Los Angeles herald., 1910-04-16
JOBBERS TESTIFY
TO UNFAIR RATES
More Evidence Given of Railroad
FavoritiSm Toward San
Francisco
COMMISSIONERS ADJOURN
Hearing Goes Over to June, When
Stockton Business Men
Will Be Heard

Yesterday afternoon the state rail-
road commission adjourned its hearing
of the complaint of the Los Angeles
jobbers against the freight rates into
the San Joaquin valley until June 2,
when the commission will meet in
Stockton to hear the plea Of the Stock
ton merchants that the present rates
are also discriminatory against that
city.
Although the commission ruled
Thursday that the case of the Los
Angeles jobbers would not be compli-
Gated by permitting other cities to in
troduce evidence, Commissioner Love-
land stated that the commission de-
sired to make the rates equitable for
all parties concerned in their use.
After a short session in Stockton the
commission will meet in San Francisco
to hear the protests Of the merchants
there against changing the rates, after
which the Southern Pacific will present
it's defense. The commission will then
come to Los Angeles for the presenta-
tion Of evidence in rebuttal by the
Los Angeles Jobbers.
The hearing yesterday was along the
same lines as on previous days OF the
hearing, men prominently identified
with the upbuilding of commercial Los
Angeles testifying that the difference
in freight rates enjoyed by Los Ange-
les and San Francisco prevented proflt-
able business in the San Joaquin val
ley, many of them saying that they
had given up all attempt at seeking
business further rth than Bakersfield,
which is far this side of the halfway
point between the two cities.
All of the witnesses testified that 1t
is necessary to allow their customers
in the valley to deduct the differential
in the freight rates in order TO get
business at all, an arrangement Whlch
not only cuts into the profits of the
Los Angeles jobbers but loses them
trade through the dislike OF the
merchants to spend valuable time in
figuring the complicated discounts in
volved, when they can purchase from
the San Francisco houses and remit the
face value of their invoices without
trouble.
IT was also brought out that the
high rate on staple goods, Whlcn DO
not permit the allowance of equallza-
tion reductions to buyers, are RESPONSE
BILE for the loss of many thousands OF
dollars in sales of the more prohtable
side lines, the merchants naturally
nreferring to concentrate their pur-
chases and buy these goods from the
same houses which furnish their sta
pies.
MUST GIVE DIFFERENTIALS
o. T. Helping, traffic manager for
the Smith, Booth, Usher company, VINO
also is the traffic agent for the Pacihc
Light and Power company and the
san Joaquin Light and Power COM
pany, said that Los Angeles dealers
in machinery not only have to meet
severe competition from the san Fran
cisco dealers, but to allow freight dlt-
ferentials in order to obtain business
at all. The power companies ne YES
titled. are backed by Los Angeles men
who naturally preferred to purchase
their supplies in this city, but have
been compelled by the high rates TO
purchase thousands of dollars worth
of machinery in the northern city.
A. b. Goldwater, representing the
Stewart Dawes Shoe company, sald
that his company obtained only small
share of the business to which they
considered themselves entitled in the
valley, and then only at the eXpese
of deep cuts in their profits for trelght
differentials. On ss-examinatlon ne
said that he considered the territory
south Of Fresno as ground TO whlcn
the Los Angeles dealers were entitled
to an even break with San Francesca
as far as freight rates are concerned
Attorney Durbrow OF the southern Fa-
cific was discounted in an attempt TO
make the witness admit that ne was
encroaching on San Francisco territory
hv selling an advertised line of shoes
for which his firm has the southern
California agency north of Fresno.
"What does the San Francisco
house. which has the Northern Call
fornia agency for this same line OF
shoes. consider as the southern point
of their territory?" said Mr.. Durbrow.
"San Diego,'% said Mr.. Goldwater.
Edward Chambers, tfathc manager
For the santa Fe railway, was placed
ON the stand by Attorney Loeb, repre-
senting the Los Angeles jobbers, and
admitted that the sudden recall of the
lower rates promulgated in 1907 was
due to the influence of San Francisco
jobbers.