The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-02-08
COMMERCE HEARING
ON S. P. PLEA ENDS.
Freight Agents Explain Re-
bate Custom Practiscd for
Southern Shippers.
DEFICIT FOR BARGE LINE

The Interstate Commerce Commission
hearing on the petition Of the Southern
Pacific Company to retain ownership
and control Of h Morgan line OF
steamships. operated between New York
and New orleans and Galveston. and
of the Direct Navigation Company, oper-
ating bargea between Houston and Ga
weston, ended yesterday afternoon pend
ing the submission OF briefs. The
ownership and control Of these prop
critics have come into question under the
Panama Cana act. which. the Southern
Pacific Company contends. does not me-
ccssitate their divorce.
Most of the days testimony con-
cerned the custom of shippers sending
goods through Galveston to %reconsign
1t AT that point In order To take ad-
vantage of "A combination Of rates rather
tNau use the Joint through rate for
the given destination Of the goods, the
combined rate being lower IT. most in
stances. A. II. Elder. counsel t" the
commission. spent several hours qu"--
tio;ing Il =. Stubbs. general freight
ng,hf Of the Southern Pacific. on th.-
custom.
Mr.. Stubbs described the method Of
81 piping goods through Galveston, th"
manner OF transfer and the various
documents passing between shipper tri
carrier. He asserted hat note Is made "p
bills OF ltdiug Of the line over which
freight Is shipped to the Morgan line IRON,
Atlani!c seaboard points merely for i"-
formation lie denied that II was the
common practice OF the southern Pa
ellie To- send goods 90 Galveston as a
point Of destination on the understand
ing that the goods were to be feblIied or
r,cousigned at that point TO some other
point beyond,
Tho witness denied any discrimination IN
rates as faS as the southern Pacific Com
pauy was concerned. MIR Elder brought
forward II shipment on which a cAarS. Of
- cents was rebated 20 - cents, but
Mr.. Stubhs said that the company found
that another steamship company had
agreed to carry the freight for the lat
'"r price, and the southern Pacific dill
the same. MIR. StuhDs was asked to
explain other alleged variances from
published rates. HE also Contended h
The customs countenanced by the South
crn Pacific Company were not peculiar
10 Il. but were used by all steamship
Ines.
- r Dunlap. traffic n for the
- tHcrn paciii, lines ~ Texas. with %
ices IN ltpilSAcl, hSSfllfu il f'lall ''
tin. Direct Navigation Company that n
operated its barces between Houston
and Galveston largely 10 relieve cotSs~-
ton that exists between those two CITIES
during the cotton moving period He said
II Was not IN position t. Compel it,
either rates or service with the rum"r-
Gus railroad lines between the two
points The Direct Navigation Company
he said, was operated AZ a great defci;
last year because Of the slow movement
II cotton. due TO the war.
.ir. Dunlap admitted ira, the South
ern Pacific Company got mos Of inc
relief al congestion times. mi also 81 F!
that that company had NOR. facilities
To lr relieved. The discontiuuauce % 'nr
barge line. he said. MAS put W 70 tH"
Houston Cotton ENrhauE" several lines
but in spite o. the fact That the Inc"
was run AZ n loss II WAS deemed adj
viSahle to continue II.