The record-union., 1893-01-26


technically included in the report upon
the proposed constitutional amendment,
that 1t really should be included in that
report with the longer lines.
The receipts OF the road amount to
$500 and a fraction per mile, leaving no
margin in between that and the $4,000
limit sought to be established by the pro-
posed amendment to the Constitution,
for any increase, which Mr.. Bur-
rows said the company might righttully
expect in the future. The road is thus
placed in predicament that, if its traffic
should increase, the receipts would dl-
minish. The road, Mr.. Burrows sald, has
very little local traffic, except what comes
from the two towns named The road
was originally built for the carriage OF
wood. 1t is great convenience to that
portion Of the country, which, without it,
would be almost shut out from civiliza-
ton, wagon roads being impossible, or
almost impossible. in the winter.
The cost of the road was Sj25, coo. 1t
has q bonded Indebtedness Of S26O, GOO,
paying interest at the rate OF s per cent.
per .annum. The road has a number Of
trcstles, which range from twenty to one
hundred feet III length, and one OF which
is several hundred feet in hight, requlr-
ing a great amount of repairing every
year. The average annual cost, MIR. Bur-
rows stated, for repairing bridges, ETC.,
has been about s., ,0JO. For several years
past $4,000 has been expended annually
for keeping the road in repair.
The average receipts of the road for the
past three years have been about SSS, 900
per annum, while the receipts for 1889
amounted to SlI5,0J0. The total shrink
age between the year 1880 and the present
time amounts to 900 yearly, which has
been caused by the stoppage OF hydraulic
mining. which stOppage has caused de-
crease in both freight and passenger
traffic.
Mr.. Burrows said that the dividends of
the road up to 1850, which were paid the
ockholders Of the read, amounted to
81 ESQ. Since then it has paid no divi-
dends, except a nominal amount, TO
which Mr.. Burrows referred later.
The interest on the bonds Of the COM
pany IS 81 ,009 a year and the taxes So, 500.
Its ordinary operating expenses are SOB, :
UU0; annual expenditures for improve
ments, etc, $1,000. After taking out all
the expenses, the profits ofthe road for the
past year or two have amounted TO less
than 500 yearly. In fact, the profits have
been less than $500 for several years past.
MIR. Burrows said that the company
was in q position of q man with a cord
tied tightly around his neck; another
knot would choke him. And if this
amendment to the Constitution was called
into existence the result would be to
virtually Kill the Nevada County Narrow
Gauge railroad. That while the present
rates charged by the company for both
fares ana treights are high, when COM
pared with other roads. they are not high
when compared with the income OF the
road and the expenses of running the
same.
He.then read a statement showing the
rates charged Tor transportation of freight
and passengers, and stated that in order
to continue it's existence it is necessary
for the road to charge the maximum rates.
LTen cents per mile for passenger service
and twenty cents per ton per mile. That
to decrease them would render the road
bankrupt.
AS it exists to-day this road is barely
able to live, and he said that the effect OF
the proposed constitutional amendment
would cut short the existence of the road.
He said it seemed to be q strange state OF
affairs that an amendment to a Cons itu-
ton should have such an effect. That Il
small increase in the traffic Of the road
would place ii under the influence Of a
rule that would practically destroy its eX-
istence. He stated that the President and
Secretary OF The company were present,
with all the necessary official papers to
explain the position of the company to
the committee, under oath il necessary,
and bear out the statements which he had
just given in brief
Mr.. Burrows called the attention of the
committee to the decision of the | nited
States Supreme Court in relation to mat
ters Of this kind Q54 U. 5. Reports,
wherein Justice Lamar finally dissented
in the opinion, claiming that the majority
OF the supreme COnrt had almost en-
tirely destroyed the effect of the Granger
cases (96 l. ). Reportsl and other cases.
The speaker said he thought Justice
Lamar was about right, and that the eff
feet of the so-called Granger cases, and
other cases of the same character, in
which it was held that the State had al E.
most absolute power TO fix the rates of
fares and freights, has been so modified
that the substance and force Of those de-
cisions has been knocked out Of them.
In further support OF his position he
read from the l54th United States Reports
in reference to the Chicago, Milwaukee
and st. Paul Railroad in Minnesota. A
commission was there appointed to fix
the fares and freights and the Legislature
declared that in organizing that commits
sion it was their purpose that it should
have the absolute right and that the fair
ness of those fares and freights should be
concIuslvely presumed, so rs not to be
capable OF being attacked. In other
words, they wanted to shut out the decis-
ion OF the commission from any judicial
investigation. The result of that decision
is that the United States supreme Court
has held that the statute as construed by
the Supreme Court of the state of Mime
sofa is contrary 10 the Constitution OF the
United States. The decision and author
tiles on most of those questions is very
nicely collated in volume s, page 9I4, Of
the English and American Encyclopedia
OF Law, in an article on freight.
Mr.. Burrows claimed that it is not abb
-A.-.r Al,
franchise must be so construed as to per-
NIT the Legislature to govern rates under
that franchise. Chief Justice Waite, in
one of his decisions, said that if it was
evident from the franchise that the State
used language from which it could be in
ierred that the State had surrendered the
right to control rates oil fare of that cor
poration, then as matter OF fact such re-
suit might be obtained, and, said Mr..
Burrows, take it for granted, from read
ing the franchise granted the Nevada
County Narrow Gauge Railroad, that
there is fixed minimum set.
In all the Granger cases language of this
character was used: "The Board Of Trus-
tees, etc, of the corporation shall have
the right to fix reasonable charges, or
charges which 10 them shall seem reason
able,'' using that word and under that
provision, and in similar language, it was
held that the State could not be said under
that franchise to have abandoned their
right to really fix what those rates should
be. But in the charter which was
granted this road (Nevada County Narrow-
Gauge Railroad), the language occurs
which complies with that of one of which
Chief Justice Waite says that the State
had surrendered to the road its right to
hx the fares and freight.
MIR. Burrows then read from the fran
chise of the road which fixes the maxi
mum rate at 10 cents per mile passenger
service, and 20 cents per ton per mile for
freight transportation. He said that he
regarded that as a contract, although he
admitted that it was regarded as a chest
mt to say that ihara can he any cnnfrnnt