The record-union., 1894-08-03
PULLMAN CAR COMPANY HEARD.
It Presents Reasons for a Reduced
Assessment.
Claim That the Southern Pacific Re-
turns Too Many Pullmans
In It's Report.


communication to Controller Colgan
from J. p. Langhorne was read, stating
that a San Francisco paper stated the
board was discussing the subject OF re-
assessing the Southern Pacific Company
for 1887, and asking that he and Attor-
ney-General Hart might have hearing
on that subject on behalf of the State.
Mr.. Colgan moved that the Secretary
of the board notify Attorney
Hart and Mr.. Langhorne to appear this
morning at 10 O'Clock and present their
side of the case. He thought that In all
cases in which any member Of the board
had any doubt il was desirable to have
the legal adviser of the State TO aid the
board with his opinion. The motion was
carried.
In the afternoon a telegram was re-
ceived from Langhorne asking that the
hearing be had next Tuesday, and the
answer was sent back saying that the
assessment must be made next Monday,
and they would have to appear to-day
j. L. Mahan, General superintendent,
who appeared for the Pullman Car Com
pany, made statement of the company's
case His figures, he said, would show
considerable difference in his estimate OF
what his company should be assessed Tor
and the report that Mr.. Ryan had made
for the Southern Pacific Company.
He considered the report of Mr.. Ryan
as out of ali reason. He had not seen
Mr.. Ryan and did not know on what he
based the report. His report shows as
standard sleepers forty Southern Pacl1c
and twenty-one Central Pacific cars; for
tourist sleepers he reports thirteen South
ern Pacific and twenty-five Central Pa
eitic cars. The Pullman Company has
I'd 0nardfn
all roads running to this coast, and these
figures only leave twenty-nine for other
roads, For tourist cars the company has
only seventy-three, and Mr.. Ryan re-
ports thirty-eight in use on his roads.
The speaker did not think this was TAR
proportion.
Mr.. Morehouse stated that he thought
Mr.. Ryan reported forty standard cars i'll
this State.
Colgan asked how it was that MIR.
Ryan, representing company that owns
and pays taxes on three-tourths OF the
Pullman cars, reported more than his
proportion. How was the board to de-
eide between the two statements.
Mr.. Mahan said that the quarter owned
by the Pullman Company was figured IN
its statement in proportion to their value
aud the mileage over which they run in
the State during the past ear. OF course
the business varies at different times,
more cars having been run during some
months.
The Pullman Company thinks that the
board has assessed it too high III the past.
1t values its sleepers OH the average at
81 600. An allowance must be made Tor
deterioration. Some OF the cars cost as
high as $4,000, but number OF them
were old cars in lSS3 The company would
be glad TO join with the Southern Pacific
in condemning them, as they depreclate
the value of the whole. The contract
with the company however, will expire
in tour years. The Southern Pacific
Company. by that contract, owns three
fourths of the cars and shares the profits
or losses, while the Pullman Company
owns the other fourth and operates them.
The Pullman Company bought the cars
of the Southern Pacific Company in 1888
and rebuilt them. The price paid the
Southern Pacific was then deducted from
the value of the renovated cars and the
Pullman Company paid one-quarter OF
the difference. The company owns an
interest in all OF its cars which are
operated on any road under It's name. In
1898 the Southern Pacific Company will
have the right TO buy out the Pullman
interest in the cars and operate them as
their own, if they wish to do so.
There are less number of cars run
here this year than there were last. He
considered 81, 900 fair average valuation,
years old. His company built 100 cars
and sold them outright to the Wagner
Company, their rivals, but Of course they
are not operated under the Pullman
name. The Silver Palace cars bought OF
the Southern Pacific were made over, but
are not now run as Pullman cars. All
the Pullman cars now run have been
built since. In 1888 there were twenty
one Silver Palace cars and eighteen sleep
ing cars of other makes owned by the
Southern Pacific Company. The Pullman
Company at that time bought an interest
in these cars. Twelve new cars have
been put on in the last five years. The
original patents were on the manner OF
folding in the upper berths, the manner
of making up the lower berths and the
original Oil lamps.
Electric lights cannot be used without
fixing all the cars on the train, as we'll as
the engine, for it. The Pennsylvania
Central has regular trains furnished in
that manner. There are a large number
of patents covering various devices in
the cars. One was bought out on ac-
count of an upper berth shutting up i'll
an accident and smotherlng passenger.
The railroad companies make contracts
with the Pullman Company, he claimed,
on account of the superior service given
by it and the fact that it has an interstate
system which obviates disturbing pas
sengers at inconvenient hours and places.
T. c. Coogan, attorney for the COM
pany, stated that because the company
had number of cars in service in the
State it did not follow that that number
of cars should be multiplied by the aver
ace value in assessing them. The fair
way of doing it is to assess in proportion
of the amount of mileage in this State to
the total mileage run by these cars. Un-
der this way of assessing, the company
would be assessed Tor twenty-nine stand
ard cars, the remainder being assessed
elsewhere. There should be eighteen
tourist cars assessed here IN the same
way.
In answer to question from Mr.. More
house as TO whether, in case there were
ten Pullman cars in the shop at Oakland
on the 1st of March. they would be in
cluded in his estimate, Mr.. Mahan an
swered mo"
mot if they had been in operation the
day before, or might be the day atter?''
asked Mr.. Morehouse.
NO" said Mr.. Mahan.
well, Mr.. Ryan has reported all the
cars that were here" said Mr. More
house, THAT makes the discrepancy be-
tweed you, perhaps"
Mr. Mahan modified his statement, say
ing that the lay-over cars were included,
and also a proportionate amount of those
in the shops. The Worlds Fair business
did not increase the number of cars in
use much. 1t did not equal the expecta-
ton of the company. which expended
$2,000.000 in building cars to meet ii,
which were not needed, as it turned out.
Beamer asked ii any statement had
been made by the Pullman Company
which showed the earnings of the Pull
man cars in this State. He thought that
in estimating the value of the cars the