The record-union., 1892-06-02
nIR. HUNTINGTON'S LETTER AND
RAILROAD AGITATION

In our telegraphic columns yesterday
appeared letter from President c. P.
Huntington of the Southern Pacific Com
pany, i'll which that gentleman expresses
his profound regret that political dema-
gogy should have attempted to revive
the anti-railroad agitation, under the
specious cover of solicitous anxiety that
railroad rates shall be peremptorily re-
6uced.
Mr.. Huntington, in calm and practi-
cal manner, points out that the primal
consideration in establishing rates of
freights and fares is the cost of mainten-
ance and operation Of the carriers line
If the volume of the traffic is not suffi-
cient to insure these at lower rate. a
higher one must of necessity prevail.
Mr.. Huntington points ont that at this
time the earnings of the company pay
nothing more than its fixed and current
expenses and that what these are can be
ascertained from the books by whoever
cares to make inquiry.
Business sense, common reason, will
not tolerate the thought that the owners
and operators of a carrier line shall give
their time and ability to its management
for less reward than income equal to the
fixed current expenses, setting aside for
the moment all consideration of profit
upon the investment and labor. Mr..
Huntington very explicitly states that
this question of profit is not now consid-
cred by the railway managers, their aim
being to meet expenses, and so build UP
production and industry that in in
creased volume of traffic in the near fu-
ture fair profit may be found. He points
out also that while the railroads have not
made money. saying nothing of the
constant investment in new construc-
tion, the country by reason of railroad
building has immeasurably gained. This
is fact that is wholly ignored by the
egitators and demagogues in their effort
10 stir UP animosity between the people
and the railroad companies, and to drag
the latter into politics in the hope that
they may be bled by these harpies to
prevent vicious legislative assaults.
With the increase of the volume Of traf-
lic rates of freights viii naturally decline.
but outside of the exertions made bv rail
road builders and managers to develop
and upbuild the country. upon which
augmented volume OF business. must de-
pend, what has the capital of San Fran
cisco, or indeed of any money. centers in
Che State done? Here and there there
have been a few laudable invest
ments to found manufactures and enlarge
important industries. But the capital in
The overfiowing vaults of San Francisco
limits its activity practically to the mar
row bounds of that city; it invests little
or nothing in interior enterprises: it buys
no irrigation bonds, though the security
offered has been ample; it lends none OF
its vigor to interior development or the
conservation of permanent industries: it
does not even contribute to the establish
ment of genuine trade for San Francisco
with the marts and peoples of the world;
it is content to peddle and retail, to lend
snd TO fatten upon cent per cent. wrung
from the necessities of borrowers, and to
speculate in town lots and a plethora OF
flats.
As Mr.. Huntington puts it point blank,
and with the incisive force of the prac-
ticed financier, ''the only way to reduce
rates is TO measure the freight and passen-
ger traffic, and to do that the policy pur-
sued by most of the wealthy people OF
California must be changed" That is to
say, the millions locked up by land mo-
nopolization to the exclusion of homes
and business; the millions confined to
interest gains within San Francisco; the
millions that seek foreign securities and
ignore home investment that will return
not only money interest but the greater
gain of interior upbuilding and develop.
ment and the peopling of the plains, ar,
managed by policy that keeps Its eye:
only upon the eagle on the coin.
1t is entirely true, as Mr.. Huntington
puts it, that what the capitalists of Cali
fornia do for the State in which they
made their money, is but little in com
parison to what they ought to do. Th,
railway companies, on the other hand
have built up railway system tha
atretohes from one end of the State 4