Daily capital journal. (Salem, Oregon) 1903-1919, 1916-05-10
One Official Frankly Admits
Road DiSCriminates
Intentionally
DONE TO MAKE REVENUE
FOR OREGON-C CALIFORNIA
The Main Office al Chicago
Routes Travel tO'NOrthwest
Via New Orleans

Pcdttlcg w dsHs, Aldg lu-NHulIHl nan
Charles A. Reynolds, Of the Washing.
ton state public service commission, to-
day charged by inference at the rate
hearing to eliminate a $3.50 differen.
tial in tourist fares favoring the South.
ern Pacific and allied lines as against
the northwest, that various railroads
are continuously ana openly violating
the Sherman antitrust law.
The second days session Of the hear.
ing was opened by Examiner Wilbur La
Rose, Jr., of the interstate commerce
commission at 10 O'Clock this morn
ing
Reynolds asked that the constitution
and bylaws of the Transcontinental
Passenger association, which meets in
Chicago each year to agree upon rates
and fares for the various railroads with
in its membership be admitted in evi.
dence. They would show, he said he be-
lieved, that the carriers rates were
governed by the acts Of that body.
II find nothing in the bylaws to
indicate that, " said La Roe. "The by
laws say each carrier shall fix its own
fares. -
"That provision, - declared Rey.
nolds, "is merely to eliminate the
chance of prosecution for violating the
Sherman antitrust act They know it..
We know it. Everybody knows it,"
Attorney DurbOw, of San Francisco,
counsel for the Southern Pacific, jump.
ed to his feet and shouted:
81 move that those impertient re-
marks about infractions Of the anti
trust law be stricken from the record
of this hearing"
"They will not be stricken, re-.
piled Examiner La Roe.
l.. M. Lepper, of Portland, represent.
ing the Business Men IS club OF that city
and score of commercial organizations
Of Oregon, testified the differential
rate acted as q means of diverting tour
ist travel from the northwest.
He, and other witnesses, including
Gordon G. Corbaley, secretary of the
Spokane chamber Of commerce, and Dal
Smith, acting secretary of the Tacoma
Commercial CLUB, and chamber of com.
merce, gave evidence showing enormous
sums Of money had been spent in vain
effort to get tourists to travel through
the northwest.
The gist Of their testimony was that
tourist traffic remained outside the
northwest because Of the higher rate
travellers are forced to pay over north
ern routes on the round trip from Chi
cago to San Francisco,
+. Il. Batters, general passenger agent
for the Southern Pacitlc, testified that
the excess charge was made to provide
revenue for the line between Portland
and San Francisco.
Evidence indicating the enormity of
the volume Of tourist traffic divert
ed at Chicago from the northwest by
reason Of $l750 lower fare over the
Southern Pacific and its allied lines was
brought out on cross examination of
the railroad IS witnesses during the
morning session today.
W. j. Cannon, assistant general pas
senger agent Of the Chicago, Milwaukee
& ST. Paul railway, Of Chicago testified
on direct examination that his office
last year booked only 80 per cent OF ap.
plicant tourists over its own rails via
the northwest to San Francisco and re.
turn.
What you mean to say" said Chair
man Reynolds, of the Washington pub.
lie service commission, cross questioning
the witness, "is that so per cent Of the
people who came tv the Milwaukee
ticket office at Chicago to buy tickets
to the Pacific coast were diverted, be-
cause of a $3.50 lower rate, to other
llines-the southern routef"
~ answered the question, - said Can
non.
Generally the person seeking your
office does 80 to buy a ticket over your
road, does he not3n Reynolds asked.
The witness admitted that such was
the fact.
"Then you testify" said Reynolds
''that haH the people who came to the
Milwaukee office to buy tickets in 1915
didn t do so, but were routed over other
roads9"
Eyes" replied Ce~aon.
"The other so per cent chose the
southern and central r0utes9"
"Yes."
The history Of the differential was
shown By other witnesses for the rail
road. It existed, though in an amount
less than $3.50, since about 1886, II
was stated.
Reynolds enquired of F. Z. Batters
general passenger agent Of the Southern
4 II \