The morning call., 1893-01-24
RAILROAD RATES.
Leeds Explains the Traffic Associa-
TONS Schedule

SACRAMENTO, Jan. 25-The Senate Com
mittee on Constitutional Amendments met
this evening 10 consider the substitute pro-
posed by the Traffic Association, which
provides for the establishment of a schedule
of freights and fares. Traffic Manager
Leeds was present and so were J. C.. Mar
tin and Traffic Manager Gray of the South
ern Pacific Company.
The proceedings were opened by Senator
Gesford, who offered the bill as amended,
which had been agreed upon by the Assem-
bly, committee Ii was decided that the bill
should be discussed.
Dir. Leeds spoke first, reiterating the
statement lie made before the Assembly
committee. He supplemented his previous
remarks by stating that in his judgment
the tariff, although In some respects differ
ent from the one in force in Kansas, would
yield in this State similar revenue 10 the
one il does in that State. He did not know
what effect 1t would have on other lines
other than the Southern Pacific. as he had
paid no special attention to the earnings of
other roads in California.
Mr.. Leeds estimated the reduction on the
freights and fares of the Southern Pacific
Railroad at from IS to 80 per cent. He had
made up his estimate Of the earnings upon
the annual published statements of the
Southern Pacific Company. The interest on
the bonded debt of the company amounted
annually TO s8.675, 5S7, which. at per cent,
would show a capitalization of S144, 000, 900
on All miles Of road. The amount OF grogs
earnings amounted to $4,000. 600 on the Pa
ciic system, and within the State S3l ,000-
900, making the earnings of the latter line
5000 per pile. and outside the State of
S440O The gross earnings Of the Atchison.
Topeka and Santa Fe were less, with larger
operating expenses.
Leeds then gave a number OF comparisons
regarding the price of coal, tonnage. empty
cars moved, density OF tariff. etc. lie made
them with the Atchison and Missouri Pa
cife. They were In all cases favorable to
the Southern Pacific, showing that the latter
company is earning more per mile at far
less expenditure.
A history OF the distance tariffs in opera
ton in other States followed, and also an
explanation Of the advantage to those who
patronize railroad lines. he said that the
argument in favor of the adoption of the
tariff rests upon the fact that in California
you are raying nearly twice as much for
transportation as is being paid in other
States.
ut has been claimed" he continued.
that it is more expensive to operate a rail-
road 10 this State than elsewhere, but the
comparisons / have given you do not show
II. 1t has also been asserted that the
Southern Pacific system ought to be taken
as a whole. but that rests on the assumption
that California ought to help Nevada,
Oregon and Arizona pay for their trans
portation. No such principle as that can
be maintained. 1t could no more be applied
to a railroad than to any other inter state
business. The Supreme Court has In fact
held the contrary doctrine in affirming the
right of the States TO regulate their local
railroad business"
Mr.. Leeds denied that roads could be
operated more cheaply in the East than
here. 1t was the other way II anything.
The climatic influences are better here and
ties decay ore slowly here. His compari-
sons, lie declared. showed that railroadiug
in California was cheaper than in the East.
lie then spoke of the effect that the tariff
would have on the small railroads. While
they were not earning as much as the South
ern Pacific. they would be able to pull
through. lD fact, the proposed reduction
would act as stimulant to traffic and as
soon as the producers could earn more
money the earnings OF the roads would in
crease. and in that way the tariff would
bring Its own compensation. "Out of
population OF over a million in California
| only one-half OF them" he said, "are pro
ducers. Producers elsewhere will be at
tracted here when they find they can do
profitable business here, and In a little
while the railroads will make more money
than they are earning now"
Senator Earl asked Mr.. Leeds how he
came to fix the passenger tariff at cents.
He said he did so more as a proyiso TO in
dnce the fixing of limit by the Legislature
than anything else. The usual maximum
throughout the East was cents, but on the
New York Central and Hudson River It
was cents. He cared very little about
this. The passenger earnings cut but
small figure In the matter. Excluding the
ferry and suburban earnings. tie passenger
receipts amounted to only 80 per cent of the
gross. Three cents was enough. and he was
not sure that cents was not sufficient.
Senator Earl directed Mr.. Leeds atten-
ton 10 the fact that the chairman of the
Western Classification Committee had the
power under his rules to modify the CLASH.
ncation In favor Fl new comm oditiess. and