The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-12-01
CORPORATION AND COMMISSION PLEASED

payment of the interest aforesaid, which
amount in the aggregate to $S, 10000 or
thereabouts.
That none of the lesser companies, except
the California Pacific Company and Northern
Railway Company, have for more than year
last past received or been entitled to any profit
or net income whatever, or been able to pay
any dividend to stockholders. That the rent
received by the California Pacific Company
and Northern Railway Company, after de-
Quoting necessary payments of interest and
expenses, amounts 10 less than 81 per cent
per annum upon their respective capital
stock, and that this must be expended in
betterments and additions which are neces-
sary for the proper operation and equipment
of the road.
That the cost and value of the properties
largely exceed the bonded Indebtedness re-
spectively thereon.
That complainant has invested $4,S32,-
49l 79 in the purchase of property necessarily
used and necessary to be used for and in con-
nection with the operation of said roads as
said Pacific system, and of said amount the
sum of "a 600, 900 is invested in California.
That in order to enable complainant to
operate said road it must receive income suf-
fcient to pay expense, interest, ETC., and is en-
titled to some profit.
That the complainant is engaged in State
latter have been fixed in pursuance of the
provisions of the act to regulate interstate
commerce, and that the rates on State traffic
have been fixed as to the roads in California
and Oregon by the Board of Railroad Commits
sioners of said States. and in Nevada and the
Territories in accordance with the laws thereof
respectively.
That the rates upon freights arising and
transported entirely in California are now
Ofuo l1x n nlot ix-aIr fha,, 4t,a
rates on freight arising and transported en-
tirely within the other States, and when estab-
lished were no Iuore than sufficient to operate
said roads down to the commencement of the
year 1894, and that in that year an ususual
depression in business occurred so reducing
the business of the complainant as to render
its income insu ufiicient to pay expenses, as
hereinbefore set forth. The said depression.
it is alleged on information and belief, will not
be relieved and that the business will not be
increased during the present or the next en-
suing year. That from time to time reduc-
tons have been made in rates. and from Janu-
airy, 1889, TO June, 1895, to the amount of
more than 80 per cent. table, showing the
reduction by years, is given in the BILL
Receipts and Expenditures.
That the total receipts and expenditures of
the Pacific system during the calendar year
1894 were as follows:
Receipts. ,45S.522 64
Expenditures. ACKNOWLEDGEMENTS. 3l754,785 "a
Showing deficiency Of. ............ 276,262 20
That the total receips for the first six
months of the current year $685. from the
1st day of January to the 30th of June, for the
Pacific system. were as follows:
Receipts. 125 n
Leaving deficiency of..-.......... 1,476, 176 SO
The items are given.
That there has been at all times economy OF OBJ.
Grafton, and that the operation of said road as a
system is a convenience to the public The
number of officers employed Is alleged to he
ssventyAones whp receIved daily compensa~
ton of SIG %: total yearly compensation,
$461, ,o79 04. All its other employees, number
ing 10, ,064 received an average daily compen-
sation of $254: total yearly compensation,
$11, ,972 ,667 73. That these rates were not
unreasonable.
That the rates in force upon the several rail-
roads operated by complainant have been
fixed according to circumstances and condi-
tions surrounding the traffic, and with q care
full regard TO those conditions which affect
their relative adjustment and classification,
and are fair to shippers, and in many cases
are fixed at the actual cost of transportation
by reason of water and railroad competition.
That, Notwithstanding the premises, the
Board of Railroad Commissioners did, on the
18th and 18th days of September, 1895, pass
and adopt the resolutions complained Of
Here the court quotes the resolution pro-
viding for the reduction OF per cent in
grain rates on the Southern Pacific Com
pany's road in California
The decision continues to state the aver
ments of complainant as follows:
That, pursuant to the resolution, a schedule
OF the grain rates was prepared and served en-
complainant on the 26th day of September.
1895, and that the board is proceeding to pre-
pare schedule of other rates and will not later
than January 1, 1896, enforce them unless re-
strained.
Complainant AYERS that there is no reason
to believe that there can be and will be an in
crease OF fcomplainant's business, and that the
rates and reductions were resolved on arbi-
trarily and without evidence ana will be nm
just, unfair and unreasonable and confisca-
tory OF the property rights of complainant
and its lessons.
That there is no reason to expect compen-
sating increase of business. and hence. during
the next ensuing year there will be def
cheney of So, 1868, 1923 Ia on the California
roads.