The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-09-05
WHAT PRESIDENT HUNT|NGTON'S SALARY IS,

the Iolal amount Tor salaries but not for the
| salary OF single man. have not the right to
go into the private income of DR.. Stanton nor
10 learn now much money you are making in
your private business, Mr.. Chairman.
La kue-We are not under Investigation.
Mdrtln-1o investigate a single mans stand
ing is an lnquisition. I suppose the impress
SION prevails that Mr.. Huntington is absorbing
large amount as his salary Well have no
onJeetlon to Mr. Lansing stating the salary of
Mr. Huntington or that of any other owner of
the road.
Q lansing think I can make an explanation
OF MI Huntlngton's salary and that of other
oHcers, and the manner in which they come
INTO the operating expenses, and evidence that
ahey are not excessive, without the objec-
feature OF stating the personal affairs of
MI II huntington and those who fix their own
salaries as the board of directors. These sal
aries were hxed number of years ago. They
were nXed at certain rate, which has been re-
tanned. Mr.. Huntington's is the same as those
OF Jour others, who still represent an owner
snip In the company.
Inc Southern Pacific Company operates,
owns and controls other properties, and their
services are given in connection with all these
properties. Their salaries are divided among
the various roads to which they give their
services. The percentage of the gross earnings
is the basis on which each road contributes TO
the salaries of these officers, but the salaries
are a fixed sum. The amount is considerably
less than they pay other officers, and is not
talr compensation. 1t is merely nominal
amount, and has been the same for twenty-five
years. 1t was fixed then.
amount is.
Lansing-My objection to stating the amount
or Mr.. Huntngton's salary is that he has in
the past been made the object of public at
tacks and has also been attacked by the press,
and it might be offensive 10 him to have the
amount OF his salary given to the public.
La Rue-It might help to do away with that
feeling against him.
Lansing My statement should have that
effect then.
La Rue-Then you decline to answer that
question?
Lansing-Yes, sir
Clark-Would you state the officers getting
more pay than Mr.. Huntington?
lansing do not care to do so.
Can you state how the salaries OF the presi-
dent and other officers range in comparison
with the salaries of other roads-whether they
exceed or are less?
Lansing-I have had a general knowledge of
Eastern roads. l think they are about the same
as here. In certain cases the Eastern COM
panles have eminent men, who have large in
comes, and were paid large salaries to secure
their services. President Jewett of the Erie
demanded $l30,000 year. The story goes
that he received that compensation. These
men in the Southern Pacific are not paid for
| their services. 1t is simply nominal amount
La Rue-I notice that the principal owners
| are officers in these various companies of the
system. Do they receive one salary or does
each company pay them salary?
Lansing-Their single salary is distributed
among all the roads. None pay special salary.
l am secretary of number of companies and
receive no compensation from them lndivid-
ually. The salaries between the different roads
of the Southern Pacific system are fixed by the
accounting department, without consultation
with the head of the company.
La Rue-You said yesterday that the stock of
the Central Pacific Company was largely
owned by Englishmen. Where are the first
mortgage bonds principally owned?
Lansing-I cannot say. don't think they
are owned here.
the principal men in the railroad holds much
of those bonds?
Lansing-I do not think they own many of
the BONDS. They were disposed OF as soon as
| issued.
La Rue-The road was largely constructed
by the Contract and Finance Company, and
they received large portion OF their compen-
satiOn in bonds, and that company was formed
almost wholly OF owners and managers OF the
road.
Lansing-Yes, and they used them imme-
diately to get money to get on with the road.
They became personal creditors and used their
entire personal credit TO advance the interests
of the company As soon as they got the bonds
themselves and paid for the road they sold the
bonds and used the money again in extending
the road. The bonds were sold in Europe in
early days, so l am informed, and the interest
on bonds is not paid out to any large extent in
California 1t is paid in New York, to a large
extent, through the New York and London
banks. We get the evidence of payment, but
the coupons DO not tell whoowns the bonds.
Mr.. Lansing having exhausted the sub
iect of salaries and bonds, and there being
subject of reduction of prices of commodi-
ties and railroad traffic rates. on which he
was speaking at the close of the session of
the previous day. He presented the
pamphlet to the commission. It showed
that in the 20 years from 1873 there was a
reduction on food in general of III per
cent; on particular articles an average of
171z per cent; on silver SO per cent on
passenger rates of the Southern Pacific
1872 per cent, and freight rates on Eastern
lines were reduced 45.7 per cent; on South
ern Pacific 4S.5 per cent.
Mr. La Rue then referred to-the matter
of computing rates, recalling a question of
the previous day, and said:
If you must guess at your information,
suppose that we would be warranted in guess
ing a little ourselves.
Lansing-You will have to be your own
judge. ! have tried to show what the actual
result is from the earnings, after paying the
expenses OF the company.
La Rue-In hauling large quantities, if you
put on twenty cars and then add five extra,
the cost of hauling the extra five is very little;
but should not an average be made on great
tonnage which would enable you to reduce
the rate to a very low one?
Lansing-It is known very well that COM
a cheaper rate per ton per mile than COM
modify shipped in smaller quantities. You
will find that results in the lowest rates being
applied to the necessaries of life.
La Rue-Can you explain why the rate on
flour, which is the most common commodity,
and which costs the poor man as much as the
rich man. is about double the rate on wheat?
Lansing-l suppose the traffic department. has
a very good reason. l have never heard the
matter discussed and have had nothing to do
with it. But taking the ordinary conditions OF
consumption OF -four it may be called con-
sumption of wheat. There is an enormous
quantity Of wheat shipped that is never made
into flour in this State. Flour is in q condition
for consumption and is of greater value in that
condition. And the things of greater value
usually pay the higher freight rate.
La Rue-I think on all the other roads have
examined, with few exceptions, wheat and
-four are carried at the same price.
Lansing-It must be in cases where it is the
wholesale rate on -four in carloads and even
tTalnloads. 1t is not in the case of the ship
ment OF barrel of flour by grocer and does
not affect practically the cost of loaf OF bread
or the bread supply of family for year.
Attorney Martin-Is il your impression Mr..
Chairman, that the rate should be the same?
La Rue-I have no impression. / just want
to get information. The wheat rate is higher
than corn, or oats, or barley. Wheat is the
highest rate.
Mr.. La Rue, having obtained no definite
information on that subject, then turned
to the Sacramento. bridge subject saying:
The information have is that on that bridge
proposition, of the amount $35, 900 donated
by the two counties, Yolo paid $4,000 in cash
and $4,000 in unpaid taxes, and Sacramento
County paid $15 900 in December, 1898. Why