The herald., 1893-02-24
CALIFORNIA; BURDENS.
THE PEOPLE CINCHED BY TfEH
RAILROAD COMPANIES,
No Other State or Country Gould Stand
the Rates Imposed on Us, Says MR.
Leeds-The Pacific Mall
Investigation.

WASHINGTON, Feb. 23.-The Panama-
Pacific Mail investigation was resumed
today and the Pacific Mail end was
taken up. Leeds, formerly traffic man
ager of the Gould roads, now repre-
sentative of the Merchants Traffic asso
citation of California, which proposed to
put on line of steamers in oppns'tion
to the Pacific Mail, testified that there
had been a compact between the trans
continental railroads and the Pacific
Mail. The railroads paid the Pacific
Mail subsidy and reserved the right to
say what classes of freight the steam
ships should carry. and fixed the rates
to be charged. The management of the
Pacific Mail was absolutely in the hands
of the Transcontinental association, as
far az rates and business were concerned.
His recollecti on was that the only right
the steamship company reserved was
that it should deal directly with the
public after the rates were fixed. The
effect of the agreement was to keep up
freight rates. The shipment of mer-
chsndise around Cape Horn by clipper
ships was, to some extent, due to the eff
forts of merchants in the interior, who
were compelled to see their freight 20
clear through to the coast from the east,
paying the through rate, then have it
| shipped back to them at a high local
rate, instead of having the freight deliv-
cred on the through trip.
| Witness did not think the Panama
railroad ought to be made free to all and
all agreements stopped. He would not
recommend to his company to go into
the scheme at all without a
Panama railroad agreement. The
object OF the Transcontinental as
ISOLATION had been to destroy
competition between the seaboards, in
order that tho railroads might charge
higher rates. In pursuance OF this poll
icy the association had paid the Pacific
mail company $50, 900 month in con-
sideration of the steamship company al
lowing the railroads to fix freight rates,
and the Pacific Mail paid the Panama
railroad $55 900 month for exclusive
transportation rights over the railroad.
Leeds said he had made a calculation
of the burdens paid by the people Of
California for transportation within the
state only. The gross annual earnings
of the Southern Pacific railroad company
alone in the state of California amount
| 90 TO ToU,UUU,UOU, or $40 per head of the
population. Freight rates in California
should be decreased 25 per cent, or ST.
100000. Over the Southern Pacific,
for carrying freight from San Francisco
to Fresno, 200 miles. rs cents per 100
pounds is charged, which would carry
the same freight from New York to
], Wichita, Kan. No other country than
California could stand such rates.
E. L. Openheim, secretary, treasurer
and director of the Panama Railway
company, was examined. He said the
reason the Panama Railway company
did not renew its contract with the Pa
cifc Mail company was because the
railway company wished to gain its in
dependence. He further said in the me-
gotiatlons for a new contract with the
Pacific Mail, his company insisted on
making rates, but the non.renewal was
the result of the actions of G. P. Hunt
ington in the matter.
Gen. John Newton, president of the
company, corroborated the testimony of
Openheim, and the com mittee adj
| journed.