Imperial Valley press., 1913-12-27
State Railroad Commission
Orders Freight Rate Cut
On Cotton to the Coast

The state railroad commission has
ordered reduction from 60 cents to
40 cents on cotton from the valley to
Los Angeles and San Pedro. While
the commission refused to cut to San
Francisco, cotton shippers claim they
will get reduced rate by shipping by
rail to San Pedro and thence by water.
The opinion in full is as follows:
j. j. Chappell, complainant, VS..
Southern Pacific Company, defendant.
Appearances, J. J. Chappell, in pro-
pria persona George d. Squires, for
defendant.
Edgarton, Commissioner.
OPINION
The complainant in this case rep
resenting land owners and farmers Of
the Imperial valley attacked as un-
reasonable rates of the defendant for
the transportation of cotton, cotton
linters, cotton seed oil, cotton seed
meal, cake and hulls from Imperial
valley points to Los Angeles, San
Pedro, San Francisco, Oakland, and
East Oakland as excessive and un-
reasonable.
At the hearing complaint was
amended, striking out all reference to
cotton seed oil, cotton seed meal, cake
and hulls, leaving in issue only the
rates on cotton and cotton linters.
The complaint is based upon COM
parison of the rates on cotton and
cotton linters from Imperial valley
points to Los Angeles, San Pedro, San
Francisco, Oakland and East Oakland
with rate of 95 cents per 100 pounds
applying from Texas, Oklahoma and
gulf points to Pacific coast points.
The present rate on cotton and cot
ton linters in carloads, minimum
weight 10000 pounds, from Imperial
valley points to San Francisco, Oak
land and East Oakland is 65 cents per
100 pounds. A similar rate is in ef-
feet from Glamis to these points and,
in addition thereto, a rate of 62 cents
per 100 pounds to San Pedro and so
cents per 100 pounds to Los Angeles.
Complainant at the hearing relied
upon certain comparisons of rates and
made the statement that the Imperial
valley would produce 100000 bales
instead of 10000 bales, the present
production, if rates were reduced. The
main contention of the complainant
seems to be that if the defendant and
it's connecting carriers can transport
cotton from Texas and Oklahoma
points to San Francisco for 95 cents
per 100 pounds, the present rates from
Imperial valley to San Francisco, Oak
land, San Pedro and Los Angeles are
excessive, the distance from Ell Cen
tro, Imperial county, to Los Angeles
being 218 miles, Ell Centre to San
Pedro 242 miles, and Ell Centre to San
Francisco 686 miles.
Witnesses for defendant testified
that the rate of 95 cents per 100
pounds on cotton and cotton linters
from Texas and Oklahoma points to
San Francisco and other Pacific coast
points was forced to meet excessive
competition through Galveston and
other ports on cotton going to Japan
and the orient via the Suez canal;
therefore the rate was considered
reasonable or fully compensatory. 1t
was shown by exhibits presented by
the defendant that the state Of Texas
in the year 1912 produced 2,652,240
tons of cotton as against 1745 tons
produced in California, and that un-
der all normal conditions the great
volume of cotton produced in Texas
would receive greater consideration
in rate adjustments than would the
comparatively small tonnage produced
in California.
It is apparent to me that there is
considerable merit in the statement
of the defendant that the present rate
of 95 cents per 100 pounds from Texas
and Oklahoma points to Pacific coast
points was published in order to en-
able the carriers to secure long haul
on business destined for the orient
which would otherwise move via Gal
weston, thence by water through the
Suez canal.
l am of the opinion that this rate
does not afford reasonable measure
of comparison for the rates from I'M