The record-union., 1892-12-03
Special to the REooRD-Ux1ox.

DAN f RAN CISCO, Dec. Z.-OOlOuel NOR
gan took the floor upon the calling of the
meeting Of the Railroad Commissioners
this morning.
81 intended returning home to-day"
he said, but my report has been treated
unfairly, and have determined to remain
here and defend it, for it is true in every
respect"
The Colonel then took the stand, for ex-
animation by Mr.. Richards, attorney tor
r. O. Shively.
This report deals with all the railroads
Of the State, does it not?" asked Rich
ards.
at does" was the Colonel's response,
''as | followed instructions closely"
In answer to a question the witness
stated that his Investigations had given
him an opportunity to thoroughly exam
inc the workings of the Southern Pacific
system, and he had valuable information
and data regarding the Southern Pacific
Company.
You were an expert on behalf of the
Government during its examination of
the Southern Pacific Company"
Il was engineer of the Senate Investi-
eating Committee of 1887. Since that
time have Investigated the affairs of the
Southern Pacific Company in the inter-
Csts Of its bondhOlGers.'
The Colonel further stated that gem
erai comparison of the rates between Cali
fOrnia and Eastern railways would be of
little value on account of the different
conditions that prevail III the different
sections. He did not, however, refuse to
compare rates for what value there was
III the comparison.
He denied, however, that there was any
value in comparison of figures, as the
results would be false, and in order to ar
rive ut anything accurate ali the condi-
tons should be taken into consideration.
Conclusions drawn from a comparison of
rate sheets in California with those in
other sections would necessarily be mis-
leading and faulty.
Mr.. Richards questioned the Colonel
closely in his report concerning ferries in
California, and asked him if he had inves-
tigated the ferries Of this State to find out
whether they were expensive or not.
The Colonel stated that he had looked
into the matter thoroughly, and found
that ferries increased the cost OF railroad
operation in this State. According to
the laws of California; he stated, 1.-THE
ferries were merely extensions of the
railroads and part Of the system"
The witness admitted that there is
large amount of business confined exclu-
sively to the ferries. He showed that he
had dealt with the matter in his report
and had compared ferry rates here with
the same service i'll New y ork. The rates
in this state are lower than in any other
part OF the country.
IN answer to a question the witness ad-
mitted that the proper adjustment of rail-
road rates required that the earnings and
expenses Of the ferries should be taken
into consideration.
Witness stated that he had been a mem
Der of the first Railroad Commission of
d TI1 L. 4I.-
sion no rates, however, were adopted,
but schedule was adopted shortly after
he went out OF office. During his term
the commission had devoted itself to
classifying the railways.
There has been an evolution in the
determining of railroad rates." said the
Colonel in response to a question. The
cost of construction is simply a factor.
but not very material one, in determin-
ing rates. The development of the
country, increase in business and other
causes are more potent factors for consid-
Grafton.
If the actual cost of the railroads could
be computed and rates made giving a
reasonable interest on the investment,
charges would be much higher through
out the country than they are today,
do not attempt impossible things, and
cannot come to any approximate cost of
the construction of railroads."
What principle can you apply as to
the fixing Of railroad rates more Just than
by computing on the cost of construction
and maintenance was the next ques-
ton.
The Colonel evaded by asking if his re-
port was i'll evidence. lie wished to sun
port the report because he thought it was
right.
Unkind things had been said of him
and he had made up his mind to sustain
it. He requested Mr.. Richards to bring
witnesses to oppose the statements in the
report, if they We're false, so that he
could meet them. If there is an inaccu-
racy in the report he wished to have it
developed.
Commissioner Litchfeld spoke Of the
prOpriety of having the report put in
evidence.
DIDN'T WANT THE REPORT IN EVIDENCE.
Mr.. Richards stated that he did not
care about introducing the report in evil
dence, as he did not agree with the con-
clusions arrived at. As document sus-
tanning his case, he would not sustain the
report.
Colonel Morgan expressed his conf
dence in being able to fully sustain his
report, and again asserted that he would
remain here until he had done so.
Colonel Litchfield stated that the re-
port had not been introduced in evidence.
1t was merely for reference and inform
alton.
Attorney Martin for the railroad stated
that the Chair had some days ago stated
that the report would only be consulted
as valuable information in dealing with
the Shively case.
This investigation has taken the course
/ predicted some time ago." said the
speaker land has drifted from an ex-
animation into the Shively complaint to
n trial of Colonel Morgan and his report.
The document may be OF value if its facts
are consistent in the consideration of the
Shively case, but it is not peculiarly
pertinent to the issue under considera-
ton"
Mr.. Richards called attention to the
necessity Of Colonel Morgan sustaining
his report on account of the conclusion OF
the commission that it will be considered
as valuable evidence during the investi-
cation.
Colonel Morgan again spoke of the un-
Kind treatment he had received. LAS
long as live | can protect myself, and a
man who has not the manlinesS to do so
Will be oyerrun with unkind criticisms.
have made report which is true and |
intend TO show il is true.
zone paper says / have given the State
black eye. Such u statement is untrue.
! admire California and am interested in
the state l wish 10 say that the state
1lent that have put in bill OF 81, 900 is
q lie. No bill has been put inn
Colonel Litchfield interrupted by re-
marking that the published statement
was malicious intentional lie.
Colonel Morgan requested that those
who had accused him of fraud should be
brought before him.
They'll be summoned to appear here"
remarked Chairman Rea.
Commissioner Beckman then stated
that he had been roasted so often by the
press that be has ceased to mind it,