The record-union., 1895-09-05
RAILWAY COMMISSIONERS.
Another Meeting Yesterday to Con-
slider Freight Tariffs.
LARGE DECREASE IN THE EARNINGS
OF THE SOUTHERN PACIFIC.
The Money From Sales of Land Grants
Devoted to Paying Off Bonds of the
Roads-Some Lands Sold as Low as
Fifty Cents an Acre.

SAN. FRANCISCO. Sept. 4.-When the
State Board of Railroad Commissioners
reconvened this morning the end was mol
in sight. The investigation had been ID
progress just a week, and an immense
quantity of information, statistical and
otherwise. had been offered by the rail-
road in defense OF its present schedule ol
rates on graiu, and The company still had
plenty of testimony in reserve.
Controller Lansing did not complete
his statement of the revenues of the road
yesterday afternoon, and he reappeared
in the board rooms this morning ready to
return to the task of showing that the in
come of the corporation was steadily de-
creasing, and that this was poor time 10
cut down rates.
''On yesterday" said Attorney Martin,
''the Chairman asked you, MIR. Lansing,
about the cause of the decrease of thespas-
senger earnings of 1894, and 1t was sug-
Rested that was due to the travel to the
Worlds Fair in 1893. That may have
been the apparent aud not she real cause.
Suppose you compare the passenger earn
ings OF the years 1926 -94. "
Yes, | referred 10 the w World's Fair IS
one of the causes" said MIR. Lansing,
but the decrease was not by any means
entirely due to the Worlds Fair travel.
The through passenger traffic in 1893 was
$500. 500 greater than IN 1892, but the de-
crease in 1894 from the earnings of 1893
was S646, 200, more than twice as much as
the increase in 1893"
Mr.. Martin called attention to the fact
that though there was an increase OF
S300.S00 in through travel in 1898. the
total passenger earnings of 1893 were not
as great as in the year previous He
asked Assistant General Manager Curtis
to explain this.
Mr.. Curtis said that in 1893 the local
travel was very much less than IN the
to go to the Worlds Fair and did little
travelling about the States. Besides this
hard times began 10 set in in 1898 and that
helped TO reduce local travel.
The discussion brought out the fact
that the total passenger revenue. local
and through, for the three years was:
1892, Sll, ,295. 900; 1893, $40 900; 1894,
9,337, 900, showing a continued decrease.
DIR. stanton asked Mr.. Lansing if the
bonded Indebtedness had not increased
-, ,0OO, U00 in 1894, and II not, how much
had ii Increased, but the Controller was
unable TO give the figures at the moment.
He said that at another time he could, If
Wl5uEu,
ment showing the exact amount OF The
outstanding bonds in 1898 and in 1894.
The bonded Indebtedness of the South
ern Pacific Railroad OF California had de-
creased from the beginning over IS, 900, 600.
This had been accomplished by the sale
of its lands and by its sinking fund Of
100000 a year. This money had been
used in redeeming bonds. The titles of
the lands was vested in the Southern Pa
cific Company. MT. Lansing explained
that there were three Southern Pacific
Companies. The Southern Pacific Rail-
road Company owned no railroads.
IL was a financial company to control
the roads. The land grants to the Cen
tral Pacific had beeu devoted to paying
of the bonds OF that road as in the case
OF the Southern Pacific roads. No limit
was liked by law upon the price of the
railroad lands. Some lands had been
sold as low as 80 cents an acre. Other
lands were very valuable. The value of
the original land grant had always been
greatly exaggerated. Ii had been ex-
pected that the lands would be all settled
up and that they would DO immensely
valuable. But the expectations in this
regard had not been by any means real
lied.
Commissioner La Rue suddenly drop
ped the land grant question and asked
the reporter to read the question pro-
ary OF Z. p. Huntington as President of
the Southern Pacific. This brought At
t0rney Martin to his feet with an objec-
tion. lie said that the commission had
no authority to go into the matter. 1t
had no power to regulate salaries. 1t
had no right TO regulate operating ex-
penses. 1t might ask how much the ex-
penditUres of the road were, and it might
If it chose say that those expenditures
were too great. But 1t had no right to
inquire into the private affairs OF the
persons connected with the road. 1t was
not necessary for the purposes of the in
yeatigation. 1t was enough TO know
what the expenditures were.
Commissioners La Rue and Stanton ar
gued that the road had recognized their
right to know what it's expenditure were.
Ii had gone very deeply into the cost of
coal, why not go into salaries?
After considerable argument, Mr.. Mar
tin said: "W ell. as Mr.. Huntington is
not present, we may permit Mr.. Lansing
to answer as to his salary, if he knows"
MIR. Lansing sad he thought he could
answer the question satisfactorily. He
then went on TO say that the Southern
Pacific owned number of roads The
Pacific system was not all. The Atlantic
system was quite extensive. The SAL
aries of officers was fixed many years ago
by the directors OF the Southern Pacific
and Central Pacific roads, and the SAL
aries were divided among the roads. The
pay of the President aud the directors
was nominal rate. Mr.. Huntington was
not paid In proportion to his services He
was not paid as much as some of the
officers In the employment of the road.
Il had been an agreement that they
should receive a certain rate, and that
had held good for the past twenty-five
years.
Commissioner LaRue said Then Mr..
Huntington gets no more money than he
did twenty-five years ago?'
He receives the same rate as then. He
receives. as L said, less than some of the
other officials OF the company"
81 haven't learned yet" said Com
missioner LaRue, ''how much he does
receive
II have said enough to satisfy the COM
mission on this point, think. do not
desire TO state tie exact amount he re-
ceives, because MIR. Huntington has been
attacked by the press and subjected to so
much criticism on account OF this mat
ter that l do not think he would like me
TO go into his private affairs"