Los Angeles herald., 1910-04-14
RAILROADS FIGHT
RATE ADJUSTMENT
S. P. BIames Mountains for the
Lower Tariff Given San Fran
cisco and San Joaquin
DENIES FAVORITISM SHOWN
Los Angeles JobberS Cite Charges
Showing Discrimination
Against City
DENIES FAvoRITlSM SHOWN

been contending for years that the rail-
road rates from Los Angeles to points
in the San Joaquin valley are unrea-
sonable and discriminatory in favor OF
the wholesale and other firms of San
Francisco, and after the submission Of
extended arguments at the session Of
the state railroad commission, held yes
terday in the International Bank build
ing, showing that the Los Angeles bus
mess interests are seriously affected by
| existing rates, Attorney DurbroW, rep
resenting the Southern Pacific, declared
that Los Angeles has been fairly dealt
with by the Southern Pacific road at
the risk of the company being charged
with discrimination in favor of Los An
geles. He added that Los Angeles is
demanding something to which in his
| opinion the city is not entitled.
The hearing came up before the COM
mission yesterday morning on the for
NAL petition of the Associated Jobbers'
| organization of Los Angeles for a rec
tification Of the present rates. The de-
PENDANTS are the Southern Pacific and
the Santa Fe railroad companies. The
chief defendant is the Southern Paci-
fic Railroad company, for the reason
| that the haul OF the Santa Fe is via
San Bernardino and Barstow, a round
about way many miles farther than the
route traversed by the Southern Pacific
trains to points in the San Joaquin
valley.
A. C. Irwin of Sacramento, H. d.
Loveland of San Francisco and Theo-
dore Summerland of Los Angeles, men,
! bers of the railroad commission, gave
patient hearing to all statements and
arguments.
New Issues were sprung by represent
| atives of the Merchants exchange of
San Francisco and by the Jobbers and
Manufacturers association of Stockton.
The Associated Jobbers of Los An
geles were represented by Kuster,
| Loeb & Loeb, attorneys, and by Fred
p. Gregson, traffic manager. For the
| Santa Fe, f. w. Camp, attorney; Ed
ward Chambers, freight traffic man
ager, and w. G. Barnwell, general
freight agent, appeared. c. w. Dur
brow, attorney; G. w. Luce, general
freight agent. and T. A. Graham, as
sistant general freight and passenger
agent, represented the Southern Pacific
company.
The Merchants exchange of San
| Francisco was represented by Seth
Mann, attorney, and by w. r. Wheeler,
traffic manager. Attorney c. L. Neu-
miller represented the Stockton asso-
citation.
STOCAION INIt1ttN EMS
Intervening petitions filed by San
Francisco, insisting on the retention OF
| the present rates, which are considered
decidedly favorable for the business in
terests of the northern city, and by
| Stockton, to the effect that that city
Is the gateway to the San Joaquin
valley, and claiming further that the
| interests of the business men of that
city should be considered at the hear
| ct a a
ments and arguments, the flow of ora
| tory at times becoming quite heated
and arousing numerous quick retorts.
| It developed that the claims of the
Los Angeles jobbers' association were
we'll founded on the showing of COM
parison of rates with those of san
Francisco to various points in the val
ley.
Attorney Durbrow for the railroad
outlined the defense the Southern Pa
! ciflc would present to the commission
| If a mileage basis is considered, he ad-'
| mitted that there Is a discrimination
against the Los Angeles shipper. but
he stated that the geographical loca-
tion has much to do with the rates
inasmuch as mountains 1000 feet high
must be crossed by the Los Angeles
business. while the San Joaquin val
| dew is practically level from San Fran
cisco to Bakersfield. 1t was turther
| stated by Attorney DurbroW that IN
the beginning of business In the val
lev the Southern Pacific was compelled
| to meet water competition as far as
stockton and that when the san Joa-
| ouin valley railroad was built the COM
| nanv entered into competition with
| q steamer line and the Southern Pa
| ciAc had to meet that competition as
far south as the city of Bakersfield.
4. SANTA FE MAKES DEFENSE
Attorney Camp for the Santa Fe as
serted that his line is much longer
to the San Joaquin valley than is the
Southern Pacific, that it crosses two
mountain ranges and is more vitally
interested than is the Southern Pacihc
in having the present rates mann
tanned.
Attorney Kuster for Los Angeles con-
tended that Stockton had no just right
to intervene in the hearing, for the
reason that the main question In the
| case is the reasonableness of the rates
from Los Angeles to the San Joaquin
valley and that the question of mann
tanning the present balance OF rates
is not involved Emphasis was placed
On the point that the railroad rates are
unjust per Sc, and that the Los An
geies rates are too high compared with
i those of San Francisco. 1t was as
serted by Attorney Kuster that the
present San Francisco rates, taken mile
| for mile, are 10 to so per cent lower
| than those of Los Angeles.
Formal demurrer was filed to the IN
tervention of San Francisco, with mo-
tion offered that it be dismissed.
Chairman Irwin of the commission
stated that Stockton had right to IN
tervene. Attorney Neumiller asserted
that Stockton demands that its rates
be adjusted so as to be equitable as
compared with Los Angeles, Sacrameh-
TO and San Francisco rates
On the suggestion that hearings be
held in Stockton and San Francisco
vigorous objections were entered, but
Commissioner Loveland stated that II
will be the policy of the commission to
hold hearings at any point where IL
| appears necessary.
Commissioner Loveland, in announc-
ing the decision of the commission,
stated that the declaration of Stockton
that it is in the contest against the
field necessitated granting the request
of the railroads that they be not com
PEELED to make their defense until az
ter the intervenors make their case,
inasmuch as Stockton has introduced
a new issue in the contention. The
petitions of the intervenors were admit
| ted with the understanding that they
| do not ask for affirmative relief.
/ Stockton objected to this prohlb-
1 itory feature Of the decision.