The record-union., 1893-04-04
PERSISTENT MISREPRESENTATION.

The sensational and anti-railroad press
has not tired of charging that the greater
part of the capitalization of the Southern
Pacific Company is fictitious, and hence
to meet charges of interest and pay divi-
dends on that basis the people are sub
jected to excessive charges for railroad
service.
But when we review all the facts and
the testimony repeatedly given and not
capable of honest denial, especially the
facts established by indisputable proofs
10y the searching investigation before the
late Legislature, we find these charges of
excessive rates are untrue. That on all
strictly local roads, outside of Southern
Pacific ownership or control (and these
aggregate more than third of the
mileagel, the charges are much higher
than on Southern Pacific lines. So then.
so far as the latter corporation is con-
cerned, the proof is that its rates are not
unreasonable, all the conditions of trans
portation in California considered.
II any one entertains doubt on this
head, let'him read the verbatim report of
the proceedings before the Senate Com
mittee of the last Legislature on Con-
stitutiOnal Amendments, where all COM
mercial interests that desired were heard.
and'all were invited to make appearance.
OF course the anti-railroad press, the
selfish and unfair press, will not print
these proofs. They have treated them
from their own standpoint of miscon-
ception and misrepresentation, and have.
probably with some degree of success,
impressed some minds with untruth.
But it remains that the proven facts are
of record: that they are not capable of
refutation, and that they must prevail.
If the question of the reasonableness OF
rates be logically determined affirma-
lively, as we have asserted is true, there
remain no premises from which to argue
that the Southern Pacific Company op-
presses its patrons in order to secure
money for dividends and interest
These facts are found; they are simply
incontrovertible-th the Southern Pa
cfic Company's lines IN California are
not tdividend-paying properties; that none
have paid dividend except the Central
Pacific, which pays the nominal rate Of
2 per cent. on its capital stock; that it
is fact, that instead of there being any
truth in the charges of certain of the San
Francisco press and of Hbelous foreign
pamphleteers, and other sensational in
telligences, that the people pay the inter
est on watered capitalization, and ficti-
tious capitalization per mile of the roads,
the bonded Indebtedness of the entire Pa
cific system of the Southern Pacific Com
pany averages S32.O36 per mile, and for
all its roads wholly in California tho
average bonded Indebtedness is but SIS.
755 per mile.
Yet the charge is made and iterated tc
the discouragement Of investment in rail.
roads in California, and hence to the in.
jury of all other material interests also
that the people are expected to pay in.
terest on capitalization amounting to
SIS, $50 per mile of road The truth is as
we have stated, and it is drawn from the
records made before the Senate committee
already referred to.
In Kansas, which the enemies of Cali
fornia transportation interests never
weary of citing, the average bonded issue
for the six principal railroad lines in thai
State is $50, $40 mile, or more than $500
mile greater than in California. Thi.
simple and single comparison ought tc
confound these partisan and embittereG
home journals, which are doing theil
utmost to injure California interests, and
which quote with avidity false and dam
aging statements made by foreign writer,
who make pamphlets and books for pur
pose. Some day our people viii awake
TO keen realization of the fact that tht
State must suffer along all lines by these
misrepresentations and ISLANDERS. Unit
we are exempt from the misrepresenta
ton and foreign SANDERS approved by
partisan and purbnnd home newspapers