The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-09-08
STATIONS SUBSTITUTE RATE RESOLUTION,

any ulScourtesy, but l have considered my
opinion in the matter.
But Mr. Martin proceeded to avail him.
self OF the opp ortunity, which as Mr.. La
Rue putt, was granted as courtesy and
IN the absence of an attorney for the COM
mission. Mr.. La Rue during the argu-
ment by Mr.. Martin took occasion to dis
cuss various statements and arguments
presented by the railroad attorney, and oc-
cupied a considerable portion of the time
to the advantage of his resolution for re-
duction of rates. The discussion, which
consumed nearly two hours of time, fol-
lows:
Martin-Of course have taken advantage of
your indulgence in extending the time of this
hearing another day. OF course understood,
as you have said, that there IS no attorney here
to represent the resolution, but / shall make
no technical argument 1 shall endeavor to
group together some facts, and II / can say
anything that is worthy have right to have
then you may discredit it. But as to standing
here occupying place of grace, [ think any
body who has rights to be affected has the legal
and constitutional right to be heard within
proper bounds.
The proposition before this commission, and
to which we have addressed our evidence, is
the passage of the resolution introduced by the
chairman OF this comm issiOn. OF course the
ultimate result OF the resolution, if adopted
is to confer more benefit on the farmers and
grain-raisers. The immediate object is to re-
II.
man is that the farmers of the country are
suffering on account of the financial depres-
sion, but that suffering so far as they are con-
cerned grows out of the prices at Liverpool.
The proposed means of relief is the reduction
of rates. Isn't it well to consider whether the
means are adequate II you find that no
benefit can be conferred upon the grain-raisers
then the ultimate purpose OF the resolution
would not be effected.
On that behalf let me call your attention to
this proposition. Sixty per cent OF the grain
ITa13
ported by the Southern Pacific Company. In
1894, the last completed year of which we
have full statistics, the entire amount shipped
from California TO Liverpool, brought to tide
water for export, carried by the Southern Pa
citc, was 42 per cent of the whole. This bal
ance OF So per cent is not dependent upon your
action. ] think you said, Mr.. Chairman, that
the possible proportion would be greater on
the crop of 1895 carried by rail to tidewater.
La Rue-The railroad carries great deal of
wheat that does not go outside of the State?
Martini think the proper inquiry is the
benefit to be conferred on the farmer in the ex-
port of grain-in meeting the market at Liver
pool. 1t is also in evidence before you-and I
speak OF this because there is manifest desire
on the part OF the commission that the farmers
may have the benefit OF the reduction, if it
should be determined on-that only AZ per
cent of the whole crop is shipped for export
! think Mr.. Briggs of Fresno said that at least
so per cent of that was already in the hands of
spectators.
La Rue-Mr. Briggs statement was given as
no difference.
Martin-There is nobody on whose judgment
I would be more willing to rely than yours, Mr.
Chairman. If you see mt to give me any infor-
nation will rely it. AT any rate con-
siderable part of the grain is in the hands of
the dealers. So this AZ per cent is again re-
duced when We consider what benefit will be
offered to the graln-ralSers.
La Rue-This rate Will apply to next years
crop and that might induce more planting
Martin-But after all | am referring to the
necessity of great haste for the purpose of re-
lieving the farmers so far as the present crop is
concerned. You cannot be unmindful OF this
fact that in 1894 there was q reduction made
by which grain rates were reduced 10 or II per
cent. How much benefit did that confer on
the grain-growers of the State? Not one dollar.
La Rue-It did not?
Martin-Ne.
Martin-Because when you compare the clip
per rates necessary TO take the grain from San
Francisco TO Liverpool you will find every dol
lar went into the pockets OF those men and not
La Rue-Would they not have had to pay the
same clipper rates if there had been no reduc-
ton in the Southern Pacific rates?
Martin-That is theory and not condition.
We could not tell what would be done.
La Rue-There is reason why the men who
own ships raise or lower rates. That was be-
cause of the lack of tonnage.
Clark DO you contend that If there had
been no reduction in the grain rates on the
railroad the clipper rates would not have been
advanced?
Martin-Not so much.
La Rue-I disagree with you there.
Martin-It is q probability, for just the rea-
son that dealers and exporters that take wheat
from Liverpool will not take the grain If it is
put so high into Liverpool. We are shown by
experience that when the rail rates went down
the clipper rates went up and wheat still
moves.
La Rue-And wheat goes down.
Martin-But the farmer did not get one dol
lar of that reduction.
La Rue-No; between the railroad and the
ships the farmer doesn't have much show.
Martin-Dont misunderstood me. | am
Offering this as q suggestion in arriving at
some conclusion as to how much benefit you
will confer on the farmer if the money saved
from the railroad rates goes into the pockets
of the English shipowners.
La Rue-In what other way will you confer
a benefit on them If not by a reduction of
freight rates? Do you assume that every time
you make reduction in freight rates the
English shipowner Will get that much in addi-
ton?
Martini don't know When natural condI-
tions operate it is difficult to remove them. 1t
is too much for me to answer. Some sugges-
ton was made, perhaps by some organized
system OF farmers association, that they might
charter their own ships,
La Rue-You cannot charter them when they
are not in the market to charter. do not
think the reduction in the rate of transporta-
ton by rail had anything to do with it. 1t is
not a reasonable supposition that the circum-
stances you have mentioned govern the tom
great it affects the price of ship rates 1t is diff
ferent in the railroad business. You have O.
fixed price, and the farmer has several months
to ship his grain by rail. The ship rates fiuc-
tuate, the railroad rates do not.
Martin-But l rather suspect these fuctua-
tions never go toward the grain-raiser. They
generally swing TO somebody else's pocket
But assuming that you hope from this resolu-
ton there would be 25 per cent of the grain
raisers benefited on the present grain crop, is
ii right to endeavor to make the railroad COM
pany make wheat farming profitable in this
State.
La Rue-Yes, il it will inure as well to the
benefit of the railroad. The farmer can raise
two bushels where he only raised one. It was
fully demonstrated here the other day that
without the grain-raising industry the rail-
road would lose one quarter of its business. If
they could double that would it not inure to
the benefit of the road by increasing lis BUSH
ness several hundred thousand tons? If they
increase the wheat product 10 per cent you
can carry that 10 per cent without any appre-
ciable difference in the cost.
Martin-Then it is your proposition that you
will benefit the railroad company?
La Rue-I did not say that, but ultimately it
is true. They cannot exist one without the
other.
Martin-Then the interests of the railroad
company are to be considered also?
La Rue-Certainly.
Martin-Of course as said, you cannot COM
pei the railroad company to make wheat farm
ing profitable, but If a mutual benefit is to be
conferred, much good is accomplished but
after all we still have the small pronortiop