The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-31
MYSTERIES OF TARIFF BUILDING AIRED,

and that Mr.. Smurr simply explain such
portions as appeared to show discrimina-
ton on the part of the Southern Pacific.
Both La Rue and Smurr objected to this,
the latter stating that the public were in
terested in the matter and that he would
prefer to continue the full reading of his
statements before the commission. This
be was allowed to do.
Next Mr.. Smurr read comparative rates
on the Southern Pacific and those fixed by
the Iowa Railroad Commission. These
showed considerably in favor of the Iowa
planned by claiming the different condi-
tons under which the various properties
were operated accounted for this.
La Rue-The Southern Pacific has made
heavy recent reductions May not some of
these Eastern roads you are quoting have done
the same thing?
Smurr-No. They are OH our mailing list
and we are on theirs, and thus all roads learn
promptly OF any change in rates made by any
one road, and we have not been advised in this
case OF any such reductions.
Commissioner La Rue interrupted the
reading IN two instances to state that rates
he had secured from State commissions
were lower than those quoted by Mr..
Smurr.
The latter said his figures were from the
official tariff schedule of the roads in ques-
ton, and if they differed from those fixed
by the commissions that was matter be-
tween the commissions and the railroad;
he could not account for it and did not be-
lieve it could be so.
Afterward Smurr read from smother Ia
bic comparing rates on branches of the
Southern Pacific and those on trunk lines.
Commissioner La Rue asked why the
Southern Pacific rates were higher on
these branch roads. such as the Vacaville
and Marysville lines.
1ID,, ho% Iro,, oh,
rates were always higher as the volume of
traffic was much smaller in proportion to
operating expenses as compared with
trunk lines. He further stated that any
reduction made by the company would not
benefit the farmer as clipper rates would
be advanced to Liverpool, the market for
wheat. He then added:
On the 2sth of December, 1894, we made
reduction on wheat and thereby decreased our
revenue $250,000. But instead OF thus saving
to the farmer the amount we gave up clipper
charges were advanced TO such an extent that
the farmers got five times that amount less
for the product so our reduction proved really
no gain to the farmer.
La Rue-Would this not have been the case
even if the railroad had not made the reduc-
ton?
Smurr-Not to the same extent. The clipper
compact was never SO strong as now, and it
takes advantage of every chance to increase
rates.
La Rue-Is 1t not a fact that the Fair wheat
deal caused corner in wheat tonnage and a
consequent rise in the cost OF transportation OF
wheat?
Mr.. Smurr admitted that this was largely
true.
Chairman La Rue then called attention
to what he called the discrimination in the
case of Marysville, where for a haul of
nine ty-three miles TO Port Costa the charge
is 81 so per ton.
Smurr explained this as being on
branch line, with a limited volume of
traffic. He then went into the condition
of the southern Pacific ana claimed it
would not be fair to ask it to make any re-
ductlon in the amount of it's revenue, as
they could barely meet expenses. If rates
were reduced in one section they would
have to be increased elsewhere, SO as to
allow the company to keep its gross in
come undiminished. He denied tina there
was any intention on the part of the South
ern Pacific to discriminate against any
particular section.
When Mr.. Smurr concluded the reading
of the last comparative statement they
were all submitted to the commission, and
a recess taken until 2 o'clock
At the opening of the afternoon session
Mr.. Smurr produced some additional COM
parative statements, which he explained
had been prepared during the recess.
The first figures quoted were comparison
of rates on the Southern Pacific to Port
Costa, in the southern part of the State
into San Diego and on the Atehison, To-
peka and Santa Fe in Kansas City. Here
the rate from Brentwood to- Port Costa a
distance of thirty-one miles, on the South
ern Pacific was IS cents, into San Diego
81 go, into Kansas City 81 40.
Chairman La Rue called attention TO the
fact, which was admitted by Mr.. Smurr,
that the rate from Brentwood to Port Costa
was the lowest prevailing on the Southern
Pacific system.
Mr.. Smurr explained these low rates by
saying they were due to competition. The
same reason was assigned to explain why
certain rates from Sacramento Valley
points to Port Costa over. the Southern
Pacific were lower in proportion to mile
age than others. Mr. Smurr further stated
that tariff schedules were not based on
mileage alone for reasons he had already
partly stated. He said he would further
explain the system of making tariff sched-
ules later.
Mr.. Smurr, showing the grain ton
mage received at the principal shipping
points on the Southern Pacific during 1893
and 1894. In 1893 Port Costa received
437 900 tons, and 241 900 in 1894. The 1893
shipments cost an average of 50 SO to
move, and those of 1894 cost 81 AZ per ton.
The same tariff existed during both years,
anQ the QllleTeDCe per tOu WAS uue 10 the
different distances over which the crop
was carried. The gross earnings on these
shipments for 1898 was S1,238, 900, and
1886, 600 for 1894. Under the proposed Is
per cent horizontal reduction the revenue
to the Southern Pacific Company would
have been 1928, 900 in $685. and $456. 600 in
1894.
During 1898 the total tonnage of grain
moved in California was 803,371 and in
1894 it was 456, 000 The company's gross
earnings for moving wheat in 1898 were
81, 616, S18, and the shrinkage, if the pro-
posed reductions were enforced by the
commission, would be $543, 404. This
shrinkage would include the voluntary re-
ductlons made by the company since 1893
and the 10 per cent proposed by the La
Rue resolution. For 1898 the revenue
from all wheat moved in the State was
$456,000 and the shrinkage on the same
basis would be $244, 600, of which amount
SAP, 600 would be represented by the vol
untary reductions of the company.
Seventy-hve per cent of all the wheat
was moved from the San Joaquin, Sacra-
mento and Salinas valleys. Mr.. Smurr
continued:
Under the proposed reduction of Is per cent
the grain farmer would benefit to the extent of
about IA cents per 100 pounds compared to
the 1894 rates and little over ~ cents COM
pared to those of 1898.
/ NAV add that the good Intentions of the