The San Francisco call., 1910-06-23
RELAY ATTACK
Upon Wheeler
PROVES FUTILE
Still Holds to Claim of Discrimi-
nation in Favor of Los AM
geIes JObbers
Voluntary Reduction of Rates
Unknown TO Southern Pa
cif1c Tariff Makers

The combined efforts of the attorneys
for the Southern Pacific and Santa re
railroads, and those for the Associated
5obbers Of Los Angeles, failed to break
the testimony of W. r. Wheeler, traffic
manager Of the Merchants exchange. to
the effect that San Francisco was being
oiscriminated against in favor Of Los
Angeles in the matter of freight rates
10 the San Joaquin valley. at the hear
ing before the railroad commissioners
yesterday. The cross examination OF
Wheeler lasted the greater part OF the
DAY, and he was passed from one 10
another of the collections of legal
talent. receiving the attacks in relays
but receiving them firmly on the stand
he had taken during the hearing the
DAY before.
Present at the hearing were the stel-
lsr personages of the railway world,
including W. Q. Bsrnwell, general
freight agent OF the Santa Fe road:
George ". Luce, general freight agent
OF the Southern Pacific. and Luce's first
assistant, T. A. Graham. The railroad
attorneys were 9. w. Durbrow of the
Southern Pacific and L. T. Clotfelder
for the Santa Fe.
REASoNABLENEsS As TO RATES
The attack on Wheeler followed
quickly on the heels Of the conclusion
Of his redirect examination by Attorney
Seth Mann representing the traffic
bureau Of the Merchants exchange.
During the course Of this examination
Wheeler said:
The absolute reasona bleness of rates
per Sc has not been set down by any
tribunal or decision of the supreme
court Of any state that I can recall,
and il can be judged only by a COM
parison with other rates in the sur
. rounding territory or governing sim
Har hsuls
assuming three as a factor in this
instance, the rate from San Francisco
10 Bakersfield ought to be three times
less per ton per mile than that from
Los Angeles TO Bakersfield. The pres
ent rate is entirely discriminatory in
favor of Los Angeles and too high"
Wheeler made it plain in his testi-
mony that the intervention of San
Francisco in the proceedings brought
by the jobbers Of Los Angeles against
the Southern Pacific was not TO raise
any issue as to the reasonab ableness of
the rate between this city and San Joa-
Quin valley points. but to show its re-
lation with the Los Angeles rate.
THE PROPER DIVIDING POINT
This relation" he said. 'is out Of
line. A proper relation would result in
the san Francisco rate being lowered.
Mojave is the proper dividing point"
Wheeler defined a normal rate as being
one biased upon ideal conditions in
P matters Of railroading, such as a level
heul. straight lines. favorable climatic
conditions and a sufficient volume of
traffic"
Durbrow in his cross examination of
Wheeler endeavored to have the latter
declare that the rate existing between
points was a forced one, but the wit
ness refused to commit himself to any
such statement. The Questions of the
attorney for the Southern Pacific were
I'm the nature Of condensed arguments
with a query attached to the end. He
pointed out that when the Southern
Pacific entered the San Joaquin valley
field il was met not alone by the COM
petition by water, but also from the
san Joaquin valley road. Accordingly
ii lowered its rates voluntarily.
:. r. NOT 4 VOLU NTEER
Il have never known OF single in
stance Of the Southern Pacific volun-
tarily lowering its rates." said Wheeler
dlyly.
Il mean" said Durbrow, that it was
not forced TO lower its rates by any
tribunal. but met the rates of competi-
tors already in the field. Now, Mr..
Wheeler here is an instance of a rail-
road entering a community where there
is strong competition by water. The
rates are such that it sees large
volume of the traffic going into other
hands. Is not this railroad justified, in
your opinion, TO so arrange rates from
another quarter that it may obtain
some Of that business?"
No" Wheeler replied. ''I do not hold
with the theory of market competition.
It is destructive to geographical advan-
tsze. community should receive the
benefit Of its natural advantages and
not be forced TO pay extra for them in
prder that a railroad might obtain a
larger volume of business by lowering
the rates on another community not so
favored"
FAILS TO FALL IN TRAP
At this stage wheeler wassasked i'm
media tely If in the face of his answer
Stockton. being 81 miles nearer the
san Joaquin valley. should not be given
the benefit Of its patural and geograph-
tcsl advantage in rates TO valley points
II have not the slightest objection
ia the world to seeing Stockton get
anything that is due it." was Wheelers
reply. My sole claim is for justice and
fairness in freight rates"
When Attorney Durbrow had finished
with him Wheeler was placed in the
hands OF the attorneys for the Los An
Eeles iobbers. who cross examined him
At length. but failed to make him re-
tract Much OF the examination was on
the difference between a normal and
. natural" rate.
You say" Attorney r. A Kuster de-
cIared 10 him. that a normal rate is
based on ideal conditions such as YOU
psrticulsrized- Can YOU tell me where
such conditions existg'
IT can not at this time on the spur OF
the moment" said Wheeler.
Then" re5oined Kuster. you wish
10 say that normal rate is based on
abnormal conditions, as I believe the
ideal conditions are exceptional rather
thsn general-abnormsl rather than
normsl?1
~ II Robbins, Pacific coast manager
Of the Otis elevator company, another
witness. stated that his concern had
branch house in Los Angeles and that
in his opinion. the meeting point should
be spproxims tely at the Tehachapi
mountains. He declared that. he based
this opinion upon his knowledge as a
merchant and that. having a branch
house in Los Angeles, the question of
dividing point made no particular diff
ference to his concern. Similar testi-
n1ony was given by II. G. Mitchell. sec
retzry of the Harron- -McCone nlachin-
cry company i. II. Keyes, president of
the Pacific implement company and J.
IT. Jones OF Cunningham, Curtiss &
Welch- Their testimony was admitted