The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-30

itself with.
Population cuts great figure in the
fixing of rates. Our population is very
small compared to that of the East.
Chicago, for instance, has as great popu-
lation as we have in the entire State of
California
THAT is true" remarked the author of
the Is per cent resolution" and it has more
roads, probably forty or fifty, forget ex-
actly how many"
Mr.. Curtis then quoted figures to show
California was not badly off compared
with other States in the proportion of her
railroad mileage to population.
La Rue-In Oregon rates are less than in Cal
ifornia.
Curts-In Oregon the population is con-
centrated-it is in the western portion OF the
State. The volume of traffic is a great factor in
making rates. Much of our expense is in the
nature OF fixed or semi-fxed charges, and the
larger the business we can do the less in pro-
portion will be the cost. Illinois roads carry
Southern Pacific, and New York and Pennsyl-
Yania roads carry from four to five times as
much. In 1894, the Pennsylvania roads
carried eight times as much, and in 1898 nine
times RS much. When the rates In Pennsyl-
vania were the same as those now in force on
the Pacific Coast, the volume OF traffic was
thrice as great.
right to pick out the rate on one commodity
and figure what it is worth to carry it on the
basis of what is charged for other classes OF
freight. The rate on wheat is less than the
general average of other local freight while it
costs more to handle. 1t generally requires
the return of empty cars: Frequently special
train service is also required 10 move the crop
quickly and graincars stand idle for large
portion of the year.
La Rue-Are not the cars that you use to
transport grain cheaper than the ordinary
boXcars, which are always used in the East?
Curtis-Yes, but the grain shippers are show
ing an unwillingness to have their wheat
moved on open cars, and where 1t becomes
necessary to add to the rolling-stock required
for the transportation of wheat we are now
providing boxcars.
In explanation of the fact that grain
rates are lower on the Union Pacific and
Oregon Railway and Navigation Company
lines, Mr.. Curtis states that while the
Union Pacific got its coal for 81 So the
Southern Pacific paid 81 50, which alone
meant difference in the years operating
ings for moving grain last year." he went
on, "were 81 100000 so you will see that
if we had our coal as cheaply as the Union
Pacific, we could afford to return the farm
ers their freight money and still have
81 900, 900 for our own pockets"
'.Yos, but last year the crop was only
half of the usual average" came from the
alert La Rue.
mo; l think it was two-third CROP"
then gave figures TO show how much more
Eastern roads were favored in the cost of
fuel and labor, and argued that for that
reason they could afford to quote cheaper
rates.
"In proportion to the cost of operation,
our rates are not higher than those of East
ern roads, and that is what's the trouble"
he sadly commented. I'VE are finding
the greatest difficulty in making ends meet
10 ha har. III nd Of IN
meet our operating expenses and fixed
charges. Our rates are not higher in pro-
portion than the rates of the Mississippi
States. If they were we would be making
money"
La Rue-You have been making money?
Curtis-We have been-like the farmers in
the good old days. California roads cost more
in proportion and are bonded for less than the
average road in the United States.
La Rue-Bonded for more than they could be
built to-day.
Curtis-I don't think so. They have been
much improved in many ways-by extensions
and the replacing of old and inferior bridges,
rails, culyerts, ETC., by new and frst-class
structures and materials.
At this iuncture Commissioner Stanton
gave the first evidence of being interested
IN the situation by asking Mr.. Curtis what
improvements had been made recently
within the past year or so.
almost nothing had been done.
Stanton-How does the cost of labor COM
pare with former years?
Curus-There has been no great change in
the labor rates in the past ten years.
Attorney Martin--HoW does the cost of main
tanning your roads compare with those OF the
East?
Curtis-It is much heavier for many reasons.
Labor and material are higher and the topo-
graphical conditions are against us. Mountain
roads are more difficult to maintain.
Martin-What would be the effect in the
valleys If the mountain roads were to be oolit-
Grated?
Curtis-Rates in the valleys would be higher.
Rates on shorter roads are everywhere higher.
La Rue-On the Placerville line the rate is
about cents a mile for passenger rates, and
freight rates in proportion. Why is not the
Curtis-Mr. Smurr will explain that.
Commissioner Clark-How do your rates on
short lines compare with other short line
rates?
Curtis-They are very much lower.
StantOn-How are rates made as rule?
Curtis-I would refer that to Mr.. Smurr.
After some little sparring between Com
missioner La Rue and Mr.. Curtis the latter
admitted that ''the charges are placed on
each commodity according to what it will
bear reasonably" He added ''This is
the principle applied in every business"
Martin-Is the company now deriving any
revenue over and above the operating ex-
penses and fixed charges?
Curtis-None.
La Rue-Didn't you pay dividend last
year?
Curtis-We did not. The Southern Pacific
has never paid a dividend.
Martin-What If there should not be suffi-
cient income to meet operating expenses and
fixed charges? What would result?
Curtis--As I said before, we hardly now
know what to do TO keep things going. We
have tried to buy everything cheaper than we
have been doing, and in most cases have sue
ceeded, and the only thing left now would be
to reduce the payroll.
Martin-Is the Southern Pacific seeking to
find an excuse, as is said by some, to reduce
the wages of its men?
Curtls-The Southern Pacific does not want
to reduce wages. 1t is the very last thing they
would do.
Martin-And they would not have to do SO
unless forced by the action of this commission
in reducing existing rates?
Curtis-No; sir.
La Rue-That is broad proposition. On the
same basis you might be disposed to do the
generous thing by the boys and raise their
wages, and then come 10 us and have US in
crease rates, you agreeing to allow the in
creased profits resulting to go to your employees.
Stanton--What was the result OF the reduc-
ton made on grain in 1894?
Curtis-It has made the Southern Pacific very
hard, but wages were not reduced. For SIX
months of this year 1t has not earned taxes nor
interest.
Clark-Then the stockholders don't get any
interest?
Curtis--They get Irish dividends.
,,.ofra