The San Francisco call., 1909-01-03
Shippers Prepare Complaint

The local shippers viii give their
attention during the week TO the
preparation Of the complaint to be filed
with the interstate commerce commits
sion against the increase in freight
rates. Tt is understood that o. X Cush-
ing and Seth Mann viii act as attorneys
for the local businessmen. The task is
by no means a simple one and the
D. s situation viii be discussed in all its
phases by the shippers committee be-
fore the complaint is drawn
II appears TO be the sentiment among
the mercantile interests that special
stress should be laid upon the present
earnings Of the railroads, which are of a
size that betoken what has been de-
scribed as "OVerprOsperity.' In this
connection the resolutions adopted at
the recent mass meeting in Santa Paula
are Of special interest The resolu-
tiOns which We're presented by Thomas
TOland. quote from the reports made by
the railroads to the state board OF
equalization for the year 1907-190S and
present the following facts
ROADS GROSS EARNINGS
The Central Pacific railway for the
Lt5l miles from Ogden TO Oakland l
mole has an annual net earning from
q operation alone. exclusive of other
revenues as shown by said report, OF
sl3.062797-S6. which is equal to an an
Of Ss,0oI for every mile OF said road.
The Southern Pacific has an annual
net earning for the 2,797 miles reported
ln its western system (Which includes
the 2,z1S.z0 miles in California; OF
S16.S54 93412 from operation alone and
exclusive OF all other revenues. which
operation alone Of s5.665.70 for each
and every mile OF said road
The AtchisOn, Topeka and Santa Fe
system for the portion thereof, about
1888 miles, from Albuquerque. n. NJ
westward (Which includes the l,26s
miles in California; has an annual net
earning from operation alone and eX-
elusive Of all other income Of $7,SO7.-
257 which is equal 10 an annual net
. earning Of S4,37s per mile.
The net earnings aforesaid. capital
lied at 6 per cent show that the Atchi-
son. Topeka and Santa Fe is earning
an equivalent Of per cent per annurn
on a valuation Of S72,957 for each mile
of its. system from Albuquerque west
from operation alone and exclusive OF
All other revenues; that the Southern
Pacific Is earning from operation alone
and exclusive Of all other income an
equivalent Of s per cent per annum or
s9s4f3 for each mile Of the 2,979 miles
Of its western system. including Cali
fornia. that the Central Pacific has q
net earning from operation alone and
exclusive of all other income equivalent
10 per cent per annum on Sl5O,0OC
per mile from ogden TO Oakland.
CONCISE ARGUMENT
Local traffic men consider this presen-
tation the strongest and most concise
in the rate controversy These figures
will be used as part Of the argument
10 SHOW that the railroads are earning
Tar more than a fair return on their in
Vestment.
The movement for an independent
steamship line is progressing along the
lines mapped out when the increase in
rates was first announced. A number
OF local shippers. cooperating with the
mercantile interests Of Los Angeles
have placed the matter before the ship
ping firm 0f Bates q CheseborOugh
The plan. as reported in commercial
circles, IS to have Bates & Cheese
borough manage an independent line
OF chartered vessels between here and
the isthmus of Panama. AS a part OF
the plan the local shippers viii guar
antee cargoes for three years and viii
post a sum OF money as a guarantee OF
good faith. Negotiations have not pro
: Eressed far, but viii be continued dur
ing the week.