The morning call., 1893-02-14

very arbitrary. IL is certain Sucn tecnnlcaI
objections are only raised for the purpose
OF obstructing progress on this amendment
especially when viewed in comparison with
the past methods of California roads. There
would be no great necessity to make CLASH
feation changes within the period Of the
arbitrary application of this classification
as provided. The western classification Is
used over such an extreme territory that it
covers about all conditions of commerce,
there being about 5000 articles named in it,
and it will be found that many OF the
changes are made TO meet tho requirements
of manufacturers and would not materially
affect the State, which for good reasons has
made no very rapid strides in manutactur-
ing Some reference has been made to
my recent advent in this State as
reason why l am not prepared to
recommend a proper tariff for use
in the traffic of California. believe l had
a fair knowledge Of the general principles
of tariffs and the rules which apply TO the
handling Of traffic before that period and
have made pretty dilgent study of the
conditions and requirements here since then.
l believe the recommendations which have
been made by the introduction OF this
amendment are reasonable TO the public
and just 10 the carriers; it has been our
purpose to present only such proposition.
l have been supplied with what purpoTts TO
be comparison of the proposed tariff and
the existing tariff of the San Francisco and
North Pacific Railroad | have examined
that tariff in the light of tie annual report
Of that road aud find that the lowest class
named in their alleged tariff would yield
higher rate per ton per mile than the earn
ings reported in their report TO the State
Board Of Railroad Commissioners Tney
NAV have such a publication, but il is ev-
ident they do not use il in their business,
hence the introduction of il as evidence be-
fore your committee is q deception and IS
insincere. No business which is at all de-
pendent upon the item OF transportation
could exist under such tariff as the one
which is submitted by them. The rate ier
ton per mile, as reported By them as earned
in the year 1891, is abnormally high, IL being
in the aggregate over four and quarter
cents per ION per mile. and ii is not strange
that there is not development enough along
tie road TO justify reduction below such
figure. slight advance would naturally
xiii of that which must now exist under ex-
tTeme difficulty.
tive statement of replacement Of erosslies.
which was presented before your commit
tee. While the statement shows that The
tie lasts at least two years longer IL Cali
fornia, the comparison is an unfair one, and
the party VINO presented 1t evidently Sc
lected The roads which he did for that rea-
son. In the first place l suppose he IN
formed your committee that the roads, ex-
-, DapfSo
belong 70 the same system. They run
through large areas Of the finest timber in
the cOuntry-a great deal of it oak OF the
finest quality-and l presume nothing but
white oak ties are used; and by reason Of
its location on the road aud much of it more
remote from market than some other white
oak districts. ties are very cheap, and OF the
very best quality TO be had east of the Pa
ciie Coast. By taking time 10 digest the
different arguments set up by the roads if
life were long enough TO do so they will
either be found distorted like their capital
ization or based on false premises or upon
purely technical grounds, introduced for
10 other purpose than delay aud 10 envelop
the question in a cloud Of mystery too in-
definite TO be clearly c0mprehended by any
| one, except 10y those whose trade il is to
/ obstruct legislation, that they may continue
! TO Cypress the people. II IS good evidence
Of the utter insincerity Of these roads to
look back upon the history of the past with
reference to all Of their dealings with the
public in every department OF their orgaGi-
cation. 1t ought to be enough 10 know
that if their figures are taken as a
guide, their earnings are nearly double
those of other roads in the country. which
meet their obligations, and, further. that
their own figures show that they consume
from 10 to 20 per cent less of their gross
earnings in the operation of the property
and their net earnings within California are
| largely in excess Of other States OIL their own
properties and largely in excess of other
roads. 1t has been repeatedly shown IN
| evidence in the courts and elsewhere that
the roads of the Southern Pacific Company
were bonded largely in excess of the whole
/ cost of the property and equipment; that
! not only did the capital stock represent DO
| tangible investment, but, as a matter Of
fact, the promoters put into their own peck
cts a large pro6I upon the building of roads
| but stiIl retain possession of them, and
have the hardihoOd to set up the claim that
they should have a profit from the opera
ton Of the property, in which they have not
DOW nor did they ever have dollar OF aetu-
al investment. / hope your committee viii
look at results aud not at the technical
methods introduced in order to conceal the
actual state Of facts. You are called upon
to pay rate Of transportation which viii
yield an income on a funded debt aggregat-
ing S4l. J05 per mile. and pay a dividend on
capital stock Of S4T, 255 per mile on road:
which. in actual outlay, did not originally
| cost more than one-thiTd the amount
| if honestly constructed, and which car
be duplicated to-day and fully equipped
ready for traffic for a much less figure. And
this is not all-you are asked to contribute
to the support Of their poor relationship
! n0n-paying property in the outlying State:
and Territories. And then, understand
their attorney, Mr. Martin, suggests the
pTopriety of profit from the operation Of
the property, the expenses OF which are paid
out of current receipts and in which The
Southern Pacific Company have not one
dollar Of vested money. Possibly If it wa:
found that it was d OF proper for them to pu
on percentage or commission for the ope
ration Of the,roads, there might be com
pensating factor in the profits OF the Pacii
| Improvement Company, the nominal assets
Of which have been reported to be two hun
bred millions of dollars or more. | hops
your committee will not allow your mind
to be diverted from these governing fact
by the small technical objections raised, a
they are simply subterfuges. 1t makes NJ
difference as 10 the details Of how operating
expenses are made up, whether an item cost
one dollar or two, so long as the aggregat,
proves that the premises upon which the,
argue are false Consider the burden, i
you please, which they seek to lay upoI
this State. at least two-thirds of which /
unjust and represents absolutely nothiny
which was ever invested, and then turn, /
you please, to the lately completed road o
the Great Northern Company which is salt
to have a funded debt obligation O
S24.000 per mile. and it will be apparen
that this State is eXnected 10 assume q bur