Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-07-11
THE FREIGHT QUESTION.
A coECLUsIvE DEFENSE AeAINsr RE
DUCTIoN.
Pungedt and Unanswerable Statement of
Facts by J. C. stubbs, Freight Traffic
Manager, which Should be Read.

Railroads, has been filed with the Board OF
Railroad Commissioners, and is nlade public
july 6, 1888
To the Honorable, the Board of Railroad Commits
sioners, State of California-Sirs: IN response to
your order OF the 29th of June, the Central Pacific
Railroad Company, by its Freight Traffic Manager
and General Freight Agent, appeared before your
honorable Board on the 9th uItimo to protest
against the action contemplated BY your Commits
SION IN the matter OF reducing the freight rates Of
this company
1t now begs to submit in writing the reasons
given at said interview, with additional arguments
against said action.
1t respectfully urges upon your Commission that
the spirit and purpose of the organization State
Board Of Railroad Commissioners was to remove the
question OF regulation OF freights and fares from the
stump of political campai lns-takiDg it out of poll
tics-from being forced upon tue overburdened
Legislature, whose time, knowledge and experience
did not qualify il to deal with the subject aud refer
it to the thoughtful consideration of a Board which
should study the question with disinteTested mo-
tives and act upon exact knowledge or from data
gathered IRON the many sources of information
which tle vast railroad system of the nation and the
experience of kindred bodies in other States and
countries make available TO thorough inquiry ard
research.
JUDICIAL FAIRNESS INVOKED.
It submits that the individual members of your
Commission are bound by their oaths TO deal with
this subject with judicial fairness that they should
have equal regard to both sides OF the controversy
acting with caution and from intelligent oonsid-
Grafton Of all the facts and interests involved II
submits that such thing as a candidate for place
on your honorable Board being pledged in advance
of election to reduction Of freghts and fares be-
fore he could have had information, knowledge or
experience to qualify him to speak to the question
at all, was never contemplated by the trainers of
the Constitution, mich less BY the people whose
votes adopted that instrument.
1t asserts that the egitation Of the question by
portion Of the press is for pol tical effect to serve
the IeraOua ends Of ephemiup for Dlape and IL
finds its only support in an exaggerated public
opinion manufactured b. persistent misstatement
and gross Misrepresentation misrepresentation
which your honorable body can, and in the jud2.
ment Of the company should correct, if not for the
protection of the vast transportation interests COM
mitted to its charge by the Constitution, for the
protection of the people from demsgogrY, than
which nothing can be more demoralizng to enlinht-
ened citizenship or dangerous to free Institutions
a CASE IN PoIET.
For example, see the following clipping from
morning paper:
"ConcerniEg the question OF railroad dscrimina-
ton, correspondent at Santa Ana, los Angeles
county, furnishes the ErdniHer an item Of news to
which we call the attention of the Railroad Com
missi0ner5:
"'To the Editor Of the EraAainer-Sir: This
town is distant from Los Angeles 333 miles The
railroad company charges for carload Of hdy from
here to Los Angeles 81 ; from Los Angeles to this
place for q carload of hay $50. Can you explain the
Railroad Commissioners furnish reasonable solu-
tion Of the question?
Santa Ana, July 3D."
The charge for a carload of bay between Santa
Ana and Los Angeles is Sl5 in either direction. The
only foundation for the misstatement is found In
the fact that the difference between the rates from
Los Angeles and Santa Ana respectively to Arizona
points is 81 per carload.
Denial by the carrier of such misstatements viii
have little effect on public opinion. Inquiry and
correction, riding to The facts, by your Commits
sion, would soon end malcvolent charges of this
character with beueficent effect upon society.
The company does not presume 10 gauge the in
fuerce which public agitation has had IN determin-
ing the proposed action Of your honorable Board
1t would however. respectfully urge that the de-
mand of few, or all in a community, is not q SUI.
fcient ground for the Commissions actioa. 1t
should first determine whether such demand is
right
IT HAS NO MORAL OR LEGAL PRTRoGATIvE
To experiment Tentative movements Of this char.
acter opposed to public aud private rights
perversi2u OF the powers which have been delegated
TO your honorable Board in the name cf the people.
Hasty, i'll advised action, The behest Of social,
party managers, is inconsistent with the dignity of
the Board vhoss origin /, founi in p1hiic ignorance
OF the transportation question hn3 professed un.
willingness upon the part Of the pubic servants to
act without due Inquiry. lest Injustice might result
to the people or e. tie carrier.
The question arising here is whether the members
of this Commission, NJ ofiica hus six months
ago, have so informed themselves upon the subject
as to SAL under their oats Of office that the rates Of
fares charged and collected by this company are
unreasonable or uuj just.
The company protests that the charges for its
services are fair and reasonable, judged by any
proper standard that an enlightened public pOllcy
does not Justify interference with its tariffs that
the growth of the State, the advancement of its
tera interests the present condition of its indus
tries as compared with ol er communities, nearer
the great markets Of the world, all testify against
the malicious assertions of those who charge upon
the company grosping, grinding policy, necessi-
tatiDg governmental regulation and control.
THE AVERAGE CHARGE FOR FREIGHT.
The average charge for freight which was both
taken up ard laid down within the State of Califor
mia during the year 1882 was at rate of but two
and nine tenths go cents per ton per mile not
withstsnding the legal maximum of fifteen cents per
ton per mile. The average length of haul was only
los miles This average rate includes all the short
hauls the mountain service on the Sierra Nevadas,
the Tehachepi and Coast Range, and the service
across the Nojave and Colorado deserts 1t excludes
all nateria! for companys use which. if included at
rate equal to the estimated cost of service, as is
the custom with mos railroad companies in exhibits
of this character, would materially reduce the aver
age. This point should not be overlooked in COM
parson with EXHIBITS of other railroads 1t excludes
all freight ntsrchanged with other States and Terri
tories on the Pacific colst and also all through
freights interchanged with the States east of the
Rocky mountains.
The result of the policy pursued by railroad
company in its eff-ct upon the communities it
serves, or even upon its own revenues,
CAN ONLY BE EXHIBITED BY YEARLY AVER
AGES,
And often more extended period is necessary to
proDer test This doubtless is true in the case of
the Central Pacific Railroad and dependencies to q
greater degree than with other railroads IN this
country. No other system OF roads in one State
presents such varied physical characteristics does
the Central Pacific in California. Such combina-
ton of valley, mountain and desert road can no.
where else be found. This necessitates compN-
Gated classification Of service and charges with re-
spect to the character of the road which, together
with the classification Of freight with respect to its
bulk value and influence upon the general pros
perity of the community, as whole, makes uni
formty OF charges impossible and the average rate
the most approximate index to the correctness Of
the tariff.
The company, therefore, submits the fact that its
average charge for the transportation OF freights
wholly within the State of California, during 1882
being but two and nine tenths u 81 cents per ton
per mile-less than one fifth OF the maximum al
lowed by LAWS indubitable evidence that the
charges are reasonable and should not in auy par-
tcular be disturbed.
THE TENDENCY OF RATES DOWNWARD,
It submits further as evidence that the tendency
of reights is downward calling for no interference
by the State the statement that the ayerape charge
for freight service wholly within the State Of Cali.
fornia has been, during the past five (5) years as
follows
During 1878, 81 cents per ton per mile.
During 1879, SO cents per ton per mile.
During 1850, 3.5 cents per ton per mile.
During 1881, 81 cents per ton per mile.
During 1882, 29 cents per ton per mile.
The company further protests against the pro-
posed action as unustly discriminative 1t is gem
eral understood to be directed wholly against the
Central Pacific Railroad and leased lines Short
independent lines, operated, as alleged by their
managers, without profit, are TO be exempted from
this contemplated action Of the Commission 1t
might be made to appear that such action was de-
signed to reward bad judgment and incapacty on
the part of the projectors and managers of nom
paying railroads, but TO punish ssgacity and good
management, TO which, ordinarily, the success of
paying enterprise IS largely owing California needs
many more branch lines, yet, by such action the
State through its Railroad Commissioners SAYS to
the would.be investors II you build these roads
and the Investment proves good we shall arbitrarily
reduce your charges, SO ss to equalize the income
and outgo."
A POINTED QUESTION.
II the North Pacific Coast Railroad Company, the
California Southern Railroad Company and others
are to be favored by Interference upon the part
OF your honorable Commission, on the ground of
the smallness and the unremunerative nature of
their traffic. upon what considerations OF Justice can
diff rent policy be pursued toward the several in
tegral parts OF the Central Pacific system, which
could not be operated independently and preserve
the same facilities and service TO the public which
by themselves considered do not yield reasonable
revenue These parts Of the Central Pacific system
are distinct corporations, having distinct and sepa
obligations, and it is respectfully submitted that
they are entitled to distinct and separate consider
atons apart from their connection with the Central
Pacific; that upon the grounds upon which it is pro-
posed to exclude roads which are independent of
the Central Pacific from the reductions ortemrated
hr l.