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Show LUCE TELLS ABOUT RAILWAY TIE RATES Testifies in" Government Case That Lumber Companies Caused Discrepancies. NKW YORK. March 1. Why the Southern Pacific should maintain a ?5 rale on railroad ties and reduce that rate to $".10 on oilier rough lumber from AV11-Imnette AV11-Imnette valley to San Francisco bay points, was a subject of Inquiry today by the government attorneys In the suit to dissolve Ihe Union Pacific-Southern l'a-cillc l'a-cillc merger. Counsel for the government wanted lo know from George AY. Luce, general freight agent of the Southern Pacific, if ihe high rate on lies was not due to the building of the Western Pacillc line Into Oakland, for which tics were supplied sup-plied from the Willamette valley. Luce denied that his road had any Intention of hindering the new toad in getting tics. He said that the rate 011 ifll rough lumber lum-ber had been raised to $5 and then lowered low-ered lo $3.10 on complaint of Hie millnien. The only reason the advanced rale was maintained for tics, he added, was because be-cause they were considered a finished commodity able to stand the rale. He admitted, however, that lie had never heard of another instance where the distinction dis-tinction was made. Mr. Luce testified thai the Southern Pacific had never solicited Portland for traffic In Sun Francisco, hut he admitted that it might have been done lu a small way In Portland. "The Southern Pacific did make one effort to secure the Portland business during ihe rate war."' lie said. " but gave up ihe attempt lu dlsgusi " |