The record-union., 1896-02-28

posite-The Roads Have to Use Per-
suasive Powers With Shippers to
Get Their Trade.
WASHINGTON, Feb. 27.-J. c.
Stubs, Third ce-President of the
Southern Pacific Railroad Company,
to- day appeared before the House Com
nittee on Pacific Railroads. He had
charge Of the traffic of the Southern
and Central Pacific Railroads for
twenty-five years. 1t had not been the
intention of his people to introduce tes-
timony before the committee, and he
did not come to Washington for that
purpose. But being here it was thought
advisable, in view of some of the state
ments and charges made, to say some
thing regarding them.
He referred particularly to the state
ments which characterized the South
ern and Central Pacific roads as op-
pressive, and that they discriminate
against the Union Pacific and diverted
traffic from the Central Pacific. 1t
seemed to be the impression in some
quarters that these companies held in
their power all the traffic in California.
Referring to the competition of water
in California, he said the waterways
were open there all the year round; and
formed a competition not to be found
anywhere else in the United States. He
compared the northern and southern
sections of that State by counties. show
ing what they produced, the value Of
real estate and the cost Of transport
ing grain, the principal product of the
state, to export points. The products
of the vine and orchard, he said, were
all marketed east of the Rocky Mount
aims, and local rates had little or no
effect upon them.
Referring to the legislation affecting
railroads, he read from the Constitu-
ton of the State of California para
graphs defining the powers and duties
of the Board of Railroad Commission
ers. The powers granted this COM
mission was unique. 1t was made its
duty to establish rates and prohibit
discrimination, and have complete con-
troll of the rates of roads. The compa-
mes obeyed the dictates Of these Com
missioners.
Mr. Stubs was asked how it was that
nearly every member of Congress
claimed that these roads are extortion-
ate, etc.
Mr. Stubs said fnat he thought that
it was due to ignorance. Thirty-four
per cent. of the railroad mileage in
California, he said, was entirely indie
pendent, and in no way under the con-
troll of the Union or Central Pacific sys-
TENS. The rates, however, on the 66
per cent. under the Central and South
ern Pacific was lower than the 81 per
cent. not under their control. The Cen
tral and Southern Pacific system in
cluded some thirty seven roads. If
the roads were separate the rates would
necessarily be higher
Replying to a question by Sulzer of
New York, he denied fatty and en-
phatically the statements that freight
was being diverted by the Southern
Pacific from the Central Pacific, and
being carried to New York and points
East cheaper by the Southern Pa
cific. Traffic was not diverted, as
charged, and rates could not be fixed
without the consent of competing and
connecting lines. There were none but
through lines competing for transcon-
tinental traffic. To these must be
added sailing vessels-a great element
in competition.
1t had been said that G. P. Hunting
ton could make through rates. This
statement was ridiculous. The rates
were established by the various roads,
and it was impossible for any one road
to establish rates. The conditions were
such that rates must be made by con-
cert.
1t had been said that the shippers of
California were not allowed to select
the route by which they preferred
their goods shipped. This, he said, was
wholly without foundation. The fact
was just the opposite. 1t was not the
railroad that cracked the whip over
the shippers, but it was the shipper
who cracked the whip over the rail-
read. The roads had to use their per-
suasive powers with the shippers to
get their trade.
Boatner of Louisiana asked how he
accounted for the vehement opposition
in California and in Congress by mem
bers from that State to any solution of
this matter except by foreclosure.
Stubbs replied that it was simply the
domination of the press, and in this
connection referred to many stories
published in the San Francisco papers
making charges against the roads,
which he characterized as being with
out foundation whatever. So far as
passenger rates were concerned, these
rates in the State Of California were the
same as in any 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 understood as stating that the
press of California 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. Pisrce of the Union
Pacific Reorganization Stmpany will
he heard