The San Francisco call., 1909-03-14
BRADLEY MAKES
REPLY TO PLEA
OF RAILROADS
Traffic Manager Tells Why In
crease of Freight Rates
Is Not Necessary
Plant of Companies Is That
Revenues VIII Not Pay
for Improvements
'LSesoial Dispatch 10 The ColIl


CALL HEADQUARTERS. CHAMBER
OF COMMERCE BUILDING, sACRA-
AIENTO. March 13.-George J. Brad
lev. formerly president of the CALI
fornia traffic association. and now
traffic manager Of the Merchants and
manufacturers association of Sacra-
mento, told the senate committee today
why the Southern Pacific did not need
10 raise its freight rates.
The railroad companies have made
the plant that their revenue was not
sufieient to pay for badly needed i'm
provements in equipments. but Bradley
submitted figures regarding the South
ern Pacific which gave the committee
z new light on this point
From these figures 81 appears that
the gross earnings Of the Southern Pa
cihc increased from s5T. 100000 in 1898
10 Sl25.O00O0o in 1907. During the
same period the net earnings increased
from sl4s50o,000 10 s44,5O0,000.
EXPENSE VARIES SLIGHTLY
The ratio Of expense. Bradley ex-
plained, has not shown much change
during these nine years. In 1898 the
laLlQ OF expense was % per cent from
1893 TO 1902 il was from 63 TO 81 per
cent. in 1903 it was SIS per cent; in
90s IL was SIS per cent; in 1905 it
was SIS per cent, in 1906 81 per cent.
snd the same in 1907. Bradley had
not figures for the past year.
Other figures submitted by the traf-
&c man indicated a very healthy fnan-
cial condition. In 1907 the gross earn
ings were sI25,000.Oo0 The operating
expenses We're sSo,000,0oO. leaving for
net earnings $4,000, 600. To this was
added s5,O00.00o of miscellaneous IN
come, ma king the net income $4,000
600. The surplus over fixed charges
was $4,000. 600 The company paid
S27. 600 600 on : per cent preferred and
$4,000. 600 on per cent common stock,
and carried s15,7OO,0O0 to its balance.
WHAT is THE ANSWER
II the Southern Pacific is unable 60
pay for new equipment without raising
its tes, what Gid il DO with that
$500. .0O02" asked Bradley. No mem
her Of the committee knew the an
sWer.
Bradley testified that he was respon-
sible for the statement that the in
crease in freight rates would mulct the
shippers $4,000. 600 more per annum-
This figure, which he was willing to re-
duce by one million in order TO be con-
servatfve. was based, he declared, on
p "a per cent rate increase for Cali
fornia. As matter OF fact. he de-
clared. the increase sverage more
than per cent.
Wolfe Of san Francisco. who has
shown the reverse Of enthusiasm over
the work Of the committee, Insisted
that the senate investig cation could do
no more than arouse a healthy public
sentiment but Bradley took issue with
him.
Public sentiment is already aroused, .
he declared. The shippers feel that
the only way to get relief is through
the legislature Some are organized
and can look out for themselves, but
the majority are in a defenseless posi-
tion-'
COMEDIES WITH BRADLEY
r. D. Carpenter. chief traficman for
Hale Brothers in SAN Francisco, took
the same view as Bradley.
The railroads and the shippers are
naturally partisan" he explained. An
independent investigation, apart from
either interest, would bring great good
TO one side or the other. perhaps to
both sides. II might result in an ad-
fustment OF commodity rates
Wolfe declared that il he could be
convinced Of that he would be in favor
appropriation from the legislature in
order to carry its work along after ad-
5ournment That this will have to be
done is the opinion of Chairman Bur-
nett. as well as Of Senator Caminetti
who introduced the resolution under
which the committee is working
The manner in which the committee's
findings might be used was indicated
by Bradley ia answer TO a question by
Burnett.
SUGGESTION Is OFFERED
THE complaints made to the commit
tee. together with its findings, should be
submitted 10 the railroad commission
and TO the attorney general, with in
structions TO carry the matter TO tho
interstate commerce commission. This
already has been done Ia Oklahoma anc
Indiana. as we'll as by the federal gov
ernment itself"
All present agreed that the makeuI
of the railroad commissio would hav,
10 be improved before activity in thai
quarter could be expected
The investigation viii be resumed OF
Tuesday and a number Of shippers snC
railroadmen viii be subpenaed for tha
day.
C-I of Nar,,a DacSa~