The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-31
Factors That Control the
Charges Made in Differ
ent Sections.
HORIZONTAL CUTS EsCHEWED
Declared to Be Impractical and to
Work Injustice in Their
Application.

w AL eIS SASSptlOl vi O 1Oh -
the beginning and at the conclusion OF the
session of the Railroad Commissioners
yesterday morning, the entire day was
occupied in listening to General freight
Agent Smurr, who sought, by submitting
and explaining comparative tables or rates
and by a crazy-quilt lecture on the mys-
teries of tariff building, to impress the
Commissioners with the in Justice OF making
any further curtailment of the revenue OF
the Southern Pacific Company. which,
even as things are, is claimed to be on the
verge OF bankruptcy.
In the course of his anxious efforts to
secure the merciful consideration OF the.
commission in behalf of his company, Mr..
Smurr could not resist the temptation to
score the clipper combine" as he called
it, for interfering with the benevolent
efforts of the Southern Pacific to allow the
grain producer a shade more tor his grain
than he had been getting in former years
He charged that when the railroad had
made a concession to the interior wheat
shippers in rates to tidewater the amount
so allowed was much more than absorbed
in the excessive price of wheat charters to
Liverpool owing to the corner that existed
in ocean tonnage, due, as explained by
Commissioner La Rue, to the Fair wheat
deal
While endeavoring to. explain to the
commission the various differences in
rates over the company's own lines for the
same distance, it was clearly demonstrated
that the lower rates in nearly every in
stance were due to competition of some
kind-either by waterways or by rival
roads, 1t was demonstrated that by rea-
son of this condition of things those places
removed from all kinds of competition
were made to contribute really more than
their share of revenue toward the main
tenance of the Southern Pacific.
Commissioner Stanton sought to justify
his opposition to the proposed horizontal
cut of Is per cent provided for in Chair
man La Rue's resolution, which is the real
issue before the commission, by leading
Mr. Smurr to say, in response to interro-
gatories, that a horizontal cut was never
made by the railroad and would work in
justice, as reductions are always made
where, according to the traffic managers
ideas they are most needed.
Commissioner Clark distin guished him
self Yesterday, as he has done at the
previous sessions OF the commission, by
being. seen but not heard.
Not little interest was created at the
opening Of the session by the Introduction
by the Southern Pacific of a witness in the
person of w. B. Curtis, who is to sever his
relations with that company on the last
day of this month to at once enter the en-
ploy of the Traffic Association as its traffic
manager, which position Will require the
exercise of his best abilities in opposition
to his present employers.
When the commission settled down to
business shortly after 10 O'Clock yesterday
morning the secretary read communlca-
ton from the Property-owners' Union of
San Diego asking for a copy of the laws of
franchise. 1t stated that the Atchison,
Topeka and Santa Fe Railroad had failed
to give the people of that section of the
country service over the line from San
Diego to Barstow, although the line had
been granted subsidy OF $6,O00,0 900. A
storm had destroyed portion of the road
and the people had never been able to get
the Atchison, Topeka and Santa Fe to re-
open operations over the entire line. They
want advice as to their rights in the prem
ises. The communication was filed for
consideration as soon as the Southern
Pacific matter could be finished.
Attorney Martin for the Southern Pacific
stated that at Yesterdays session Mr.
Smurr had been asked for some descrip-
ton of the country through which the Or
egon Railway and Navigation Company's
line passed. as comparisons had been made
between rates on that road and Southern
Pacific rates Mr.. Smurr could not COM
ply with this request. Mr.. Martin stated
that there was gentleman present who
could give the desired information. With
the permission of the commission he in
troduced w. E. Curtis. the newly appoint
ed traffic manager of the Traffic Associa-
ton.
In replying to a question asked by DR..
Stanton as TO his present avocation Mr.
Curtis stated that up to the end of the
present month he was in the pay of the
Southern Pacific, but that on the LIST OF
September he entered the service of the
Traffic Association as its traffic manager.
He explained by means of topograph-
icaI man that in Oregon there were some
what less Typographical difficulties in rail-
road construction than in California.
In the course of this work Chairman La
Rue reiterated his statement of yesterday
that he thought in making his comparison
OF rates Mr. Smurr had selected roads and
noints that would throw the most favora-
bic light on the Southern Pacific rates.
'rTbere is no road running to tidewater
that we are not willing to make compar-
isor with" said Attorney Martin, when
Mr.. Curtis was through.
General Freight Agent Smurr resumed
reading from his comparison OF rates.
in the course of little side argument
with Commissioner La Rue, the Southern
representative stated that before he
finished he would have compared rates on
every road in California with those OF other
roads in the Uulted States for the same
distance. and that he would make any
comparisons desired by the Commission.
He added that he was not endeavonng 10
conceal anything.
Mr.. Smurr had read but few items from
q new sheet showing comparative rates on
the coast division of the Southern PACING
Company, the Oregon Railway and Naviga-
ton Company's road and roads running
INTO Duluth. Most of these, for the shorter
distance, were lower on the Southern
Pacific.
Chairman La Rue asked if it was not
TACT that little grain was carried from these
points, and if there was not water compe-
.ition which compelled the making OF low
rates. Mr.. Smurr added these facts and
aid the company had to adjust matters
according to circumstances they found.
When the rates from the Salinas valley
points were reached Mr.. Smurr calico
attention to the fact that from there large
shipments of grain were made.
La Rue-Your grain rates include those
,harged for -four, oats, barley, etc. Why, the
Eastern roads you quote charge lower rate
or flour. oats and barley than for wheat.
Smurr-They probably have a 1ustihable