Daily Los Angeles herald., 1879-09-26

The report ofe Governor Leland
Stanford. representing the Board
OF Directors of the Central Pacific
Railroad, is really very fine read
ing from the standpoint of a law
var and special pleader. We may
add that 1t is interesting from a
literary standpoint. Its discussion
Of transportation ethics is novel, at
least, If not sound. The assump-
tlon that his corporation is sort
OF benefactor to the National,
State and county governments,
would com within Dsnton's finest
conception Of the idea of audacity.
The report antagonizes, in a very
striking manner, the idea advanced
BY George G. Gorham, which, by
the way, represented the Central
Pacific Railway magnates as sort
Of mendicants enriched by the
bounty Of the nation, State and
counties. Governor Stanford proba-
bly, pitches his pretensions upon
che hypothesis that the higher you
set your claims the greater dis
tance you have to fall. There is
something breezy and exhilarating
In the confidence with which this
dne old California gentleman adj
dresses himself to the questions
which have agitated this and other
California communities, and which
were brought, and efficaciously, by
Senator Thurman's bill before the
Congress of the United States.
Many citizens of California have
laid the flattering JUNCTION to their
souls that they have been oppressed
by the railway. On the contrary,
we find Governor Stanford COM
planning of the rule of might, as
applied to his company, as thus:
There is no foundation, in good
reason, for the attempts made by
the General Government aud by
the State to specially control your
affairs. 1t is a unestlon of might,
and 1t Is to > our Interest to have il
determined where the power re-
sides. Perhaps it is not strange
that the attempt should be made
tO'control the railroads of the State,
however unwise it may be, or how
ever arbitrary aud absolute the
manner, because upon them de-
ponds SO largely the question OF
production aud the exchange of the
products of the labor of the citizens
Of this State.
Governor Stanford next proceeds
to assert and argue the fact that
the thing Disseminated against In
California has been, not the people
Of the State, or of scattered commu.
nIties, but the railway. He says:
Discrimination against AN indi.
vidual or community is a thing
unknown. The discrimination
most prejudicial to the interests OF
the company arises from COMPETE
ton 10y other carrier, which
forces toe acceptance of lower
rate than could otherwise be wisely
obtained; yet ii is better to accept
. low rate, even though it pay but
ono penny over the cost of the
movement, when that is all that
can be obtained, than not to move
the particular freight. For this
reason, Oftentimes where there is
vigorous competition, the carrier
finds 1t necessary to carry freights
ut less rates for longer than for d
shorter distance. To illustrate;
Freight is carried by rail from San
Francisco to Los Angeles at the
present time for less rate than to
some intermediate points. This
the railroad company is compelled
to do to meet competition by ocean
carriers, Los Angeles being "a com
peting point. The rates to the in
tsrmediate points, however, are
not affected at all by this CONF etl-
ton, being neither raised nor low.
cred thereby. By this competition
the real loser is the carrier, the
competing point having all the
benefit. The greater the competi-
ton between two points, the lower
the rates and the smaller the pro.
fits of the carrier. Points where
there is no competition, however,
cannot justly claim the concessions
which better located places can de-
mand, but must pay the ordinary
rates for carriage. In some cases
the non-competitive point might
be injured, because of the superior
business location of the competing
point. but this is not the fault OF
the carrier. A case in point has
recently been brought to public at.
tentiou in New York. Goods are
sometimes, through the force of
competition, carried from Chicago
to New York city at a less rate
than from Rochester to New York.
Rochester is situated upon the line
OF the New York Central Railroad,
with great natural milling facili-
ties, and with long established
business of that kind. 1t has been
paying to the railroad company a
fair compensation for transporta-
ton. The Rochester miller buys
his wheat in Chicago, transports it
to his mill to be ground aud then
ships it to New York to the same
market which receives the wheat
and flour of the Chicago dealer.
Chicago is great railroad center
and competing point with several
of the great trunk lines leading to
the seaboard, and between these
lines competition is very strong
The New York Central, in order to
get business from Chicago, is COM
PEELED. therefore, to its great loss,
to bid against other Toads, and
sometimes to accept less rate for
carrying grain aud -four to New
York city than is charged from
Rochester, an intermediate, nom
competitive point. In this case,