Los Angeles herald., 1910-04-15
DISCRIMINATORY
RATES SHOWN UP
Los Angeles JobberS Driven from
San Joaquin Field by Rail-
road Charges
SAN FRANCISCO IS FAVORED
Testimony Before Commission
Establishes Claim of Local
Business Men
SAN FRANCISCO is FAVORED

Hearing of further testimony by the
state board of railroad commissioners
on the petition of the Associated job
bers of Los Angeles against the South
ern Pacific and Santa Fe Railroad COM
panies, charging exorbitant and pro-
hibitory rates to points in the San
Joaquin valley, to the direct injury
of the general business interests of
| Los Angeles, was resumed yesterday
in the International Bank building,
with all members of the board present
1t was stated last night by Commis-
siOner Summerand that at least two
more days will be required to give all
parties concerned opportunity to sub
init evidence and present arguments.
During the hearing yesterday several
| tabuated statements were presented
showing that the freight rates enforced
chiefly by the Southern Pacific Rail-
rod company have been continuously
| favorable to the San Francisco whole
salers and jobbers, resulting, as shown
by the evidenc. in driving Los Angeles
! merchants out of the valley at any
point above Bakersfield.
| Il. p. Gregson traffic manager for
the Associated Jobbers of Los Angeles.
formerly chief clerk in the general
freight offices of the Santa Fe Rail-
road company, was a strong witness
| for the petitioners. He was fortified
with all of the details of rates, both as
to distances and railroad charges, and
was forceful and convincing in present
| ing the claims of the association that
the rates as they have existed for
years have uniformly Disseminated
against Los Angeles and to the great
| advantage of San Francisco business
| men.
II, r. Boynton. president of the II. r.
! Boynton company of Los Angeles.
dealers in pipe and plumbing supplies,
stated that on shipments to Fresno ne
| is compelled to make allowance of %
cents a hundred pounds to offset the
difference in the freight rate in order
! to meet the competition of the San
! Francisco rivals i'm his line. Similar
allowances have to be made to all other
points i'm the valley Mr.. Boynton
stated further that on the assurance of
the railroad company that no unfair
rates would be enforced, his company
had gone after business in the valley.
1--WE have since been hanging on by
our eyelids." said Mr.. Boynton. hoping
for adjustment, and we still have
hopes"
FORCE JOBBERs FROM FIELD
NJ. A. Newmark, president of the As
| sociated Jobbers, and president of the
wholesale grocery firm of Nj. A. New
mark S5 Co., was another strong Wit
ne-s for the petitioners. He testified In
substance that his firm had been prac-
! tically driven out of business in the
san JOAQUIN valley in the territory
north of bakersfield through railroad
rates so favorable to the general bust
ness interests of San Francisco. He
| said that with present rates in force
it is impossible for local wholesalers
to compete with the wholesalers of
| Mr. Newmark said, had been held with
representatives of the railroads in the
past dozen years, with the purposes
of securing just rates. He said; They
Ohe officials) admitted the justice OF
| Los Angeles claims to such an extent
that l began to believe we would soon
be on a bed of roses"
Mr.. Newmark gave the history of
putting a lower tariff rate into effect
in 1907, and stated that after it was
fixed it was Immediately withdrawn.
In this connection a telegram from
l. G. Stubbs, the traffic director of the
Southern Pacific. to the secretary or
the Associated Jobbers, dated February
z 1900 was introduced in evidence. 1t
stated that the Southern Pacific did
not know any reason why the San Joa-
quin rates should be lowered and that
the rates that had just been promul-
! gated were 1.-The mistake of a subordi-
| nate and were unauthorized.
The tabulations and records admitted
in evidence show that If facts and fig
ures are worthy of consideration there
will be no doubt whatever that the pc
titioners will establish their claim of
glaring discrimination against Los An
geles interests. Further testimony in
behalf of Los Angeles will be submitted
for the purpose of more fully emphaslz-
ing the charges of the Associated Jop-
hers, with the confident hope of having
Justice done to long suffering body of
| business men.