Los Angeles herald., 1909-10-14
SEEK TO PROVE
DISCRIMINATION
PORTLAND PRESENTS CASE AT
RATE HEARING
MERCHANTS GIVE EVIDENCE IN
SUPPORT OF CLAIMS
Oregon Railroad G. Navigation Conn
pany Also Offers Witnesses in
Rebutta of Allegations
of compIainants
tRx Associated Press. !


PORTLAND, Ore, Oct. 13.-When
the interstate commerce commission
resumed it's hearings of the Portland
chamber of commerce today counsel
Tor portland had another array OF
witnesses on hand by whom 1t was
sought to show that Portland and
other Pacific coast cities were being
unjustly Disseminated against by the
railroads and that Portland's distrlb-
utive territory had been gradually cur
tailed until there was left but trac-
ton of the area of former days.
When the session opened today 1t
was the expectation that the introduce
tion of oral testimony in the Portland
case would be concluded by tonight.
In this event Thursday and part
of Friday, if necessary, would be de-
voted to listening to testimony in in
dlvlduaI cases In which discr1mina-
coast was alleged.
Witnesses Examined
H. A. Conner, manager of Port
land syrup company; E. H. Parker,
traffic manager for a wholesale hard
manufacturer, and A. C. Talent, man
ufacturer of steel and hardware, tes-
titled that Portland's distributive area
had undergone constant reductions
during the last ten years.
Henry Hahn testified that he was
for a long time chairman of the trans
porJation committee of the Portland
chamber of commerce and had nego-
ttated repeatedly with the railroads
regarding the rates. He said rates
had been satisfactory up to 1898, when
after the appointment of a receiver
for the Union Pacific they were re-
adjusted so as to construct a stone
wall at the eastern boundary line of
oregon.
The Oregon Railroad & Navigation
company began today the introduction
of oral testimony intended to rebut
the allegations Of the complainants.
Trade Field Smaller
Five business men testified before
the commission that twenty years ago
Portland jobbers were able to sell
their goods as far east as Pocatello,
Idaho, and that year by year they
have seen parts of that distributive
territory Topped off by unfavorable
rates until today Portland'J whole
sale area Is but a fraction of it's pre-
vious extent
They testified that barrier had been
arbitrarily erected at the Oregon
boundary line past which they must
not go and that in some of the terri
absorb part of the freight charges in
order to meet competition from the
east.
Henry Hahn, for several years head
Of the transportation committee of the
Portland chamber of commerce, went
at great length into the history of
rate making in the Pacific northwest.
He said that Portland never had any
trouble with its rates 10 interior points
until ciytapT1 itIcf q flor
Union Pacific railroad went into the
hands of a receiver. Suddenly war
was declared, the distributive rates
from Portland east were readjusted.
Idaho Walled Off
Idaho was walled off and other
parts of its territory were redistricted
in such a manner as to handicap
Portland jobbers. All of Portland's S
witnesses declared eastern made
goods now meet them on an even
footing as far west as Boise Idaho.
Baker City, Oregon, and Spokane,
Wash.
This afternoon the railroads began
the presentation of their case.
w. w. Cotter, chief counsel for the
railroad prefaced the introduction of
testimony by stating that his railroad
intended to prove that it is earning
only reasonable profit on the amount
of capital invested.
He declared that assuming that
business got back to normal condi-
tions this year, as he expected it to-
and in view of prospective reductions
in freight rates, the net earnings Of
the railroad for the year would be
about 100000 or less than per cent
on the invested capital and under 5
per cent on the present valuation.
Counsel then introduced as his first
witness J. B. Pope, a civil engineer
of San Francisco. Mr.. Pope testified
that figures prepared by him showed
900, 900 and that at present he esti-
mated it would cost about $50, ,000, 900
to rebuild it.