The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-30
CURTIS AND SMURR TALK
Facts and Figures of Mainten-
ance and Operation Pre-
scented.
STRAITS OF THE COMPANY
Said to Be Unable to Meet Its Oper-
ating Expenses and Fixed
Charges.

1t was the railroads inning yesterday
before the Railroad Commission and its
representatives made the utmost of the
opportunity given them to show why they
should not be asked to reduce the rates on
grain nor on any other commodity.
Attorney Martin, in his efforts to make
an impression on the one obdurate Commits
sioner, who was inclined TO stand by the
people, invoked the constitution of the
United States and but lily concealed CO.
vert threat to make an appeal to the
courts-even to the highest tribunal in the
land-if the Commissioners went further
than the company might deem 1t proper
in the way of lessening the burdens
of the farmers. He even went so far as to
intimate that the resolution of Commits
sioner La Rue, providing for horizontal
reduction of Is per cent on grain through
out the State, would be a virtual unlawful
confiscation of the property of the Southern
Pacific, but was taken to task for his as
pensions by La Rue and forced to confess
that there was no intention of conhscatlon
apparent in the resolution.
While Assistant General Manager Curtis
WAS GuSdSSQ III PIdlhAllS viz cav NAA-
ference IN the cost of building, maintaining
and operating railroads in California and
in the East he was frequently assisted in
bringing ont desirable point for the rail
road by the apparently unprecedented in
terruptions of Attorney Martin.
Commissioner La Rue was not slow, on
the other hand, in asking questions, which
in most cases proved rather awkward to
answer, and at frequent intervals Mr.. Cur
tbs felt himself compelled to take shelter
from dangerous interrogatory behind
convenient reference for further informa-
ton to Mr.. Smurr.
a very neat by-play was artfulIy enacted
between Attorney Martin and Mr.. Curtis.
which at once appealed to the gallery and
at the same time was designed to bring
pressure on the commission to induce them
to smother their propensity for rate cut
ting. By a clever arrangement of question
and answer it was made to appear that if
rates were reduced the railroad would be
compelled IN spite of itself to cut the
wages of its employees IN order to continue
in operation. The idea was evidently to
shift the responsibility for any cut in
wages the railroad might in future make
on the Railroad Commission. But the abb
surdity of such an assumption was quickly
made manifest by the quick wit OF Chair
man La Rue, who suggested that with
equal propriety the railroad company
might without cost or loss to itself pose as
a great philanthropic institution by simply
raising the wages of its men and then
coming to the commission and having
rates proportionately increased for the
shippers.
In the statements submitted by General
Freight Agent Smurr showing compari-
sons of rates between the Southern Pacific
and other railroad companies, Chairman
La Rue found and took frequent opportu-
nifty to call attention to what he consid-
cred an unfair attempt to bring the South
ern Pacific out in favorable light in the
matter of the comparisons, by ignoring
geographical conditions ana other salient
points.
1t was a few minutes after 10 o'clock
when Chairman La Rue raped for order
and announced the question under discus
sion. In addition to the members of the
board. the Southern Pacific was further
represented by Attorney j. G. Martin,
General Freight Agent Charles t. Smurr,
Assistant General Manager W. G. Curtis
and Secretary Lansing.
The session was opened by Attorney
Martin, who spoke for his employer. He
said that the company did not desire TO
argue the resolution under consideration.
What it did propose to do was to submit
sworn statements relative to its affairs
- h., Il
reduction in rates.
"In making reduction in rates," con-
tinued Mr.. Martin, lone of the first things
to be considered is the cost of transporta-
ton. This we desire to show. We want
you 20 see true statement of the revenues
OF this company, and then, after hearing
cordingly. AS impartial Judges, de-
termined to do your duty by all parties to
the controversy, there is no other course
open to you.
1--WE hope that you will not be swayed
by outside influence. | believe that the
members of this board will decide the case
according to their honest convictions.
1T is nonsense to say that any member
of this commission has been pledged to
decide the case certain way. The power
held by this commission is extensive,
more extensive than that delegated to the
Railroad Commission of any other State in
the Union. OF the seventeen States hav-
ing Railroad Commissions such as yours,
the California commission alone has arbi-
trary power in the matter of freights and
fares. In many of the other States the
Supreme Court of the United States has
greatly abridged the power of Railroad
Commissions. California has never had a
case on appeal before this body, and the
power of your commission remains the
same as developed by the act creating it.
but there are limits even to the power
of this commission. 1t cannot compel a
transportation company to carry freight or
passengers for less than reasonable rate.
The constitution of the United States will
not permit you to make reductions that
would practically confiscate the property
OF a railroad company"
Commissioner La Rue here interrupted
Mr.. Martin with the statement that his
resolution contemplated only a reasonable
reduction, and would not result in the con-
tscation of property at all. Continuing,