Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-02-15

more than leo per cent. On the other hand the
gross earnings from passengers increased less than
65 per cent Had the passenger rates Of 1872 been
in force in 1881 the earnings from that in the
latter year for the same amount of service would
have been 81 6sl os2 greater than they in fact were
"a sum saved 10 the public By reduction in pas
sspger rates equal to nearly two fths of the gross
passenger earnings in 1872.
AGAIN, THE INCREASE FOR THE TEN YEARS
Tabulated, the Central Pacific of tons of freight
annually moved mile, was 2s5 per cent But
the gross earnings from freight increased only ll2
per cent Had the average rate per ton per mile in
1872 been charged in 1851, the earnings from
freight IN the latter year, wenld have been, for the
same amount of service, Sl1, 045 600 greater than
they actually were-a su saved to the public in
1881 by reduction in freight rates nearly twice as
great the entire gross freight earnings OF the
pany for the year 1872.
Comparing the operations OF the Union Pacific for
the given series Ct years. it is that the passen
ger seryie OH their nesthat is passengers carried
enc m:e-inereased 90 per cent. The gross earnings
from passengers increased only 80 per cent Had the
rates per passenger pr mile in 1872 been force in
1851, the earnings from that source in the latter
year for the service would have been ST. 655
greater than they il fact were-a sum saved to the
public by reduction in passenger rates equal TO
nearly twohtths OF the gross passenger earnings in
1872.
THE INCREASE FOB THE TEN YEARS
On the Union Pacific OF tons Of freight annually
iAOfcu oIO hhiC nec ofV fCi SSut VII the OLHcI
hand the gross earnings from freight increased only
226 per cent Had the average rate PSF ton per
mile charged in 1872 been in fo.ce in 1881 the
freight earnings in the latter year for the same
amount of service would have been S. or Sol more
than they in fact sum saved to the public in
1881 by reduction in freight rates considerably
larger than the entire gross freight earnings of the
company in 1872.
1t should be noted that the average rate on the
Central Pacific was ! per cent. per ton per mile
higher than on the Union Pacific in 1872. The per-
centage OF reduction therefore greater
on the former than on the latter, which
ACCOUNTS FOR THE DISPARITY
In the gross sums of reduction in freight charges
shown by the computation. Comparing the rates
of 1872 with those of 1881. the JOINT aggregate Of
the sums saved by reduced rates computed for the
business of both lines amounts in 1881 to s19O66-
$685. sum not much less than the total earnings OF
either line for that year The aggregate OF the
reduction both roads for the series of nine years
amounts to more than $50 900 000 To justly estimate
the improved rates of traffic and travel the Union
anu Cen raj Pacific the cost of construction and of
maintenance and operation of these long transcon.
tinental lines must be considered. As is well
known, the average cost per mile of construction,
on which proportionate interest charge is sus-
tanned, is
MUCH GREATER
Than that of railways in general The conditions
of operating and maintenance also peculiarly
unfavorable. Fuel is high at points OF delivery on
these lines and has to be carried far as 500 miles
to the coang stations The water supply is also an
expensive item, having to be conveyed in pipes from
one to thirty miles, and on section OF the South
Pacific has to be carried IN tanks 10 miles, The
wages of employees except for such work as admit
the employment OF Chinese, have always been
higher in the plains and mountain countries than in
the countries East Machinery and supplies have to
be brought from the East months in advance of
| their use, thus entailing extra cost. The snow
sheds, which cost
LARGE SUMS OF MONEY TO BUILD,
Are also very expensive to maintain, having to be
guarded at all seasons with locomotives kept con-
stantly fired up, with freengine and hose attach
! ments, and drawing large water.cars, besides the
| necessary employment of an adequate police force
against fire and other injury. There are long
stretches OF comparatively steep grades, requiring
heavy additional expenditure of motor power for
the movement of trains Again, these roads ira
verse wide districts OF country impracticahle set
tlement which afford revenues from local
business. When all these unfAvorab.e conditions
are duly considered it is striking fact that the
average tonnage rate of transportation on the Union
and Central Pacific as low as it was the New
York Central in 1870, and as low the trunk lines
west from Chicago so late SO lS75-lines then ira
versing everywhere popuous or well-settled and
productive districts and comparatively inexpensive
to operate and maintain.
THE EXPERIENCE OF THE PEOPLE
Living on the line of the Union Pacific and Central
Pacific as to the diferehal (1nequa rates per
ton per mile is not different from that on other rail
mes in the United States The unyelding law Of
trade, that product must compete with product in
the narasts Of the world, is everywhere in force.
Dfferent;al rates enforced by memorable trade
laws Aside from the fact that the long haul in
bulk costs less relatively, freight charges CANNOT be
uniform per ton per mile, for the excessive burden
soon reaches limit at which the products OF a
\
port wheat crop of Nebraska, il worth 81 so per
bushel IN New York (No. red is now quoted in
New York at 81 49, could not be moved to the sea-
board at the uniform rate of II cents per ton per
mile because it would not bear that rate for the
haul, support the cost Of the exchanges, G evator
charges, and shrinkage Losses, and leave profit to
the producer. Similarly, If uniform rates were the
law OF the land, the fruits of California could not be
hauled to market.
UNIFORM RATES, IT IS PLAIN,
Discriminate against the producer in pr portion to
his distance from market. There is another point
of view 1t is fair that business terminating at
points within the line or local business should bear
the larger proportion Of the burden OF transpora.
ton. 1t is not inequtable that business interests
which chiefly owe their existence, growth, and con-
tnuing prosperity to the railroad, should be taxed
with the larger proportion Of the charge for trans
portation necessary to the maintenance of the line
and profit on the capital invested in its construc
ton. But as has been shown, rates must favor the
u
for export is impTacticable
THERE IS A WIDELY PREVALENT IMPRESSION,
Contrary as it is 10 general experience, that rail.
road managers arbitrarily fix rates. The fact in gen.
era is that the shipper has greater voice in de-
termining rates than the transporter. Having for
the most part a choice of routes, he is always re-
.nforced by the law of trade which fixes the limit of
rate at which the products of the country will prof
itably bear to be removed. Herein lie the latent
reasons why there can never be permanently op-
pressive monopoly by the railroads, and why from
the standpoint of public interest laws should not
Cypress railroads. Production and transportation
are so mutually dependent each other that
neither can be injured without corresponding hurt
to the other If the burden Of transportation is
lightened production and traffic are stimulated.
IF RATES ARE EXCESSIVE OR UNREASONABLE
The growth of traffic is retarded, or new line soon
nvades the territory of the oppressor and does the
business at reasonable profit. Long lines are
consolidated, but consolidation promotes economy
of management establishes harmony Of operation,
and guarantees responsibility to the shipper. Rail-
roads combine and ratably divide their earnings,
but in the face of combination rats steadily and
surely decline and 90 on declining. The evils and
Inconvenience which are ground OF public com.
plant do not come from combination, but from
wars OF rates." antagonisms and disagreements
among the railroads themselves. 1t is doubtful If
even here the most cautious corrective legislation
would not do more harm than good to public inter.
ests. These evils viii in time correct themselves, as
other evils in the process Of railway evolution have
IN the past been self corrected.
THERE REMAINS THE GENERAL OBJECTION
To the legislative control of railroad rates, that il
we begin with the railroads and transportation, no
discernable stopping place can be found. Why, for
instance should not fuel focal and wood) equally
indispensable to the public, be regulated as to price
~.