The San Francisco Call. Newspaper, August 29, 1895, Page 5

THE SAN FRANCISCO CALL, THURSDAY, AUGUST 29, 1895. RAILWAY COMMISSICNERS MEET AND TALK, Stanton and Clark Will] Vote Down the Hori- | zontal Cut. { NO REDUCTION IN SIGHT. | Nearly Three Hours of Conver- sation That Ended About Where It Began. FRESNO SENDS A DELEGATION. A Further Meeting Wil Be Held To-Day to Discuss a Fore- doomed Resolutlon. One thing was settled d meeting of the had Commi: terday—that neither the Southern Dr. Stanton nor Mr. Clark Pacific, are in favor of ver cent in the existing frei eat. Of course reduction of the Sc Even Attorney r of some , Tepresenting 1 at the meeting that there should n whatever in the rates of Mr. Martin is quite 1 to make any such ing so pre-eminently as the Railroad Commission be yesterday afternoon. ked reduction. First Mr. to his resolution de- r cent reduction and a 20 zontal reduction on the wheat He wanted it right away, so that rers might derive some benefit be- e wheat crop of this year wasall ioner Stanton wanted a He pleaded and argued for a He wanted reduction or death, almost be said—only—only—he t want that kind of a reduction, and ot in quite such a hurry to get tion. It was not a horizontal re- that he wanted, but a reduction d there. ioner Clark did not at any time ent in favor of a reduction, yet it was apparent that he wanted a reduc- —but he did not want a horizontal re- n. It would not be fair to the rail- he thought, and he wanted to be nost as badly as he wanted a re- v about reduction— the horizontal reduction on wheat And Mr. Martin, in his frank and an embarrassing position for the Southern itic Company to find itself in should all the reduction be mads on the wheat d left for reduction on 0 And might not the n the wheat rate have to be made up rates of other commedities? Mr. only suggested this. one small room for the gratification of one lar desire—the reduction of freight sires that they defeated their own object. The reduction was not accomplished. rue, there is to be another meeting to- It will begin at 10 o'clock in the ng. It will be devoted very largely to an exposition of Attorney Martin's views concerning the kind of a reduction outhern Pacific does and does not t this meeting can hardly change the s of affairs much, for Commissioners nton and Clark have openly and can- idly recorded their eternal objections to reduction proposed by Comm issioner La Rue. Itis notto be expected that Mr. Martin's argument to-day—an argument taking about the same view of the matter at already expressed by Stanton and rk — will have any great influence ard changing the declared purpose of the two Commissioners to vote down the La Rue resolution. There were some others present at the meet: yesterday afternoon who ex- pressed their desire for a reduction—three emen from Fresno, W. W. Phillips, . W. Briggs and T. C. White. These n not only wanted a refuction, but an ediate one, and not alone that, but wanted exactly the horizontal reduc- ion on wheat rates proposed by Mr. La Rue. But these gentlemen had no votes. There was no reduction gained by yester- day’s meeting. There was one man who opened his mouth at the meeting and did not urge a reduction—not even the kind of reduction wanted by "Messrs. Martin, Stanton and Clark., This was Denis Kearney. Mr. Kearney was frank on the point of reduction, at all events. He alleged himself to represent some workmen at Sacramento who had sent him down to the commission to warn the body that it could not reduce the profits of the Southern Pacific without re- ducing the wages of the employes of the Scuthern Pacific. He pointed his finger at Mr. La Rue and tola the Commissioner that those working- men had voted for him at the last election. Mr. La Rue therefore vemarked that the railroad company should be made to share some of its profits with the workingmen— which showed that Mr. La Rue was losing no points. Mr. Kearney announced his desire to speak against the reduction at to-day’s meeting. Mr.. Kearney’s voice, being against a reduction of any kind, was the onediscordant note in what was otherwise, upon the whole, a rather harmonious and pleasant three hours’ conyersation. Aside from the weighty matters already recorded the only other specially note- worthy event of the afternoon was Dr. Stanton’s expression of utter indifleren_ce to newspaper criticism. And Mr. Martin smiled approvingly when Dr. Stanton made the declaration. In rather a milder form Mr. Clark deserved the same approv- ing smile by echoing the sentiments ex- pressed by Dr. Stanton. Then the meeting adjourned until this morning, with the definite understanding that the La Rue resolution is the onething before the commission and that both Stan- tonand Clark are pledged to vote againstit. P S FOR THE REDUCTION. Communications Urging the Cut In the Graln Rates. It was only half-past 1 when the meeting was called to order, owing to the late arri- val of Dr. Stanton. Secretary Newman called the roll, and it was answered by Chairman H. M. La Rue, Commissioner from the First District; James I. Stanton Commissioner from the Second District; M. R. Clark, Commissioner from the Third District. As attendants upon the proceedings, and in behalf of the Southern Pacific Railroad Company, there were present W, C. Curtis, assistant general manager; G. L. Lansing, controlier; C. L. Smurr, general freight agent, and J. C. Martin, attorney. Judge Lawler, Andrew J. Clunie and Denis Kearney were also among the spec- tators. Captain Roberts appeared in behalf of the California Navigation Company and Major J. P. Harvey for the Sacramento Transportation Company. Fresno was represented by W. W. Phil- lips, E. W. Briggs and T. C. White, who appeared as a committee to present a petiti D“*g the two weeks’ adjournment of the board Secretary Newman has been in receipt of a mass of communications that were presented to the board yesterday record of the meeting of August 14. Only these affecting the matter of reducing the plated by the resolution introduced by Chairman La Rue at the last meeting, were read and placed on file. A communication from Stockton in- had indorsed the resolution. after the reading and approval of the | Southern Pacific freight rates, as contem- | formed the board that the Stockton grange | odd jobs. Much of this competition, the letter savs, is rendered by vessels from the North Pacific Coast to Southern Cali- fornia ports. Returning empty they seek San Luis Obispo County freights. Concerning the grain rates from Salinas | Valley Mr. Smurr’s letter sums up the | matter by explaininyg that the trouble was | not that the interior rates were too high, | but that on the coast they were too low. | The railroad, he said, had the choice of | acting as it did or withdrawing from com- | petition. W. W. Phillips, chairman of a commit- tee sent by citizens of Fresno, presented a petition signed by 120 interested citizens, | asking that the resolution of Chairman La Rue presented at the last meeting be adopted. Mr. Phillips was asked to ad- dress the meeting, and said: In asking for a general reduction of 15 per | cent on grain rates through our valley itis | well known that the farmers and wheat- | producers of the State are fast going into bank- | ruptey. They will soon have to go out of | business unless they obtain relief through this | board in this reduction. Only last December | the railroad company admitted by a reduction | that the rates were too high, and we still think they are charging too much. The mass-meeting that selected Mr. Briggs, Mr. White and myself to appear before this board was called by the Chamber of Commerce | of Fresno. We are not here to make any specific | argument as to the grain rates established through the valley. We say only this—that | the burden has been very heavy for years past, | and that accordin things we are entitied to some relief. | Itisawell-known fact that the railroad com- | pany is not paying to-day taxes on half the to the present condition of | schedule the rate shall be reduced twenty (20) per cent from present rates, to wity Lincoln, Ewing, Sheridan, Wheattand, Reeds, Rupert, Marysville, Raminez, Coombs, Honeut, | Palermo, Vancluse, Cox Lane, Villa Varons, Oroville, Marritts, Mullen, Woodland, Curtis, Knights, Chandler, Marcuse, Tudor, Oswald, Rogues Spur, Yuba City, Vacaville, Violet, | Hartleys, Allendele, Wolfskill, Winters, Elys, | Citrona, Madison, Esparto, Capay, cadanassa, | Tancred, Jurry, Amaranth, Guinds, Sauterne, Cashmere, Rumsey, Homestead, New Ramons, Perkins, Manlove, Marhew, Routiers, Mills, Soudan, Salisbury, Natoma, Alder Creex, Orch- | ard, Folsom, White Rock, Cothrins, Latrobe, | Flonellis, Bryant, Brandon, Dugan, Bennett, | Shingle Springs, Cummins, El Dorado, Dia- | mond Springs and Placerville, and said rates | so amended, established and adopted shall be the maximum rates allowed to be charged on said Southern Pacific Company’s Pacific sys- tem in California. Dr. Stanton placed himself on record immediately after the consideration of | communications and the Fresno petitions by offering the following statement of his | position: i EAN FRANCISCO, Aug. 28, 1895, | As Commissioner from the Second District I | submit the following facts for the consider- | ation of this commission: At the session held August 14, 1895, the Commissioner from the First District pre- sented a resolution having for its object a re- duction of rates upon grain from all pofuts in | California upon the Southern Pacific system. The proposed reduction would be a general cut of 15 per cent on rates published in grain tariff No. 2 and subsequent amendments and | & reduction of 20 per cent on rates charged by this compeny from sevent-yone stations north of Port Costa and Sacramento. I was not ac- valuation that it was paying eight, nine or ten | corded the privilege of examining this resolu- | years ago. The assessed valuation of 1894 was | tion prior to the meeting and consequently | Commissioner will go into the detail of a scheaule based on his order he will agree that the facts are as I have presented them before this commission. 'Iam in favor of reduction of the freight rates on all commodities where | these rates are unjust and unreasonable, but asitis claimed that rates have been estab- lished on & commercial basis and the reduction | of rates upon one commodity would seriously affect the rates governing the movement of an- other, to be consistent this commission should give an impartisi hearing to all parties con- cerned, and when a reduction is determined upon, give the shipper of all commodities affected by unjust rates the proper percentage of said reductions; to determine this fact [ am in favor of changing the order of these pro- ceedings and offer a resolution to that effect. The order of Commissioner La Rue, if adopted by this eommission, could not possibly affect the movement of the grain crops thissea- son. Now a word as to newspaper criticism. I have been censured by a certain newspaper of this City for the reason that I would not com- mit myself to Commissioner La Rue’s resolu- tion. The public have been informed that my vote upon the question will be the test of the honesty of my future action in the commis- sion. Ishall perform my official duties regard- less of criticism and the annual report of this commission for 1895 wiil furnish all the neces- sary fnformation as to our proceedings during the past year. g Speaking then in defense of his position Dr. Stanton said: 1f we are going to investigate this subject of rates, it means not only the wheat rates, but a reduction on other commodities. The farmers themselves cannot be benefited by this reduc- tion unless the rates on other commodities are | also reduced where excessive. The only way to accomplish this is by a full investigation, If the railroad company’s position is correct let them come in and prove it. If it is incorrect declare that he favored the reduction as a | fair and just one, he was ready and willing to invite the railroad company to come in and show if it coud that it was not fair. In the discussion rates and reductions and discriminations were presented and argued upon, and when the opposers of the resolution saw that the chairman was determined to have the issue put toa proper test they endeavored to kill the resolution by declaring that it was not | properly before the board, as it had not | been seconded. | formed them that the mover of a resolu- Chairman La Rue in- tion in a quasi-judicial body had no more occasion to await a second to his action than had an attorney ir. a court of law. “If we are going to make a rate,” said Dr. Stanton, *let us make a rate that will appear consistent.”” “I see many discriminations,” echoed Mr. Clark, “and I want to be posted as to what they are. I think some reductions ought to be made in some places, but I want further information on some points.” And then they fell to discussing the rates at particular points, and the more they talked the more determined Dr. Stan- ton and Mr. Clark appeared to oppose the resolution. Then Dr. Stanton de- fended his position by declaring that Mr. La Rue had not submitted the resolution to him nor consulted with him about it, and Mr. La Rue gave his reason and re- minded Dr. Stanton that while he had called on him in reference to business of the board the doctor had never returned the courtesy. “If you could show me what bearing this reduction has on the revenue of the road,” said Dr. Stanton, “I will vote for 1From an original sketch drawn for “The Call” by J. Kahler.] CANDIDATE-FOR-GOVERNOR LA RUE AND COMMISSIONERS CLARK AND STANTON DO NOT TALK THROUGH THE SAME HAT. growers of Butte County commended the sented a statement that the distance from Biggs to Port Costa is 113 miles, all down grade, requiring but one engine for a long train, and the present wheat rate is $2 60 per ton, while the San Luis Obispo county farmers pay only §2 50 per ton over a more difficult road of 270 miles. The petitioners prayed for a reduction of at least 20 per cent. A petition from farmers and stock-raisers in the Salinas Valley asking immediate relief inclosed in a letter from Dr. M. E. Gonzales was presented. The petition urged a reduction in grain rates, setting forth the following facts: The rate of $3 per ton for grain from Gon- zales to San Francisco is manifestly unjust when but §2 50 per ton is charged for a sim- ilar amount of grain hauled from Pismo to San Francisco, a greater distance by 116 miles. In shipping our grain we are, by reason of the exorbitant charges, compelled to pay the Bouthern Pacific Company one-fourth the crop. In many cases, particularly when the grain is poor in quality, we are compelled to go further and give an amount equaling one sack in every three. The producers are compellea to eventually pay the exorbitant freight rate of $6 40 per ton for the actual necessaries of life shipped here from the City of San Francisco. If the condition of affairs now existing is allowed to lends into cattle ranges, at a great loss. A communication from P. Burrows, San Miguel, Monterey County, in which he says the farmers last season had to mort- gage their crops to get seed, and, after sacking, the sacks had to be branded to secure them from other creditors, was read. The letter continues: From Templeton to Mete station they charge us $3 per ton on grain. From San Luis Obispo, verage sixty miles further, they charge $2 50. Our land is in mountain patches fit for culti- vation, small valleys and patches five to fifty acres on hill sides. Now to protect us ask the railroad company at your next meeting to give us at least an equal show with San Luis Obispo. Are we not charged higher rates than other points of equal distances? I laid the matter before the Railroad Commissioners four years 8go. They informed me they thought they were elected to help people in our condition, and ap- pointed the 27th day of August, 1891, to try cases. The Farmers' Alliance were to furnish the hall and conveniences for trial. I gotcom- plaints from shippers and business men of this upper Salinas Valley. The political hacks as- sembled in force and broke up the meeting and ordered me and the Commissioners out of the hell. I think the iron man at the bead of the railroad who could not see any obstacles in building a road over & rocky mountain can well afford to help in our straitened circum- stances. Two communications laid over by the last meeting were read. They were from the Southern Pacific Company. One signed by T.H. Goodman reduced the passenger rates on the Lodi branch, which was approved by the board. The other was from C. F. Smurr referring to the letter by Fred Hutchings, addressed from Woodbridge, April 19, complaining of the tariff on wood from Valley Springs to Woodbridge. He explains that wood is a commodity handled under the Western classification. Had the shippers called at- tention to the fact that they desired to ship wood and the rates would not permit them, it would readilv have been observed that the Western classification was inadequate. In answer to the charges of discrimina- tion from San Luis Obispo, the letter says that the regular transportation lines have been harassed by tramp steamers, hard times causing water-craft to bunt up continue for any length of time we will be | forced to convert our valuable sgricultural | | per mile. There is no line of business in Cali- | suffered. | We simply appear here to present this peti- tion and ask the board to adopt the resolution of reduction. It is not as much as we think we | are entitled to, but we will take this small re- | duction as in the line of duty of this board and hope for better things in the future. “What was the former reduction referred to by Mr. Phillips?” asked Dr. Stanton. “‘Sixteen and a half per cent,” answered | Chairman La Rue. “The rate was $3 60, and it is now $3.” “I am in favor of taking up the different parts of the San Joaquin and Salinas Fresno Men at the Railroad Commis- sioners’ Meeting. [Sketched by a “Call” artist.] valleys,” said Dr. Stanton, “and giving | each what we shall condider fair.” And | thus the discussion upon the resolution of Chairman La Rue was opened up. S Tty DR. STANTON TALKS. Reasons Why There Should Not Be a Horizontal Reductlon. The point at issue and which this meet- ing was called to discuss is found in the following clause of Chairman La Rue’s resolution, presented at the last meeting of the board: A general reduction from the present rates of fifteen (15) per cent of each and every rate charged between any and all points or stations named in said tariff or schedule is hereby made except that between the following-named stations and all points named in sald tariff or A long list of taxpayers and wheat- | $8900 per mile, wheteasin 1884 it was $17,000 = could not vote for its adoption. Copies of this resolution &nd the proceedings held upon that proposed reduction to Port Costa and pre- | 10T0ia to-day, in our judgment, that has not | day ‘have been served mpon the company | named in the resolution and this company | asked for time in which to prepare data show- ing that this order should not be enforced. As a Commissioner and basing my conclu- | sions upon a thorough investigation of the i subject, I believe that there are many reasons to urge ageinst the adoption of this measure. The preamble to this order contsins many | statements which are not borne out by the | facts of tl:e case, and the order, if adopted and | enforced, would certainly fail to accomplish | the results which have been so earnestly de- | sired by all who are directly interested in the | question of transportation in this State. | 1 speak of the discrimination which exists on the Pacific system of the Southern Pacific Com- pany. resolution had arranged a schedule, as re- quired by the law which governs our actions, these discriminations would have been at once apparent and it would not have reqnired much calculation to show that the charges in differ- ent localities range from .017 to a rate exceed- ing 10 cents per mile. There may be reasons advanced for these discriminative charges, which, from our worthy Commissioner’s expe- rience as a shipper, are entitled to due respect and consideration; but, if reasons are not forthcoming, and it is admitted that these dis- criminations exist, then I ask how it is possible to regulate this condition by adopting such an order as the gentleman proposes? Would not a schedule based upon a general reduction of 15 per cent and excepting only the seventy-one stations which are affected by the proposed 20-per-cent reduction still meain- tain these irregularities? If the Commissioner is correct the reductions made have not been general, and, consequently, should this order be enforced, you would find the wheat-shipper .in one section of the country receiving a re- duction of 15 per cent on the rates of grain tariff No. 1, when another shipper has derived & benefit of about 32 per cent on the rates of the same tariff. A comparison of the rates from Dinuba to Port Costa and Salida to Stock- ton may serve as an illustration of this fact. Many of the stations named in the resolution as affected by 20-per-cent reduction show no grain shipments either in 1893 or 1894, nota- bly on the Sacramento and Placerville branch. The same irregularities exist as to the rates, and in some instances 11 cents per ton per mile is charged for transportation of grein. The horizontal reduction of 20 per cent would not piace these stations on an equal footing. A For these reasons I am opposed to the adop- tion of this order and I am certain thatif the If the gentleman who presented this | then we are the judgss as to what reduction shall be. I am prepared to show by the tables in that resolution that the reduction would not be productive of good results. [ think there are discriminations. I think we should give njore relief to Salinas Valley and to San Joaquin Valley. Let us make the reductions where they are necessary. Let us not make a sweening reduction in dif- ferent localities. In some cases no grain is being ehipped. From Homestead and Placer- ville none was shipped in 1893 or 1894. Iam in favor of taking up the petition from Gonzalez and Fresno. In the meantime if the railroad company represontatives want to | come in and make a showing let them do so. e L e e LA RUE TALKS. He Can See No Reason Why the Southern Pacific Company Discriminates. Chairman La Rue then spoke in support of his resolution, and in answer to Dr. Stanton'’s position, as follows: MR. rates, chapged them from time to time, and did it with an eye single to the giving of the people generally the same rates, comparatively speaking, in all localities. They have cor- | rected discriminations in many instances. In many places they reduced the rates If the company’ fair to all sections of the State then the gen- eral reduction of 15 per cent, or 10 per cent, or any other per cent, conld be made without being unjust to any particular locality without discriminating against any. Presuming that the rates fixed were fair to each section of the country. and I know no reason why they should diseriminate, there are several questions to be taken into consideration when the reduction of rates is contemplated on account of the to- pography of the conntry. Dr. Stanton says there are many places from which no grain is shipped where the railroad made a reduction of $2 or $3 a ton. From sta- tions where no grain is handled I took their rate, asthey havearate at those localities. But in the great grain-growing country, Saecra- mento, San Joaquin and Salinas valleys and some other adjacent localities I find, by & care- ful comparison of all the shipping points, that the rates are about the same. You may go to Fresno or stations in that vicinity and you will find the rate compares very favorably with the localities in the Sacra- mento Valley. The country is about the same, level and aown grade. I noted all the reduc- tions made between the different points. In some localities there is a reduction of from 4 to 20 per cent, in others from 30 cents to $2 or §3. But believing that the rates generally throughout the State were not discriminating, one section against the other, & general reduc- tion of 15 per cent would be very reasonable and just. I believe this reduction ought to be made. I have gone all over the linesof the principal points and noted the rate per ton per mile that is charged, and I carried it out in that resolution. I do not believe that the rail- road company will even contend thata 15 per cent reduction is unjust. P THE COMMISSIONERS TALK. Nearly Three Hours of Discusslon, Ending Where It Began. The remainder of the afternoon was de- voted principally to a discussion between Chairman La Rue and Dr. Stanton, in which Mr. Clark occasionally had a word to say, as to what should be done with the resolution, both Dr. Stanton and Mr. Olark declaring they would not vote for it as it stood. Chairman La Rue finally succeeded in making them understand that the resolu- tion was presented with the view of put- ting the issue of the necessity for a reduc- tion in a shape that it could be discussed, He said that while he did not hesitate to | to it.” I assumed that the railroad company, or | whoever operated this road and fixed the | arrangement of rates were | it. Butasitis, Ian on record as opposed “I don’t know how I can show that,” retorted Chairman La Rue; “the condition of the country demands this reduction. I do not believe the railroad company will dispute it.” And so it went on, and finally the dis- cussion was disturbed by a speech from Mr. Briggs and Mr. White of Fresno, who talked boldly for the resolution. Then Attorney Martin of the Southern Pacific wished it understood that if a re- port had been circulated that the railread company was behind this resolution, the report was untrue. Denis Kearney announced that when the time should come he wanted to be heard as to what effect this reduction would have on the wage-earners employed by the railroad. “You must base this re- duction on labor,” he said, “and I want to be heard on the proposition that if you reduce the profits of this corporation, you cut down the wages of the laborit em- ploys.” Mr. Clark moved a substitute to the reso- Iution that the rates on all commodities be taken up, but his substitute was lost, and the board agreed to meet this morning at 10 o’clock and hear what the Southern Pacific may have to say as to the reduction of the grain schedule, and the meeting stood adjourned. = /AR Brings comfort and improvement and tends to ;enonal enjoyment when rightly used. 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