Arizona republican., 1921-12-09

nuUhfA1EUEk1
 RATES OPENED HERE
 With the first day consumed by the American Railway Express com pany in submitting exhibits tending to show that in not increasing rates in Arizona, discrimination had been shown against interstate traffic. the express company presented its case before the interstae commerce com mission yesterday.
 The hearing was held in the senate chamber at the state house, the all day taking of testimony not complet- ing the case, which was continued until 10 o'clock this morning.
 While yesterday was given over to the presentation of the case by the company. the cross examination brought out much that is regarded as favorable by the state corporation commission, which had only time to examine one witness before adjourn ment was taken. That witness was William Thompson, representing the
 
 of Phoenix and Glendale, who testi- fled that if the increase of 26 per cent asked by the company for rates within the state were granted it would absorb the profit in farm com modities.
 Mr Thompson stated that due to the increase in interstate rates he had lost practically every market outside the state. Sales of hundreds of crates of lettuce day had been cancelled, said the witness. who claimed that a raise in intrastate rates would mean further loss of business.
 The hearing was conducted before Examiner Pattison of the I. c. c. and was held on the application of the company for an increase of 26 per cent on all commodities. which was denied it by the corporation commits sicn. Tine Fl Paso and Southwest e-n. Southern Pacific and Santa Fe railroads appeared as intervenors In support of the express company. Amos A. Betts, member of the cor poration commission. conducted the cross examination for the state.
 Appearances were made for the state by Loren Vaughn of the com mission, and D. R. Johnson, rate ex- ESTl, ana fktllg AdIc NlGAh nAlh the commission: Judge F. w. Per kins, assistant attorney general; Ro- land Johnston, representing the traf- fic bureau of the chamber of com- merce; Jones, Blaine and Jones, rep resenting producers; and MT. Thomp- son. The express company was rep resented by A. B. Roehle, counsel, and by N. K. Lockwood, traffic man. ager, with headquarters at San Fran cisco; R. A. Cox, superintendent Of bureau of organizations; l.. P. Berg man, superintendent at Fl Paso, whose Jurisdiction includes Arizona and New Mexico; F. L. Stewart. at torney for the Fl Paso and South western, and B. F. Seggerson, us traffic representatives
 During the cross examination of witnesses Mir. Betts brought out that the increased interstate rates with the exception of a light volume of business moving from Fl Paso and Albuquerque into Arizona are at the present time no higher than corres- bonding rates within Arizona. The west boundary line of Zone Is the California Arizona state line and in terstate rates from Los Angeles and other producing districts into Arizona are at the present time in many in- stances 1OWST Ltldn AOA lAhC distances within Arizona.
 One of the express company's ex- hibits was for the purpose of show ing the pay roll of the company in April, 1921, under the Increased wages allowed by the labor board in it's decision PIT, and another was the wage award under decision 3, in which claim of an increase in the pay roll in Arizona was given as sl1,- 000. On cross examination by Mir. Betts the witness for the company admitted that the pay roll expense indicated by the exhibit included em- ployes engaged in interstate traffic. When asked to segregate the eS- penses between state and interstate the witness claimed it would be inn possible to do so.
 September of last year until June of this year on refusal of the corpora ton commission to increase its rate within the state was made by the petitioner, which alleged that the losses would continue at the same ratio If it were compelled to main tain the rates now in effect.
 In a lengthy cross .xarnination or the traffic manager and superlnten- dent of the bureau of organization Mir. Betts was unable to ascertain the cost of transacting intrastate busi- ness. Taking Santa Fe train Num- Der ', which is a solid express train, doing virtually nothing but trans state business practically every cent of which should be charged to inter state business, the express company was unable to tell what the charge was to Arizona state traffic. When pressed for explanation as to why Arizona and other territory in zone was charged higher rate than the zones immediately east and west thereof, MT. Lockwood responded the basis was established by the 1.C.C.
 It was shown that New Mexico. located in zone 5 and zone 4, pays a lower rate in zone ,. Notwith- standing the population Is slightly greater in New Mexico, the express company's business within Arizona for the year ending September, 1920, was approximately twice that of New Mexico, according to the testimony.