Weekly journal-miner., 1910-10-12

but on the other hand, the malt rate had been reduced. Camp then pro duced a letter written by witness when he was with the Santa Fe at Prescott, addressed to the general freight agent of the system at Chi eago, wherein he recommended a re- duction in the malt rate from $1.45 to $1.l5. Camp wanted to know why if he thought that $115 was a proper rate then that he now thought that 5 cents should be the figure. Witness explained that this occurred soon after he came to Prescott, that he was not then familiar with con- ditions, but that subsequent expert ence had convinced him that the rate he once advocated was too high. He was of the opinion that a reduced rate to D cents would enable the brewery to extend its trade, but Camp savagely attacked this argu- ment by showing that with the re- dueed rate proposed, it would only lessen the cost of a barrel of beer about twenty-two cents.
 Joseph Bold was recalled and tes- tified that up to six months ago, Eastern malt had been used exclus- lively. It now cost s3.64 laid down, while California malt cost s2.64. The latter was of a much better quality than heretofore, he declared.
 This closed the ease for the com plainant and the railroad then pre- sented its side, H. P. Anewalt being the first witness. He was formerly general freight and passenger agent of the S. F., P. & F., but for the past five years has been assistant freight agent of the Santa Fe at San Francisco. When it was proposed to establish a brewery in Prescott he had talked over the matter at length with MT. Maxgut, who promoted the enterprise, and it was then that the rate of $l.43 was determined upon. The San Francisco breweries, he had learned upon investigation, used only 10 per cent Eastern malt, while Southern California breweries used 40 per cent, this being due, he claim ed, to a prejudice in favor of the Milwaukee article, and also to the fact that there is no malt factory in Southern California. The 65 cent rate on malt was a compelled" rate, and in his judgment, was not ade- quate. When pressed to explain the reason for that opinion, he sidestep- ped the answer, by declaring that he had no hand in making the rate. When asked to explain how the $143 rate was made to the brewery when he was an official of the local rail road, he said that 1t was done by taking the through rate from Nal waukee to tine Coast, adding on the local rate from Los Angeles to Mari copa, plus IS cents from Marieopa to Phoenix. That was the best he could do under the listing tariffs then of the Western Freight Bureau It was reasonable rate, he consid- cred. The present rate of $1, he did not regard as proper compensation to the railroad.
 ''You believe then in charging all the traffic will bear7" asked MT. Cos tigan.
 "Yes, if properly used" was the response.
 Further eateehizing brought out the admission that while there was a water rate from New York on malt, there was no actual movement of the article. Costigan attempted to pin down the witness to specific an swers, but he was evasive and al- ways qualified them by saying: ''Yes, under certain conditions"
 William Kramer, secretary and di- rector of the Los Angeles Brewing company, testified that his concern abandoned the Phoenix field five years ago, because it could not com pete with the Arizona Brewing com pany, which had an advantage in the freight on its beer and on the return of empty barrels. The req son why Eastern beers can be sold in the West is because of the lower cost of production, and because they dispose of their Overproduetion at cost.
 Paul P. Hastings, general freight and passenger agent of the s. F., P. & P, submitted compilations show ing the rates on beer shipments to all points within the Territory trib- utary to Prescott. Within the past year, there had been reduction of 10 per cent and rates had been ad-