The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1892-07-30
TEE RAILROAD QUESTION.
Some Pertinent Facts ana Opinions
Regarding 1t,
The Meaning OF the Journalistic Out
cry Against Transporta-
tion Companies.
Isan Francisco City Argus. July 28d.7

ISan Francisco City Argus, July 23d.J
Much inconsequentialt talk is now being
made upon what is commonly called ''the
railroad question: This question is
what might be colloquially termed the
Standing dish'' for newspaper writer's
and scribes of every persuasion; but,
after all, how few there are who know
what they are writing about, letting
alone having clear and comprehensive
grasp of their subject. We will try to APP
proach this seemingly difficult subject
from all of the various and diversified
standpoints from which it can possibly
be viewed. In the first place, beginning
90 oUo, it will probably be conceded that
the memorable law of supply and de-
mand is as memorable as ever. Such
being the case, il inevitably follows that
railroad, in the capacity of public
carrier, can only carry to the extent Of
the goods supplied to it. If this extent is
limited, it follows that, in order to obtain
fair and reasonable interest upon the
money originally expended in the con-
struction of roadbeds, carriages and NOV
ing machinery in general, the freight
rates charged by this public carrier must
be commensurate with and correspond TO
the Limited extent of the traffic In other
words, no business corporation, acting
upon business principles, can afford to
carry freight at loss. Unless it charges
a sufficient rate to pay interest upon the
capital originally invested, it had better
wind up its affairs and go into bank
ruptcy ut once.
1t has come to be the fashion with Ger
tain organs of our local press TO pretend
that the introduction of q new line of
transit, from this coast to the eastern pOr-
ton OF the continent would have the
effect of reducing freight rates upon both
exports and imports. Now let US look
into this matter fairly and from a bust
no less than three lines of railroad con
Meeting the city of San Francisco with
the East. There is the original route via
Sacram entO, and crossing the Sierra Ne
Vada to the great intermediate plains,
commonly known as the Central Pacific
Railroad. There is the road subsequently,
built through the central and southern
portions of the State, traversing the val
leys Of Arizona and New Mexico, one
division then striking northward through
Colorado and Kansas, while another sec
ton proceeds eastward through Texas to
New Orleans. There is yet another line
which traverses the Mohave desert,
| crosses the Colorado River at the Needles,
passes through Northern Arizona, and
| joins the Southern line in the neighbour
hood of Santa Fe. Besides this there is a
| branch Of the Southern Pacific Railroad
| system, running north through Oregon
and Washington, by which connection
| Is established with the Northern Pacific
and the Canadian Trunk Railroad Thus
| there are now practically five lines con-
Meeting this coast with the East. And
! still it is argued that the construction of
another line, under the auspices OF the
! AtchisOn, Topeka and Santa Fe Company,
! for instance, would result in a general
reduction of rates all round, upon com
modities transported both to and from
| the East.
! Now let us see how such a measure
! would work from reasonable common
| sense standpoint. To construct a new
| line Of railroad connecting with one or
| other of the great eastern systems would
/ entail the expenditure OF some fifty mill
| ion dollars. People do not invest capital
nowadays for the mere luxury of having
| 1t invested. Wildcat stock is not so at
! tractive as it was twenty or thirty years
I ago, and capitalists are apt to examine
/ into the nature of an investment Of this
! kind with a very critical eye. They
/ would naturally expect fair amount of
annual interest upon the capital invested.
! Now where is this interest to come from?
! Clearly from the profits made by the road
IN the transportation of freight. But
| there is only SO much produce raised
! and manufactured in California which
! will bear the cost of railroad transporta-
ton at all. This produce consists, in gen
efal terms, Of fruit, fresh, canned or
! dried; raiSins wines and brandies. There
| is only so much of these commodities
! produced, and no sane person would ven
ture the assertion that the mere construct
ion of a new line would add one more lot
or title to the average output OF these
commodities. Neither would any intel
| ligent person risk the statement that the
construction of a new line would ofneces-
! sity bring capital into the State or induce
! such an amount of immigration as would
/ directly tend to its material development.
/ The actual result will be far otherwise.
! The Central and Southern Pacific lines
| are more than ample to provide trans
4 portation tor all the commodities shipped
/ TO or from this coast. This no one will
DENY. The construction of another line
would naturally mean the drawing away
/ Of a certain amount of traffic from the
/ Southern Pacific Railroad system, for
the new line would have to live and paw
Interest upon the capital invested in il.
| But would this mean a reduction OF
freight rates upon either line? ON the
contrary, the inevitable conclusion would
! be that freight rates would be raised
upon both lines. They would be com
| PEELED to pool issues and adopt a COM
| promise tariff or both would go to the
wall. The producer, in short, would be
! mulcted to pay the annual three or four
/ million dollars Of interest upon the fifty
millions or SO which such road would
cost.
What, then, is the cause of all this
| Journalistic cutlery on the part of the
papers which are bounding the railroad
company? The cause is so patent that it
scarcely requires explanation.
Traffic Association Manager Leeds is
moving heaven and earth to abolish the
Railroad Commission, and transfer its
plenary powers to the State Legislature.
Now, the people Of California know well
the class of men of which very con-
siderable portion OF our Legislature is
usually composed. The politics of this
city especially are so rotten that it is
almost akin Co an acknowledgement that
one IS boodler or thief to be sent tc
the Legislature at all. Saloon-keepers
and pot-house politicians are scarcely the
stuff out of which State Legislature
should be made. 1t would truly be 3