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Differeittial In Rates Affects Suptunuts Fbom San Pedbo To Los Angeleb

I-rumber moving from San Pedro Ilarbor to Los Angeles between July 6 and August 12 is subject to a variation in rates--4 cents per 100 pouncls if it is an intiastate, and 6 cents if an interstate, movement. Shippers are viewing their bills of lading carefully.

This temporary d.ifrerence in rates is d.ue to the necessity of publishing a proposed interstate rate 30 days before it goes into efrect while the intrastate can be made efrective on o three-day notice.

Early in July the Southern Pacific tleeidetl to put in a 4-cent rate on the local movement from the harbor into the eity. The old rate was 6 cents. This was Tollowed by a similar action on the part of the Union Paciffc. The necessary permission was obtained from the California Railroad Commission and the rate became efrective, on business origin6liag at San Pedro or other points in California, on July 6.

At the samb time application for the red.uction on interstate business was mailed to the Interstate Commerce Commission at Washington, D. C. Counting 30 days from the time the application got there, this reduction will be eftective August 12. Meanwhile the differential exists.

The commission has ruled, in previous cases, that a combination water and. rail movement, origiuating in one state and ending in another, constitutes interstate trafric, even though the rail part of the haul is perlormed entirely within one state. Under this interpretation all lumber orig-