The record-union., 1893-01-27

cent. Of earnings, while We find I3a per
cent. ol The gross earnings of this railroad
was palo TO the state and County Govern
ments OF Nevada and California in taxes.
A passenger rate of two cents per mile is
proposed in the bill, which would be
reduction of four cents a mile, the rate at
present being an average of six cents per
mile.
The reduced freight rates also proposed
IN the bill would give as on some of the
principal commodities we now carry
rate OF six cents per 100 pounds, where
we now charge and receive twenty-five
cents per 100 pounds. Now it can be
readily understood that under such
rldlculously low rates we could not carry
passengers or freight, and this, too, re-
gardIess of cost of construction and oper-
aGng the different roads.
The Carson and Colorado paid the Cen
tral Pacific and Virginia and Truckee in
the nelghborhood Of $4,000 freight
money, charges on material, rails, ties,
locomotives, ETC., used i'll this construc-
ton. Is 1t not apparent that this and
other additional cost items of construc-
ton OF this railroad over other railroads
affected by this bill should be considered?
No one had ever complained to the c. and
Z. that rates were too high While the
Carson and Colorado did not earn $4,000
per mile, yet the Virginia and Truckee
earned IN the neighborhood OF $4,000 per
mile, and the owners of the Z. and c. did
not consider 1t great stretch OF the i'm
aglnation TO have expected that the per
mile earnings Of the G. and c. would
reach say 80 per cent. of the Y. and L.
And further, we do not now believe
that 1t will be possible for the Carson
and Colorado Company to earn tie sum
per mile which will place it within the
provisions of this amendment. ! have
already shown you that the operating eX-
penses OF our company for the past
twelve months reached 50 per cent. OF the
gross earnings, and it is probable this
percentage would not 90 much below IS
per cent, the bulk Of our freight being
mineral products, handled at minimum
rates.
lie claimed some notice should be
taken OF cost of construction. Otherwise
II success was met and increased in traffic
1t would simply mean disaster. His
company was considering at extension Of
the line TO connection IN Southern Cali
lorna whenever it appears that such ex-
tension would be good business propo-
sit!on, but he assured the committee the
extension would not be considered if the
amendment were passed.
lie said he had not brought any statis-
ties or detailed statements of operations:
he simply gave general results and would
be glad to answer any questions the COM
Z,
further Information.
Senator Burke-During the past year
your gross earnings in California were
how much?
Mr.. Bender-For entire line. gross
earnings per mile-293 miles: ! think the
earnings in California will average as
much per mile as the balance of the road;
those earnings, the gross earnings per
mile for the past twelve months, were
500; s2l0,000 for about 800 miles Of road.
Senator Burke-And the mileage in
this State is?
Mr.. Bender-One hundred and eight
miles in California.
i. W. Jones, representing the Colusa
and Lake Railroad, was introduced and
gave number of reasons why he op-
posed the bill.
lie said that his road had been con-
structed as necessity, and not as a mat
ter OF choice. When this necessity be-
came apparent company was organized
ana building commenced. Material was
cheap and we We're able to secure low
rates from the East. Contracts for grad
ing were let at most reasonable figure.
and on the whole, the road was cbeaDlV
constructed, at cost Of 500, COO Since
the flrst day Of its operation the directors
have never received single cent in the
way OF dividends. Our Superintendent
Is the only officer that has ever received a
salary. He gets 81, 200 a year. We
charge from three to ten cents per miie
Tor merchandise and eight cents Der mile
Tor passengers. If we fail to pay divi-
dend with these rates in effect, what
could we do with a rate of two or three
cents per mile, as proposed by the meas
ure now under consideration? Our net
income last year was only $500.
1t VIII be said that we are not within
the S4,OOO limit, and therefore can have no
concern. We may get into this class one
OF these days, but / confess that there is
Ilttle lnducement to make improvements
with that end in view. The measure will
drive US to the wall, and prevent develop
ment OF the county, that under natural
would follow as a matter of
course.
j. NJ. Fulton, Of the Nevada, California
and Oregon, said that his line had cost up
TO date million dollars and had never
PAD single cent on the investment.
We are handling traffic, continued Mr..
Fulton, at one-third of the maximum
rate allowed by law when the line was
constructed. We were and are allowed
10 charge cents per mile for passengers
and 10 cents mile for freight.
Our expenses this year have been un-
usually heavy, and the road is in bad
condition. Our ties get rotten here lust
the same as in the East, though MIR. Leeds
has told you in one of his comparative
statements that the climate OF California
precludes the possibility of such decay.
1t would be money in our treasury to
discontinue the cooperation of our road dur
ing the winter season, but we are not per-
mitted to do this. Settlements have
sprung up all along the line, and thus we
are forced to operate during several
months of the year at a great loss.
Recently we have had survey made
looking to the extension of our line into
Modoc County, a region, in my opinion.
the richest undeveloped country in the
United States. The road which [ repre-
sent was not, however, originally in
tended for charitable purposes, and we
are, of course, depending upon promised
development to get a fair return on the
Investment. If this bill becomes q law it
will certainly stop not only this extern
sion, but every other one now contem-
plated. Mr.. Leeds would introduce and
push to passage measure that will not
only stop the development Of the state.
but actually take away our hard money
brought from another State. This prop |
arty is owned by Moran Brothers of New
\ ork City. We do not care how the rates
are regulated, whether by a commission |
Or by the Legislature, so long as they are /
Just and Will give US reasonable income.
If, as Mr.. Leeds desires should be done. |
an amendment to the Constitution of this |
sIeaI state IS Inaue, StaIlng what the rate |
shall be on sausage, pigs feet or sour |
lraut, we will not object. if paid for the |
service, though it is part of the Consti- |
ution. Mr.. Leeds claims that he could |
lot get data from which to conclude what |
would be just and reasonable rate for |
he short roads. What does he mean by |
his? Do we not all file yearly statements |
with the Railroad Commission. giving |
he very latest data? Why cannot Mr.. |
Leeds get figures on short lines as well as /
IN the big roads of the State?
His statements concerning fuel are all /
unreliable, and as a matter of fact his
j m be o ra =. rod q -