The morning call., 1893-02-14
ient 1 desire to set up. They are as FOL

and S 4 L. 359 miles. 1915. SO per mile. Ga. 80
Louisville. Albany and
Corydon. I25 miles. 1874 90 per mile. Is
Chicago aud Fort Madi-
son as miles.......... 556.7O per mile. so
Chicago. Iowa and Da-
kota. 26Ia miles. 1877 90 per mile. 80
Chicago. Kansas City and
Texas. 20 miles. .1343.O0 per MILE SO
Cincinnati. Georgetown
& Portsmouth 42m*. .1645.SS per mlle 80
Cleveland and Marietta.
sPaid interest bonds and had $36 balance.
Paid all obligations. interest on bonds and had
a surplus OF $42623 or
Such examples can be produced without
limit where the business is done on legiti-
mate basis and with view to development
of the resources of the country served by
them.
Notwithstanding technical objections
raised by those opposed TO this measure as
to the practicability of the scheme l will
say the plan, so far as the tariff goes, Is
nominally the same as is In general use in
the territory where there is much less dis
elimination than is practiced here in Cali
fornia and with disposition on the part of
the carriers TO put in effect an Ineligible
system of tariff the plan will work admir-
ably. There has been no argument ad-
van ced by the carrier up to this time which
shows any sincere desire on his part to treat
the question equitably, nor can any be pro-
duced which will show that the present
basis Is equitable, because equity is not one
of the elements which enter into The pres
ent plan upon which the transportation
business is conducted IN this State. Time
forbids an argument of the case OF the COM
mission. i will only say that they have
failed utterly in the performance of their
obligation in every particular as provided
by the law. So far as can be discovered
they have done absolutely nothing which
has amounted to anything which has not
been submitted to them for ratification by
the carriers.
The system is undoubtedly wrong which
admits Of possibility of such dereliction Of
duty by any servant of the people. Very
respectfully. j. 5. LEEDS.
AT the conclusion of the reading Colonel
Barry continued: THE discussion which
has been going on for some time is wholly
foreign to the subject. Let us go back. a
moments reflection will enable you to
understand that the main issue has been
avoided. The principal object has been to
get rid OF the Railroad Commission. In 1876
the railroad company gave US one or their
kindly gifts-a Dead Sea apple; Railroad
Commission. The first commission was
one OF the best we ever had. John i.
Doyle, Isaac Smith and Ex-Governor Stone
man composed it, They followed the
milder methods Of Massachusetts in con-
trast with those of Iowa and Illinois"
Colonel Barry sketched the history of the
commission, how the railroad defed them
and the Granger cases decision. They
scared the people" he said. ''of this State
into this boyle at the constitutional con-
veniiOn in 1877. There was not then. and
there is not now, anywhere In the Union
such a commission. Other States left TO the
courts or'public opinion the enforcement OF
reasonable rates. The people demand this
change. and We have the utmost difficulty
to allow them an expression through two
thirds vote Of this Legislature, owing TO
insidi0us influences. Elsewhere there is
the most liberal provisions for the benefit OF
shippers and carriers alike, which finds not
the slightest parallel here II is not at all
singular that the great object Of this bill is
obscured. 1t is time we were abandoning
what we have tried for fourteen years in
vain. ] trust you gentlemen will put Cali
fOrnia where it belOngs-in the front rank
of the Union"
lie cited the Texas constitution which
gave to the Legislature complete power TO
regulate railroad tariffs. In thirty States
rates are prescribed in one form or another.
II would be wise to restore TO this State what
is the practice in nearly all the States.
AS il was contemplated that in a few
months the people would vote on the aboli-
ton Of the commission, there would be an
interim which would be supplied by these
rates and fares. This is thus mere incl
dent and ali this talk and these figures were
discussion to avoid the real point in ques-
ton. the abolition of the Railroad Commits
siOn There are but three roads that, ac-
cording to the last reports, had earnings
exceeding $1,000 The little roads were
simply made a bnlwark for the Southern
Pacific Company. AS to q road that is capt.
tailed at $4,000 mile" be said. ION
which investment we are asked to pay in-
terest. / will pass"
Chairman Earl asked him If be had heard
the testimony that it was only $4,000.
"The true principle for tariff rates is not
on capitalization but on what the traffic
Will bear" he replied. The investment
is largely fictitious; they have swollen
their capitalization and you have no right
to consider their fabulous capitalization"
He cited the Donahue road to show that
with no bonded Indebtedness and a floating
debt of $4,000 the earnings were S63s, 800
The road later issued bonds to the extent
Of S1O,0O0.OO0, which wal far above its
value. is it right" be asked. 'for the
| people TO paw the interest on this swollen
| sum? 1t Is said that some Of the classifca
| lions are different from the Kansas tariff
| | am not tariff expert. but do know that
| when other roads with higher operating
| expenses can make money on this tariff il
! should be possible for the Southern Pacific
| to do so. As to the wine tariff. it is not low
| because OF the kindness Of the Southern
! Pacific Company, but because of the exist
| ence of a nayigabe creek"
de showed from Iowa reports that that
/ State was so gridironed with railroads that
10 point in the State was more than fifteen
miles from some railroad. aud that even
then railroad building goes on. And yet,"
he said, 1--WE are told that all investment of
capital will be discouraged If this amend
ment is adopted and rates lowered / do
not think there can be any injury to the
great State OF California from adopting
rates that are in existence so generally else
where and in places that have nothing OF
the natural resources Of this State"
After Colonel Barry closed Senator Cos
ford made few pertinent remarks He
said: IF we had a competing railroad
there would be little necessity Of regulating
freights and fares. As to the raising OF
| vine rates by this amendment it Is not true.
It simply provides for maximum. from
Rutherford to Napa, fourteen miles, the
rate is So cents per mile. and from Napa to
San Francisco, sixty miles. it is I6% cents
per mile.
"Napa is at the head Of navigation and
the rates are reasonable from Napa down.
but exorbitant from Napa up the valley.
If the committee desires they can put any
classification they desire in place of the
western classification. | will be candid. !
know nothing about railroad tariffs. 1t is
not my business. believe. however, il
this amendment does nothing else it has
| adncafed The Lerislafure and the manila Of