Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1882-10-24
Az EXAMINATION OF SOME ALLEGED
"FACrS"

An EXAMINATION OF SOME ALLEGED
"FACrs."
railroad organs is to make pretended
comparison between the volume of business
and aggregate earnings of Eastern and
local railroads, with the object of creating
the belief that the latter earn more than
the former. We will take as an example
of this kind of false analogy the following
statement from the San Francisco Chroni-
cle. "The great Pennsylvania Railroad,
with its 627 locomotives, 435 baggage
"and passenger cars and l2,S72 freight
T" cars, and which in 1880 carried 5, 500, 600
"more passengers than the Central Pacific,
"and which transported during the same
"period l,722. 253. 554 tons of freight more
ethan the California corporation, only
learned % per cent. more than our
greedy monopoly" Passing by the fact
that the Chronicles figures as to the freight
carried by the Pennsylvania Central are
manifestly ridiculously exaggerated, we
will proceed to show that all conclusions
based upon such comparisons are of neces.
sity unfair and fallacious. In the first
place the Pennsylvania Railroad operates
little more than 300 miles of road, whereas
the California companies operate 3 200
miles. This single fact is enough to con i.
vince any intelligent person that there can
be no real analogy between the cases. In
the second place the Pennsylvania COM
pany operates over thickly settled coun.
try through its entire road. 1t has no ele.
ment of Improbable work in its operation.
1t has full cars both ways, and at all times
and seasons. And for these reasons it can
afford to do transportation nominally
cheaper than the California road, though
when the circumstances and conditions of
local transportation are taken into account
it will be seen that the work is really done
here on as favorable terms to the public as
in any other part of the country.
Had the Chronicle consulted the report
of its pet oracle, Mr.. Doyle, it would have
been saved the blunder it has committed,
| for it would have found in that document
the following statement I" Tie cost of
" transportation by rail is made up of the
"cost OF. loading and unloading, making
cup trains, etc. (called terminal charges),
4" the general fixed expenses of the COM
pany Including interest on its capital1,
g and the cost of hauling over the road.
The first Of thesc expenses is SO nearly
constant quantity that for practical pur-
"poses it may be SO regarded. The two
IS latter, on road worked to its full ca
opacity, would be in direct proportion to
"the distance traversed, equating grades
and curves for distance but tchen roads
" are not so fully employed, it is but Just TO
g make allowances for notifications arts.
ing from the varying quantities Of freight
" seeking or coming from different localities,
"ate chances Of return freight, and the ike"
Now it is evident that as regards these
factors there is literally no analogy be-
tween California and Eastern railroads.
In this State the conditions of transporta.
tion are very peculiar As rule there is
freightage only in one direction, and even
then only at particular seasons. The larg.
est volume of freight carried in this State is
grain, and that goes only one way, and for
a short time only. Then come wool and
lumber, of which the same may be said.
The return freight is insignificant The
| great bulk of transportation is towards
San Francisco. Returning thence to all
parts OF the interior the transportation is
light. 1t follows from these facts chat a
very large element of dead carriage must
enter into any accurate estimate of the cost
of service. When railroad can only OBJ
tain freight orc way, that freight must pay
the cost of transporting the empty cars
back again.
A familiar Illustration of this may be
given. Suppose that the grain fleet which
came to San Francisco every year could
find no outward cargoes, but was CON-
PEELED to come in ballast. 1t is clear thu t
in such case freight rates ON the return
cargoes would have to be raised, since the
vessels would have to pay the whole ex.
penses of the voyage, and make their
due profit, out of one cargo. And that is
tae situation of the California railroads
largely. They also have to do more trans.
portation in distance, many times over,
than such lines as the Pennsylvania Rail.
road, and this fact must not be omitted
from the calculation. But besides these
important factors the extra expense
of operation must be considered. Fuel in
Pennsylvania. Wages here are higher
alse. The entire coat of operation is very
much greater in proportion. Yet every
one of these essential considerations il
deliberately omitted by such journals as
the Chronicle, which think to delude aud
mislead the public by pretended COM
parsons which are false and mendacious
in almost every particular. Mr.. Doyle in
his report said that it was impossible to
say, with even approximate accuracy,
what the allowance should be for the par.
tial employment OF the California railroads,
the varying amount of freight, etc, and
therefore he concluded that "present
Legislation on the subject would be necss.
"sarily more or less hsphazard."
But what Mr.. Doyle could not bring
himself to propose the Chronicle regards as
a mere bagatelle, for after having tried to
confuse and deceive its readers by publish.
ing an array of figures which have liter.
ally no significance in the way they are pre-
sented, it coolly asserts that these prepos.
ferrous figures are advanced ain support OF
the claim that the Central Pacific Rail.
"road Company could afford to cut down
"its rates 40 per cent, and still relatively
learn more than any other railroad corpo.
Grafton in the land" This is a fragrant
example of the mingled dishonesty, reck.
lessness and ignorance which have ALWAYS