Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-03-07
RAILROAD COMMISSIONERS.
.peelal . De Raooap.uSlos.

Especial to the RscosD- USIos.l
During the examination of Charles Croker,
President CO the Southern Pacific Railroad,
before The Board Of Railroad Commissioners,
he gave testimony Ia answer to continuous
questions By ME. Foote and Others, and which
was net sent you last night, to the following
effect: The cost Of building the Central Pa.
cifc, to the railroad company, was s15S. 000..
0O0, but be did not know how much it cost
the Contract and Finance Company. II the
law lie laid down that contractors are not to
make any profit. thsre will be 10 mora rail-
roads built The impression il, and he
thought Ex-Governor Irwin to some extent
responsible for it, that the bonds given by the
Government were all in the hands Of the
company or members of it, as clesr profit.
Excepting Mr.. Huntington, he did no. think
that any of the company ever saw one of the
bonds. They sre row mostly held in Europe.
They were good investment. drawing per
cent. Neither himself, Mr.. Stanford nor Mr..
Huntington ever owned any Of them. They
were put at once on the market and sold to
build the road and they did not bring enough
60 Dullu II Will. Liz COupally Is sbill pbyiHS
interest on them, and also on S54, coo. 600,
represented by stock. The msjority of the
Central Pacific stock is ia the hands of Stan.
ford, Huntingdon and myself. There are some
outside holders. MIR. Hopkins stock has
been distributed since his death among his
heirs.
In answer to questions as to whsther MIR.
Stow was regular euploye CT the COM
pany, what salary he was paid, and if he
had been given money to use for election CT
Legislative purposes, he replied that IL was
not policy to give the salary Of persons
employed; and as TO money given for pur-
poses indicated, he never gave him any, and,
as matter Of fact, if any of the company
employed him for such purpose, he knew
nothing about it. The business of the COM
pany was conducted in en- honorable NAH
ner The company has large debt, which,
with the interest must be paid, or it will
have to go into insolvency.
To inquiries by Commissioner Carpenter,
Mr.. Croker explained the way saiiroads
are built in the East. Railroads, lie said,
cannot be built for any ordinary rates OF
interest. They are obliged TO sell their bonds
at discount TO raise money TO build with.
+ was a speculative thing to build the Cen
trail Pacific. There wss not one man in
thousand who believed tnst the road would
ever pay. The great benefit they are
is il building up community along
their lines. which makes them pay.
We carry the produce Of California to Ogden.
We would carry into Montana, but the U Mon
Pacific viii not take pound cf il, and they
own the road that ruGs up into Montana. We
want 70 benefit ourselves by benef.iDg the
community, and we have given orders to Ar
Towne and our agents. wherever they see an
opportunity.to cut down charges to do it.
The prospects this year Of dividend sre du-
bious. For two years after the passage of
the Thurman bill there wss 10 dividend, aud
afterwards for several years there were DoRe.
The stock was worth 500 last week in New
York. The Southern Pacific has no value in
the stock market. The revsnus Of the Cen
trail Pacific company, he said, fell eff $500, 600
in December, 1882. It was owing to the fall
ing off in business-in the prosperity of the
country. People are not ceiling as much nor
travelling as much. When they are prosper
GUS they buy and sell and travel. It requires,
said Mr.. Croker, all the ability and expert
ence they could command TO manage the
business of q great concern like this, and he
did not think that it could bs done by edicts
Issued from counting.room. You may re.
ducs rates, but when you come to dealing
with orr mGximums you are handling deli
cate subject.
At the meeting of the Beard to-day nun.
Others one from Dr. Robinson, and one from
f. V. c. SpaldiRg, a. the request of t. e.
Goodm1 N these commu-ica ions vera re-
ferred to him. Othsr letters have bsen re-
ceiVed from Mr.. Frierson, of Oakland, and
another still from Mr.. Robinson. This latter
gentleman incloses the schedule # fares on
the roads in S lsno county as given 80 him
by Mr.. Goodman. From this schedule Mr.
Robinson, for Suisun residents, maintains
th,k abp waAn raatfy III II ap6 1cl
cents per mile, notwithstanding the fact Nj.
Towae has openly contradicted this state
ment.
It WAS decided to notify f. s. Dau.y and
e. II. Millar to appear on next Tuesday be-
fore the Beard. Mr.. Towne will also be sun
moned as soon as he RECEIVERS from his present
indisposition.
A. G. Basaets. Superintendent of the
Northern Division of the Southern Pacific
to circular letter No. 2 communication
containing the information desired by the
Commissioners. Following is summary Of
the statement Of this document:
Tire total cost OF the Northern Division of
the s. P. r. r., with its equipment, real eE-
tate, bulldogs, machinery, toolH. etc. is
spporsionsd to the whole Sl3 $50 637 So. |
'Fhe gross earnings of the road for tire year
1882, ware 81, 257, 399 80. The operating ex-
psnses for the same year awsre S6l4 S91 rs, |
exclusive of interest, taxes, legal expenses.
renewals, etc.
The per cent. CT operating EXPENSE as
compared to the gross earnings for each yes
since the rosd mas besn in operation. is SIS fol.
lows: 1871, 81 per cent; 1872, 50 per can't;
1873. A per cent; 1875, IS per cens.; 1876, |
So per cent; 1877, 80 per cent; 1873, 81 per |
cent; 1879 SO per cent; 1880. IS per cent;
1881, 81 per cent; 1882, 40 per cent.
The road in this State duriug the past fiscal |
year IVES as follows. showing the assessed |
in each county, and also the amount |
Of taxes paid: