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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (July 29, 1919)
THE MORNING OREGOXIAX, TUESDAY, JULY 29, 1919. RATES NOT INTENDED TO INJURE PORTLAND 14 o'clock, when the cross-examination of Mr. Woodworth was scheduled. Mr. Woodworth opened his testimony with a statement that the railroads were in a rather unusual position in the Pacific northwest, and that conditions that are being- brought under consid eration in the consolidated cases pre sented to the interstate commission are of a rather unusual character in some respects. Map of Territory I ShowD. J. P. Newell, consulting- engineer, continued direct testimony before di vision No. 3 of the interstate commerce commission yesterday morning, at the beginning of the second week of the Portland rate case. Going at once to the submission of the testimony upon which will be determined the issues in volved, a map showing three subdi visions of territory in the Columbia river basin district was entered as ex hibit No. 114. Exhibit No. 115 "cost of service and mileage between Co lumbia river basin points and sea ports," was then offered and the testi mony directed to explaining the meth ods used in arriving at the determi nation. "Resistance mileage Is purely a mathematical calculation, representing miles of straight, level track. Equiva 1 d?S3.. ? Favoritism to Seattle Was Un foreseen, Says Expert. TESTIMONY BOOSTS CASE Attorneys Stajje Argument When Time Limit for Testimony Is Overstepped by Counsel. That there was no intent on the part of the railroads to build up Seattle at the expense of Portland, and that the effect of order No. 1 of the United IStates railroad administration for the use of shortest routes and lines of most economical ope rat ion is practi cally a thing- of the past in practice, were features of tne direct testimony of James J. Woodworth. traffic assist ant to the northwestern regional director, who was the chief witness called for the railroads to testify in the consolidated Portland rate case. Qualifying as an expert by a review of his record as a traffic official of the old Orepron Railroad & Navigation com pany, later traffic manager of the Northern Pacific and at present with the railroad administration, the popu lar former Portland citizen attributed the traffic conditions of the Pacific northwest as having developed existing conditions in a natural way. He said it was ratiter difficult to change the rate structure, and in order to establish that it is i;ot uncommon to blanket rates, as is done in the Columbia river basin. He made comparisons with ter ritory east of the Kocky mountains in which the element of competitive mar kets is a potent factor. Attorneys Have Squabble. Preceding the calling of Mr. "Wood worth to the stand there developed a bit of verbal pyrotechnics between J. X, Teal, attorney for the Portland Traf fic & Transportation association and Chamber of Commerce, and Arthur C. Spencer, attorney for the railroad ad ministration, in which other counsel joined. Jt had been understood between counsel, as a result of conference with the chief examiner of the interstate commerce commission and arranged bythe commissioners, that Mr. Wood worth should be placed on the stand irt ample time to permit sufficient cross-examination by opposing- coun sel. Attorney Hart had repeatedly stated that it was the idea of the coun sel for the railroads that their chief witness should be heard in Portland, as it is a Portland action. Oswald West, attorney for the Inland Empire Shippers' league, had stipulated that he was to have the opportunity at a con venient time to place on the stand Ralph Blaisdell, auditor of the Oregon Washington Railroad &. Navigation company, and that it would probably not require more than 15 minutes to do so. At 11:3ft 'A. M. the commission was prepared to call Mr. Woodworth to the stand, but with the understand ing that he would not be called until the afternoon session convened he had left the room. The public service commission of Oregon had consented to postponing the cross-examination of J. P. Newell, in order to give way for the traffic official. So time before the noon ad journment was given to testimony of the Idaho public service commission in putting in their case as intervenors. When the afternoon session opened Mr. Hlaisdeil was called to the stand and the allotted 15 minutes sufficed for Mr. West, but thereafter came a tor rent of cross-examination from various sources. Attorney Spencer took oc casion to utilize the opportunity to draw from the witness some data re garding various financial transactions of the railroads, and when the clock had ticked on to the middle of the afternoon session, Mr. Teal exploded with an expression of his sensations. "The programme has gone by the board," said Mr. Teal, "and it is unfair, and impossible for us to have the chance to cross-examine Mr.- Wood wort h properly in the time allotted. 1 object to the railroad counsel making this witness their own and taking the time that had been allotted to the next wit ness." Mr. Spenrer replied that it had not been his wish to take any time im properly, but that Mr. Blaisdell could not go to Seat tie and he wished to bring out some important information that no other witness could so well submit. But flint so far as the cross examination of Mr. Woodworth is con cerned, it could be continued to Se attle. Mr. IV nl Drnirn Allegation. After some spirited comment, in wh ich Mr. Teal denied the allegations of contending counsel that lie had shown exceeding heat in the debate. Commissioner Hall poured oil on the troubled waters of the conflicting port interests by suggesting that a short recess would be taken, during which he would confer with Mr. Teal and some of the counsel for the other side and attempt to arrange plans to abridge the difficulty. Henry C. Hall, interstate commerce commissioner, did not sit on the case at tire morning hearing, due to a slight in disposition, but came up feeling com fortably well after the noon recess, and presided at the afternoon and evening sessions. Commissioner Paniels pre sided at the mornii.B session of the hearing. At the resumption of the hearing Commissioner Hall announced that the commission would hold an evening ses sion, and when adjournment was taken at 4 -art P. M. it was to the hour of 8 Don't stay indoors because your sldn is unsightly r will heal it quickly The discomfort of hearing' unfavor able comments upon one's complexion, and of realizing' that one 3 skin is un sightly, can be prevented by Resinol , Ointment, which not only heals a sick skin, bat protects a healthy one. Aided by Resinol Soap, it heals eczema helps to remove other eruptions, excessive dryness cr oiliness of the skin, and enables one to have a complexion that excites compliment instead of unfavor able comment. At all dealer. Resinol lent mileage is the miles of haul over a level track compared with the actual distance shown between points shown," testified the witness in explanation of columns 10 and 12 of the table. Witness explained that there Is greater advantage from descent gained by the railroads operating over the Cascades and east bound movement of traffic than Westbound, due to the greater length of the grades from the summit to the Columbia river. This was in explanation of the difference in eost between east and westbound traf fic over the northern lines. Answering interruptions of the com mission ers, Mr. Newell explained joint l(JiauI calculations were based upon movements over the routes indicated by joint tariffs in effect. Attorney Spencer asked witness as to whether cost of the Deschutes line had been included in figures of Oregon- Washington. Witness answered that he had intended to do so, but had asked Mr. Spencer to advise him whether or not the data furnished by the com pany did or did not include such valuation- If not Mr. Newell desired per mission to prepare another table to show the difference that would be made. "Witness testified it would make no difference in road costs. PTjel costs as an item of importance in the calculat ions was the subject of 0'estions by Attorney Spencer. It was shown that the figures used were based upon data contained in the reports of the companies, so far as obtainable. In the case of the Northern Pacific two telegrams sent by the public service eommission to the railroad company asking for information had not been answered. Commissioner Daniels asked witness as to economies of electrical operation a compared with steam power. "Wit ness said he is not an electrical engi neer, but that so far as he could see the only saving that could be effected in operating by electricity would be in regeneration. He explained that electrification would show a saving of 1.5 per cent of road costs, accepting the statements that had been made as to saving of 15 per cent on the recharge. which chiefly occurs on the heavier grades. Applied solely on proportion of grades of roads to which it may be applied properly, the reduction is not more than of 1 per cent Idaho Wttneas on Stand Leonard Way was put on the stand by the public service commission of Idaho. Witness made a statement that Idaho is a state of large originating tonnage, served by the Oregon-Washington Railroad" & Navigation company n the southern part, and by the Great Northern, Northern Pacific and Chicago, Milwaukee & t. Paul railways in the northern part. itness declared in a preliminary statement that if rates are readjusted on any other basis than distance Lewis- ton will suffer. "We understand that Spokane is asking for the same west bound rates toward Portland that Port land is asking eastbound toward Spo kane. Should rates be readjusted from ; Spokane, we feel that the same rates ;hould be applied from Lewiston. Granting of the rates asked by S-po- ; kane without equalizing Lewiston would put Lewiston out of business," said Mr. Way. 1 'The present inbound rates to Lewis- : ton from the coast and from eastern I points are generally the same as to the coast. The present eastbound rates from Boise are generally on the i same basis as Portland." continued Mr. ! Way, and illustrated it with rates in existence to various points. Eastbound j there are commodity rates from coast , points to Idaho points blanketed from , Weiser to Provo. Utah, which permi ts 1 Salt Lake City to compete with Idaho markets as far back as Pocatello. Heaitonable Kate Relationship ANked. The statement asked that a reason able relationship be established be tween the rates that extend to Idaho, 1 and the rates in territory adjacent in Oregon, Washington and Montana, On cross-examination it was brought ! out that the Idaho contention is that if any lower rates are established on ' grain between Pendleton and Portland, that the producers in Idaho should have a correspond ing equalizing of tariffs. Attorney Teal asked whether it was the view that rates should be based on the route down the river or by the mountain routes. The answer was that he thought the water grade should be taken into account. Generally speaking, farm products and grain produced in Idaho does not come to the coast, but the Gem state de sires equality of rates in order that it may have access to coast markets. Com petition be; ween railroads and mar kets, the witness thought, were both factors that should be considered in fixing rates. Time Cards on Kxhlbltion. M. J. Buckley, general superintendent of the Oregon-Washington railroad lines, entered time cards of the first, second, third and fourth divisions of the road as exhibits. Mr. Buckley was put on as a witness in the grain case and examined by Attorney West. The purpose of the time cards was to intro duce in'evidence the loads fixed for lo comotives on different parts of the system. Witness testified that the result of the cen tral Oregon line from Ontario westward to a connection with the Deschutes line would be to provide easy grades more economical of operation than by the main line over the Blue mountains. In answer to a question he aid that was not the object of build ing the road, but would be the result. Superintendent Buckley told what would be the load that a locomotive could haul over the line, varrying from 626 to 1500 tons over different sections of the road. Kngine Capacity Govern. On cross-examination of engine rat ings, he said that the figures given were governed by capacity of engines. The same engine would haul about three times as heavy tonnage between Umatilla and Portland as between Umatilla and Huntington. In Attorney Spencer's examination it was brought out that the engine rating is less between Umatilla and Rieth than west of the first named point. Testi mony was also directed to the branch line situation, and to the gradients of the Spokane line. He said the heavy tonnage was in the Pleasant valley branch and on lines paralleling it. That the settlements in eastern Washing ton are not so much on the main line as on the branches. Out of Biggs to Shaniko there is a grade of 3.S per cent. on the Condon branch 3 per cent. Old Rates Were Not High. Prior to the 25 per cent Increase,' the rates were not as high as might have Better than Olive Oil for salads and equal to Butter for cooking at half the price of either. Better, more Wholesome and Eco nomical than lard or compound. Becauseof itsPurityand Uniformity in Quality and Flavor and Great Economy. k MAKER?OF L AHGO JTARCH been established under the order of 1910, following the distributive rate case, Mr. Woodworth testified. In answer to the question of Attor ney Hart about grain rates, Mr. Wood worth said they had been relatively low. He attributed it to the fact that wheat production had been the pre dominant industry. The influence of legislators from eastern Washington, he said, had been great enough at Olympia to fix maximum rates by which the railroad had been controlled. Grain prices were compared with freight rates at different periods. He agreed with the question of the attor ney that rates were fixed at the low levels because the prices were such that the traffic could not stand more. In recent years, it was admitted, the rates have been in favor of Seattle, and a larger part of the export has been to that port. The balance swing ing toward Seattle was ascribed to the greater capacity of mills on the sound. Kate Parity Kxiated 32 Yeara. The parity of rates between Port land and the sound has existed since completion of the Northern Pacific to Tacoma in 1SS7, but the road did not equalize the rates to Seattle until a later date. Attorney Hart Has equalization of rates to a blanketed territory been unusual ? Witness No, it has been done in territory between Chicago and the Mis souri rivers extending 2 00 to 300 miles, and applied for more than a hundred miles out of Sioux City. The same thing applies from Springfield to St. Paul, and from St. Paul to Augusta, Wis., '37 miles. Class rates and commodity rates are applied. New York rates ap ply from Boston in New Kngland ter ritory. In connection with rates be tween Chicago and Cincinnati and New port News and Baltimore there is the same disregard of distances. There is a like disparity In rates from Missouri river common points to Colorado points. The same thing is found ap- I plying between Colorado and Utah j common points. I do not think the 1 differences in this territory are un common. It has become a custom or a policy. Whether it was right or wrong, it has become established, is recognized, and we find it is a hard thing to change. Undoubtedly It is a good thing for the producer and the consumer. Attorney Hart Then any readjust ment of rates on a distance basis you think would be a disadvantage to the producer? Witness It would undoubtedly dis turb both. The farmer usually selects his market when he stores hie grain. The Oregon-Washington was at a dis advantage because it could not move traffic to Puget eound and proposed the joint rate via North Yakima. The rate undoubtedly increased the price to the farmer. I don't think there is any question of the direct benefit of an equalized rate to the producer. Mr. Hart Should there be a read justment of a higher rate to the eound. is there any reason why a Portland buyer would not offer a less price? W itness There is none. So long as the preponderance of the traffic of the railroads is eastbound. it is difficult to see how there would be any mate rial difference in the result to the rail roads, if there should be a readjust ment of the rate. Experts Made to Balance Traffic. Mr. Hart Has it ever been brought to your attention that the roads were absorbing an undue cost of service to the sound? Witness No. I think not. Prior to this hearing I think we have had this suggestion only from the newspapers. Every effort has been made to bal ance traffic, but 65 per cent of the traffic is eastbound business. The di version of these loads to Portland would not and could not reduce engine miles, and we would be moving just as many cars to the sound. Commissioner Eastman asked wheth er or not empty cars were not also brought to Portland, s to which Mr. Woodworth answered affirmatively. He then asked if the railroad administration-could not introduce an econ A book worth while writing for. The new Corn Products Cook Book contains 63 pages of practical and tested recipes Handsomely illustrated. Free write us today for it CORN PRODUCTS REFENING COMPANY P. a Cox 161 New York omy by hauling loads downhill and empties over the mountains. Witness It would make no material difterence in the result, I think, either in train miles or engine miles. He added that there is a heavier movement from Seatt le than Portland of east bound tral f ic. W hy Antorla Win ()ppofd. Mr. Hart asked as to why the rail roads opposed the appl Icat ion of As toria In 1910. and Mr. Woodworth re plied that it was because Astoria had no deep-sea traffic at that time, and Lines between Portland Seattle, at Tacoma and Seattle. in ci ua lAnt:a known am the iJravi Harbor branch branches of Irw I'urt land to Snttie. I,Inea known as Yakima branch of division , I-ine from Spokane to Ayer Junction, Wash Itesfhutcs railroad , , HoniPHtpftii branch , , Malht-ur Junction to Crane Vaif to Hrogan Kxcludin n add it inns and betterments. Note These figures do not inc. I ml roil in r stock. that It could not be seen why a 100 mile haul should be performed for nothing. Mr. Hart What policy has the rail road administration pursued relative to shorter routes, under order No. 1 ? Witness A great deal of attention has been given to that In the effort to use the shortest route, but a good many obstacles have been encountered. Lo cal business was interfered with In some places. There has been so much complaint about it we are back almost to t he old basis. Hart You are looking forward now to return of the roads to their owners? WitneuH That is true. On the Den ver and Itio Grande, for Instance, op erating was much more expensive than on the 1 nion Pacific. But employes have their homes on the line, and the order was Issued to turn over a cer tain number of cars per day to the Rio Grande. Mr. Hart Is there any particular difference between competition of rail roads and markets? Witness No. I think they are prac tically the same thing. Referring to testimony of W. D. B. Dodson, regarding low rates on Mon tana products for boat movement from Seattle, witness said there was no dif ference between the Montana rates and that from the grain belt. He charac terised the attitude of Portland as "acquiescent" in the Astoria rate case, and that this city made the same con tention as Seattle in the later action brought In the distributive rate cases in which the cities were joined, and in which a conference between the federa4 and state commissions was held at the instance of Attorney J. N. Teal. The results in the cases, he said, were re garded by railroad men as permanent, he thought, but could not say what investments business men had made as a result of the decisions. Rates on the railroads were not low ered because of improvements at Celilo, the road not considering it necessary. Seattle Kavoritlam Denied. Asked by Attorney Hart in regard to the testimony of Mr. Dodson that it seemed the railroads were enabled to do things to aid Seattle boat lines, and could not do the same for Portland, the witness replied: "Nothing is done for steamship com panies at Puget sound that would not be done at Portland. In fact, the law does not permit us to make any differ ence." Ralph Blaisdell. auditor of the Ore gon-Washington Railway & Navigation company, was the first witness called to the stand at the afternoon session of the Interstate commerce commission on behalf of the Inland Empire Shippers' league, and testified that the stock of the Oregon-Washington company is owned by the Oregon Short Line. After the sale of the property to the Short Line In 1910 the Oregon-Wash ington company owed the former $10. 000.000. The corporate income for 1910 of the railroad was shown by the state ment of the company to have been $44,800,000. Railway Klnaaelasr Kxplalate. New properties taken in at the time of the reorganization cost $2,540,000, The line down the Snake river repre sented J2.683.51 8.23, paid for by the Oregon Short line, sold to and after wards leased from the Oregon-Wash ltlgton Railway & Navigation company The cost of construction of the lines between Portland and Seattle, line from Spokane to Ayer Junction, Grays Har bor branch, Yakima branch. Homestead line, the Deschutes railroad, Malheur Junction to Crane, and Vale to Krogan was shown by Exhibit No 123, as fol lows: Alain track Coit of Time of inDeaKu Construction in? terminals 26.33 19.232.S17.So 1907-1911! and other rtrt.lfl 4..2.".I7.0S V I-'.-..im.4 J7 i;t.i!2.oor,.. tt. 21 .."." To l!lo.l!Ml Po(-lM4 lur-lll llMMl- lUli) Oti-' in-'lI lUOU-ltJIO . .104.(12 1.7 4 Costs are to December 31. 19IS. The Deschutes railroad, the witness testified, was built without any bond issue. The figure was explained as covering the actual cost of the line owned, but not of the portion of the Oregon Trunk line used in the service to Rend. In answer to Mr. Teal the witness stated that two portions of the line used were built and paid for by the Oregon Trunk. That the Oregon Short Line owns practically all of the stock of the Oregon-Washington Railroad & Navigation company was emphasized by Mr. Teal In cross-examination of the witness, did not own the Oregon Short Line and said he did not know. Investment in north Portland termi nals of the Oregon - Washington amounts to M.OOO.Ouu. The J 19.0oo.000 investment in the road between Port land and Seattle wan explained to In- If people realized how much tannin there is in common tea, they wouldn't take it as a gift. Tannin is bad in two ways: it smothers the tea flavor and it attacks the stomach. Fine tea has the real tea-flavor, and just a trace of tannin not noticeable unless you boil it, which is no way to make tea. Schilling Tea is the fine practical economical tea of this country. There are four flavors of Schilling Tea Japan, Ceylon - India, Oolong, English Breakfast. All one quality. Ia parcbmyn-lined moisture-proof packages. At grocers everywhere. Schilling & Co San Francisco '""'r"' jjn - trt You can't think of "delicious" or "refreshing" with out thinking of Coca-Cola. You can't drink Coca Cola without being- de lighted and refreshed. The taste is the test of Coca-Cola quality so clearly distinguishes it from imitations that you cannot be deceived. Demand the genuine by full name nicknames encourage substitution. !' r y feigy, ,, ,A7 ifWrW I elude all of the freight terminals, the passenger stat ion at Seattle, the line from Peninsula junction to a connec tion with the North Rank bridge, a piece of a railroad in Tacoma and from Black river junction a double track railroad. Branch Llnee Show Ieficlt. Mr. Blaidsell was asked by Attorney Spencer whetner It was not true that the branch lines usually show a deficit, as tn the case of the Iu-schutes, and said It was. Kxceptions were made, however, as to the Grays Harbor. Te koa. Colfax and some other branch lines, as it appeared that they have been showing a constant profit. Kxhthit No. 125 is a statement of in come after Interest and prior to divi dends and of western capital expendi tures for the fiscal years 1103 to lt17. Inclusive. Except on the main line and Peach ute ra ilrond t here were no capital expenditures made from 1912 to 1917. In a few instances these expendi tures were in the red. In answer to a question of Commis sioner Kaitman the witness said a larpe share of the huinep of the railroad Is For Hot-Day Lunches Serve crisp, cool lettuce leaves with mayonnaise between thin slices Franz' Butternut Bread. But ternut has such delicious flavor it's so whole some and good. Your family will be delighted. Franz' Butternut is baked by master bakers in Port land's finest bakery. Mod ern machinery and scien tific methods produce a loaf of uniform quality. No guesswork. Ask your grocer for FRANZ' BUTTERNUT The Incomparable Loaf Phone Your Want Ads to THE The Coca-Cola co. atlanta, ga. local traffic. He would not say it waa a majority of the business. Witness was referred to Ostrander exhibit No. 5. and testified that the old company was barren of terminals, bat that in 1910 the Spokane terminals were included in company properly and re sulted in nhowiiii; hicher valuation per mile of line, after that date. LikewM that equipment which the railroad had previously Wacd was acquired and addM about 3t'00 per mile. a$ the ex planation of higher valuation after than b lore l!iC Water lioartl Sets Hcarinps. SALKM, "r.. July 2S. Special.) Hearings to adjudicate water right on Fifteen Mile creek and White river in Wasco county; Snow creek in les rhutes county. and Thomas creek. Prews creek and Cottonwood creek In Lake county, have been set for early in September, according to an agree ment reached h members of the slate water board hero today. tieorce T. ' Cochran of la rjrande was present at the meetinc. He reported conditions very it ry t rou shout east ern f n-egon. OREGONIAN Main 7070, A 6093