Daily Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1876-1884, 1881-04-09

Is much longer to San Francisco
than by the Union Pacific, but
principally because the Southern
Pacific 10 . Central Pacific institu.
ton and the Central Pacific would
force all Pacific business, or AZ
much Of 1t Is it could control, via
the Union Pacific and its main
line. Yesterday dispatches were
received here informing roads rum
ming west from this city that the
Atchison, Topeka and Santa Fe
has withdrawn from all freight
traffic for California, Oregon and
Washington Territory. It seems
that the new line comme nced with
q much larger patronage than was
anticipated by the Union Pa
cif1c and Jay Gould thought
1t best to commence bull.
bulldozing operations early and
prevent the new line from achisv-
ing any popularity. Even before
the new line was opened, Gould
succeeded in forcing 1t to pool CAL
if0rnia business with the Union
Pacific, retaining, Of course, the
lions share for the latter route,
but even the little that was allow.
ed to the AtchlsOn route Gould
thought that it was too much and,
ne stated above. he has succeeded
in preventing that route from do.
ing any California or Pacific Coast
busine at all. 1t appears that
Gould comedies to the Atchison,
Topeka and Santa Fe the bulk Of
the Arizona business, but as that
is the direct and by hundreds Of
"a lies the shortest route to Arizona,
this concession does not amount to
much, for Gould could not prevent
that business from going that way
II he tried.
the Rev Y.rk Chamber Of Com.
Letter.
CHICAGO, April ssh.-A New
York special says: Governor Lee
land Stanford, Uf California, re.
Gel we'd pretty rough treatment at
the hands of the Chamber of Com.
merce Special Committee In an
ever to his elaborate letter on
transportation. They characterize
his letter az remarkable for bold
ness of assertion of railroad claims
and lofty contempt for the decis-
ions Of our Courts which can only
spring from consciousness Of
power which fairly joins issue with
those made in behalf Of the public.
In answer to Governor StanfOrd's
assertion that railroads owe no
duties to the public. except as mer-
chants, farmers and laborers, they
assert that the Courts, from the
lowest to the highest, have decided
that railroads are public highways
and common carriers, bound to
make but reasonable charges, and
these without favoritism or dis
elimination. In answer to his de-
NAL that determinations against
communities or individuals are
practiced by the roads with which
he lie connected and regarding his
assertion that it is no worse for
railroads to contribute to the con-
troll of nominations or elections
than for individuals, they answer
that, while In principle it 10 not, in
practice it Is far more dangerous
and Objectionable, it being large
~ a question: of degree, just
as one predatory animal is more
dangerous than another according
to its size and strength. They
claim that the record of the New
York Central road shows that had
that road not watered it's stock,
the public would now be $75, 000, 900
better off and that $4,000, 900 of
the watered stock would not now
be in existence to afford an excuse
for further taxing the production
and commerce Of the country for
all time to come. Even the steal.
ipgs have in the past been CAPT,
talized, prominent examples of
which are found in the former
management Of the Erie and the
New York and New Haven rail-
roads. They add that the Central
Pacific Railroad Company have
been adopts at the practices and
through its Construction and
Finance company 1t has inflated its
obligations to the fullest possible
extent. Regarding the denuncia.
tions of the decision OF the Su.
preme Court of the United States
by President Stanford, 1t is, the
committee claim, useless to argue.
It may, however, they think, &C.
count for the recent attempts to
place upon the Supreme Court
bench a prominent railroad
attorney. In the face of
such utteranoes, it bshooves
all patriotic citizens to jealously
guard against the preferment in
any department of our government
of men who have been the servants
of the great public corporations
and who are likely to sympathize
with these corporations to the det-
riment Of the public interest. In
response to the plea that railroads
should be left alone to manage
their affairs In their own way and
to decide what. Is reasonable
charge for the service rendered t he
committee quote from Congress.
man Daggetps speech that all the
money ever invested by stock hold.
ers toward constructing the Cen.
trail Pacific was $12,50O, and that
the officially reported value OF tina,
road In 1877, over liabilities was
$1s6, $50. 900, represented in part by
$54, 900. 900 of watered stock of the
Central Pacific and $4,000 900 o.
the Southern Pacific, being an ag.
gregate of 500, 900 in stock
which cost them only the price o.
printing and upon which they are
compelling the public to pay the %
eight per cent. yearly in dividends
The Southern Pacific has been con-
structed and paid for from
the earnings Of the Central Pa
cif1c, yet the owners issue $50, OOt
In stock and $4,000 in bonds pei
mile and charge such rates as will
enable them to collect annually