The San Francisco call., 1896-02-28


They had the most splendid lobby and
been at Frankfort"
Senator Hays and his lieutenants are IN
high glee over their success in the defeat
of the measure.
EXPLAINED By MR. STUBBS.
The Southern Pacific, He Says, IL 4bused
by the Shippers.
WASHINGTON, D. c., Feb. 27.-J. G.
Stubbs, thiro vic-president of the South
ern Pacific Railroad Company, appeared
before the House Committee on Pacific
Railroads to-day. He had had charge of
the traffic of the Southern and Central Pa
cifc roads for twenty-five years. 1t had
not been the intention of his people to in
troduce testimony before the committee
and he did not come to Washington for
that purpose. Bur, being here, it was
thought advisable, in view of some of the
statements and charges made, to say
something regarding them.
He referred particularly to the state
ments which characterized the Southern
and Central Pacific roads as Oppressive"
| and that they discriminate against the
Union Pacihc and diverted traffic from the
Central Pacific. 1t seemed to be the i'm
preston in some quarters that these COM
panies held in their power all the traffic in
| California.
Referring to the competition of water
transportation in California, he said the
| waterways were open all the year round
and formed competition not to be found
elsewhere in the United States. In this
connection he compared the northern and
tscsthere section sTsf ..ks State, by .coHnttee
showing what tiaF psoaueed, the vaius@of
real estate and the cost of transporting
grain, the principal product of the State,
| to export points. The products of the
! vino and orchard he said were all mar
keted east of the Rocky Mountains, and
local rates had little or no effect upon
them.
Referring to legislation affecting rail-
roads, he read from the constitution of
California the paragraphs defining the
powers and duties OF the Board OF Rail-
road Commissioners. The powers granted
| this commission were unique. 1t was
made its duty to establish rates and pro-
hibit discrimination and have complete
control of the rates of roads. The COM
panies obeyed the dictates of these Com
missoners.
Mr.. Stubbs was asked how it was that
nearly every member of Congress claimed
| that these roads are extort1onate, etc.
| Mr.. Stubbs said he thought it was due to
ignorance. Thirty-four per cent of the
! railroad milage in California he said, was
entirely independent and in no way under
/ the control of the Union or Central Pacific
systems. The rates, however. on the 66
per cent under the Central and Southern
| Pacific were lower than the 81 per cent not
under their control. The Central and
| Southern Pacific systems included some
| thirty-seven roads. If the roads were sep
| arated the rates would necessarily be
higher.
| Replying to a question by Sulzer of New
| York he denied fatty and emphatically
the statements that freight was being
diverted bv the Southern Pacific from the
Central Pacific and being carried to New
York and points East cheaper by the
| Southern Pacific.
| Traffic was not diverted, as charged, and
rates could not be fixed without the con-
] sent of competing and connecting lines.
| There were nine great through lines COM
peting for transcontiAental traffic. To
these must be added sailing vessels, great
element in competition. 1t had been said
that G. P. Huntington could make through
rates. This statement was ridiculous. The
rates were established by the various roads,
and it was impossible for any one road 10
establish rates. The conditions were such
| that rates must be made by concert.
1t had been said that the shippers of
California were not allowed to select the
route by which they preferred to send
their goods. This, he said, was wholly
without foundation. The fact was lust
the opposite. 1t was not the railroad that
cracked the whip over the shipper, but it
was the shipper who cracked the whip
over the railroad. The roads had to use
their persuasive powers with the shippers
to get their trade.
! Boatner of Louisiana asked how he ac-
counted for the vehement opposition in
California and in Congress by members
| from that State to any solution of this
matter except by foreclosure.
Mr.. Stubbs replied that it was simply
the domination Of the press, and in this
connection referred to many stories pub
lished in the San Francisco papers max
ing charges against the roads, which he
characterized as being without foundation
| whatever.
| So far as passenger rates were concerned
these rates in the State of California were
the same as in anv State in the United
States except perhaps New York and
Pennsylvania. The through rates from
California to the East and from the East
to California were the cheapest rates in
the world. He did not wish to be under
stood as stating that the press of Califor-
MIA was united against the roads. He did
not care to state why these papers were
against the roads.
The committee adjourned until Mon
day, when w. S. Pierce of the Union Pa
cific reorganization committee viii be
heard.