The herald., 1898-04-02

&utfanoG AS Ia South epr1n8 ~
price. But what is his position II his
neighbor Is liable to get cargo. the
freight on which is only 81 per carriage?
For this reason the interstate commerce
commission Is interested In seeing that all
roads charge the same rates OF freight to
and from the same points for all inter-
state business.
The president of the Santa Fe system
says positively that there is no pool between
his company and the Southern Pacific COM
pany. It has never been proved that there
Is. 1t has been assumed by parties who
have an ak or two to grind that there Is.
but they offer no proof to substantiate
their statement. As It Is criminal Of
Tense for the officers Of these companies to
form such q pool, is 1t not good common
sense for tho sentimental public to hold
these officials to be innocent until they are
proved to be guilty?
The fruit growers of Southern California
are demanding lower freight rates on or
anges and lemons. 1t is doubtful II there Is
single fruit grower In this state who can
show beyond question that the railroad
companies can afford to reduce their rates.
It Is not the purpose Of this article to
prove that they are either too low or too
high. 1 do not know. There is one thing
very certain. and that is, II there were no
Santa Fe and no Southern Pacific rail-
roads today, company with the cash to
do the work could build either road for
much less sum than was expended In their
construction.
The companies borrowed money to build
these roads, and they are now paying in
terest on q much larger sum than would
be necessary to construct the systems at
the present time, but the interest must be
paid During the past few years the Santa
Fe system has not been earning enough
money to pay this interest and other ex-
penses. AS consequence, the companies
several Of them in the system-went into
the hands Of receivers. and reorganiza-
ton had to be effected.
The orange crop must be handled In q
certain class Of cars; most of these cars go
east loaded with fruit. and are hauled back
empty. It costs money to handle even emp
ty cars-how much do not know. This
fact, however must be taken into consid-
Grafton in settling the question of freights.
1t is evident that the Santa Fe system has
not been earning sufficient money to pay
fixed charges, else 1t would not have gone
into the hands of a receiver. If 1t has not
been earning enough, what can be done to
increase the earnings? One thing Is GER
tain, 1t cannot afford to lose any freight.
unless the price for hauling such freight Is
less than the cost of handling 1t. In this
event, the more freight 1t loses the better.
The railroads cannot afford to have the
freights so high on citrus fruits that a
norton of the crop cannot be moved. II
there were l2,oOo carloads ana the freignt
was $2Oo Carload the RAILROADS. wouio re-
ceive 0'4WVoo 1or moving the crop 10 tne
east. A. ny virtue o, Tue Ies-.'ss oo"u.' ~
OF the ire'sh's anu 'ne niafNe' piioe y. .ne
iruit' 'ooV carioaus ., .he cheapeI slaue1
OF oranges coulo not pe ihoveu, .me ~, '"e
rahroao companies "ouio ioSe "'oo'000 "
laeir inco"ie'
If the income OF the companies Is TOO
small already, and 1t becomes necessary TO
reduce freight on oranges, wnere Will the
deficiency be made up? The income OF q
railroad can sometimes De increased by re-
ducing the rates as well as by raising tnem'
II there are l1oVV carioaos VI run " ~
east and the railroads haul all OF 1t. they
cannot increase the tranic by encouraging
it by low freights, at least In single sea-
SOAi' AhAOuo" - ASA'e PSAAS~ Va , 1890 ~'-~
business might be built up by continuous
low freights, but not IN single season.
Here the question OF sentiment ana busi'
ness comes In again. The railroad com
panies, and not the people Will deal with
the question. AS a matter OF sentiment
they Nigh. say that they might work fol
the beneht OF the people VINO patronizet
them, but, as matter OF business car
they AFFORD to sacrifice their property fol
the sake OF temporarily oenentns thei'
customers!
AS matter OF fact, 1t costs certain
| sum OF money per ton to maui freight. Nc
company can permanently anoro 10 M
rates below that point; any company tna'
attempts 1t must ultimately cease 10 oper
ate Its road, and no one else can take up tns
work on the same basis.
| The question Is TO ma out tnat OASIS. II
1t not fact that raliroao COMPANY hK'
any other combination OF men carrying or
legal business can make money wner
times are prosperous ana tnat tney mus
lose money during PERIODS OF business de-
preston?
during the perioo OF business activitS