Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-03-31
RAILWAY REPRESSION.
WHAT MAY HAPPEN TO INJURE
THE STATE OF CALIFORNIA.
An Opinion From the East Similar
to That of Residents on the Line
of the Southern Pacific.
Chicago Railway Age. !

California is now enjoying period of
wonderful development, the direct result
of the railway building throughout its
great territory into which capital has been
tempted by the hope of reasonable returns.
With a vast area still in need of transport
alton facilities and with its continued
growth and prosperity dependent largely
upon railway extension, it would seem that
those intrusted with governmental affairs
in that State would be the last of all to
throw distractions in the path of the rail-
way builder and to deter capital from in
vestment in this way by rendering the
investments already made Improbable.
And yet the Railroad Commissioners of
California have given indication of a
short-sighted tendency in this direction.
Clothed as they are with power to estab-
iish rates of charges for the transportation
OF freight and passengers, they would yet
be expected to exercise this power with
the intent of doing justice to both
the railways and the public. and
certainly without discrimination for
or against any locality. A re-
cent act of the Board, however. seems
diilcult to reconcile with either Justice or
consistency. The Northern Division of
the Southern Pacific Company is operated
ae an independent road, comprising nearly
800 miles of line running from San Fran
cisco southwark through beautiful and
productive agricultural region Recently
the Railroad Commissioners, without no.
tlce to the company, and, it would appear,
without complaint from the public, issued
an arbitrary order for a reduction of 10
per cent. in the freight rates on a section
of about fifty miles of the line. The Com
missioners can hardly be so oblivious of
the plainest principles of railway manage
ment as not to see that change of rates
ON portion of line will necessarily
knock out the underpinning of the tariff
on the whole line and give rise to innu-
merable complaints of discrimination and
inequality. While their powers under the
statutes are apparently almost absolute.
still even a State Railway Commission
cannot ignore the great principles of lust
ice and equity, as well as of ordinary bust
ness, and it is probable that the railway
company could successfully appeal to the
Courts to protect it from being compelled
to establish unjust and discriminating
rates.
The company, however, seems to rely on
presenting to the Commission facts and
figures which shall so plainly prove the
needlessness and injustice of the proposed
reduction that the order will be voluntarily
rescinded. Some of these considerations
were very clearly suggested in a letter to
the Commission by Superintendent Bassett.
II is shown in the first place that the oper-
ating expenses of the company are much
greater than those of Eastern lines with
which comparison of rates is made. For
example, the cost of fuel to the Northern
Division Company during 1887 was Sc per
ton for coal and 81 IS per cord for wood,
while the Chicago and Northwestern OBJ
tanned coal for 81 II per ton and wood for
~ DO per cord. The rate of wages paid
to railway employees in California is shown
TO be SO per cent. higher than is paid in
Illinois for certain classes, and it is asserted
that the Northern Division paid during
the year 500, SOB more for wages than
would have been paid for the same kind of
labor in Illinois. The paw of certain
NAtaooSo Vi CIlpiONCS Il lHtS compared.
Southern Pacific Company-Passenger
conductors. $40 per month; brakemen,
S65 per month engineers, SO 80 to 81 so
per day; fremen, 81 to 81 so per day sec
ton laborers, 81 rs per day, and freight
house laborers 81 per day.
Eastern roads-Passenger conductors,
$50 per month brakemen, S47 to $50 per
month; engineers. So 20 per 100 miles
firemen, $50 per 1900 miles; section La
borers, 81 IS per day, and freight-house
laborers 81 so per day.
1t is evident that if railway company
is required to reduce its rates TO unprofit
able figures it will naturally attempt to re-
duce Its expenses, and, as wages form the
great item, a reduction of the pay of its
employees would naturally follow. If the
California Commissioners are Indifferent
as to whether the railway companies are
prosperous or not, they certainly. as
shrewd politicians, cannot be Indifferent
to the fact that anything which would
tend to reduce the wages of SO consider
able part Of the population as the en-
ployes of the railways would be most
unfortunate and unpopular occurrence.
in reference to this, Superintendent Bas-
sett SAYS:
sit has ever been the policy of the man
ayers OF this company to maintain good
service to the public, and experience
seaches that well-paid labor insures COM
petent and contented employees, thus avoid
ing all conflict between employer and en-
ployed. The great number of men en-
played by this company naturally fixes the
prices of mechanical labor in California.
and it certainly is not to the best interest
of labor in this State that wages should be
reduced and you cannot, therefore, wish
that this company should be compelled to
cut its expenses by cutting the price of la
Dor, which would be the inevitable result
Of the enforcement of your order"
The necessity and Justice of a reduction
in rates are denied by the company. and
comparison is made with the tariff on
Eastern lines to fortify this position. 1t
Is shown that in the carriage of groceries,
lumber, grain, etc, the rates are from %
TO 80 per cent. less than those of repre-
sentative Eastern companies, and more
over that the Southern Pacific Company
has been steadily reducing its rates as the
increase of business warranted, these re-
auctions during the last ten years having
amounted to nearly 80 per cent. on certain
articles.
The extension of the Northern Division
south along the coas. country so as to form
direct line to Los Angeles, has long been
greatly desired by the people, and the COM
papy has contemplated CARRYING out this
work; but the Commissioners are reminded
that if it is to be their policy to reduce
rates to improbable figures, there will be
no announcement TO make the costly ex-
tension. This view of the case seems TO
have impressed the people along the line
of the proposed road very forcibly. and
they are demonstrating with the Commits
sioners against thus seriously iniuring the
prospects Of many communities for the pur-
pose of saving little section of the State
comparatively small amount per individ-
nal in freight rates If the Commission
intended only to make the local reduction
ordered for the purpose of gratifying the
people of that locality, it should not fail
TO consider the far-reaching effect such
action would necessarily have upon rates.
not only on the road in question. but
upon other roads in the State. If. on
the other hand, as is possible. the order
was intended only as preliminary to
gradual and general reduction OF rates in
California, the Board should be still more
circumspect. 1t would be possible for an