Sacramento daily record-union., 1883-11-01
THE NEW FREIGHT RATES.

On Saturday last, General Manager A. N.
Towne, Central Pacific Railroad, fled with
the Railroad Commissioners the following
letter, in answer TO the order recently served
on the company reducing non-competitive
inland freight rates, and to which the com.
pany was allowed three days to answer:
CENTRAL PACIFIC RAILROAD COMPANY,
OFFICE GENERAL MANAGER,
SAN FRANCISCO, October 26, 1883.
Hon. W. R. Andrus, Secretary State Board OF
Railroad Commissioners-Dear Sir: The Central
Pacific railroad Company owns receipt on the
"a instant OF your communication, transmitting
copy of order No. Is, made by your Honorable
Board.
On the 9th of July last this company entered its
solemn protest against reduction In its freight
charges, contemplated by your Honorable Board
Among other specifications in that protest was one
against the injustice Of selecting the tariffs of said
company alone a subject for reduction; notwith-
standing said company's system is made up OF
branch and leased lines, which, under existing tar
ifs could not be operated with profit as separate
and independent roads. Order No. 13 is made to
apply to all the railroads and lines OF transportation
and the several divisions and branches thereof
owned, leased or operated by the Central Pacific
Railroad Company, and no other. The company re-
spectfuly submits that the charges upon all its
lines are reasonable per Sc, and that when COM
pared-charges and character of service-with the
charges and service of other railroad lines within
the State, they materially lower than those OF
other lines not affected by order No. l3, and whose
tariffs far as public knowledge of the purpose of
the Commissioners goes, it is not the intention OF
your Honorable Board to disturb. 1t must there
fore protest that in reducing its tariffs under these
circumstances your Honorable Board is perpetrating
discrimination which, if legal, is unreasonable, un.
just and indefensibe. 1t cannot therefore respect
order No. 13, except under protest, which it now
enters, and wishes spread upon the records OF the
Board.
iofb
intention of the Board that Order No. Is shall
apply to rates of this company's steamer line the
Sacramento river. Second, whether the following
is correct statement of the intent and meaning Of
specification first of the order Where the pres
ent grain rates " in from tide water points not
more than 20 per centum above the gran rates
"out" or to tide water points, no reduction is or
dered. That wherever said " in rates do exceed
said "out rates by more than 20 per centum they
shall be reduced to that figure provided, that in
shall the reduction be that 50 per cent
from present sin" rates.
With respect to the eighth specification The law
requires the Board to make separate schedule and
serve printed copy thereof upon the railroad com
pany, and that The railroad company shall have
twenty days after said service in which to put the
tar # in effect over its lines.
This company will waive the service Of printed
copy of separate schedule prepared by the Board,
provided it is accorded the necessary time in which
to properly do the work said waiver imposes uponit
A reasonable time would seem to be such as the
Board would require to do the work, plus the
twenty days allowed by law after service of the
Boards printed schedule.
The company will further undertake to prepare
and publish the necessary schedules and notices
without unreasonable delay, and to do it under the
supervision Of the Secretary of your honorable
Board. When completed they will, under the above
protest, be put into effect Immediately. Very re-
speetfuly, your obedient servant
a. N. ToWNE, General Manager
By j. C. STUBBs, Freight Traffic Manager.
THE BOARDS ANSWER.
Ia answer to the questions propounded, The
following letter has been forwarded to MIR.
Towne:
OFFICE BOARD OF RAILROAD COMMISSIONERS,
SAN FRANCISCO, october 20, 1858.
To A. n. Towne, General Manager Central Pacific
Railroad Company-Sir: Your letter of the 26th
instant by J. c. Stubbs, Freight Traffic Manager,
acknowledging receipt Of Order No. l3 OF this Com
mission, has been received and considered. Regret
ting that your company has made it the subject of
protest. We find in your communication no reason
to recede from the reductions upon which we had
determined. And while adhering to the order sub
stantially it is disclam and deny the alleged
discrimination against your company or any OF tie
roads which it runs leases or operates While
deavoring to grasp and master its operations, we
have recognized their magnitude and their relative
Importance, and have not failed to discover in the
utility and ability OF their management predoml-
nant control Of transportation in this State. And
| if, in assuming this control to the extent OF our
| jurisdiction, it was proper to commence at its
| source, we submit lLal accOrueu 10
the Central Pacific and its leased lines to have
been expected and is not Just cause Of complaint.
1t is rather earnest Of the attention and an
| ample Of the regulating power TO which other COM
panies are subject, and from which they will not be
| exempted.
| Our answers to questions touching the scope and
meaning of the order follows: First, the
leading object of the order is to reach and reduce
non-competitve inland rates. and not those Of your
company steamer line on the Sacramento river. 1t
is intended to effect only such freight charges
included in the specific classes and schedules of in
land rates.
| Second, all grain rates in from tide water,
which are now not more than 20 per cent in excess
| OF rates "out" to tide water, to remain as
| they
| Subject to this limit, the reductions to be made
may be less but never more than 80 per cent. of
| existing rates. We fail to any difference Of
| opinion relating to this part of the order.
In accordance with the order thus explained, the
| changes Of classification are to be made, and the
necessary tabulations Of rates are to be prepared
Thanking you for the waiver of your technical right
! to cast the entire work upon the Commission, its
Secretary is authorized by standing order to avail
himself Of your assistance and will have such exter-
sion Of time as shall be found necessary for the
| clerical labor to be performed Very truly,
C. J. CARPENTER,
| w. Z. HUMPHREYS
| w. W. F0OTE,
| all issiOD