The San Francisco call., 1913-08-03
Sweeping Reduction of Rates
Alleged as Conhscatory
by Officials, Accord
ing to Reports
EXPRESS CONCERN
DEMANDS REHEARING
Local Officials Reticent, but
Business Men Discuss tt;
Mr.. Sproule Silent

Among business men yesterday the
topic of most general discussion was
the decision of the railroad commits
sion reducing by sS.ooo,oo0 the express
rates in this state and cutting the
annual revenues of Wells Fargo & Co.
by approximately $75o,000.
So sweeping was the ruling in all
its phases that it created nothing less
than CONSERVATION in the general of
fees here Of the Wells Fargo company.
In the absence of r. d. Caldwell, the
president in New York. the only Of
fetal in this city competent to express
the probable attitude of the company
under the circumstances is Andrew
Christeson, vice president and general
manager.
CHRISTESON HOLDS CONFERENCE
Mr.. Christeson spent a brief half
hour at his office yesterday morning in
conference with minor officials of the
corporation then hurriedly departed 1t
was announced that he had gone out
of town by automobile and would not
return until Monday.
No announcement will be made for
the company unless it comes from Mr..
Caldwell in New York" was the only
information to be had at the Wells
Fargo offices.
It was declared by a fnancier in
touch with Wells Fargo interests that
the company will apply to the rail-
road commission for rehearitng.
Failing in this an appeal will be made
TO the supreme court on the ground
that the commissions ruling is con-
hscatory.
we have taken nearly two and a
half years in investigating express
conditions in this state. we have gone
carefully into every phase of the sit
uation, we have weighed every point
carefully and we have rendered our
decision. The commission can say
nothing more" This was the only
commission would add to the action
announced.
FOLLOWED INTERSTATE RULING
In rendering its decision the COM
mission, in large measure, adopted the
findings of the interstate commerce
commission. It reaches its conclusions,
however, by a somewhat different pro-
cess of reasoning, taking the view that
the just and reasonable earnings of
the corporation may. be determined by
allowing 1t definite return upon the
value OF It's property used in the busi-
ness.
The chief point of difference, how
ever, lies In the fact that the inter
state commerce commission recognized
the express companies as proper agen-
cies to handle this business, while
the California commission declares that
they are parasites and that the rail-
roads or some other agency could, to
better advantage be substituted.
William Sproule, president of the
Southern Pacific company declined to
comment upon the commissions crit
icism of the relations between that
railroad and the express company
In the course of the decision this
recommendation is made:
RAILROAD MIGHT FIND REMEDY
1T might be well for the Southern
Pacific company, and other railroads
of the United States, to look into this
express situation and quite possibly
they could find some relief from at
least part of the financial difficulties
which they maintain beset them, and
we would suggest that by reason of
the intercorporate and inter stock hold
er relationship seen to exist that the
rate paying public would view with
more approval the applications of
these roads continually being made to
the interstate commerce commission
for increases in rates, If this rate pay
ing public could be sure that inter-
mantpulations Of railroads and ex-
press companies was not making for
tunes for stock holders OF these rail-
roads and express companies out of
the express business at the expense
Of the railroad revenue