Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1882-08-28


the price that it shall receive And here let Inc say
that whenever the railroad accepts less than the
maximum allowed by law it is because of considera
tions circumstances that it carrot control, but
which in themselves fix the price which becomes an
established rate This fact should receive due con.
sideraton. Now it will be seen that, controlled by
these circumstances an equal mileage theory would
not apply at all and nothing regulate it except
| ing business laws unless you deny to the shipper
the right OF competition, and regulate him in his
routes and prices. An attempt to regulate the car
rier without regulating the shipper will always be
failure; and again l may say that the only regula
ton possible is such business principles or the
laws OF business permit When the railroad accepts
less for the longer than for the shorter distance
| Is because circumstances compel it, and not from
choice. Railroads are no more DESTROYS of working
for nothing than other enterprises or interests and
| 1t would be as reasonable to suppose that they
would voluntarily carry for the longer distance at
| the same or less rate than for the shorter when
they could obtain more, to suppose that the Ia
borer would work day and half for the same price
| that he would for one day. The people are not
charged more for the shorter distance but the rail-
roads are compelled to take less for the longer dis
lance, for certain causes which they have no
control, viz competition, the relative values of
the commodities moved.
Fnth-That merchants and manufacturers are by
force OF existing conditions coerced to enter into
contracts to ship all goods imported by them by
rail, to their disadvantage and to serious loss and
| injury to their business
This allegation would seem TO be suggested by in
divduals who fail to have an advantage over their
| neighbors, which perhaps they think themselves
| justly entitled 20. There is an open o. general
tariff rate which all shippers may avail themselves
| Of, without any discrimination. All may also avail
themselves Of the contract rate the smallest as well
as the largest shipper. Whether they enter into
this contract or not is matter of individual in
terest and opinion entirely, and therefore, is not
properly a matter of public concern. The shipper
avas himself Of the open contract rate as to him
seems best, and this contract system is available to
the smallest well the largest shipper No one
enters into this contract unless he deems it to his
individual advantage against the general tariff
1 rates In answer to the sixth allegation:
That the coercion alleged to be practiced by the
railroads. as set forth in the above count prevents
comsettion by the ocean, raises the aggregate cost
OF transportation entails additional cost upon all
articles imported, snd forces entire reliance upon
overland railroad lines, to the Injury Of the com
merce o, this State,
can only say that before the construction Of the
overland railroads the lowest freight by the 18TH
mus was about one hundred dol ars per ton now It
IS about twenty dollars. During the past year
freights on wheat by Cape Horn ruled little over
seventeen dollars per ton. The opening of the
Southern Pacific brought that price down imme.
datey TO about ten dollars and had that rate pre-.
vailed during the past year alone, it would have
saved to the farmers Of this State about seven mil
lion dollars on the cost of transporting that single
article, and predict here that the former rates
| around Cape Horn will never be restored And
this because the railroad has in as compel.
tor for the business. Thus itappears the allegation
that the contract freight system, as practiced by
the railroads. prevents competition BY the ocean, or
raises the aggregate of transportation, or en-
tails add ional cost to the consumer on articles i'm
ported, or forces sole reliance upon overland rail-
road line', has no foundation in fact.
Allegation seven has already been answered
Eighth The hostility to the railroad as basis for
political action is justified by reason of the facts
to wit: That the construction OF the railroad sys
tenn OF the State was encouraged and aided county,
State and national subdies and that in the process
OF their construction the right of eminent domain
was exc cised i'll the condemnation of the right Of
way arit other important matters That al! these
concessions and privileges placed you and your
GATES the attitude OF trustees for the public and
that ti unreasonable ami uncomfortable that YOU
should be able 20 ruiits amounting, by Your
own exhibits, to something like 5000 900 year,
and winch are rly drawn from the industries
| and CON merce OF this State
r. This allegation embraces much of error that is
| widesrSsad throughout this State, and -
United states as well, and it seems to me tt
recital OF fhsfscts will remove the iIfession tfat
exists The aid received in tt .oSs ructiop Of the
Central Pacific Raila Tss, in round numbers, a
1 loan of Ok in "A h,o,
This wainot gift, and therefore not subsidy, and
for it the Government has taken ample security
and als is out in money is only the difference be-
tween the interest paid on these bonds and the
value a the services rendered by the railroad com.
pany. The Government gave, also, some of its
land OF little value at the time, and sorry to
say, of much less value than is generally sup
posed BY this the Government secured the con
strnctio Of the road, and it has never been dsap-
pointed in single expectation connected with it.
as apperrs by a report of United States Senate
committee taking the average expenses west OF the
Missouri river from 1910 up the completion Of the
roads, as against what has been paid since for better
service, the Government has saved over s. 900 600
per annum, assuming that the interest paid ON the
bonds loaned to the companies should turn out an
entire loss. Other advantages might be enumer-
ated; but the public mind will readily appreciate
them without detailed statement here
The only aid extended by the State Of Cali.
fornia to the construction of the road WIS by
virtue OF contract between the company and the
State In which the State promised to pay the inter
est on 81, 600 bonds of the company the latter
TO pay the principal Of those bonds at maturity.
The value OF the service which has been rendered
under this contract, added to the revenue derived
from taxatien due to the increase OF tpxable prop
erty created by the construction Of the road pro-
duces sum greatly in excess Of the amount OF
interest paid on the bonds already mentioned Tho
county OF San Francisco, in the way Of compromise
gave four hundred bonds OF $1,000 each, at that
time Of value Of about $3.50 each, instead OF sub
scrbing for $780, 000 stock Of the company and Civ
ing for it equal amount OF the bonds of the
county, as it entitled The compromise was
made at its own solicitation and ii it was bad bar.
gain, it was its own fault. The county of s,cra.
meuto subscribed for 100000 Of the oompapy,s
stock, and gave its bonds for an equal amount The
county of Placer subscribed for 100000 stock of
the company, and gave its bonds for an equal
amount Both of these counties afterward sold their
stock for more than their bonds were worth at the
time of their subscription. This embraces the entire
otiipuut vi aiu-Hatlonai, state and COunty-whiCh
was contributed toward the construction OF the
Central Pacific Railroad and when the increase of
taxable property, sf1rding additional revenue to
State and county treasures, and the development
of the resources Of the State consequent upon the
construction OF these railroad liuea come to be con-
sidered, it to me that neither the State nor
counties have reason to regret their contributions
| II the National Government the State or counties
desired other benefits than those naturally derived
| from the construction of the road they ought to
have SO stated in their contracts and they are not
now entitled to anything beyond the specific per-
| Torrance Of the contracts To base the right Of
regulation upon the claim that, in the construction
OF the road, national State and county aid was ex
tended, would be TO claim the right to neutralizs
such aid, and to infict penalty Of continued and
| indefinite loss for having accepted such aid
| Legally and equitably 1--WE sustain the same reIa
ton to the public all other railroads. subject TO
equal laws, and to the fulhment OF every contract
I have before stated that our corporate laws are
merely in aid OF the natural right OF association.
The right of eminent domain Is not exercised by the
railroad company, and in fact can only be exercised
by the State and for the benefit Of the public and
is emily because the State deems railroad
as of such enrenily beneficial character to the pub
lie that it is exercised and in order tb the railroad
may have the right Of way to build its road. The
right of eminent domain is not vested in the rail
road company The State cannot divest itself Of t.
and it cannotexerc!se it fer the benefit of the rail-
road company. 1t can only be exercised on behalf
of the public, and for the public benefit The man.
ner OF exercise proves this. The State exercising
the right OF eminent domain, condemns the prop,