The San Francisco call., 1910-12-25

subject matter.7-Nilnam X wheeler.
A decision. amazing in its line of
argument and reading as though its
leading thought were dictated by the
Southern Pacific. was rendered by the
state board OF railroad commissioners
yesterday. presuming to take from San
Francisco and TO turn over to Los An
geles the trade OF the lower San
Joaquin valley. BY an unprecedented
course OF reasoning the board held
that the rates from Los Angeles north
were unreasonably high in comparison
with the rates from San Francisco
south.
BY q coincidence so striking as to
suggest more than coincidence. the
board ordered the Los Angeles rates
reduced 10 the exact figures that the
rsilrosd endeavored to put into force
IN 1907, so that Los Angeles might be
given the business, for which San
Francisco at that time. wrecked from
IRE and earthquake. was unable to
give battle The plan then was to
rob the city in its hour Of trouble of
the great trade IL had builded in the
San Joaquin valley, The merchants
here learned Of the contemplated action
Of the railroad at that time and inter
fered. Now, however, it is evidently
the intention to make the Peadjustnaent
under sanction Of the government
board.
LoVELAND DISSENTS
The report Of the commission was
signed by Theodore Summerland Of Los
Angeles and A c. Irwin of Marysvile
Colonel H D. Loveland. the .hird mem
bers dissented. He presented an ex-
haustive review that tears 70 shreds the
fallacies Of his colleagues.
In reaching their conclusions the two
members Of the state board ignored all
the elemental processes of rate max
Ing, and wiping out the well esta bIished
principles adopted practically mile
age basis for calculation.
The San Francisco 5obbers believe
that the decision IS so burdened with
error that il Will swamp itself IN the
state courts It may not be necessary
20 carry the issue further; ss q new
railroad board viii go into Office in
January. The decision is not to go into
effect upt% February 10, and can be-
yono doubt be held up pending a real
inquiry into the facts.
MOVES DIVIDING LINE
The real contest centered about the
points IN the San Joaquin valley TO
winch San Francisco or Los Angeles
snould De able 10 reach under preferen
tlal rates. Under the present tariff
Delano, near Bakersfield. has been re
sarded as the dividing line. San Fran
cisco mas been favored in rates in tho
territory north Of that point. and Los
angeles In the country south OF there
Inc new rates which the commissions
ofoers enforced will move the dividIne
Inc north to a point between TuIaro
and Goshen.
Inc case was brought on comnlaint
OF the Los Angeles jobbe-s. Stockton
-nIerVeneo- The decision lowers the
Stochton rate. but places that citv at
= olsaoVantage as compared with Los
Angeles- IN fact Stockton. Sacramento
and san Francisco are cut off from
natural territory in the interests of
Los Angeles.
While there are no doubt q. variety
OF reasons why the Southern Paciec
and santa Fe should desire TO aid Los
Angeles TO the disadvantage of San
Francisco, an important consideration
les in the well defined policy Of the
big roads to favor inland points as
against those on the water Since the
completion Of the Panama canal has
been assured, the large railroads have
been using their greatest efforts to de-
nect trade from water points to those
IN the interior. AS between Stockton.
San Francisco, Sacramento and Los An
geles. the railroad naturally would
choose Los Angeles.
DECISION Is UNIQUE
The decision stands unique in the
records OF the state. It is not only
contrary TO recognized principles. but If
is full Of plain inaccuracies. Rates are
ulisQuoteo, figures are distorted. and an
elaborate machinery invented to reach
the conclusions desired.
The reductions in the Los Angeles
rates into the valley vary from about 5
to 20 per cent. The Stockton mer-
chants are given the San Francisco
rates to valley points less the rate from
San Francisco TO Stockton.
The formal order affecting Los An
geles follows;
1T is hereby ordered that the de-
PENDANTS make effective not later than
February Is. 1911, tariffs in keeping
with this opinion, fixing class rates
from Los Angeles to Bakersfield as
follows
In cents. per 100 pounds-First, SIC; second,
&c; third. Sc: fourth. 5sc; fifth, 44c; A, 4Oc;
p, PC: {, 24c; D. PIC; E. l7c.
From Los Angeles aud Visslia-First, nc; sec
ond, Soc; third. Sic; fourth, SIC: fifth, &c; A,
From Los Angeles 70 Fresno--FiEst. 7ec: sec
onS &c: third. 6Sc; fourth. 63c: fifth. 52c; A
zsc; B. 33c; c. 29c; D, 25c; E. 2Ic.
Graduating the rates between the
above points. Rates from Los Angeles
San Francisco and Stockton to points
on branch lines, which leave the main
lines between Kern Junction, Bakers
field and south OF Fresno shall be fixed
in the same manner, j. e.; If the rates
from San Francisco to a branch line
point is 10 cents higher than TO the
main lire junction point, then the rate
from Los Angeles and Stockton shall
also be 10 cents higher than the juno
tion or main line point
From Stockton south the defendants
reduce their rates so as to give Stock
ton the benefit Of a differential under
San Francisco equal to the existing
class rates from San Francisco to
Stockton upon all classes to all points
involved.
The commodity rate complained of
was beer without giving definite fig
ures the carriers will arrange their
tariffs in such a manner as to elimi-
nate the present discrimination, using
as basis the adjustment outlined for
class rates
The majority opinion "hattens OUT
the Tehachapi mountains, calmly states
that IL has not taken into account the
excessive cost Of operation OF trains in
the great range. and misinterprets the
language Of Interstate Commerce Com
missioner Franklin K. Lane as to the
relation Of rates to expensive road.
BELABORS ASSOCIATES
In .o-.o.4 froT1.,1T T o~v<,