The record-union., 1893-02-01

mile, and TO accept freight rates as pro-
posed in the substitute schedule, the COM
pany would have conducted business for
the past fiscal year at loss OF $3.50, l25 65
Under favorable auspices, after paying
interest and betterments, the roads sur
plus amounted to only SI06,067.
The people of the districts through
which the San Francisco and North Pa
citic road runs, Mr.. Burgin said, do not
object to the rates being charged; they are
we'll pleased and glad to have the line un-
der Its present conditions. They all
realize that the company is not able to re-
duce the rates and live.
lie characterized the statement of
Leeds that 1t costs but very little more to
run railroads in California than in the
East as being absurd. The cost to his
road for coal was 81 Is per ton, whereas in
the East 1t is furnished for from 10 cents
TO 81 70 per ton. He also compared the
territory and population of California
with Eastern States, which made Leeds
arguments appear ridiculous.
1t is the ambition Of the people to have
more railroads. Twill adverse legis-
lation, if taken by this Legislature, induce
capitalists to invest their money in build
ing roads?' he asked.
The San Francisco and North Pacific
railroad, according to Mr.. Burgin, will
probably pierce up into upper Mendocino
and humboldt Counties if the company's
plans are not intertered with by the adop-
! ZION Of adverse legislation.
Thomas Mellrish, in behalf of the same
road, also made an able argument against
the adoption OF the amendment before
| the committee. On Leeds basis of figur-
ing, his road would have paid only
So6,4T1 interest for the past year, which
would have been less than one per cent
interest on the capital invested The
road is subject to the severest compete
ton by water. Since its inception, in
1889, not one dollar has been paid to the
builders OF the road, and yet, he argued
the amendment proposes an absolute re-
ducuon OF from 30 to 30 per cent. of what
they are now receiving. He said il is
manltestly unreasonable for any Traffic
Association or other association to try to
pull down and crush out the very exist
ence OF road that is endeavoring and is
| building up the State. In Mir. Mellrish's
opinion, The progress of the State would
be retarded at least ten years by the
adoption of the amendment, which was
virtually proposed by Leeds. He pre-
sented facts and figures at length
to bear out his arguments which did not
permit of dispute.
NORTH PACIFIC COAST.
The North Pacific Coast Railroad was
represented by its President, w. L.
Russell. No complaints had been made
against his IOdu, uelIHer concerning tarGS
nor frelghts. During the past year the
passenger rate has been 81 IS per mile
and the freight rate So 81 per ton per
mile. Should the proposed amendment
be adopted the road would have to be
conducted at loss. At the present time
the road is under such heavy COMPETE
ton by water on one side and q connect
ing railroad on the other, it is compelled
to carry the products of Sonoma and
Marin Counties to the Bay Tor almost
actual cost. Labor, fuel etc., Mr.. Rus
sell showed, cost great deal more on his
road than any which Mr.. Leeds had
enumerated and by which he proposed to
regulate the California roads
The North Pacific Coast road has been
IN existence since 1874, but it has never
yet been able to declare a single dividend
to It's stockholders, and its business has
been most carefully attended to- Mr.
Russell contended it would mean destruc-
ton to the North Pacific Coast road to
have the amendment made law.
THE REDoNDo ROAD.
l.. I. Garnsey appeared in behalf
OF the Redondo Railroad. He said in
making the proposed rates obligatory
and part of the Constitution, his people
believed 1t would not only prove ruinous
to all the railroads in the State now in
operation, but it would also mean
stagnation to the commercial and agri-
cultural interests OF the entire counJry
The promoters OF the bill under consider
alton, II was apparent, wanted to kill the
goose that laid the golden egg, rather than
aid in the prosperity of the State. 1.-The
argument advanced by these so-called
promoters is" said MIR. Garnsey. THAT
they know 1t all, and that the unsup-
ported statistics offered by them have
greater value and should be given more
credence and weight than actual facts"
SAN DIEGO, CUYAMACA AND EASTERN.
Waldo 5. Waterman represented the
San Diego, Cuyanaca and Eastern Rail-
road. The road runs from San Diego
through the Il Cal on and Spring Val
leys. The road was built to help de-
velop the country through which it runs.
The passenger rate of transportation at
present is four cents per mile. The pro-
posed amendment cuts down the pas
senger and freight rates from 25 to So per
cent. The gross earnings of the road
have been 81, 416 % per mile: the cost of
operating IS 80 per ton per mile. In spite
OF the low rates now prevailing, however,
the road has paid running expenses and
put some money into betterments each
year and has paid 500 monthly toward
the rolling stock.
This road, though it has done better
than many other roads in the State, has
never yet paid interest on the money in
vested in it-some 100000.
Mr.. Waterman said it was contemplated
to extend the road further into the val
leys and mountains. He hoped the Legis-
lature would not enact laws to prevent
the plans being carried out.
THE VISALIA ROAD.
Grove l.. johnson, who appeared in be-
half of the Nisailia Railroad. made the
proposed amendment appear ridiculously
absurd. Mr.. johnson said the VisalIa
road cost Sll5,000 in its construction; it
has bonded Indebtedness of $50, 900, on
which it pays per cent. interest. Not a
cent in dividends has been paid by the
road, but it lives in expectations. No
complaint has ever been made against the
charges of the road. The company would
like to extend its road, and viii if not
interfered with.
The amendment proposes to oVerturn
tie work which the people have APP
proved and lived under for fourteen
years. The very best reasons should be
advanced for making change; mere
opinions should not count. Not one
reason had been shown for change.
The amendment will reduce the receipts
of the Nisalia road 80 per cent, which
would cause it to suspend business.
The amendment, Johnson argued is
against the spirit of the Constitution.
Before the doctrine contained in the reso-
luton, which was supposed to have been
AOICNel hll4Su, ne duOpIeu IL SlOulu De
carefully considered and weighed.
The amendment, he argued, is mass of
hieroglyphics nobody could understand.
The idea of stuffing the Constitution with
such stuff he made appear ridiculous.
The amendment immortalizes ~. T.
Ripley, Chairman of the Western CLASH
fication Committee" The amendment is
not complete of itself, but provides that
the ''classifications of property provided
for in the distance tariff are based upon
the Western Classification and the rules
nnvarnincr the salna adnntnd md ic-1,nd