The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-02-23
EXORBITANT TAX.
California Must Have a
Lower Tariff.
FREIGHT VIA THE NORTH.
The Railroad Commission Must Uo
and the Legislature Regulate the
States Freight Charges.
FREIGHT VIA THE NORTH.
The Railroad Commission must go.

After fourteen years trial that body has
proved to be of no benefit to the people Of
California, and instead of advancing the
commercial interests Of the State they have
proven TO be a clog in the wheels of trade.
The consensus Of opinlon among the mer-
chants of San Francisco as well as of other
cities of the State is that the commission is
a so much Dead Sea- fruit. and that it is
simply a shield behind which the railroad
companies continue their extoi Tomato rates
without fear of molestation.
Practically the railroads fix their own
rates, regardless of the commission, who
simply indorse any action taken by the car
riers, and when a merchant makes any
complaint to the railway officials he is re-
fsrred TO the commission. When an appeal
is made to the commission that body In
forms the applicant that it will take the
matter into its careful consideration, and
there it usually ends.
One thing is certain, and that Is that the
traffic rates in California are too high and a
change must take place, and the abolition
Of the Railroad Commission is the most i'm
poTtant step toward that change.
The plan of introducing the tariff into the
organic law Of the State possesses the
merit of placing the carriers in the position
of supplieants for legislation instead of OBJ
structionists and as some say to a certain
extent controllers of the State Legislature.
The Southern Pacific Railroad Company
has maintained the same rates since the
commission was first established, and no
effort has ever been made to have them re-
duced. The Commissioners have been very
good workers in the interests Of the railroad
companies. but shipper has not been ben-
Gifted in the least by their appointment
Railroad rates In California can almost
be cut in half and still leave good margin
of profit for the carriers.
1t ought TO be enough to know that il the
figures of the Southern Pacific Company are
taken as guide their earnings are nearly
double those Of any other road in the
United States, aud. further, that their own
figures show that they consume from 10 to
20 per cent OF their gross earnings in the
operation of the property. Their net earn
ings within California are largely in excess
of their own property in other States and
also largely in excess of any other road.
1t has been repeatedly shown in evidence
in the courts and elsewhere that the roads
of the Southern Pacific Company were
bonded largely in excess of the whole cost
of the property and equipment, and that
not only did the capital stock represent no
tangible investment, but as matter of
fact the promoters put into their own
pockets a large profit upon the building of
the roads, but still retain possession OF them
and claim that they should have profit
from tho operation of the property In
which they have not nor did they ever have
dollar OF actual investment
The rate OF transportation Is ut present
fixed to yield an income on funded debt
aggregating S41, 800 per mile and to pay
dividend on capital stock OF S47,255 per
mile on q road which in actual outlay did
not cost one-third that amount aud which
could be constructed to-day for much less
figure.
The State Is now sustaining burden OF
which at least two-thirds is unjust and
which has been c0untenaDce1 by the Rail-
road Commissioners for the past fourteen
years because they were simply tools in the
hands OF the railroad company.
There is no possible doubt but tina San
Francisco's trade Is being strangled by the
exorbitant rates charged on freight TO in
terror points. There is no chance for local
merchant to supply the needs of the State
because the Southern Pacific Company, by
Its discriminating and excessive rates, viz
tually adopted n schedule allowing Eastern
trade to creep in. 1t costs as much 10 get
goods to Fresno from San Francisco as 1t
does to get goods from New \ DIRK to San
Francisco, and that Is simply because the
railroad company controls the line abso-
lutely aud bleeds the merchants for all they
will stand regardless of the commission.
What the merchant of San Francisco as
we'll as the merchants of other distrlbut-
ing points In the State wants Is lower local
freight rates, and that is the point toward
which oil efforts should be directed. 1t is a
cold fact that goods can be supplied in the
country from the East cheaper than from
this city.
The Northern Pacific and the Union Pacific
| railroads are comparatively cheap freight
| carriers between the East and the Pacific
| Coast, and both these lines find their busi-
ness profitable. Their rates to Portland
| and points on the northwestern coast are
| way below the rates from the East into San
| Francisco and other California terminals.
| Merchants here say they can order goods at
| the Atlantic coast, move them to Portland