The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-09-04

Making deductions from this statement
he stated that for four years there had
been steady reductions in the income of
the company and that 1891 was the best
year in the history of the company, while
in 1894 there was a deficit of s276,O 900.
The gross freight earnings for 1898 were
$50, $4,000 and for 1894 they were $l8,620,-
600, decrease from 1893 of So, 216, 600, or
1921 per cent. He claimed that at the same
time there was an increase in the cost of
the freight service of 1894, as compared
with 1893, amounting to 5.37 per cent. The
rate per ton per mile received in 1893 was
LAB cents and in 1894 it was 121 cents.
These figures included through and local
traffic.
La Rue-The low rates on through freight
caused the reduction in the income, did it not?
Lansing-Partly, but local rates were also re-
duced.
La Rue-What became of the surplus? Did
1t go into dividends of the Southern Pacific
Company?
Lansing-No, sir. It was divided between
the companies earning it, and the Southern
Pacific received portion.
La Rue-How much would the earnings have
to be to have dividend?
Lansing-That remains for the directors to
say. Some of the companies have paid divi-
dend. In 1891, 1892 and 1898 the Central
Pacific paid dividends of 2 per cent. know
it is generally believed that the Southern Pa
cihc Company and the Central Pacific Railroad
stockholders are the same This is not true
though the principal stockholders of both are
the same. The foreign stockholders virtually
control the Central Pacific Railroad.
He then reviewed the financial history
of the Central Pacific Railroad and brought
into relief its financial straits.
La Rue thereupon asked him if its en-
barrassment was not due to the diversion
of traffic to the Southern Pacific Railroad
and in reply Mr.. Lansing stated he had
IL
penses to the various roads other than in
an equitable manner, but failed to reply
directly to Chairman La Rue's inter
rogatory.
Commissioner Stanton then asked /:
''Why does the Central Pacific not pay Pr
Lansing-Rates are low and the amount of
business is insufficient.
La Rue-All the California lines belong to
the Southern Pacific Company stockholders
and the leases are fixed so as to absorb any pos
sible dividends?
Lansing-They don't earn dividends.
Maftin-Do you suggest that the Southern
Pacific Company pays high rentals so as to alb
sorb dividends?
La Rue-Yes sir.
Lansing-I want to explain the sitution of
the Central Pacific. 1t formerly had to pay
the Government 5 per cent of its earnings and
do the Governments transportation in part
payment of its debt to the United States. Now
1t has to pay % per cent of its earnings each
Ii
compshy that has paid dividend is the
Southern Pacific Railroad, which in 1898 paid
2 per cent.
Adjournment was here taken until 2
Pm.
Mr.. Lansing at the afternoon session
took up the subject of the decrease in
earnings in passenger traffic, which he
presented as the next important source of
revenue, and which decrease he placed at
81, 3S8,000 for 1894 as compared with 1893.
stanton-What was the total passenger rev.
enue?
Lansing-In 1893, $1o,s44, 900; in 1894,
So, 557 900.
Stanton-These reports furnished to the COM
mission state that the total passenger revenue
1894
Lansing--That makes difference of six
months. / report from January to January.
The report of the company for the fiscal year
OF 1885 to the commission is in course OF
preparation, but that, OF course, will not agree
with the calendar year shown in the COM
pany's report. This decrease in passenger
earnings is accounted for in general terms by
reduction in the average rate received of 9.95
per cent together with decrease in traffic of
2.96 per cent, the total decrease in earnings