The record-union., 1895-08-19
B E PERFECTLY SURE YOU WANT IT.

Under this general caption we re-
Gently called attention to the fact that the
reduction of the grain schedule proposed
by Mr.. LaRue would have the effect of
driving the grain tonnage from the river
steamers to the railroads. We stated then
and repeat now that sixty per cent of the
grain shipped to the seaboard from the
Sacramento Valley goes by the river;
that reduction of the grain schedule
would necessarily offer suoh competition
to river carriage as to send the grain by
rail either in whole or in part. That the
tonnage would be increased at the ex-
psnse of the river method of transporta-
tion cannot be doubted. We further
called attention to the fact that the rail-
road and river rate of transportation
from the grain fields to toe sesboard is
not the only factor influencing the price
ofgrain at the point of production. We
showed that the ocean tonnage has been
increased in 1895 over the rate obtaining
in 1894 by 12s. per ton. We asked the
question then and repeat in now: Can
the Railroad Commissioners guarantee
the wheat raisers of California against a
further advance of ocean rates? Can the
commission offer any guarantee that the
ocean will not pick up what the commits
sion forces the railroads to drop?
Indulge for the moment the very
reasonable probability that the rate of
ocean tonnage, which is q fuctuating
quantity, will be increased by reason Of
the opportunity afforded in consequence
of the reduction of the rate of transporta-
by rail, and what will have been accom-
plished? The quotation for grain st the
point Of production will remain the same
The competition offered by the river in
the carriage of grain to the sesboard, and
In the carriage of high-class goods from
the seaboard to the interior will have
been greatly injured. Captain Roberts
declares that If further reduction is made
by rail, with q consequent reduction of
tonnage by the river, he will be forced
out of business. Thus the river will
cease to be o competitive factor in the
rates of freight to and from the interior.
Should these results be oompassed,
what will have been gained? The an
swer is not far to seek. The wheat
grower will have gained nothing. The
grain price will remain just the same.
But the railroads will have lost revenue
The river competition will have been in
jured.
The earnings Of the railroads serving
the Pacific coast have seriously declined,
but the fixed charges are the same. Hard
times do not effect reduction of the in
tsrest on the bonded indebtedness: of the
taxes which railroads must pay to States,
counties and municipalities: of the cost
OF coal; of the insurance risk OF doing
business; the losses by reason of damage
to life and property: the injury to the
permanent right of way by reason of
floods and snow. The fixed cost of MAIN
tanning the railway systems OF California
E6ElaluS HDOuL tue aduot WQ6tQ6l tu6y
are running to profitable or an unprof-
liable business. The only elastic elem ent
: entering into the cost of operating rail-
roads Ia the rate of pay 70 its employees.
This is the only flexible and elastic fac
tor. When by reason of losses in busi-
ness the railroad company is forced to
policy of retrenohment the first and, in
fact, the only point at which economy is
possible ia in the reduction of the pay
roll. This may be accomplished in two
ways: First, by diminishing the num-
bsr of employees; or. second, by a reduc-
ton of the rate of wages.
If, therefore, the reformed schedule ac-
complishes no good to the farmer. il may
be said with perfect truth that 1t endan-
gers the rate of wages paid TO railroad
operatives. The chief source of revenue
to the railroads serving the Sacramento
and San Joaquin Valleys, and other wheat
growing sections of the State, is the
wheat tonnage. If this must be reduced
in the carriage of the crop of 1885 by
Is and 20 Per cent, the railroads, suffering