The record-union., 1893-02-08
"Fenee Post" Theories Scattered to
the Winds.
SOUTHERN PACIFIC BUSINESS
Was WiIliully MisrePreSented by Leeds
Confusion Of Figures an
Art With Him.

The Senate Committee on Constitu-
tional Amendments resumed its hearing
of the Traffic Associations proposed
amendment, fixing freight rates and fares,
last night in the Senate Chamber.
Colonel T.. F. Barry, who represents
the Traffic Association since the disap-
pearance of Manager Leeds, was con-
spicuous by his absence at this session OF
the committee, although on Monday
evening he asked as a special favor that
he be allowed to make the closing argu-
ment for the association when the South
ern Pacific Company concluded the pre-
sentation of its array of evidence against
the amendment last night. The absence
of the Colonel was commented upon by
Senator Earl, Chairman of the commit
tee. He Inconvenience the committee
considerably.
C. F. Smurr. General Freight Agent,
and G. L. Lansing, Secretary and Con-
troller of the Southern Pacific, were the
speakers last evening. Mr.. Smurr spoke
first. He said:
Regarding the proposed constitutional
amendment now under consideration by
your honorable body, | would say:
AS the documents thus far introduced
read, it is clearly the intention that in the
absence of legislation the Constitution
shall provide specifically what classltica-
ton shall be employed, to wit: the West
ern classification; and what table of rates
shall be employed as maximum, to wit:
that set forth therein as the California dis
tance tariff; thus wiping out all existing
classifications, rate sheets and rates, and
that from date of adoption, or thereafter
as may be provided, all property must be
transported under classes, as set forth IN
said Western classification, and at rates
not exceeding those set forth in said
California Distance Tariff"
Practically speaking, given railroad
within the State of California, its fixed
expenses known, its operating expenses
ap,roximately known, although there
are many disturbing factors that make
this feature constantly variable one, lead
ing among which is climatic conditions,
disasters incident to fire, snow and Hood,
and in addition, given the volume OF
traffic, direction of movement, It's charac-
ter or description, length and direction OF
haul freedom from competition OF mar
kets and freedom from competition OF
carriers, it would not be difficult matter
to devise a freight tariff to be applied
thereto that would be sufficient to meet
the fixed and operating expenses of such
road.
On the other hand, given railroad
within the State of California, its fixed eX-
penses known, its operating expenses
only approximately known and subject
to the variable conditions before named,
its traffic wholly unknown or unde-
veloped, competition of markets and car
riers existing in active degree and the
proposition of making freight tariffs, is no
longer to be regarded as simple and one
easy of solution. This latter condition is
what has prevailed from date of the COM
pletion of each and every railroad within
the State and the tariffs as applied to-day
are the outgrowth of the experience of a
quarter of century or more, and the
idea that any single individual, without
local knowledge and exact Information,
within slightly more than q twelve
month can proceed to evolve one
uniform distance tariff that will meet the
variety of commercial conditions existing
within this State and that will do justice
to the people as well as the carriers, is in
my humble judgment, to say the least,
ludicrous presumption. In practical
working we are called on to consider the
question of making changes in or estab-
fishing new rates daily and necessarily
must have due regard for bulk, hkeli-
hood to damage for the rail carriers are
insurers), value, volume of traffic, direc-
ton of movement length of haul, return
empty haul, competition of markets.
competition of carriers and cost of service.
The propositions requiring such consid-
Grafton come to us from the commercial
communities served and as rule may be
regarded and are in the public interest,
and it may be said, we believe with pro-
priety, that whensoever it can be demon
strated that a modification of rates is
necessary to development in a general OF
specific way that such modification will
bring about improved results, the
emergency is met; the aim in general
being that, on the whole, rates shall be
such as to bring about the maximum
development of production in all its
different forms and at the same time
bring enough revenue to enable continu-
ance of the service of the roads already
established and encouragement in direc-
ton of construction OF new roads and the
consequent development resulting there
from.
Touching the assertion made by the
Traffic Association of San Francisco
representative at your first meeting, to
effect, that an int1eXible classification as a
mart of the Constitution or Statutes of the
Etate of California, by reason of inability
TO make changes therein save once in two
wears. would work no hardship on the
commercial community, and assigning as
one of the reasons therefor that the local
classification of the Southern Pacific
Company had not been changed within
the past two years or within the past ten
yearS''-ain cOIIpSlASu " Shaio eSAi6e
said assertion as being, to say the least,
extremely reckless. Had the Traffic AS
sociation of San Francisco, through its
representative, wished to present the
facts to YOU. it could have obtained them
from the files of the State Board of Rail
road Commissioners, where the various
changes as made within the past one year,
two years or ten years are TO be found.
The fact is, there were numerous changes
made in the local classification as used by
the Southern Pacific Company on Its
Central California traffic during the year
1892, forty-five in number. During the
same period commercial necessities re-
quired changes in the Western classltica-
ton aggregating 265 in number. When
YOU take into consideration the vast ares
over which the Western classification Is
in operation, to wit, practically all the
territory west, say, of the Chicago merid'
ian, you will at once see that relatively
there has been more changes in tht
southern Pacific Company's local classi.
fication than in the Western. which is SCI