THE DAILY COOS BAY TIMES, MARSHFIELD, OREGON, FRIDAY, JULY 12, 1907. Meets On Coos Bay To Hear Complaints Against C. B. R. & E. Road. NORTH BEND WEDNESDAY Yestcrtliiy Hit? IlallroiHl's Side of tho tatory Was Hoard Jn ' Mai'.Mliik'Id. Tho Railroad Commission held tlio first hearing in tho case of Davis SlTultz vs. the Coos Bay, Roscuurg & Eastern Railroad and Navigation Company at North Bend on Wednes day evening. But one witness was heard during this hearing, Mr. Shultz, and the matter was continued until yesterday at tho local depot of the railroad. The complaint and answer were as follows: "Whereas, tho above-named plain tiffs have heretofore filed with tho Railroad Commission of Oregon a complaint, among other things, al leging: "That said Coos Bay, Roseburg & Eastern Railway and Navigation Co., and W. S. Chandler, receiver thereof, does unjustly and wrongfully discriminate against tho shippers of freight over Its line from Marshfield to Coqullle and Myrtle Point, in favor of shippers at Portland, Oregon, and San Francisco, California, as follows, to wit: That the said Railroad Co., and its receiver charges Portland shippers a rate of $2.00 per ton on merchandise from Marshfleld to Co qullle, and a rato of $2.25 per ton from Marshfleld to Myrtle Point, that the said railroad and its receiver makes a rato on the same class of merchandise to local shippers on Coos Bay, and to tho plaintiff cor poration heroin of ?G.OO per ton from Marshflold to Myrtlo Point, and $5.00 per ton on tho same class of merchandise from Marshfleld to Co qullle, thus making It impossible for this plaintiff to carry on its business in competition with tho said Portland and San Francisco shippers. "That said freight rato made and charged by tho defendants herein Is unjust, excessive, unjustly preferen tial, discriminatory and prohibitive. "That tho rates charged on all goods, locally, by this defendant from Marshfleld to Coqullle and Myr tle Point, are in themselves unjust, excessive and prohibitory. "And praying that said Railroad Commission of Oregon adjust tho said rates to a reasonable and just basis. The Schultz-Davls Company, a cor poration, vs. Coos Bay, Roseburg & Eastern Railroad & Navigation Com pany, and W. S. Chandler, Receiver thereof, defendant. Answer. Now comes the defendant, above named, and for answer to tho com plaint in tho above entitled proceed ing, Denies each and every allegation In said complaint contained, not hereinafter admitted, qualified or specifically denied. Admits tho allegations of the para graphs numbered 1st, 2nd and 3rd, 'in said comrUaint contained, sub stantially as therein alleged. Further answering, alleges (that the defendant corporation is pri marily engaged In operating an in dustrial railroad for tho transporta tion of coal, lumber and logs, and that tho transportation of merchan dise and other commercial freight is undertaken by it only Incidentally, and more for tho accommodation of residents and business men in tho territory which it traverses than for a financial profit; that the amount of Isuch merchandise and commercial freight offered to It Is both absolute ly and comparatively trivial, and that there 11 little pi-oflt, and a very small rato of profit mado in handling the same; That all logs, lumbor and coal transported by tho defendant corpor ation aro received at Cedar Point and points between Cedar Point and Marshfleld, and aro transported to Marshflold, excepting a fow small shipments of lumbor, and that tho points In said complaint mentioned, to which tho rates of shipment from Marshfleld nro nllcged to bo excessive and discriminative, aro all beyond said Cedar Point; That the operation of tho portion of tho said defendant corporation's rallrond lying beyond said Cedar Point is, and for a long time 1ms been unromuroratlvo and unprofitable. Further nnsworing, defendant ad mits that tho rato charged per ton for flr3t-clns3 freight, according to tho Standard Western Classification, botweon Marshfleld and Mrytlo Point, is six dollars, and between Marshflold and Coqullle City is five dollars, and alleges that these rates aro reasona ble, moderato and low, and aro the samo as aro usually charged by other and more favorably situated rail roads, carrying much more freight, for equal distances; Further answering, tho defendant alleges that on through shipments mado by Btoamship from Portland to Marshflold,. and by tho defendant from there to destination, the freight is not classified according to weight, as aro all exclusively rail shipments, but nccordlng to the custom of ship ments by water, according to bulk or cubical contents, that by this method forty cubic feet is classified and charged for as a ton, that only the heaviest freight will weigh, enough to constitute a ton by measurement; and that tho average ton by meas urement, as received by the defend ant from tho steamship company will weigh only about ono thousand pounds; Further answering, defendant ad mits that Its rates upon such through shipments from Portland aro as In said complaint alleged, but that its charges aro upon the meas ured tons, as hereinbefore set forth, and that by reason of tho measured ton of merchandise averaging only about ono thousand pounds, tho real charge by tho defendant on such through shipments, as compared with the local shipments of merchan dise, which aro all charged for ac cording to actual weight, nre reason able, morerato, just and proper, and that said rate3 and charges constitute no discrimination against the plain tiff or other local shippers. Further answering, defendant al leges that tho custom and method of shipping by steamship on the basis of tho measured ton Is proper and necessary for those operating steam ships, and it would be impracticable for defendant to make a through rato with the steamship company, or companies, on any other basis. Further answering, defondant al leges that tho merchandise so re ceived by It from tho steamships for through shipment, and all through shipments are received by steamship, and not otherwise, aro received In quantities of soveral carloads at a time, and are handled by the defend ant In tho samo economical and ex peditious manner, and with the same profit as carload shipments, that tho steamship crews and their employees load said through shipments directly onto the cars, in many instances, from tho steamship, and the defend ant is thereby saved tho labor and expense of storing, handling and loading said shipments, as is neces sary in the case "of local shipments. Further answering, defendant al leges that said Coquillo City and Myrtlo Point, In said complaint men tioned, aro on tho Coquillo river, and have direct connection by water with Bandon, which Is a port having ocean connection with San Francisco, Port land and other points, and that the through rates mado by tho steamship companies, and tho proportion there of charged and received by tho de fendant aro governed by the rates charged on the through water routes above mentioned, and that tho pres ent through rate by water from San Francisco to said Myrtlo Point and Coquillo, is less than tho rnto com plained of by tho plaintiff and charged by steamship companies for shipments from Portland to Marsh fleld, and thence via tho railroad of tho defendant to destination; Further answering, defendant al leges that the plaintiff herein has never offered carload shipments to tho defendants and never asked for rates on tho same, that in all tho time tho plaintiff has been in busi ness It has shipped le3S than two tons of merchandise over tho railroad of the defendant, and said shipments have been In small lots and at dif ferent times; Further answering, defendant al leges that the office and place of busi ness of the plaintiff is at North Bond, Oregon, and not at, or upon tho line of tho railroad operated by tho de fendant corporation, that by reason of Its said location, the plaintiff must ship all merchandise, intended for said Myrtle Point and Coqullle City, to tho station of the defendant at Marshfleld, by water, that the regu lar rate charged for said water haul from North Bend to Marshfleld, by tho boats engaged in that traffic is twenty-five cents per hundred pounds weight, and In quantities of ono ton and upward is in no case less than ono dollar per ton, that the regular steamship rates, being those plaintiff Is compelled to pay, for shipping merchandise from outside jobbing and supply centers to North Bend aro the same as those charged for ship ping merchandise from tho same points to Marshfleld, and that tho in ability of tho plaintiff to compete with Portland and San Francisco jobbors is due to said disadvantage ous situation of its place of business and the freight charges which it Is thereby compelled to pay for trans porting its shipments of goods In small quantities, in the manner in which it handles them, to the station of the defendant at Marshfleld, and not to tho rates or charge placed up on tho samo by the defendant. John S. Coke, Attorner for Defondant. ler, C. J. MIUIs; Mr. Davis was re called. The railroad in its proceed ings followed the lino of argument presented in its answer, and tho com plainant's procedure was about tho samo. Tho contention of the rail road was not that tho rates held by Mr. Shultz to bo discriminatory were not in effect, but an attempt, was mado to justify those rates. It was held that the water competition to the Coquillo country by way of Ban don makes it necessary to protect the railroad by tho rates now in effect. It was claimed by tho railroad wit nesses that the eight miles of road beyond Coqullle is a losing invest ment an,d that it does not pay for maintenance. Most of tho profits derived by the railroad, according to tho company's evidence, are derived from tho traffic In logs, lumbor and coal. Tho amount of traffic in mer chandise is so insignificant that the company believes its prices just. An Important point was raised dur ing the hearing; the railroad has tho co-oporatlon of the Breakwater in its freight traffic and is enabled to route traffic through from Portland to tho Coquillo country, whereas, freight brought by another vessel must bo transferred to the Southern Pacific here. Tho railroad holds that the Commission has no jurisdic tion over water transportation, since it is carried on outside the three mile limit, where all jurisdiction of a state ceases. This contention was supported by tho company in quoting a decision handed down by Judge Deady of the United States District Court in Oregon, to the effect that Oregon has no jurisdiction over traffic which is carried outside the three mile limit, even when it is returned to the State's boundaries in some other Oregon port. Shultz and Davis were ordered to file a statement of tho traffic the firm has forwarded over the local rail road since" they have been in busi ness, and this must bo submitted to the railroad company and filed with tho commission. Upon the evidence at the hearing the case will bo de cided on the following: affidavits, pleadings in cause, and briefs of par ties. Each side reserves tho right to submit its arguments by argument or briefs, tho Commission sitting as a court. Hollister & Guerrey, of North Bend, represented Davis & Portland & Coos Bay S. S. Line BREAKWATER Sails for Portland and Astoria eyery Thursday C. F. fAd ,r igt. Phone Main 34 A. St. Dock rt rwwwaiwiiii wmmemi'mwiM uatfujinowm ijiwit rTxru-JgiftJiJM'wrwwt-JiLiiLiMiJ fjiiiijgij.LJL-?r A nice line of B Souvenir Posbds M Marshfield 1 NORTW&HANSEN Shultz, and the railroad had the fol- Tho following witnesses gave evi-' lowing attorneys as counsel: John donee at the hearing held at the S. Coke, John H. Kollock, of Port local depot: F. A. Laise, W. S. Chand-'land, and John D. Goss. ili..iimwM mtfwamsgtOBBmsaaiaaamBamBmBaax Per mosth, 1 suit K per wee CLEANED PRESSED WASHED BAYLISS & MERCER New Pantatorium Building Suits called for and ffjrnnTyiYiTTijTiniTl''.rT""'"'J"Ms:r RUR SAI.E iX XMriiNa. EWJa &lasUu 90 A few choice 5 and 10-acro tracts close in. Good tranportatlon. Two daily boats to Marshfield, North Bend, faro 25 cents round trip. Daily mall. Telephone connections Farmers' Lino No. 2 passes through the land. Wagon road to East Mnfrshfield. Tho county railroad through to that part of Marshfleld is boftnd to bring it to tho front. This property will bo taken off tho uu .. t August 15, 1907. See Charles Doane or W. J. Rust. Marshfield Oregon. I M - NEW HOUSES FOR SALE ON ELSY TERMS Neat and modern. Situatea in NorthBend Heights. Best view on the peninsula, alsotfacant lots in the same tract. Prices reasjjnahfend terms easy. m SUCCESSORS TO Ward & Ward WARD (&, HURD Corner Meade and Vermont Sts. i 9 I I :miwnum:jmmjn::mmajmtatt:ttn The . I DELJCATESSEN If For Ice Cream. C0 Any Amounts Furnished i Roast Pork Today. Second and C streets. mjnjmj::mttttmnmttmjnjmtt:m sans auiiiHi'imei 'I'MWl n iMImmiigaiMeailliwBga iiMMkntana Right Come right in for Lunch and Dinner today Cuisine perfect; service unequaled The nicest appointed restaurant on Coos Bay Table am lunpri counter trlde solicited Ijou are going to pay for a dinner why not come where you can get the BEST. Dinning room board $500 per week, lunch counter board $400 per week Best of at tention given WANT North Front Street Opposite Gty Hall I i 1 1 :JKJ m i JEn 1 m lull Electric Lidits in the store WINDOWS Are the best kmd of adver tising you can do. It attracts the attention of eve passes ho yom made-rc a sale is seen in goods. Many causse ih was yon once is very low. hry lighting yoisr sw.ver BAY GAS ELECTRIC CO. 419 i s 3E