Los Angeles daily herald. [volume] (Los Angeles [Calif.]) 1873-1876, 1874-02-21

understand it already-and then in
troduce the testimony on the various
divisions of the bill.
StanfOrd--Perhaps that would be
better; but the statements l have in
reply to the bill are general. The
statements will show that most of the
railroads of the State are not paying;
that there is no railroad that has
reached paying point, except the
Central Pacific, and that the profits
are very small and in no wise common
surate with the interest on the money
in the. Road that several of the rail-
roads are now operating at loss, and
that they are maintained in tee
hope of development in the future that
will bring them out. Without that,
their struggles would cease. / will
show you that these attacks that have
been made ON the railroads are
not only unjust, but they are of the
greatest injury to the people of the
State. The Misrepresentation have
so affected the people of the State that
it has substantially destroyed the for
eign markets for railroad purposes;
and whereas there should have been
600 miles of railroad built-it was in
contemplation-during last year, there
have been but 100 miles built; that one
hundred millions lof additional prop
erty would have been added to the
State except for false and malicious
statements put forth for personal or
other motives. Two years ago there
was careful examination made by a
committee of the Legislature, and the
most of the facts were produced. Some
of the parties who attacked the rail-
road company went before that COM
mittee and stated what they knew, or
rather stated what they did not know.
In the first place, we will submit some
reports, which the law requires the
various railroad companies to make
to the Secretary of State, and file be-
fore the Goth of this month.
Colonel Hyde then read the annual
reports of the various railroad cOmpa-
MES of the State, which have been
made out pursuant to law.
Stanford stated that the reports of
former years could be found filed with
the Secretary of State when they had
been made under oath. These are all
distinct corporations. There are stock
holders who have stock in all the roads,
but there are others who own stock in
only one. He proceeded to explain
what roads bore the different names,
and that was the property Of distinct
stockholders. He presented q state
ment of the operations of the road eX-
tending 40 miles beyond Visalia-the
San Joaquin MISUNDERSTANDING that
the loss for operating in August last
was 1886 O6. That shows how some of
these roads pushed out in the interior
do. All the expenditures are in coin.
We have a statement showing the
comparative rates of roads in this
State and some of the Eastern States,
showing difference between the rates,
and also the rates fixed by the Free
man bill. Under the operation of that
bill the branch roads will be brought
down to below the cost of operating,
and they cannot be run. There is no
allowance made for the cost of hand
ling freight, and that is great addi-
tional expense. TO illustrate: Coal is
unloaded on our wharf at Oakland; we
load it on the cars and move it three
miles, and unload it. We charge the
maximum allowed by law-15 cents
per ton per mile, or So for a carload,
and the cost of loading and unloading
to us would be S.; thus we would
have to pay So for the privilege of car
rying that coal.
= A comparative table was introduced
showing the rate of freight per ton per
mile on the California Pacific Rail-
road, the Chicago and Iowa Railroad,
and what it would be on the former
railroad under Freeman's bill. The
reduction on the California Pacific
Railroad under Freeman's bill would
be about so per cent.
Stanford-We do not charge the
maximum except for short distances,
and on a short distance on the most
difficult part Of the road. This Illinois
Central runs through level tract of
country. They are doing much more
business than we do, and that brings
down the cost One-third as to business.
On our road the grades over LivermOre
hills and up to COlfax are equal to an
addition Of 1870 miles to the length OF
the road. He desired the committee
to question Messrs. TOwne, Montague
and Gray, relative to their testimony
given two years ago, which he said is
as pertinent now as it was then.
These gentlemen were sworn and eX-
amined, and verified the evidence they
gave before the committee; and the
evidence was admitted before this
committee also. Gray testified as fol-
lows:
Q.-Has any railroad in the United
States cost as much for construction for
the same distance as the road over the
Sierra Nevada? A.-No, sir; do not
think any road cost SO much per mile.
@. (by Stanford lis that based upon
mere difficulties of construction indie
pendent of the high cost of materials?
Alt was the character Of the coun-
try-the physical difficulties.
>O.-Do you remember the price of
iron before the war? A.-Pretty we'll;
we used to buy first-class iron from
$45 to sos and $50 per ton.
Q.-Do you know the price we paid
during the war, during the time we
constructed the railroad? Al do
not know very we'll what it cost to get
it here, know the price paid at New
York, delivered on board ship-$85
and sos per ton.
Stanford 1T went up afterwards.
The iron cost us SIPS or $3.50 per ton
laid down in San Francisco-that is
with the additional cost of freight
and insurance. This iron was shipped
from New York around the Horn.
About $50 miles of it came across the
Isthmus at one time, and it cost
great deal more. We did not ship any
iron from England. The gross receipts
from local business is not sufficient in
winter to keep the track clear of snow,
aud if IL ruaa not for tho fhrounh