The San Francisco call., 1909-11-03
DEAD SENATOR'S
GHOST EXPOSES
RAILROADGRE[D
Words of Leland Stanford Read
Into Record Against the
Southern Pacific
Hearing of Shippers Fight
Against High Rates Takes
Interesting Turn


an unexpected appearance in the post
Office building yesterday TO the very
great discontinue OF his old time
friends. With a voice mellowed
through 81 years it gave testimony
displeasing and embarrassing to the
Southern Pacific company. 1t told of
the original rates Of the company,
made merely to meet OK team competi
ton; and then there was flashed in
contrast the rate today. far in excess
OF the OK team schedule
The spirit of the past was conjured
up by William r. Wheeler. He was
the magician of the day and by night
had all but performed the miracle of
tanning the octopus. The issue was
drawn in the hearing based on the
complaint of the local traffic bureau
against the rates of the Southern Pa
cific between Sacramento and Nevada
points. The proceedings were con-
Quoted before Examiner Frank Lyon,
representing the interstate commerce
commission.
CALLS GHOST AS WITNESS
Wheeler made the point that the
railroad had put into effect in 1872
a rate OF "a cents per hundred between
Sacramento and Reno. He then called
Senator Stanford to witness that this
rate was based on OK team oompeti-
ton; in other words that il was made
just low enough TO take the business
from the OK teams that formerly did
the hauling Then. by referring to the
existing tariffs, Wheeler showed that
The present rate averages S1.07% per
hundred pounds. The shippers, it
would appear. are paying more than
the OK team basis.
Senator Stanford was brought into
the case through the testimony he
gave before the senate committee in
1883 when the question of refunding
the railroad debt was up for consider
alton.
Attorney c. W Durbrow. represent
ing the Southern Pacific. objected TO
the introduction OF the voice from the
grave.
senator Stanford had no way of
knowing at that time" said Durbrow.
that his company would have to deal
with an interstate commerce commits
sion"
''Oh, yes he did" corrected Attorney
Seth Mann for the shippers. The in
terstate commerce commission was
formed in 1887, a whole year before
the senator made his statement"
SENATOR'S WORDS READ
The words of the senator were then
read into the record. One apt state
ment was:
we knew the only competition of a
railroad would be the mule and OK
teams then used and therefore we
should be Able to ask a price for
transportation which would justify the
construction of the road, if il could be
built at once
Again the senator had gone on rec
ord with this statement:
The real value Of this road through
this barren country, without competi-
tion, was that the company could fix
substantially its own rates, accordin g
TO its own judgment Of what il should
charge 10 transact business"
AS though he had not made himself
plain, the seator went on record third
time in Washington. He said:
When we commenced to build this
road we thought that the local busi-
ness and absence of competition would
enable US to charge substantially what
we considered q fair price, and that
the only competition would be that of
OK and mule teams"
PUTS CASE IN FIGURES
Wheeler emphasized the contention
that If the 81 cent rate put into effect
in 1872 against OK team competition
was high enough then, surely the
SLO7% charged now was highly ex-
cessive BY comparison, he showed
that the Sacramento Reno rate was far
higher than the rate charged by other
roads or elsewhere by the Southern Pa
cihc for haul involving equal dis
tances, equal grades and equal difficult
ties. Wheeler submitted the following
basis of comparison of per ton mile
charges:
Sacramento 10 Reno. o....-............ 8. I6 cents
Denver TO LeadFille. .-r....... ! 81 cents
Portland 70 POcstelo. i A.-....... 3 .04 cents
Salt Lake 10 Pocafello. ?. 20 cents
go