pre-
vent this consolidation Of shipments ii
failed. and thereupon withdrew the spe-
cial bulk rates over 1000 pounds
The shippers called as witnesses at
the morning session were r. b. Car
penter Of Hale Brothers, w. ]. Newman
Of Newman & Levinson and S l. Les
zynsky Ala declared that the rates
were too high and that the lower
schedule had enabled them to supply
goods at less cost to the consumers
The first witness in the afternoon
was +. Z. HOnn, the city superintendent
Of the company.
We would like to have a copy of
your report to your New York ONCE
for I9oS,' said Brown.
BIG REPORT
That is comprised Of some 5000
sheets and would require a great deal
OF time to copy" replied the witness
Brown then asked for list Of the