The San Francisco call., 1908-12-06

the railroads were overcapitalized and
paid dividends on watered stock.
Mr.. Stubbs,' he said, knows that if
the Union Pacific can pay 10 per cent
and the Southern Pacific per cent on
their present issues of common stock
II the water We're squeezed out and div
ldends paid on honest capitalization it
would equal Standard oil as an invest
ment. But railroad financiers are thor
oughly acquainted with their business
Whenever their earnings are so large
that the public is likely to call for
lower rates or better service they de-
eide to do little expert book keeping,
and then they issue $4,000, 900 or $780,
100000 of extra stock and thus keep
down their dividend earnings"
PLEADS FOR BEANMEN
Adolf Koshland made a strong and
logical plea on behalf of the beanmen.
he argued that the proposed increase
in rates would injure the railroads at
the same time that it crippled the bean
interests He showed that many mar
kets now supplied from California
would be lost to this state and that the
Southern Pacific would therefore lose
the business. Koshland stated that.
other states were even now pressing.
California for the Texas market. This
market, he stated, would be lost TO
California in case the rate on beans
should be increased as proposed.
j. l.. Beard of the Napa chamber of
commerce said that he had given
Franklin K. Lane his first lessons in
business.
Il was in hopes" said Beard. that
he would explain to us this mysterious
traffic proposition. 1 have been disap-
pointed SO far in Frank he added.
but am still hopeful that he'll come
through
A+tor,,a, n t. z,~o,,-zoSr
Legal phase OF the situation, pointing
out that injunction proceedings would
create. .entanglements of a serious ma
ture.
when a rate has been in force for a
long time he said, rthe presumption
would be that it is about right
SPEAKS FOR SOUTHERN GROWERS
r. r. Sutherland fruitman of Col
ton, Cal, spoke for the growers of the
southern part of the state. He stated
that the railroads rushed carloads of
silk and rice across the country on
passenger schedules, while fruits lay
rotting on sidetracks on the desert. He
stated that he had been informed 10y
railroad official that the mail contract
of the Golden State limited paid the en-
tire operating expenses of that train.
Senator Cartwright of Fresno advo-
Gated changes in the law. He proposed
that the coming legislature memorial
ize congress. asking for a statute under
which no rate could go into effect until
passed upon by the interstate COM
! merce commission. He also suggested
| that the California railroad board be
made more efficient. He suggested that
the law be amended to give the gov
ernor the power to appoint the COM
missioners and to remove them at will
! In this manner, he stated, full respon-
te.t~ n Ha ICd wrrff
ecutive.
Fl. Kullman said that the tanning in
terests could not possibly survive the
additional tax of 90 cents which the
railroads proposed to add.
TAX FOR CONSUMERS
Colonel Philo Hersey of San Jose
presented the claims of the fruit and
packing interests of the Santa Clara
| valley. He argued that the additional
tax would be imposed on the consum
4 er Hersey figured that the increase
in rates would cost the growers of that
| section 100000 a year.
| S. r. Hopkins discussed the effect of
! the rates on the Sacramento valley in
! terests.
| A committee of resolutions was ap-
| pointed, consisting of Philo Hersey of
| San Jose, chairman; c. H. Bentley, AL
| bert Castle, Benjamin Schloss and H.
! Il kuIlna0. Ine RESOLUTION returned Dy
| the committee was adopted unanimous
/ ly, as follows:
whereas. California S commerce. trade and
| industry which are essential 10 the main
tenance of the undisturbed prosperity of the
| state are menaced by the general increase
of freight rates, which, if put in effect
| january l. 1900 in pursuance of the pro-
posal of the. transeontinental railroads, viii
| perform serious and rreparabe injury to
commercial manufacturing and producing
interests representing invested capital Of
hundreds of millions of dollars; and.
J Whereas. said proposed increase of freight
r. rates, in performing such serious and IRE
parable injury to commercial. manufacturing
/ and producing interests. will circumscribe
channels of trade. employment and consump-
ton thus Affecting fnjuriously jobbers
wholesalers retailers and consumers be-
/ sides the larger important and vital indus
/ tries: and,
| whereas, said proposed increase of freight
| rates threatens to jeopardize the welfare of
/ the whole people Of the state OF California;
and
whereas, said proposed increase of freight
| rates il unjust; In view OF the inability OF
California commercial, manufacturing and
producing interests, under existing freight
rates. TO enter competitive, markets with
| their products; inopportune, because those
/ Industries which will be most seriously af-
fected by it are now depressed account
| Of the lack OF demand, and unnecessary to
| the maintenance and operation OF said trans
| continental railroads IN view OF the unpre-
! cedented advertised profits of the Union Pa
/ cffic and Southern Pacific railroads of $685.
I O0O0O0 which are indicative OF the COM