The record-union., 1895-09-05

well, would not the information serve
to put stop to that criticism"
The statement l have made would
have as much force as if l stated the
figures"
"How do the salaries Of the Southern
Pacific Railroad officials compare with
the salaries of officers of other roads-in
the East, | mean?'
Mr.. Lansing said that years ago there
was a conference in the East in which
Jim Fisk, Jay Gould and others took
part, in relation to the management of
the Erie Railway, and the English stock
holders wanted Mr.. Jewett to manage the
road. He did not desire to accept the
charge, and declined, but they offered
| run the road for that. But that was an
| unusual case, Mr.. Lansing said.
| Witness said as to Individual rates that
they We're more the result of Judgment
than of an iron rule. He could only tell
tie commission OF the general result, not
whether single rate was unjust or not.
He said that it was next to impossible to
estimate the exact cost of moving ton
of wheat. There were so many un-
known quantities entering into the
computation that it seemed almost i'm
possible to arrive at an accurate estimate
of moving a ton of grain mile. The
rates were therefore arbitrary.
Mr.. Lansing was asked if the chief men
in the Southern Pacific did not own a
that he did not know. The Southern Pa
chic owned no stock in the Central Pa
cifc as a corporation. He did not know
whether any OF the directors of the
Southern Pacific owned that stock or not.
The Southern Pacific Company leased all
the lines and paid over 10 the companies
the earnings and charged to them the
"a
most important to act in conjunction.
The English stockholders had sent COM
mittee over to this country in relation to
the non-payment of a dividend, and the
mem bers had decided that it would be
better TO let the dividend go than to
break with the other roads and get into
rate war.
DR.. Stanton asked who were the stock
holders of the Southern Pacific Company,
and MIR. Lansing said he could not name
them all. He named G. p. Huntington.
c. +. Crocker and f. II. Hubbard, and
said that there were perhaps 100 others.
The commission adjourned TO P. NJ.
In The afternoon Attorney Martin re-
ferred to the statement made by Mr..
Lansing that the Southern Pacific Com
pany was a financial company operating
all the roads, and he asked if the exist
ence of that company did not enable the
roads to be run jointly. The answer was
that il did. Mr.. Martin then asked if
this arrangement tended to increase or
diminish the cost of operation of the
roads, He answered that it tended to
diminish that cost.
Commissioner Clark asked the value of
all the roads of the Southern Pacific Com
pany in California. Mr.. Lansing said
there were several values, one the tax
able value and another the value for in
vestment DIR. Stanton asked which was
the greater value.
Everybody knows" said Mr.. Lans-
ing, "tha; is, everybody VINO has ever
paid taxes on realty, knows that it is
usually assessed for less than its actual
value, generally for about half what it
would bring il it were put up for sale.
The real value upon which to base inter-
est is what the property cost. Railroads
should be entitled to charge rates TO pay
interest on that valuation"
On explaining the relations of the
Southern Pacific and the Central Pacific,
Mr.. Lansing said that the agreement was
that the Southern Pacific Company
should lake the road. operate 1t. pay It's
expenses and pay the Central Pacific
Company the sum OF Sl,360000 per au-
mum. If the earnings of the road did not
reach that amount The Southern Pacific
had To MAKE The balance good. The sum
of u, 800, 900 was per cent. of the capital
stock Of The Central Pacific. SO the
Southern Pacific paid the Central Pacific
per cent. Of The capital stock. This ar
rangement held good until 1894, when the
compact was changed, and now if the
Central Pacihc road does not pay il gets
no money and has to stand the losses.
The joint operation of the roads affords
greater public accommodation, and was
III every way good arrangement.