The San Francisco call., 1909-01-19
RAILROAD BOARD
LEGISLATION URGED
Franklin X. Lane Declares COM
mission Should Be Vested
With More Authority
Arrives in San Francisco to
Conduct Hearing for Benefit
OF Aggrieyed Shippers

Franklin X. Lane, the California
member of the interstate commerce
commission, spoke strongly yesterday
IN favor of law giving the commits
sion the power to stay a proposed rate
Lane arrived yesterday morning to con-
duct hearing in San Francisco for
the benefit of aggrieved shippers and
! at once opened court in the postofice
building. He will hold sessions here
curing the entire week.
believe that we should be given
the power to stay rate" said Lane.
The commission now has only the
power of review after rate has taken
erect The railroad is entitled to a
reasonable return and the shipper is
ehtltled to a reasonable rate. In the
united States business is done on long
term contracts and this necessitates
some stability of rates.
Ihere is some doubt as to the DOW
ers or a court to restrain new rates.
This power should be lodged with the
commission. If the shippers object to
proposed rate the commission could
prevent It's operation until they passed
upon its reasonableness'
Lane denied with emphasis the state
ments emanating from the Pacific Mail
steamship officials that the rulings of
the interstate board had necessitated
the cancellation of their special ori-
entail rates
That's all pretense," declared the
commissioner. I'VE are merely carry
ing out the law in exercising our au-
thorlty over the rail portion Of the
land and water haul. 1t has been de-
MED by both Mr.. Hill and Mr. Hartman
that this had anything to do with the
railing off in the oriental trade This
shows that the whole thing has been a
subterfuge and a fabrication
All this talk about the Interstate
commerce commission killing the ORR
entail trade is pretext for subsidy.
The Pacific Mail, mind you, is agent
for its supposed rival, the Japanese
line, which is heavily subsidized
Despite predictions of Jim Hill to
the contrary" continued Lane, this has
not been such disastrous year for the
railroads. Their gross earnings for the
fiscal year 1908 were greater than for
any other year except 1907. The net
earnings showed an increase over 1904
and 1905 and decrease compared with
1906 and 1907. This was during year
In which nine months fell within the
span of the financial panic. Railroad
matters are in extremely good condi-
ton. Things are not yet at the high
D.
ing the benefit of the return of pros
perity."
Lane called as the first case that of
the California commercial association
against Wells Fargo. The company
asked for rehearing on the consoli-
dated shipment case, which had been
decided in favor of the shippers C.
w, Stockton, the New York attorney,
asked for an opportunity to argue be-
10 Tf11 CT
l. Brown on behalf of the association
contended that the case had been fully
presented The matter was taken un-
der advisement.
The case involving the same parties
was then called in which the shippers
ask for refund for overcharges. De-
cision in this matter will be rendered
after the main issue has been decided.
The case of the Zellerbach paper COM
pany against the Santa Fe, alleging
carload minimum charge on 10000
pounds on a car capable of holding only
$1,000 pounds, was held in allowance
upon the suggestion OF Lane that an at
tempt be made to adjust the matter
The Newton gum company and the
Franklin display company joined in
request for the classification of show
cases as furniture, which would reduce
the rate from SO to $2.20. The matter
was submitted.
The main Wells Fargo case will be
called today, when the California com
mercial associations protest against
the increase in rates will be heard. On
Wednesday the evidence will be pre-
sented in the switching case. In this
the railroads are charged with dis
eliminating against San Francisco and
other coast points in their charge of
$3.50 for switching cars to and from
industry tracks n