The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-30
RAIL ROAD MEN BEFORE THE COMMISSIONERS,

Commissioner Stanton saw an oppor-
tune moment to continue the discussion
of pledges and attempted TO defend his
position in this regard. He declared that
the Democratic platform pledge upon
which he was elected called for reduction
in rates provided such reduction could be
shown as Just and reasonable. This pledge,
he said, he was prepared to keep, but he
must be convinced of the business of the
cut before voting for it. Rather than 90
anything wrong he would smilingly sub
nit to newspaper criticism for the remain
der of his life.
This fervid profession of devotion on DR..
Stanton's part made the railroad attorney
grin. He nodded assent, saying, II agree
with you DR.. Stanton; L agree with you
perfectly, sir"
Martin here commenced to read the La
Rue resolution, when, he was interruted by
the chairman, who wanted to know if he
(Martin) could find anything in it that
sounded like the confscation of railroad
property.
Martin replied that he could not, and,
continuing, said there were other people
in the country besides farmers who were
suffering from hard times. He knew of
good many railroads that were in condi-
ton of bankruptcy. If forced into the
courts, in his opinion, the Southern Pa
cific could easily show that reduction of
rates at this time would mean contsca-
ton of property. He hoped that it would
not get into the courts. but if it should he
was confident that such a showing could
be the only possible result.
Assistant General Manager w. G. Cur
It's made his statements under oath.
He had been engaged in railroad work
for thirty years, passing through the
various grades.of service in the engineering
and construction departments and finally
reaching the position of assistant general
manager. The question of rates was
complicated one, consideration of which
involved many issues. He did not know
the earnings of the whole system, having
to do only with the Pacific system, which
had a mileage of about $500 miles. On this
system there had been a steady reduction
in rates and constantly decreasing busi-
ness, due to the hard times. During the
past two years this general reduction had
amounted to % per cent, against 80 per
cent for Eastern lines. This was not, in
his opinion, due to the fact that Southern
Pacific rates had originally been much
higher than Eastern rates.
There had been considerable reduction
during the past few years in the cost of
construction materials. Fuel was much
cheaper than formerly. Goal, F." he added,
'now costs US 81 50 per ton. We pay an
nually to California workmen SO, 5000
Our men receive much better pay than the
employees of Eastern roads. We pay So 60
per day fog the same kind of service that
in Iowa commands 81 79 and in Illinois
81 so. About 80 per cent of our expend-
itures is included in the payroll, 20 per
cent goes for fuel and the other 20 per cent
for general expenses"
Before Mr.. Curtis had concluded his
statement an adjournment was taken until
1870 o'clock.
When the commission resumed its ses-
sion in the afternoon Mr.. Curtis continued
his argument for the purpose of showing
that any reduction at this time would re-
suit in forcing the Southern Pacific Com
pany into a position where it would be
virtually bankrupt. In order to further
impress the inadvisability of any such
step, more especially in reference to grain
rates, he read from a prepared statement
figures to show that the entire earnings of
not suffice to meet the demands of one
months payroll.
During all the stringent times We have
lately encountered" he continued, 1--WE
have not reduced wages, though every
thing else used in the maintenance and
construction of the road has been secured
at lower prices"
La Rue-Are all the men at work in the
shops of the company in the direct employ of
the Southern Pacific Company, or are the
shops under control of some other corporation
formed by the Southern Pacific?
Curtis-They are directly employed by the
Southern Pacific Company. Our labor is 90
per cent OF the entire cost OF operating the
road, and our rates are not out OF proportion TO
what is paid for labor.
the Great Northern the freight charges average
no more than / cent a mile per ton. The
Southern Pacific rates are nothing like this.
Curtis-Their rates are not lower for the
distances c0Innarpd with Eastern
States, our roads are differently constructed.
They run over heavy grades and through nu-
merous tunnels from 2400 to 1000 feet in
length.
La Rue-You have a So rate for wheat from
Oregon, have you Dot2
Curtis-I believe we have, but for informa-
ton on this subject l must refer you to Mr..
Smurr, who will, when / am through, present
tables OF comparative rates on our lines and
tn ose OF other roads.
Resuming the thread of mis- statement
where it had been interrupted by Commits
sioner La Rue Mr.. Curtis said: "There are
seventy-six tunnels on our roads, which
cost SIS, 000, 600 to construct"
"But the heavy grades and the tunnels
are not on the roads which carry most of
the grain" again interrupted Commits
sioner La Rue.
mo; but we operate the road as whole,
averaging matters up between them. With
the valley lines alone we could not afford
10 transport grain at LDe present rate. On
all the smaller lines in the State the rates
are much higher than on the Southern
Pacific
Here Curtis fastened to get back to the
main track, from which he had been
switched by La Rue, by relating that the
company was compelled to build thirty
three miles of snowsheds. which with the
tunnels represented an outlay of Sc, 500, 900,
and that $50 miles of railway could be con-
structed in Illinois for that sum.
"The expense of maintaining the road
was much greater than in the East" he
went on, still reading from his typewriter
statement. STORMS here are concentrated
into shorter period and cause greater
damage. For the past four or five years
the average yearly cost of keeping the
roads in repair has been half million dol
lars, while the snow service-Keeping
snowplows going, etc.--cost us 100000.
Then we have repairs on docks and
wharves with which Eastern roads are
not burdened. Those cost US between $780,
600 and 1000 each year. Again, most of
our material must be brought from the
East and before it reaches us an additional
80 per cent is added to its cost. Our equip
ment maintenance is also higher than in
the East owing to the cost of labor, and all
our coal must be imported.
We virtually maintain double term
inal service, owing to being on the wrong
side OF the bay, and our SUBURBAN traffic
is smaller IN proportion to that enjoyed by