The record-union., 1892-12-01
Special to the REcoRD-UN1oN.

Special to the RECoRD-UNIoN.
SAN Francisco, Nov. 3d. Ie Board
OF Railroad Commissioners net this
morning and listened to the .eading of
the report Of Colonel r. P. Morgan, who
was appointed few months ago to in
vestigate the workings Of the railroad lines
of California.
The report is a voluminous document,
and perusal of it shows that Colonel
Morgan made comprehensive study of
the railroad lines of California, taking into
consideration the cost Of construction,
operation and all causes, either near or
remote, that affect passenger and freight
rates.
The physical characteristics Of CaIifor-
MIA are dwelt on at length, and the con-
clusion is drawn that the cost of construc-
ton and operation is greater here than in
any State in the Union, with the possible
exception of Colorado.
Special mention is made of the steep
mountain grades, expensive tunnels,
snowsheds and ferries, which are peculiar
features of railroading in California.
On account of the difference in the vol
ume of business in California compared
with Eastern and more thicklv populated
States, the deduction is drawn that rates
which would be considered high in those
favored States would be low and unjust
in California.
In dealing with rates the report says:
The rates established in California for
the transportation of persons and property
by rail are as whole higher than those
now prevailing in some Of the States, but
they are lower than the rates charged in
some States, and in the States alluded 10
at the time, about twenty years ago, when
some OF the most important conditions.
properly affecting the establishment of
rates were substantially the same as those
which influence the present rates in Cali
fornia."
The cost of fuel consumed in the opera
ton and maintenance of the railroads of
California is considered in the report and
it is shown that in this State the figures
are greatly against the companies, coal
here costing on an average 81 per ton.
while in the East it can be delivered in
many places at about 81 50.
1T is well to consider" says the report,
that the railroad companies have an es-
peclal interest in common with the peo-
pie of California in low rates for the
transportation OF the various products of
the State, for which it is feasible to find
market by rail east Of the Rocky Mount
aims.
The managers of the railroads appre-
ciate this fact and they evidently act
upon II by making rates so low on the
class of service performed that they them
selves are not sure of direct and reasona-
bic remuneration, or even reimburse
ment of the actual cost to them"
The report ends with the following CON
clusions:
"The examination of the railroads of
the State and investigations I have made
and careful consideration Of the data Oh
tanned, some Of which are presented in
condensed form in this report, have led
to the following conclusions:
"First-That California is and always
Will be especially exceptional in its con-
dltlonS, conditions which must be factors
in determining what would be lust and
equitable railroad rates for the transporta-
tlon OF persons and property within its
limits.
"Second-That it is wholly impracti
cable to establish for its railroads uni
form passenger and freight charges and
have them bear justly and equitabIy upon
the people of the State and the railroad
companies.
"Third-That the present rates of the
several railroads are not so nearly uni
form as it may be practicable to establish
upon very exhaustive examination and
careful employment of the factors from
which they ought to be deducted.
"Fourth-That taking into account
operating expenses and all other matters
Of general import bearing on and affect
ing the operation OF railroads in this State
so far as have been able, | am convinced
and believe that the rates charged by the
railroad companies Of California for the
transportation of persons and property
are not as a whole unreasonably high,
and that if they are, then the rates for the
railroad transportion on the roads and
systems throughout the United States
have been and now are, also, as a whole.
unreasonably high.
"Fifth-That the exceptional condition
in California which must largely deter
mine what would be just and equitable
rates for the railroads to charge for tbe
transportation Of persons and property
within its limits, having respect to local
interests and those of the State at large,
are diversified and complex in detail be-
yond any precedent. The most exhaust
i've and comprehensive investigation Of
those conditions must be made. involving
much time and very considerable expense
to satisfactorily determine the question of
what would be just and equitable rates
for each road and system of roads in this
State so exactly as to justify any declara-
ton that as a rule those now existing are
not as just and equitable as practicable
THE general tenor Of this report has
necessarily been conservative, but it af-
fords me pleasure to say that my inquiry
has touched the clearances of the San
Francisco Clearing house, the resources
of the State banks, the assets of the saw
ings banks, the value Of exports and inn
ports, including grain and coal, the rapid
increase in the volume of the various pro-
ducts of the State, the mining interests,
also the progress in building and general
improvements.
''These and many other considerations
that have come to my notice justify and
confirm the congratulations of President
G. L. Taylor to the members Of the Cham
ber of Commerce Of San Francisco in his
report of January the 18th last, that is:
we may congratulate ourselves upon
season of reasonable prosperity and pro-
gress for both city and State.'"
Blaine Gradually Convalescing.
WAsHINGTnN NoY 3n-Ex-Sncretarr