Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-06-28
The NlIrfeyhaza TriaI
FREIGHT RATRs.
Consideration of the Question by the
Railroad Commission.

SAN FRANC SEQ, June 27th.-At the adjourned
meeting Of the Railroad Comnliss ners to-day, all
the members were present, and Mr. Carpenter pre-
sided j. @. Stubbs, Freight Manager, Col Gray
and Other railroad we're present. IN response 10
notice from tine Commission.
General Barnes appeared for the North Pacific
Coast Railroad Company corporation which had
been included in the order to show cause. He said
the road had never been a paying institution to il
ustrate which statement he gave a brief history of
the company. 1t had been built by cert ain citizens
Of Marin, and had financially injured most Of them.
Milton S. Latham had expended upon il al different
times between So, eco 000 and $4,000 an opera
ton which had ruined him. Tie road was now
barely sustaining itself. The earnings last year
were SG7 000 and the operating expenses including
interest on bonds issued for its construction $685.
Geo. leaving proft of 81 O00. To apply such re-
ductlons as proposed by the order to this road
would simply ruin it. No reduction at all could be
made. There was no complaint from citizens along
the line of the North Pacific Coast concerning
freight and passenger rates. The road had no con-
nection with the Central Pacific and leased lines
against which he understood the public batteries
being directed, and with any faults in the
management Of that corporation had othing TO do
He asked that the road be excepted from the order
OF the Board, or If not that hearing be granted on
these facts. The line had no through business WAS
purely local concern, run for the benefit Of the
people along its line, and was run principally upon
the profits Of the ferry.
Mr. Carpenter said that any freight schedule to
apply to the North Pacific Coast Road would have
must be made in its favor.
Mr. FOote remarked that if such state Of facts
as given by General Barnes existed ne would not
vote for freight reductions ON the North Pacific
Coast Road He understood the schedule of fare
adopted cy the Board did not apply to these small
roads.
RATES IN AUSTRALIA.
AT the request CT Mr. Carpenter, l. L. Dow,
member Of the Australian Parliament who was
present, gave the Board some information upon
ht rategiD his pQUutrv He qad his
was called at Chico 70 freight charges in this State
where he was travelling to obtain information, and
he had remarked That Australians would be
very glad to get rates cheap. In the colony of
Victoria, the largest wheat producing colony, the
rate from point to tide water i cents per co
pounds The distance was about the same as from
Chieo-200 mles-from whence wheat came to tide
water for about three cents per bushel OF 60 pounds
He gave several other showing similar compar-
ison. There was difference between the rates GO
ing inland the reduction to Ia cents bushel was
made to enable grain to reach Melbourne lie
stated that the railways operated by the Aus
trGIan Government and that the people appealed
to their Members Of Parliament for reductions
Mr.. toOte evinced much curiosity as 10 the
and he fired three or four questions at him, with
view to ascert3ining whether there might not be
some railroad scheme in the fact of his presence.
Mr. Dow was eomewhat surprised at this bit OF
suspicion and stated that he kGeW Of the Off
cials Of the Central Pacific, and not travelling
on a pass He Sc TO California by the news
paper with which he was connected, and all his
penses were paid. The gentleman who had asked
him to appear he had met at Sacramento, and he
did not know he WAS connected with the railroad.
DEFECTS IN THE NEW SCHEDULE.
= A. Cohen appeared before the Board, and
called attention to several errors il the published
schedule Of fares, adopted yesterday by the Com
mission. He pointed out that by stopping off at
Port Costa and purchasing another ticket, man
could get to SacramentOfOr less than the published
tn a4u, ~,
Monterey. By stopping at San Jose anG purchas-
ing another ticket. a cuu ge TO Monterey for
seventy cents less than the published rate. Cohen
said he did not know how 10 happened, but he
called attention to the fact. The schedule h7d evil
IDENTIFY not been considered az fully he kad ad-
vised in i former communication to the Board.
n. FoJte asked il the adoption Of three cent
rate, which wiped out all round trip fares, would
not obyi;te the difficulties 70 which ne alluded.
Mr. Cohen gave his opinion on three cent rate
at length. He believed that some reduction in fares
ought TO be made but the establishment Of a uni
form three-cent rate would wipe out many of the
small roads in the State. Any rate ought to be ad
justed TO the conditions of the business.
Mr.. Foote referred to his note book and read from
a speech made by Mr. Cohen in Patrs Hall in 1879,
in which he gave figures upon the earnings Of the
Central Pacific, and denounced the road
Mr. Cohen admitted that the speech was made by
him, and said he had no desire 10 take it back but
he objected to the present methods, and believed
this railroad agitation as now managed and the
hostile action of the Commission, were doing more to
perpetuate the railroad monopoly than any other
one thing. No Eastern capital could be Induced to
come to the State for the purpose Of constructing
railroads while the agitation lasted and there could
be competition until such capital was allowed to
come here He had been East endeavoring to enlist
capital, and had found that all railroad men were
aware Of the agitation going on here. Without in
ducements were offered, no more railroads would
be built IN California.
THE RESULT OF REDUCTION.
Mr. Foote-Do you think this Commission has
made mistake In establishing maximum!
Mr.. Cohen-I do not go as far as that. 1t may
not be harmful to try one. There is nothing like
practice
Mr.. Foote- Do you think tbree-cent rate would
work hardshps on the railroads7
Mr.. Cohen-It is my judgment that it would not
do That is my opinion, however. four-cent rate
will probably not work much hardship
Mr.. Foote-Don't you think that for several years
the Central Pacific Railroad has been making more
money than it ought to
Mr. Cohen-Yes, sir believe such to have been
the fact.
Mr., FOOte-DOn't you think their profits should
have been reduced
Mr. Cohen-Undopbtedly. The conditions now
are different however, from those that existed some
years ago. The profits might have been too much
some years ago, but not too much at present
Without figures could not express opinion.
Mr., Cohen explained at length his former couuec-
tion with the Central Pacific, stating that he had
never been officer Of the eorporati n ana had
been employed attorney at one time for special
purpose. He had built the Alameda rold. after.
wards sold TO the Central Pacific since which time
he had had great deal of trouble with the corpora
tion. Some Of the unpleasantness was progressing
still ANY action Of the Commission III reference to
fares and freights OF interest to him except
tn t he wanted more railroads California and op-
posed any action tending 10 scare capital away
from the State.
THE FREIGHT RATES
j. G. Stubbs, Freight Traffic Manager of the Cen
tral Pacific aupeared and asked fnF fnpre tina n,
show cause why freight rates should not be reduced
He stated that President SANFORD was IN Europe,
General Manager Towne at Parai Springs, and
himself just returned from the East after an alb
senee Of four weeks. He was prepared, however to
give few reasons why freight fares should not be
touched. He protested against reductions, as not
demanded BY the public affected by them. The all
legeo agitation was being made by few newspapers
for political effect and the men who aiding it
were none Of them patrons Of the ilroads He
denied that any Determinations were made by the
present freight tariff Of the company that any such
rate prevailed was retarding the development of
any county, SO far as wheat Concerned that any
wheat producers We comp aiuiog. lie gave some
comparisons with freight rates OF other roads, as
follows The rate on grain to Port Costa via the
Central Pacific, cents per ton per mile; on the
Texas Pacific, for the same distance, TO New Or
leans, q cents Missouri Pacific q cents: st Louis
and san Francisco 40 cents; st. Paul road, 2 ITO
cents Chicago AID Northwestern, 8 10 cents The
average charge per ton per mile on the Northern
Pacific Railroad WAS 3.01 cents, while the average
charge on the Central Pacific was / 46 cents. lie
submitted a number Of comparisons of the same i'm
port, all the lines Of the Central Pacific he
offered to submit the original tariff from which
these figures had been compiled, with affdavits
He asked thai permission be granted 70 file a wri
ten argument
In response to questions Mr. Stubs stated that
no freight tariff could be framed except on c M
parison Of the rate with the volume Of business, If
the business Of the New York Central could be
guaranteed to the Central Pacific he would take the
responsibility OF saying that the company would
duplicate the New York Central rates. The Board
ought not to compares California freight rates with
those OF other roads outside the State without COM
pairing the volume Of business Any other plan
would be unjust. He explained many technicali-
ties Of classification and other considerations that
regulated freight traffic rates
a long conversation took pllee between Messrs
Foote and Stubs, upon the principles governing
the freight business Of the Central Pacific and the
information that ought to be acted on by the Board
in fixing rates. Mr. Stubbo held tnat it was the
Boards duty to determine what vas a fair rate aud
then establish It.
II was finally decided to allow Mr.. Stubbs time in
which to argue the schedule OF f>eghts in process
o. preparation. The Board adjourned until Mondsy
next
PACIFIC COAST ITEMS.
Pendleton, Or, has q case Of leprosy-a