The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-06-07

opposed the motion and voted no.
An adjournment then followed but after
a brief recess the board recOnvened to con-
slider the cost of a revision aud investiga-
ton. such as the Shively letter asks for. 1t
was estimated that the cost would be FROM
$1,000 10 5000.
Commissioner Rea declared his willing
ness 20 pay One-third of this expense, but
Commissioners Beckman and Litchlied en-
phaiIcaily refuse TO agree TO pay anything
LEEDS ANSWERS HUNTINGTON.
Some Ugly Truths for the Southern Pa
cific's President to Ponder Over.
J. S. LEEDS, the manager of the Traffic
Association Of California, sent the follow
ING self-explaaatory letter TO the president
OF the Southern Pacific Railroad, who is
now IN New York. last night
C. p. Huntington Esq, President Of the
Southern Pacific Company, NetC York
Cty-DEAR SIR: My attention has been
directed to a letter published in the San
Francisco Evening Post of May 81 over
your Signature, addressed to W. H. Mills
Esq. l fnd my name the only one men
li0nei in it, aud l therefore feel that l owe
no apology for publicly replying to some of
tie statements therein made
l confess some surprise as 10 your often
repeated statements with reference to the
attitude of the road in politics. The record
of the past and the situation at present in
this respect are so notorious that such state
ments are, to put the case mildly. presum-
ing upon the credudty of this people. An
ocular demonstration Of the fact that the
road is out of politics would be more con-
yincing. Doubtless il would be much more
comfortable If the roads command Of the
,,.1ff e . ha foFa oil 70
tiuue undiSputed sway. 1t is pretty cur
rently believed here that the case Is chronic,
and that it is necessary to get into politics
with heroic remedies to cure ID
You say that the earnings Of the Southern
Pacific Company pay nothing more than
fixed CHARGES and current expenses. and
thai the public can learn this by going TO
your bOOk-keeperS or auditors aud being
tod SO, and in consequence the rates cannot
be reduced until the traffic Increases. Con-
sidering the very large and increasing
amount of merchant Sc, produce. green
fruit, etc, which is forwarded over the
roads Of the Southern Pacific Company,
with less on much OF il and little or no
prof. on any OF II, the increase in some of
the commodities having already reached a
standard beyond what you have been able
TO carry TO market where Il would be con-
sumed, aud large quantities have been al
lowed 70 rot or otherwise go TO waste be-
cause no rate was made which would justify
shipment. Notwithstanding this largely
increased tonnage which the producer has
furnished he has as yet be en- unable TO reach
the goal which you have set for him.
CONSIDERING FACTS.
In considering these facts there are sew
eral questions which naturally suggest
themselves to the shipper and producer (and
they are emphasized by your own state
ments). but which have so far rema ined I'M
answered by any Of the literature " hich has
tod from no
pany.
The foremost is how much trait must be
forthcoming before this promised reduction
will be made? In this connection the
shipper would be glad il this auditor who
IS to supply the public with valuable in
formation would advise as to the basis of
capitalization Of these properties as 10 actual
cost of construction upon which they are
expected 10 supply the traffic and earnings
to pay interest and dividends before they
are to have relief.
Also the relative earnings per mile of the
road in this State, as against that outside
the State.
| would also inquire Of you IL your annual
net earnings Of $1,000 per mile Of road is not
a very excessive return upon the necessary
cost OF any of the road with which tho
people Of this State are served?
Also what constitutes the necessity for
the large discrimination in the price charged
by the Southern Pacific Company Wi thin
this State as between points requiring
nOminally the same service?
IS there any good reason why the local
tariffs in this State may not be SO con-
structed as to be ineligible 10 the public as
in other States?
THREE CLAssIFICATIoNs.
Are the conditions in different pOrtiOns of
the State so diverse as TO render il neces-
saTy for the southern Pacific Company to
maintain three different classiications, sub
-aaff 20, rrrFs als 4 f-
at this time?
Are not these tariffs and classifcatious so
maintained I'D order 10 conceal the actual
extent Of the burden imposed on the local
traffic? 1t is generally believed they are.)
Do you believe these local tariffs are such
as to foster and build mp local industries?
And, finally, what proportion Of the traffic
which may be- termed local traffic (way-
billed from one point in the State to another
point in the Statel passes over what may be
termed mountain grades?
These are questions of detail, am aware.
aud relate mainly to the traffic within the
State, but they have an important bearing
upon this transportation problem. In fact
they signify more than tile through rates on
the burden which this people complain Of.
There are many other queries which pre-
sent themselves to the freghtpayer, who at
present supplies a very large traffic to the
Southern Pacific Company with very small
results 10 himself, and which may be pre-
sented at some other time.
You have at various times dwelt upon the
proposition of inducing immigration to the
Stale, that It's vast resources NAV be devel-
0ped and the large land holdings be brought
into use IN smaller farms. and hence bet
ter state OF cultivation. There is q firm
conviction in the minds OF this people that
this is impTacticabe until il can be demon
strated that the fruit Of mans labor here
brings as good results TO him as in other
portions Of our country. and for this reason
we see many localities less favored by
nature making much more rapid progress
than this State.
THE TROUBLE.
That the trouble lies mainly with the
local transportation charge no one who is
familiar with the situation will deny, be-
cause other conditions are most favorable.
A further evidence Of the truth of this is
shown by comparisons Of our local rates
with those Of other States even less favor
able for the economical operation of roads
than this State Your wheat rates outside
OF the influence of the Bay of San Fran
cisco are "a per cent, and the coarse grains
A per cent more than in Kansas. The meT-
chandise rates Of the coast division. beyond
San Jose, from San Francisco are 58h per
cent more than in Nebraska. while the rates
from Fresno are 80 per cent more than SINH
lar rates in Kansas The rates from Sacra-
mento TO points in the Sacramento Valley
north are 10 per cent more than those
of the Northern Pacific west from ST.
Paul, or more than double. Besides
the manner OF the applications of tar
IFS here will produce a much greater
difference IN the aggregate result. While
this is true, the earnings of the Southern
Pacific Company per mile in this State are
more than double the amount earned by
any OF the roads with which these cOmpari-
sons are made. In this connection want
| to inquire if you are Of the opinion that The
Board Of Railroad Commissioners of this