The record-union., 1895-09-06
ROYAL BAKING POWDER.
COST OF MOVING FREIGHT.
Why it Cannot be Definitely Ascer-
taired.


tained.
At the meeting of the Railroad Com
mission on "Wednesday. during the ex-
animation of MIR. Snurr of the Southern
Pacific traffic department. the following
Interesting facts were brought out
Attorney Martin-There seems TO be
question in the minds OF some OF Inc
commissioners as to the ability OF the
railroad people TO furnish information as
TO the cost of moving q ton Oi freight, ana
| propose to ask MIR. Curtis something
about that, but perhaps you are familiar
with those matters.
Mr.. Smurr-Well, it simply cannot be
determined as TO the cost OF any single
movement-any single ton or any single
carload or any single tralnload or any
single commodity. We can work to aver
ages, but we can work only measuraDly
10 specific figures as to actuGl cost or any
given service. To illustrate: suppose
train of cars is i'll readiness without any
special attention at the hands OF the opei-
ating department aud standing on the
siding at Tulare, so that we are at 10 eX-
pense in getting the cars there; shipper
takes advantage OF their presence and
proceeds TO load that train-call it twenty
cars-with grain. When loaded he notl-
iies the agent, who in turn notifies the
superintendent what there is to be
moved. 1t may be at the time that the
| trains are running full. SO special en-
giue and crew is provided. Well, now,
from the moment he begins to flre vi the
engine he can keep an account OF every
expense incident to that train, but we
are not done with the earnings OF that
shipment OF freight because we happen to
be done with the haul. There is no mode
of procedure that | ever heard OF III Ile
management of railroads by which any
manager can appOrtlon 10 the movement
OF that train the percentage OF wear ana
tear TO the rolling stock, to the machln-
cry, TO the track that properly belongs TO
to it-yet there must have been some-to
provide for the maintenance OF depot5
and buildings, station agencies, interme-
diate section ineu scattered all along the
| road, track walkers, bumpers and other
employees, whose salaries are not affected
by an increase IN traffic.
Furthermore, there may be an accident
or derai!ment. or there may be land
slide or Il washout encountered by the
train: naturally you would not expect
that he revenue derived from that train
would be used to pay for these unfortu-
nate circumstances, or rather that the
shipper would pay Tor the mistortune5, as
he would not listen to it for a moment;
but the road has to sustain the damage,
and those matters have TO be paid Oft by
revenue from some place. The fact Is
! that the revenues from this train Will be
returned 10 the Treasurer and accounted
for in the regular manner. The expense
/ of handling the train viii be charged up
| against the regular revenue, as IN all
| other cases, and we cannot tell the cost OF
! handling that train until we have struck
/ balance at the end of the period at which
most roads balance their accounts, either
| Decembe 3lst, for each calendar year. or
M fIaf i- or nc
! fixed. 1t is q matter of custom of most
! business institutions OF the country; they
! strike balance at fixed periods to de-
/ termine the results OF their operations.
! The Interstate Commerce Commission
! abandoned the idea OF anything approX1-
| mating accuracy as to a division OF eX-
| peuse between the cost of doing passen-
| ger and freight work. Those gentlemen,
with all the facilities at their command,
with the railroad managers OF the leading
properties of the country TO call upon,
! and with all possi bic facilities, cannot
/ agree on q division of these expenses;
! therefore | think it will be apparent to
/ you that it is really impracticable to
| single out any particular commodity we
/ handle and determine what percentage OF
cost Tor this item is involved IN It's trans
| portation, 1t is simply indeterminable;
| it is impracticable.
Attorney Martin-Is there no organi-
Zation. whether Of railroad mon or rail-
road companies, better equipped tor get
! ting this Information than the Interstate
/ Commerce Commission?
! MIR. Smurr-I think their opportunities
are better than those of auy others, as
/ they can call for the experience of any
manager or any corporation in the United
! States. Now, am asked 10 figure on an
abnormal proposition, such, for example
as when there IS drought, and WREN we
are called upon to move sheep from one
pasture TO another as we have done from
i \ Arlzona clear around into Nevada, We
| try 10 do the best we can. We 90 to the
| proper operating official ana ask him
! how cheaply he can handle that train
/ We state the physical condition and all
requirements, and ask what is the actual
| expense incident to hauling that train
! Ii we can get mill above that cost that
is something 10 the good; we don't care
| how little it is. q mill ton per mile. II
we can get that we will undertake TO
move the freight under those circurn-
stances. That mill per ton per mile is
! extreme, but it is a credit 10 the general
expenses, from which we must meet all
! our other expenses.
/ Attorney Martini want to get little
! further into this subject and prove to the
public, as well as the commission, the
/ Impossibility of determining the actual
/ cost OF carrying particular commodities,
and Mr.. Lansing viii be prepared TO give
! further testimony on this point to-mor-
| row.