Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-01-15
HEARING ON COMPLAINTS BEGUN
BY COMMISSIONER
Franklin X. Lane, Representing Inter-
state Commerce Board, lnvesti-
gates Accusations Against
Companies

is imposed, according to F. P.
Gregson, secretary of the Asso-
ciated Jobbers of Los Angeles
and principal witness at the in
terstate commerce commission
hearing yesterday.
The hearing was begun before Com
missioner Franklin K. Lane yesterday
morning in the supreme court room at
the Billiard block. 1t will probably
continue until tomorrow noon, al
though Mr.. Lane urged the attorneys
to expedite taking of testimony as
much as possible.
Most of the testimony so far intro
duced has been given by Mr.. Gregson,
but the state of his health made it i'm
possible for him to occupy the witness
stand except at intervals, sandwiched
by the examination of other wit
nesses.
After relating his experience suffi-
GENTLY to prove him an expert traf-
fic man, Mr.. Gregson gave a summary
of railroad history following the adj
vent of the Santa Fe and its construc-
ton of a harbor line, tending to show
that at first the competitive roads
made no switching charge, but that an
agreement establishing such a charge
was made in 1891 which, however, was
not made uniform until 1905. Even at
that time special concessions were
made to several large shippers.
No Basis for Charge
'No basis exists for this additional
switching charge at Los Angeles
said Mr. Gregson in his testimony.
There is no such thing as free switch
ing-the switching rate is included or
absorbed in the freight rates. But this
charge of $3.50 a car imposed at Los
Angeles is above the regular switching
rates, and is not a policy followed in
handling freight in eastern cities.
Locally there is no service or pc
culiar conditions to justify imposing
this charge. Physical conditions in
Los Angeles are ideal. There are
practically no grades, no tolls to pay
and even the gatemen who must be
employed are there for service on the
main line trains. Most of the switch
ing tracks are practically on the main
line. All present difficulties as to
tracks running through alleys and back
ways were sought by the railroads
themselves
The railroads denied that the spur
tracks were of any special value, but
Mr. Gregson said that he estimated
them to represent an improvement
valued at least at S3,000,000, title to
which is in the railroads, or in other
words representing $150,000 saved to
the railroads. He testified that in some
instances the charge of $3.50 was not
imposed because of necessity for com
petition, one being five miles from the
car distributing point, although the
regular charge complained of exists at
the latter place.
Many Witnesses Heard
Other witnesses examined yesterday
were William H. Joyce, secretary Of
the Globe Milling company; Herman
Levi, secretary of the Capital Milling
company; Charles Wier, a lumber
broker: E. A. Benjamin, assistant
manager of the Cudahy Packing COM
pany, and Maynard McFie, manager Of
the w. T. McFie Supply company.
Most of the testimony was intended to
show on behalf of the compliments
that the switching charge of $3.50 a
| car exists, that the service tracks are
valuable and are owned by the rail-
roads, and that the situation is an I'M
reasonable one for shippers.
| Mr. Joyce said that nillers Of Los
! Angeles shipped in wheat and paid
the switching charge, which also at
! tached to outward shipments of flour.
making S. a car, which eastern millers
! did not pay in marketing their prod
ucts in this territory. He said that
| the charge is not imposed in Pasadena,
making a discrimination in that regard
against Los Angeles.
MIR. Wier said that the railroads, if
they were deprived of the industry
! tracks, could not handle one-third of
! the lumber business.
| AooOrdinor Mr. Rent direct
delivery Of cars on which the Cudahy
/ Packing company pays $3.50 each for
switching, takes twenty to thirty min
utes from the distributing point.
Jobbers Represented
The attorneys for the Associated
Jobbers of Los Angeles are Edward @.
Kuster and Joseph P. Loeb. Repre-
sentatives of the defendant roads are
! e w. Camp for the Santa Fe, P F.
Dunno for the Southern Pacific and A.
l.. Halstead and w. r. Kelly for the
Salt Lake. AS a similar hearing will
be conducted at San Francisco repre-
| sentatives of interests in that city are
here to watch the progress made. The
Pacific Coast Jobbers and Manufac-
| turers' association is represented by
Seth Mann, the Pacific Hardware and
Steel company by it's traffic manager,
J. w. Chapman, and Baker & Hamil-
ton by Joseph A. Keller.
Prior to the opening of the hearing
on switching charges the complaint of
the National Lumber company against
the Salt Lake railroad, on an agreed
statement en- an interim charge on
yardage in transit made by the rail-
road between the taking EFFECT of the
Hepburn law and republication of the
rate allowing this privilege. The rail-
road is willing to refund the excess if
the Interstate commerce commission
will say that this can be done without
constituting it as a rebate, and will do
this for all shippers affected. In the
case of the National Lumber company
the excess amounts to $771.31, and this
has been made a test case to obtain a
ruling Commissioner Lane ordered
a brief filed before the commission set
| ting forth the agreed facts and the
i e,