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, Y June 5, 1911. Rates-wharfage and handling, Crescent Wharf & Warehouse C o., San Pedro. I . B e t t is , Auditor . Dear S i r : I have your fa vor o f June 2nd, on the above m atter, and have to say that your understanding o f the situation is co rrect • The rates estab lish ed by the ordinance o f the C ity o f Los Angeles fo r handling over wharves at San Pedro are those which we are authorized to charge the shippers o f goods. We may e ith e r handle the goods ou rselves, or make a c o n tra c t, as we have done with the Crescent Company, fo r th is work. The s lid in g scale provided fo r in the contract w ith the Crescent Company, as I read the con tract, a p p lies only to lumber . We cannot r ig h t fu lly demand o f the Crescent Company, as long as they handle products other than lumber under our con tra ct, the acceptance o f le s s than the contract p rice . What I meant to express by my l e t t e r o f January 30, was that i f any o f the charges mentioned in the ordinance were le s s than we were paying the Crescent Company, i t righ t be, as a matter o f ju s tic e , that we should not be requ ired to pay more to the Crescent people than we were a c tu a lly r e c e iv in g . The determination o f th is m atter, however, would o f course depend upon other circumstances, and I presume the Crescent people claim that they cannot a ffo r d to handle fo r le s s than the con tract p r ic e , and that we:are making a p r o f it on the whole c o n tra ct. / However, u n til the contract is changed or abrogated, my in te rp re ta tio n o f the terms th ere o f is as ^.bove . Very r e s p e c tfu lly , S f K R B f f iM m § » a . s . h alted H-G