The record-union., 1895-08-30

while the rates o n some commodities may
be found too high, IL is demonstrated that
on others they are too low and in a greater
degree. 1t might then seem necessary to
raise the rates in some instances while
lowering them in Others"
To this suggestion the Commissioners
did not seem quite ready to reply.
w. q. Curtis, assistant to the General
Manager of the Southern Pacific, was
then sworn to give such testimony as he
might be able to present bearing on the
question of the earnings OF the road and
the posi- blity OF reductions in rates
without endangering its business STA
bility.
The Southern Pacific" he said, "has
not been able in spite of the popular inn
preston to the contrary, to keep up its
rates. Hard times have their effect upon
railroads as upon those with whom they
do business, and in even greater de-
gree. For instance, | find that in IA late
hali-year period we carried 40 per cent.
more freight than we had during the cor
responding period just previous and at I!
per cent. greater expense. In other
words, the change both ways was i'll the
direction of loss.
ITO show" continued Mr.. Curtis 'that
the Southern Pacific has not been behind
hand in what it has done to meet the ex-
igencies of the times. | need only cite the
fact that during the period between 1872
and 1894 We have reduced our charges 20
per cent, while The general reduction for
all the United States railroads is but 3 per
cent"
Then Mr.. Curtis went on to speak of
the efforts which had been made to con-
duct the business of the company as eco
nomically as possible, By arrangements
made with friendly companies fuel was
obtained at the very lowest rates. but lis
cost still amounted to about 20 per cent
OF the total opersting expenses. The
company used annually about 100, 900 tons
OF coal or its equivalent in wood.
Mir. Curtis then took up the question of
the wages paid employees Of the railroad
company, stating that this was the heav-
lest item in the operating expenses, Of
which it constituted about 80 per cent.
All proper economy had been used in this
department,i ithoughithe railway managers
very much disliked to do any cutting"
| in this respect, since II was considered to
! be to the interest both o. the public and
the road to pay the III ell as well as possi-
BILE. The average wages of the employees,
Mr.. Curtis stated, was S2 90 or a little
more day, as compared with 81 75 paid
by Iowa roads and 81 80 by those in 1lli-
nOis.
Wages and fuel together. Mr.. Curtis
stated, amounted to so per cent. of the
| total operating expenses of the Southern
Pacific system. The other 70 per cent
went for the purchase OF material. etc.
| The snowshed system cost S300OC0 an
nually, and $4,000 was spent yearly on
docks and wharves.
Mr.. Curtis then spoke at considerable
length on the slenderness Of the popula-
ton of California and the Pacific Coast
generally, as compared with that of
States and districts further east. AS a
matter of course, this was a distinct dis
! a 70 N,li
which could not possibly have anything
like a corresponding amount OF business
! either in the freight or passenger depart
ments.
MIR. Curtis stated that it was mpossible
| to segregate the cost of carrying grain
| from the general cost Of conducting the
| freight traffic of the road. He knew,
however, that grain was carried at a
| uniformly lower rate than that charged
for other commodities. In the East
| where grain was carried in bulk, and the
| elevator system was also in use, grain
could be carried cheaper than could pos
sibly be done here.
Mr.. Curtis then cited the case of the
| Oregon Railway and Navigation Com
pany, which charged higher freight ratos
than the Southern Pacific and had never
theless become bankrupt He also re-
ferred to the fact that the Union Pacific
had also passed into the hands of a re-
ceiver. though its expenses were much
lower than those of the Southern Pacific
If the latter road could even buy its coal
at the price paid by the Union Pacific it
would save 81, 000, 900 in this item alone.
1--WE would then have been able, last
year, for example," added Mr.. Curtis,
ITO have given back the million dollars
we earned for carrying grain and still
! have been a million ahead"
| MIR. Curtis was followed by G. f.
| Smurr, who also made an argument
against the reduction of rates.