Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-08-02
Wells Fargo and Company to
Have Three-Quarters of a
Million Dollars Cut From
Revenues in State,
EARNS 1856 PER CENT
ON ACTUAL CAPITAL
Stock Now Controlled by
Southern Pacific, and Santa
Fe Road Gets 55 Per Cent
of Gross on Lines,

luY MORNING JOURNAL SPECIAL LtGsrn wiRUl
SAN francisco, Aug. l.-Thc state
tsDroad commission Of California or
GTod reductions today in the express
rates Of Wells Fargo and company
amounting 10 q cut II S15O,000 from
resent annual revenues. Every rate
az the company in this state is abol-
unCd by thu order which is effective
october i. and over 100000 new
rates devised by the commission on a
tcn-mile zone hasi. an, ordered cf-
fe.tive at that time
he cXnr ss company is orucred TO
erciatc sis months ou The commits
silr's rates. vi hich are. pn tho aver
ogc, 10 per cent below those hereto
iarc cXac,ed, and then sal nit state
mant of IT'S earnings f 1T feels the
O. ties are rot justified At present,
tde commi sion finds, the company
r.ltes a net early profit of $S42.091,
On property valuation estimated at
$6ft,233, or 1876 per cent on its in
Vestment. The finding pronouncos
tee compl1y "a parasite on the rail-
rmos' an suggests that. instead of
appealing Go the interstate commerce
commission .or permission to increase
rates the railroads 'look nto This ex-
Icss siultion."
quite possibly" says the opinion,
they will fnG some relief from a.
last part of tho financial difficult
ties whiea. they maintain, hcset
hem
I'VE do not Sec" the opinion CON
tnrcs. "why the railroad companies
if this scryiac is a public necessity as
# seems 20 DE, could not furnish and
maintain the comparatively small
amount of additional terminal equip
lrcnt which is necessary to carry on
inc pick mp and delivery business Of
tie express company
The Gonna ssion finds side light
on this very question In the inter
cooperate relationship bctv cen rail
rc"ds ana the EXPIRE SO company
which, it says. 'makes rauG possible
ubon both the railroads and the pub
lc" II citas the fact that the Wells
Fargo company PAYS to the Atchison,
7arcka ami Santa Fc railroad. s. per
G. NJ of IT'S lrOss earnings on that line
gn, To the Southern Pacific raiIrond.
orir f0.S uer cent of its like gross
o1"rras. This, the finding asserts
"cnables he Southern Pacific to sac
rifcc its own earnings to swell the
Wells Farce oompanys earnings. and
the commission points ont MS signifi-
can't the fact that neither the Santa
Ie nor its principal stockholders are
heavily if at all interested in Wells
Fargo ana company and that the
southern Pacific officials and its priu-
opal stockholders are The officials
o. the Southern Pacific, the commits
SION says, did not have control at the
tire its contract with the express
company was made
THAT .omchody is getting the
Nerst of It, there is no doubt" says
Tho commission in commenting on
c\isting rates. IT estimates that the
Southern Il cific, in effect. pays the
Wells Fargo annually $2,oO0.0 900 more
Tan il sh aid on all business in CAL
il,rnia. Thi amount, the commission
s'ys, must come out of the railroads
other activities, and hence in the
long run, from its patrons.
The commission differs from the
Interstate commerce commission in
that the interstate body found the
cypress companies to be proper bod
ioa for carrying on their business
While the california commission holds
t'"t they @rc parasites" and that the .
l"loads' or some other AGENCY could
J. substituted to betteraadyantage.
he decision follows two and n half
}cars of 'avcstigation, during which
oter 100000 waybills were scrutin-
wed. The investigation started when,
upon taking office in 1911, the COM
ltfsion refused to accept as reason
able the schedule Of rates filed with
q hy the Wells Fargo company.
thereafter, The Santa Fe railroad in
b\ened, asking for more than the So
iet cent Of gross receipts it was get
lht, but the Southern Pacific. which
'he commission found to be receiving
'iy 40 per cent Of The company's
'''hings, took no action. This is
,'hmcntei upon in the findings Of
INC commission.