The record-union., 1893-02-08
THE CALIFORNIA LEGISLATURE.

and its patrons can for all time rest easy
in their enjoyment of the very minimum
rates consistent with operation and
maintenance of the property. The ex-
PLANTATION of the earnings referred to lies
in the fact that the territory served by
the California Pacific Railroad, the Sacra-
mento River, and the upper bays, is ex-
ceedlngly fertile and productive, and the
further fact that the California Pacific
Railroad is in practical operation the
stem ofthat portion of the railway system
radiating from San Francisco Bay north
ward and eastward-in other words, the
small end of funnel through which the
larger proportion of the traffic of the sys-
tenn of railroads operated by it in Cali
lorna and adjoining States and Terri
tories flow. Further, with respect to the
mention made of the earnings of South
Pacific Coast Railway, the evident inten-
lon being to create in your mind that by
reason OF said earnings undue or excess
slVe charges are imposed, l desire to say
that the same class of competition exists.
This road parallels San Francisco Bay,
san francisco to San Jose, and its south
ern terminus is on Santa Cruz harbor,
where 1t meets water craft, both steam
and sail, and being SO situated that the
controlling factor, to wit: water or the
NA1SNPSSb hiONh OF
makes its rates, l may with proprietV
again urge that excessive or undue charge
1or service rendered is beyond the possl-
bilities.
reference has been made by the Traffic
Association OF San Francisco, through its
representative, to tifteen-cent per ton
per mile maximum rate as being in
use by the Southern Pacific Company.
Inc lactS are there was statute that did
SO permit and same was in full force
prior to the new Constitution, which be-
came effective January l, 1890. Since then
tnere has been no maximum provided by
law other than rs might be made by the
state Board of Railroad Commissioners,
ana 1t IS a fact that the average rate
charged by the roads operated by the
southern Pacific Company in the State of
TalIornla On their local traffic to-day is
less than two and three-quarters cents
per ton per mile, and that their average
pro rata earning on through traffic is less
than one-half that earned on their local
tralnc-the reduced earning on the
through traffic attributable to the abso-
iute necessity of providing abnormally
low rates IN order TO enable the market
ing OF the products of California in the
Inlckly populated States which are found
Z,UOO miles and farther distant With
tnese figures then as indicating the aver
age rate necessary in order to meet the
n4eu ana operating expenses of the roads
operated by the southern Pacific Com
pahy, you Will at once appreciate the en-
parfasstnent that would result from the
adoption OF the proposed California
Instance tariff as maximum pro-
vision governing every class and
every distance, it being self
evident, given an average rate necessary
10 earn, that the higher the maximum
lhe lower may be the minimum; in other
& gr q nt.V.i.A IL,
maximum proposed viii necessarily
raise the minimum in order to enable it to
earn the average. The result in practical
operation Will be that the rail carrier will
go out OF the transportation of many low
grace commodities, ami be compelled to
raise Ihe rate on many staple products.
L have carefully compared rates as Dro-
posed by the Traffic Association OF San
Francisco with rates in effect, and NV
conclusion is that the adoption of the pro-
posed amendment will carry with it a re-
ductlon of revenue as derived from
lielght traffic, of say 40 per cent, which
means absolute inability of the several
railroads operated by the Southern Pacific
company to continue rendering service
OF grade as at present given to the peopIe
OF thls state. And in conclusion l beg to
submit II the railroads now serving the
people OF this State should be hammered
by rigid classification, and in addition a
UNIFORM distance tariff that must be ap-
Piled regardless of physical or competi-
tive conditions as maximum, thus de-
prlvlng the carriers of opportunity or
ability to consider and thus be guided bv
the varied huctuating but controlling
factors that enter into the conduct OF
transportation within the State of Cali
fornia-it is my judgment that such re-
quirement Will prove veritable BOOM
erang, and bring about such depressed
commercial and industrial conditions,
not only as applied to the railroads, but
as applied to each and every enterprise
within its borders, as has never been felt
since its organization as a State.