The record-union., 1895-09-06
QUESTION OF FREIGHTS.
The Matter Again Before the
Railroad Commission.
RATES LOWER IN PROPORTION
THAN ON EASTERN ROADS.
Beside, the Southern Pacific rays
More Taxes Than the Average faio
by Roads in the East-Ihe 0oFeFh
ment Indebted to the Company 1or
Several Millions of Dollars.

ment Indebted to the Company Tor
Several Millions of Dollars.
SAN Francisco, Sept 5.-Whe the
Railroad Commissioners met to-day. MI
Curtis was called and exhibited a ola-
gram showing the average earnings Oh
the road per mile. He said that men
ton had been made of lower averages Oh
rates on Eastern roads than on the oouth-
ern Pacific. He produced drawings
showing the grading of the rates OF lhe
Pennsylvania Railroad, and called atten-
tion that while the rates had been low
cred tonnage had increased and Inc enect
OF the lowering of rates had resulteu III
Increased earnings. Before the rates Oh
the Pennsylvania road we're lowered W
the present Southern Pacific rates Inc
PENNSYLVANIA was carrying three times
rs much tonnage as the Southern racine
is now carrying
Chairman IaRue said that the South
ern Pacific charged twice as mucn per
ton per mile as the Pennsylvania. anu
Mr.. Curtis replied. Yes, they cnarge
one-half as much as we do oH niue I4hles
as much tonnage as we haul" He went
on to show that the Pennsylvania was
operating under very different conditions
from those affecting the Southern racine.
There was no comparison 10 Dc Lnaue VI
the operating expenses OF the Two roauS.
The rate of wages in the East was much
lower than here. The men IN the repair
shops at Sacramento received o0 per cent.
more than the WOrkmen III the shops aI
Altoona, Pa.
General Freight Agent Smurr was
called aud directed attention To the TACT
that Mr.. Lansing had given a general
average of the rates of local freight per
ION per mile. He read statements show
ing the average rates for the years 1898,
1891, and six months OF 1890. 1he aver
age in 1893 was 2.63 cents per ton per
mile; 1894. 254 cents: first six months OF
1885. Us cents. The rate ior the hrs' SIX
months OF 1894 was 2.4S cents.
Mr.. Martin asked Mr. Curtis about the
taxes paid by the Southern Pacific Com
pany. The Official answered that the
Southern Pacific paid more taxes than
the average paid by other roads IN the
East. he had secured his Tlgures from
the Interstate Commerce reports. The
Southern Pacific not only paid more than
other railroads in the " est, but more
than was paid by roads elsewhere.
MIR. Lansing here resumed the stand
and took up the question OF earnings.
ON through passenger traffic the earnings
were for the first SIX months OF 20 81. I0l,-
600: Tor the same time in '94. Sl.41S, 900.
The total earnings were: '93, So, BIZ coo;
,g4 b. 7OI. 600. Total earnings first six
months 1885, S4, ,46S, 900; '94. 30, lIS,OO0.
The witness offered an explanation OF
the increase of the bonded indebtedness
of the Southern Pacific Company in the
Jour wears from 1891 10 1874, Inclusive
DIR. Stanton at previous session OF the
ars Fnp.y1F FiGn
that the charges Tor interest on bonds
.should have increased in spite OF the fact
mat large quantities OF bonds had been
redeemed.
MIR. Lansing's explanation was that new
bonds had been issued. The Southern
Pacific Railroad Of California had issued
bonds TO the value 81, 54l 900, Of which 3d.
COZ. 900 was on I52 miles OF new road, and
the balance on new equipment. The
Central Pacific had issued bonds to the
extent of s., ,2S3, 900 for new equipment,
and the Oregon and California had issued
81 .7g2, coo bonds to secure funds for chang
ing portion OF its line from narrow
10 a broad gauge, as required by its
traffic.
Or. stanton said he was unable to un-
slerstand ,vhy the increase should have
fallen largely in 1874. when only sixteen
miles OF road had been built in that year.
Mr.. Lansing said that much OF the work
that had been IN progress Tor several
years was completed in that year
La Rue asked question that has been
much discussed by the public for many
years. After ascertaining that many Of
the bones issued by the roads were held
by men Interested in the roads, he In
auired if this was not the way that num-
ber OF men had become vastly wealthy
from the railroads, whlIe the com panleS
themselves were poor.
Lansing said that he did not know how
they had made their money.
LaRue explained tha. be wanted to
know if the men referred to had not made
large sums of money by taking these
bonds and putting them on the market
at very much higher figures than they
had paid Tor them.
Mr.. Lansing said that the principal
stockholders of the lines had devoted
their whole lives 10 building these lines,
and tney had used their own private
credit 10 borrow money Tor them when
they could not have borrowed a dollar
themselves. \ good deal had been said
about the railroad affairs with the Gov
arnuont, but the truth was that the rail-
road had done better by the Government
than the Government had done by the
railroad The Government owed the
railroad $1,000. coo. and Congress had
failed TO pay.
Denis Kearney here broke in with an
inquiry about c. +. Huntlngtou's re-
enumeration for his services as President.
The question had before been asked and
noanswer had been received. lie wanted
TO know If Mr.. Lansing would again re-
fuse TO answer.
MIR. Martin said: "Mr Chairman, |
withdraw the objection | made the other
day. and desire Mr.. Lansing to answer
1he question if he WILL
"I'll answer the question" said Lans-
ing. &c. z. Huntington receives $4,000
year.
"From all OF the roads?" said Mr.. La
Rue.
From all of the roads. l desire TO say
that | declined TO answer yesterday be-
cause thought that MIR. Huntington
would object, but l have since learned
that he does not object"
Attorney Martin announced that the
railroad had put in all the testimony 1t
desired To. and said that before the matter
was passed upon he wished TO make a
summary of the evidence.
Dr. Stanton stated that he did not know
that il was necessary. I'VE nave heard
all the testimony and are pretty familiar
with il. / am ready to pass on this mat
ter now; that is, | am ready to prepare a
written statement of my position by to-
morrow morning and submit it with my
vote"
lie moved that when the commission
adjourn for the day it adjourn until to-
morrow at 10 o'clock.
Commissioner Clark objected. He
thought Saturday morning would he
better. as 1t would give the shorthand
reporter time to trgDscribe the testimony.
stanton did not think il necessary 10
have the testimony transcribed. He had
formed an opinion already, he said. But
ha m oicSf II sr