Los Angeles herald., 1910-03-29
FOR EVIDENCE
S. P. RESORTS
TO MAGAZINES
Railroads Show Weakness
of Their Case Against
Fruit Growers
END HEARING TODAY
Reicing Charges Piled on,
Despite Instructions
to the Contrary
NNoUNcING that he vas "traffI

4 NNOUNCING that he was traffic
u statistician" for the Southern Pa
ciic Railroad company j. X. But
ler of San Francisco yesterday after
noon became amusingy entangled in
the network of cross-questions thrown
out for him by Joseph II. Call and
other attorneys for the California cit
rus fruit growers represented in the
present hearing before Interstate Com
merce Commissioners Charles A. Prou-
ty and Franklin K. Lane. sitting In the
state supreme court room In the Bull
lard block.
Mr.. Butler has been in attendance
at the hearing ever since 1t first be-
gan, and as he was known to carry
with him a suit case supposed to be
filled with important documents, 1t was
expected by the fruit growers he
would be the railroads star witness;
but attorneys for the citrus growers
effectually devitallzed any testimony
Mr.. Butler was expecting to give by
''cornering" him almost as soon as he
took the witness stand
Have you any actual connection
with the Southern Pacific Railroad
company" asked Attorney Call
Yes"
state your position"
81 am traffic statistician."
what are your duties?"
81 am employed to gather statistics
relative to the movement of cars, their
diversions, earning capacity, cost of
maintenance, repairs, requirements,
and"
81 see. Now tell us how you accumu-
late these statistics-from what
sources you compile them?"
"Well, l gather my data from pub
lished reports"
Gets Data from Magazines
From magazines, ct cetera?"
yes
but you have no actual connection
with the railroad?-your position Is
merely theoretical?"
mo, l get paid for my work"
But you have nothing to do with
the fixing of rates or the actual oper-
alton of the road?"
NO. sir
"Then what figures or information
you give us are largely hearsay? Your
testimony is not based on actual ex-
perience? You get 1t from magazines
and government reports?"
"Yes, sir" Then he added: "I al
ways verify magazine articles"
Mr.. Butler parried strenuously to
avoid this admission, and when it was
finally elected there was an uneasy
shifting among the railroad attorneys,
who evidently had hoped to pass Mr.
Butler off as a traffic expert.
From the moment it was disclosed
that Mr.. Butler has not been connected
with any railroad expect In the COM
piation of published data" the In
terest in his testimony dwindled con-
siderably. He was allowed, however,
to quote extensively from his suit case
full Of government reports and other
published statements" from which he
had tabulated a formidable array of
figures, and had drawn many theore-
tical conclusions, which the railroad
attorneys had hoped would prove valu-
able to them, but which in the light
of their true source became practically
undesirable.
Hearing Nearly Over
There is every indication that the
commerce commissioners will soon
complete the hearing of the citrus case,
and by this evening, or tomorrow noon,
unless the Santa Fe company changes
it's decision to rest its case on the
showing made by the Southern Pacific,
the last of the evidence should be in.
A decision. however, is not probable
for two or three months, although it
may be announced prior to the summer
vacation, which the commissioners will
take in June.
The case has in many respects been
one of the most important and compli-
Gated in the history of the federal
inquisitors. On the face of 1t there
would appear to be a simple conten-
tion involving merely an obviously un-
lust and arbitrary freight rate, which
threatens the citrus industry of Cali
fornia; but there are many complica-
tions arising from this simple condi-
tion. The railroads are aiming a death
blow at what is said to be one of the
greatest and most successful co-opera
tive enterprises I'm the United States.
mi t., xrJN
resents over 80 per cent of the citrus
output of California, is declared the
most successful organization of its
kind in existence, and through the pro-
cesses of wise cooperation has built
from the ruins OF an industry once
throttled and routed by discriminatory
tactics and competition a wonderfully
pow, full and mutually beneficent in
stitution, the cooperative forces which
have enhanced the value and improved
the quality of its products, broadened
the market, decreased the foreign COM
petition, encouraged and increased the
production, and insured the producers
protection and profit.
Death Blow Is Aimed
The railroads have aimed, however,
not only q death blow at this CO.
operative system of production and
distribution, but it is claimed they
nave dllllcu " tdhS IuN" VI 'tiS
improved conditions brought about by
the new cooperative plan.
Fruit growers maintain it is the am
bition of the railroads to compel the
growers to patronize the railroad pre-
cooling plants, and by imposing an
arbitrary charge of $50 on every car
load of fruit preceded by the grow
ers to force the growers to abandon
their plan of erecting more and better
e-cooling plants.
The introduction of the preceding
system undoubtedly has revolutionized
the citrus industry, and has made 1T
nossible for the growers to enter mar
kets previously undreamed of, to mar
LET their product in a better con-
dition and therefore to secure better
nrices and eliminate much competition
The railroads, it is claimed. want to
derive the great benefit to be secured
from these changed conditions. They