The San Francisco Call. Newspaper, September 4, 1895, Page 8

| 8 THE SAN FRANCISCO CALL, WEDNESDAY, SEPTEMBER 4, 1895. RAILROAD INOUIRY, Ontinued from First Page. [these classes, and you already have the rev- | fenue of the wheat traffic. 3 Commissioner Stanton—Is the freight revenue | {from general merchandise given under each |classification n Martin—Not of each class, but the r,o\'enuo is Igiven of the principal commodities. They are fnot arranged according to the Western classifi- cation schedule. Stanton—Is it not the custom to keep the ac- counts according to th2 Western classification? Martin—No, si £ Stanton—Can’t you furnish them according to classification? G Martin—No, sit. We can only give the state- ment by the articles. 3 Stanton—Then we must place the article in its proper class if we want such a statement and base our calculations on that? Martin—Yes, sir. We haven't had time to do this. ; Stanton—The Western classification should have been furnished. | Martin—The books have only been kept in | that way from the first of this vear. Stanton—I thought they began that way from | w 1894. | Chairman La Rue—What wheat tonnage will | 893 and 1894. Those were short years. but the revenue is given with can have t Stanton-— General Freight Agent with the statements re their scope by stating that they ertainly we want them. urr then appeared rred to, explaining owed the | | for the arrangement with the Panams line of way of freight rates by dealing directly with the East, as their tariff is fixed by adding the local rate from San Francisco to the throngh rate to San Francisco. “The freight rates as now charged,” he stated, ‘‘do not induce merchants to buy East. That is a fallacy.” Stanton—If there wasa higher through rate | and a lower local rete, would it not benefit the whole of California? Smurr—We cannot get higher throngh rates as iong as present circumstances exist. | La Rue—You cannot control the clipper shi‘w | around the Horn, as you suggested one should do in reference to the wheat fleet loading here for Liverpool? Smurr—Hardly, though we have been cred- ited with doing that. Martin—What is the cause of these low rail- road rates? Smurr—The low rates on the clipper ships since 189; {artin—Why were the rates higher before Smurr—There was then some understanding between eastern and western transportation companies. But this was spoilt by Jim Hill of the Great Northern and the other Northern, who stood in with him. He thought he knew something new in railroading and endeavored to go it alone. The result was 1ates were broken down and there was & general disrup- | tion among the railroads. | Clark—Was not the Traffic Association re- sponsible for this? Smurr—With the the general disruption? Not at ail. Clark—They took the credit of it. Smurr—Yes, they took the credit, but they had no more to do with the breaking down of rates then a babe unborn. They #1so taok credit breaking down of rates and | steamers to this port. Those steamers would have come here anyway. That company is owned by shrewd men. They first worked us, and we dropped several hundred thousand dollars with them. Then they worked the | merchants through the Traflic Assoeiation, and | now they areoperating theirsteamers into this port independently. The Traflic Association < not responsible in any way for making the for the coming of those ;steamers, | discussion evidently reminded oppo: This | lieved, that the Southern Pacific Company H ore this commission before it is through with this subject. La Rue—We can fix rates, but not wages. Attorney Martin then took the floor, and stated that Mr. Lansing was present and | ready to submit his statement of the finan- cial affairs of the Southern Pacific. He added that the new witness was ill, and had it been any other matter that required his attention he would not be attending to business G. L. . L. Lansing was sworn. He stated he was the secretary and controller of the Southern Pacitic Company, and Lad been such since the incorporation ot the com- pany in 1885. Previous to that, beginning in 1869, he had been in the employ of the Central Pacific Railroad in the accounting department. Martin—Mr. Lansing, I wish you would pre- sent the financial statcment of the Southern Pacific Company showing the revenue and ex- penditures, the operating expenses and_fixed charges and its bonded indebtedness. It has been frequently stated, and it is generally be- carrying an undue proportion of bonds com- pared to other roads. Lansing—A very important subject in con- nection with the regulation of the company’s affairs by the State is its income, and the ob! gations of the company to provide the ex- penses of operating and maintaining its prop- erty, and its obligations to its bondholders for interest on the mortgage bonds. The Pacific system lines comprise 4875 miles of railroad. They are west of El Paso and Ogden and south of Portland, Or., on the Pacific Coast. These lines are all leased or rented to the Southern Pacific Company, which operates them for the common good of all. The returrs from them are all made jointly and the results are divided among the various companies. I shall presenta complete state- ment of the operations of these roads for four years past to the end of 1894. Rates should not be fixea by the State below the expenses of operating the roadsand the fixed charges. To do so would amount, accord- 1ng to law, to & confiscation of the property. He then quoted from a decision of Judge G. L. LANSING [Sketched by a “Call” artist.] BEFORE THE RAILROAD COMMISSION. local freight traffic of the Pacific d: the Southern > Pacific Company of Kentuck o territory of Portland, Paso end Ogden. The tables TONN OF THE PACIFIC DI SION OF THE SOUTHERN PACIFIC COMPAN FOE THE YEARS 1893-94. ARTIC General m nerchands | Dressed meats : { Packing-house products | Poultry, game and fish Wool. - Hides and skins ... Leater.......... | Bones...... 3 | Other animal products..... ol s. | Asphaltum Bituminous rock. 20,908 Borax. 7 T 2,470 Stone .......... { Other mineral Lumber ....... Wood . Other forest products Iron (scrap and pig). . products Iron rails a nd trimmings. Agricultural implements. vehicles. ... = Beer, wine and liquor. Sugar 3 Molasse . Dther manuf’ing Miscellaneous.... earnings on loc: 283 and for 1894 they Mr. Smurr pointed out | that in 1893 the grain tonnage was 964.625 | | out of the total of 4,292,576, or about one- fourth of the whole.” Continuing he said 1 This is as near as we can come to complying with the request of Commissioner Stanton. | From 1895 we commenced the use of the West- | ern classification schedule. Mactin—The grain tonnage is one-quarter of were $9,908,892, the whole. What is the proportion of revenue | from wheat? : | Smurr—One-sixth. California may claim 1 eredit for 85 to 90 per cent of the gross to nage. These tables show local trafic onl Eastern shipments amount to about 100,000 | cars per annum,and no through business is represented in these statements. Stanton—The whole Pacific system is includ- €d, butinot shipments to or from the coast? Smurr—Yes, sir. That is correct. La Rue—The grein traffic is virtually all ‘within California? Smurr—Yes, sir. Stanton—Can purely California business be segregated from interstate business? Smurr—It is impossible to do that. We only keep a record of shipments received at points of destination. To asceriain the origin of busi ness every waybill wonld have to be inspec d —a labor of months for our whole clerical | force. La Rue—Then this is not a complete state- ment, as asked for? Smurr—There is & heavy business in through traffic, but we have prepared no statement of this. Mr. Ramgsey will show the gross earnings of the system, including through business. La Rue—The fact that the through earnings | and tonnage are not shown makes the wheat 8how larger in proportion. Commissioner Stanton here remarked that the statement should have been in the form asked for, and this induced Mr. Smurr to again make the promise that had been made and violated only a few days ago. that such a statement would be fur- nished. Buthe deferred the date for its fuifillment until next year. In explanation of the fact that the through rate from the East to San Fran- cisco was sometimes_less than the local rate out from San Francisco to points within the State, Mr. Smurr explained that _ the exceedingly low rates to San Francisco . from the East were brought about by water competition, and that freight was taken by the railroads if it returned but the bare | costof the haul. He further stated that - | theinierior points were benefited in the | the comm { | within the past thirty d 9% | here asked by Chairman La Rue to explain | also employed for less wages than the old ones 7 | than we for the seme class of work we cut our | duction, such as 10 per cent all along the line, | and were reduced to $2 for a day of ten hours. | If a general reduction is made everybody would | $344,481 4 had in his pocket on the subject of clipper rates. It referred to the arguments before ission last week, when Mr. | Smurr claimed that the great advance in | clipper rates to Liverpool more than offset the benefits of the freight reduction made | by the Southern Pacific Company last | November. The writer called attention to | the great reduction in ocea ights shillings or $250, and the writer predicted that beiore January 1 next there would be a further drop of $150, making $4 in all. | The suggestion was made that the railroad be asked to make a proportionate cut inits rates. Commissioner La Rue refused to disclose the name of his correspondent, | claiming it was a private letter to him per- sonally. This brought from Smurr the query ‘“Has the decrease enhanced the value of the farmers’ grain?” La Rue—There has been no change in its! value. Between the ppperand the nether mill- stones the farmer has little show of being bene- fited by anything. Smurr—Well, that is the fix we are in. We | are also continuously between two millstones— the demand for lower rates on the one side and wages on the other. Assistant General Manager Curtis was what he meant the other day when he tes- tified that notwithstanding the devices that had to be adopted to reduce expenses the company had not reduced wages. Curtis—There was no material reduction. | We are always trimming here and there. La Rue—You have been reducing the force, tie price, of 1abor? Curtis—We are trying to reduce expenses all the time. La Rue—Has there not been & change in the pay of engineers? Curtis—There has been a readjustment of the ay of engineers. Trains run faster than be- ore. Shipments East require fast time. In consequence, the hours of duty are shorter. The reduction was on this basis.” New men are are getting. If we find others are paying less rate of weges. There has been no general re- or any per cent. None of the changes are ma terial compared to the millions paid out. La Rue—Didn’t the reduction of the pay of the engineers and trainmen apply to all parts of the State? This communication is directly to the point (handing Curtis the communica- tion signed ““The Workmen’ Curtis (after reading, and w hesitancy and uncertain when that was done. I the time mentioned. | | th considerable y)—I don’t remember resume it was done at The wages were $2 25, The cut affected 100 to 130 men. La Rue—If they worked eight hours they got only $1 60, or at the rate of 20 cents an Liour? Curtis—Some probably made only $32 a month, as stated, but that was when business was slack and the force was on short time, The men thought it the fairer way to reduce their time of employment, rather than to reduce the orce. Stanton—Does a general reduction in wages affect the general office? Curtis—There has been no general reduction; have 10 stand his share of it. La Rue—Ithas not been tne custom to reduce the salaries of the higher officers as labor has been reduced? Curtis—They are few in number. There are ouly eight. _Their aggregate yearly salaries are ,or an average of $13 76 per day, while the total sum paid for labor in & year 1§ about $12,000,000. Denis Kearney, who has been a keen listener to the proceedings of every session of the commission, here iegged permission of Chairman La Rue to ask Mr. Curtis only one question. La Rue—All right; but only one. Kearny (addressing Curtis)—I would like to know what President Huntington’s salary is? Stanton—So would 1. La Rue—I wonld also like to know. Curtis—I don’t know. Idon’t know that he 1s on & fixed salary. Stanton—Would Huntington's salary be re- duced in proportion to the other salaries re- duced? La Rue—Won't the books show what his salary is? Curtis—It would appear in the books of the New York office. 2 anRuc—Would it not show in the books kept ere? Curtis—No. The financial operations are conducted at New York. La Rue—Where was the financial statement to be presented by Mr. Lansing compiled ? Curtis—Mr. Lansing can answer that. Iam not the bookkeeper. Kearney (addressing Chairman La Rue)] Raise the wages of the men to $2 50 and raise the rates. I'propose to argue on this line be- vision of | Chairman La Rue of a communication he | Brewer of the United States Supreme Court as to what constitutes a reasonable rate. It must, it is held, cover the cost of maintaining and operating the road, in- erest to bondholders and dividends to the stockholders. Reading from the state- ment he held in his hands, he made the following showing: 1 "OME AND EXPENDITURES Surplu! DaTE. Revenus Expense 1891 082,000 $33,791,000/ $3,291,000 18 5,548,000 3.000| 1,776.000 893 4,893.000| 32,572,000 2,021,000 1894 1,415,000/ 31,681,000 76,000 *Deficit. Making deductions from this statement he stated that for four years there had been steady reductions in the income of the company and that 1891 was the best year in the history of the company, while 1n 1894 there was a deficit of $276,000. The gross freight earnings for 1893 were $20,836,000 and for 1894 they were $18,620,- 000, a decrease from 1893 of $2,216,000, or 1024 per cent. Heclaimed that at the same time there was an increase in the cost of the freight service of 1894, as compared with 1893, amounting to 5.37 per cent. The rate per ton per mile received in 1893 was 1.43 cents and in 1894 it was 1.21 cenis. These figures included through and local traffic. La Rue—The low rates on through freight cansed the reduction in theincome, did it not? Lansing—Partly, but local rates were also re- duced. La Rue—What became of the surplus? Did 1t go inte dividends of the Southern Pacific Company? Lansing—No, sir. It was divided between the companies earning it, and the Southern Pacific received a portion. La Rue—How much would the earnings have to be to have a dividend? Lansing—That remains for the directors to say. Some of the companies have paid a divi- dend. In 1891, 1892 and 1893 the Central Pacific paid dividends of 2 per cent. Iknow it is generally believed that the Southern Pa- cific Company and the Central Pacific Railroad stockholders are the same. This is not true, though the‘Frincipll stockholders of both are the same. The foreign stockholders viriually control the Central Pacific Railroad. He then reviewed the financial history of the Central Pacific Railroad and brought into relief its financial straits. La Rue thereupon asked him if its em- barrassment was not due to the diversion of traffic to the Soutkern Pacific Railroad and in reply Mr. Lansing stated he had never received instructions to charge ex- penses to the various roads other than in an equitable manner, but failed to reply directly to Chairman La Rue’s inter- rosalory. ommissioner Stanton then asked: “Why does the Central Pacific not pay ?"’ Lansing—Rates are low and the amount of business s insufficient. La Rue—All the California lines belong t the Southern Pacific Company stockholde: and the leases are fixed 50 & 10 abSOrb any pos- sible dividends? Lansing—They don’t earn dividends. Martin—Do you suggest that the Southern Pacific Company peys high rentals so as to ab- sorb dividends? La Rue—Yes, sir. Lansing—I want to_explain the sitution of the Central Pacific.. It formerly had to pay the Government 5 per cent of its earnings and do the Government's transportation in part ayment of its debt to the United States. Now thias to pay 25 per cent of its earnings each year and has never yet defaulted. The only company that has paid a dividend is the Southern Pacific Railroad, which in 1893 paid 2 per cent. Adjournment was here taken until 2 P. M. Mr. Lansing at the afternoon session took up the subject of the decrease in earnings in passenger traffic, which he vresented as the next important source of revenue, and which decrease he placed at $1,388,000 for 1894 as compared with 1893. Stanton—What was the total passenger rev- enue Lansing—In 1893, $10,944,000; in 1894, 7,557,000, b Sianton—These reports furnished to the com- mission state that the total passenger revenue rl;;i $10,511,332 for the year ending June 30, Lansing—That makes a difference of six months. I report from January to January. The report of the company for the fiscal year of 1895 to the commission is in course ot preparation, but that, of course, will not agree with the calendar year shown in the com- pany’s report. This decrease in passenger earnings is accounted for in general terms ; reduction in the average rate received of 9.9! T cent, together with a decrease in tratfic of .96 per cent, the total decrease in earnings Leing $1,388,000, which with the decrease in freight earn ings of $2,216,000 makes & total of #3,604,000 for those two items alone. Rue—Were not the passenger earnings in- culded in the statement of 1893 considerably larger thea usual on-account of the World's air Lansing—Yes. Thereis no doubt that was the means of considerable revenue. That was commencing in the early part of the year. Probably that may account chiefly for a portion of the decrease in 1894, JLa Rue—I estimated it at $4.000,000 to $5,000,000. Of course that included other moneys than railroad fares. Lansing—There was an actual decrease of mileage of passengers of about 3 per cent. The number of passengers carried one mile in 1893 was 519.000,000, and in 1894 the number was 507,000,000, a decrease of 12,000,000, There was a deciease in the local business also. Itis not great compared with the freight, but it affects the results. There was & decrease also in expenditures, as I have already shown, making a decrease showing for a pertion of 1894 of $2,296,000. If the passenger rates of 1893 had been received in the passenger traffic of 1894 the earnings for 1894 would have been $89,900 more than they were. That is the effect of the decrease of 2.96 per cent in the rates per mile. 1f the average freight rates 01 1893 had been applied to 1894, the freight earnings of 1894 wovld have been greater than they were by $1,797,000. The reduction of the net income in 1894 of $2,276,000 is & very striking amount, and might raise the question whether it is due toabnormal conditions, that there would be a return with better conditions to an improvement in income and profit. If this does not follow to some extent it will certainly place the financial affairs of the com- Snny in a critical condition. But the real epression is due to the general depression of the country. During the period of prosperity previous to 1891, there were thousands of miles of raflroads coustructed each year, and tor the last three years there has been & de- crease down to practically nothing. Mr. La Rue wished to know if he did not count in the decrease of the' earnings the decrease of wheat, which would amount to_nearly $1,000,000, and Mr. Lansing re- plied that the decrease on that line for the year 1895 was due to the application of the new wheat rates adooted on December 29, 1894, which would make a further decrease for 1895. But Mr. La Rue insisted that the company would have the benefit of the increase in the crop, and Mr. Lansing admitted that that would increase the net result. Then Mr. Smurr urged that the Western classification took effect in 1894 and that caused a shrinkage. Then Mr. Lansing started in afresh: You might infer from the reduction in 1894 that was an unusual year,so I have taken figures to show as far as possible the effect on the first six months of 1895, but without com- parison with other periods, showing only net results, which presents a deficit of $1,476,000. La Rue—But the first six months of a year does not average so great in revenue as the last six months. Lansing—Thrat is true, and some of the ex- penditures are irregular. La Rue—They are greater for the first six months. You have to fight snow. Lansing—That will hold the expenditures about equally divided. The earnings sually not so large in the first six months. The company hopes it will be able to overcome the deficit for this year, but that depends upon circumstances and to some extent on the action of this commission. During the last few years the earnings have been falling off and every effort has been made to reduce the expenses. Bat it is increasing expenses now, and has been for the first six months of this present year. It has been renewing old rolling stock to & large extent and furnishing locomotive power of greater capacity and improved cars. La Rue—If you expended a considerable of your surplus of earnings in improvements, ihen instead of the bondholders getting divi- dends they would get better security. Lansing—Yes, it is necessary to maintain the property in first-class condition. Attoruey Martin—10 maintain the road at all, you must keep up the interest on your bonds? Lansing—Yes, La Rue—Thet is true, but when the surplus is expended in improvements you have no chance to reduce rates. Lansing—That is the proper disposition to make of & surplus of that kind. La Rue—Suppose the brid; being con- structed at Sacramento cost $75,000 to build, the two counties appropriated $40,000 toward the construction, how do you account for that apprepriation in your repoyts? Lansing—Under the decision of the Federal courts it would be charged against the income for tho year. Mr. Lansing entered into a lengthy ex- planation of the division of expenses of terminal facilities, such as union depots overated by a depot company for the bene- fit of several roads, when Dr. Stanton asked : The interest is increasing on the bonded in- debtedness, is it not? Lansing—No; 1t is probably less than it was seven or eight years ago, though it has in 1894 increased over 1893 by $190,000, due to the acquisiifon of new lines by the Southern Pa- cific on which bonds have been issued. For in- stance, in 1891 there were 4711 miles; in 1892, 4777 miles; in 1893, 4859 miles; in 1894, 4875 miles. This increase of sixteen miles of road sccounts for the increesed interest on bonds. Stanton — That represents an increase of $175,000 in the interest? Lansing—No; there is another cause for that, which was doubtless due to some transactions in the bonded debt of the Central Pacific. Ido not recall the detail of that, but there has been a transaction of that kind affecting some of the issues of the Central Pacific by which certain bonds have been exchanged and a new issue made, exchanging for maturing bonds, and in the collection of interest for settlement there would be unusual interest eharged. Mr. Lansing then went into an explana- tion of the law providing for the issuance of bondsand interest, described the early building of the Pacific system, admitted that the land grant was a source of benefit, and continued : The Central Pacific now has 1360 miles of road. On this road originally there was a total issue of 75,867,000 in bonds, issued to differ- ent roads at different times. There has bcen retired $15,767,000, leaving outstanding $60. 100,000 of all ‘Central Pacific bonds, an aver- age of $44,191 per mile. The lines in Califor- nia wholly are the Southern, 1877 miles of road; 390 miles in the Northern Railway, 54 miles in the Northern Californio Railway. These are bonded at $27,000, $25,000 and $20,000 per mile, respectively. The other roads in this vicinity are Southern Paciflc Rauilroad in Arizona, bonded at $25,400 per mile; Southern Pacific Railroad in New Mex- ico at $24,445: Oregon and California, in Ore- gon, at $28,800. Those amounts were required in the construction. The average rate of bonds issued for the road operated by the Southern Pacific in the State of California is $29,225 per mile. This includes the South Pacific Railway of 104 miles, for which the bonds were issued at $52,800 per mile. This road was con- structed under the ownerskip of the late Sen- ator Fair. Itincluded the ferry system, which adds to the cost of construction and main- tenance. A great deal of expensive property was put on a mileage basis of $200,000 or £300,000, or Yfi'rhnnn £1,000,000 per mile when singled out, Che California Pacific is another, with a bonded debt o 9,300 per mile, and is a very impor- rosd in the systém of these roads, be- cause intermediate between the roads on both sides, having large traffic. This road was reorganized and the bonded debt exchanged for bonds at a lower rate of issue. Some al 3 Yer cent were exchanged for some as high as 0 per cent, 50 the road has always been main- tained at & high rate and will be until the bonds are retired. The statement that roads could be built at §22,000, and that that wasa high rate was disputed by Mr. Lansing, and he pro- ceeged to make comparisons with Eastern roads. Lansing—There is another thing in connec- tion with this bonded indebtedness business: the charge that the Southern Pacific exacted high rates because of its obligation to pay in- terest on a large amount of bonded debt is not 8 fair charge, for the rates have really never had any direct relation to the interest. You will find that where the bonded debt is the highest or approximately highest, the lowest rates of transportation prevail. The reason is of course found in the difference in the volume of traflic. Thisis particularly true of freight trafiic. The expenses of operation and mainte- nance of service, Mr. Lansing said, were not affected by a decrease in the value of the traffic, but these expenses demand rates sufficient to keep up the necessary revenue. He explained the workings of the several departments to show their posi- '(t’lon compared to the volume of business one. In answer toa question by Mr. La Rue he said it could not be judged whether the rates have any relation to the bonded in- debtedness. Then at a suggestion made a question asked by Attofney Martin r. Lansing went intoa long discussion of Eastern roads which threw no light on the subject of cost and expenses of the South- ern Pacific. Then Dr. Stanton asked: What is the average rate per ton per mile for grain, and whatis the relation comparing it with other commodities ? Lansing—We never make out that kind of a statement. We take the average rate of local tonnage for the Southern Pacific and the through tonnage East bound and West bound. But we do not show the average of a ton carried one mile—of classified freight. There is no in- {formation on that that I know of. Itisnot useful. No one knows what the expense of a certain traffic is. There is only a reasonable case made as towhat the actual expense will be in carrying traffic over a road that already exists, It 1s only necessary to consider the actual additional expense, which is a small portion of the average expense. The addi- tional expense might mot be appreciable. When tie volume of traffic is decreased the train will run just the same. There is a great deal you cannot calculate. Attorney Martin switched him off to the bonded indebtedness again by asking if there was not a necessary relation between the bonded debt and the rates requisite to the payment of interest, and Mr. Lansing replied that there is not what might be called a necessary physical relation. And again the double-track and the single- track roads were run over and Mr. Martin delared that a double-track road could be ogernted more economically. The fixed charges entering into the discussion, Mr. Lansing said, in_answer to Attorney Mar- tin’s question, that as a general definition the fixed charges of a road are those which do not depend upon the volume of busi- ness, going over the ground again that fixed charges are interest and taxes, and Mr. La Rue reminded him that these did not increase. Then the whole discussion of expenses and bonded indebtednessand the compari- son with other lines was gone over again, and to freshen it up a little the relation of the Interstate Commerce Commission to the railroads was talked about, and the railroads of England received some atten- tion. Attorney Martin suggested that the tendency oi the Southern Pacific in rates was downward, and Mr. Lansing. with con- siderable explanation, said that was true, because of the effort to get an increased traffic. Mr. Lansing reviewed an essay he had written on reductions in other com- modities compared with reduction in railroad rates in favor of the latter in the past twenty years, and Mr. La Rue stated that since 1870 there had been a very slight reduction in grain-raising. Mr. Lansing said the soil could not be forced. Barnaby Dougherty wanted to know whether the railroads of California were in the hands of the bondholders or of the stockbolders. Mr. Lansing told him they were in the hands of the latter, as the former had nothing to do but draw their interest and spend it. Denis Kearney said that Mr. Dougherty would find they were in the hands of the bondholders, and the commission adjourned till 10 o’clock this morning. EFFECT OF CHEAP LABOR, Heavy Head Tax on Asiatics Advocated by Eastern Knights. Japan’s Influence on Manufactur- Ing, According to John D. Hanbury. Labor Commissioner Fitzgerald received a letter from W. H. Allen of the Brooklyn (N.Y.) Knights of Labor, znent the sub- ject of Asiatic immigration yesterday, Which will prove interesting to members of labor organizations, the California Con- gressional delegaticn and others. Here itis: OFFICE OF RECORDING SECRETARY, ORDER OF KNIGHTS OF LABOR, L. A. 1562, BROOKLYN, N. Y., Aug. 28, R erald, Labor Commissioner, San Fran- 5 DEAR Sik: This L. A. is deeply in- terested in_the question of immigration and has agitated it more than any labor body this side of the Pacific Coast; and having learned from the Kmghts of Labor Journal and various California pepers that you are also interested in the question we want to see if we cannot co- operate with you in a movement to remedy the evil. It seems to me that it is possible for us to unite in some plan of action that will protect your people from the evils of Asiatic immigra- tion—Japanese as well as Chinese—and our people from the evils of Europeon and Asiatic immigration. It will be easier to force this coming Congress to pass the desired laws, be- cause it is just before a Presidential election. In regard to European immigration I think a $50 head tax would be right, but in regard to Asiat'c immigration I think the only remedy is to expel those that are here now. The pian I advocated in our local assembly three vears ago was to imposea poll tax of $1 the first year and $2 the second year and $5 the third year, and soon. This may seem a drastic remedy and unpopular, but not any more so than the first restriction act was in 1882. Now, if you think we could unite on any plan successfully, please write and give me your you have not the time to give to the matter will you please recommend me to some of your people who are interested in the question and who would be likely to co-operate with us. The best plan, it seems to me, would be to get the various labor bodies to take it up and hold meetings to agitate the question. 1t might also be well to form open organizations to be composed of all classes of citizens, who would co-operate with the labor bodies. Hop- ing to hear from you soon, I remain, respect- fully yours, W. H. ALLEN, Chairman committee on restriction of immi- irnl;o]l;l. Advanced Labor Club, L. A. 1562, <. of L. John D. Hanbury, formerly of San Diego, but who is now a manufacturing promoter in Japan, had a very instructive conversation with Mr. Fitzgerald during the afternoon, accompanied by Charles W. Kohlsaat, a New York investment agent, who, like Mr. Hanbury, finds Japan a profitable field. Mr. Hanbury started a big watch-mak- ing establishment in Osaka, the “Birmin%; ham" of Japan, but having finished wit! that he is now contemplating the trans- planting of several otber big American en- terprises to that country. He said in the course of his observations: It is only & ?ueslion of a very short time when Japan, China and India will do the man- ufacturing of the world. Why? Because of the cheapness of labor. A high average of wages paid in Japan per Iaborer is from 10 to 12}5 cents per day, includ- ing the high-priced mecnanical experts who must be employed while manufacturing is in its infancy there. Upon this amount the Japa- nese laborer will live comfortablyin his way, and he works cheerfully from daylight uatil dark. All'one has to consider in manufacturing is the cost of labor and raw material. It is as easy as putting two and two together and mak- ing four to figure out the effect upon the man- ufacturing interests of the Occident which the cheap and unlimited labor supply.of the Orient will heve in time. Count Enimoto, the head of the manufactur- ing and agricultural interests of Japan. in the Government, is very energetic and is putting forth vigorous efforts to make his country a manufacturing phenomenon among the na- tions of the earth. The Japanese will build their own ships, too. The Government intends to appropriate 200,000,000 yen at the next arliamentary session tor naval expenditures. he Chinese indemnity will add its weight to the general impetus. 1 was once a free-trader, but I think a high tariff absolutely necessary for this country to vrotect it from the demoralizing eifects of Oriental labor. With the present American tariff they can come in and sell their products at half the prices asked for home products here and then make 100 per cent profit. Your bureau is doing good work in its inves- tigation of Japanese immigration and should be encouraged by everybody. The Japanese have no sense of honor what- ever, and never feel under any obligation to keep a contract of any kind. Hop-pickers are in great demand at the State Employment Bureau. e e — SINGLE-TAXERS' OBJECT. Congressman Maguire Says It Is to Abolish the License System. “The real motive of this single-tax move- ment in this City,” said Congressman Ma- guire yesterday, ‘*has not been brought out plainly. “The object is this: 1f by some proceeds ing—say, a mandamus proceeding—we can compel the Tax Collector to go ahead and collect the $2,000,000 of taxes really due the community, according to the State Board of Equalization’s valuations for 1891, 1892 and 1894, it would provide a surplus of revenue, and then we could ask that the present obnoxious license system be abolished. ‘“‘Assuming that the present system of municipal licenses was done away with, it would be very risky for any party in the future to advocate its readoption.” This is a strong point with James S. Reynolds. Mr. Reynolds is rather san- fmne as to the possible outcome. The fact that the time of the collection of those so called “back taxes” is past does not concern him in the least. “Taxes are never outlawed,” he says. NEW TO-DAY. Square Business vs. Fakes. YVith Hurrah! Our belief was well founded; the people, disgusted with the tricky schemes and fake floods of com- petitors, have flocked to us and rofited by our genuine reductions 1n all departments. Our store has been literally crowded. REMEMBER : Our Cut-in-Two FPrices ;‘pply to everything in the store. The sale cannot last very long, as the goods are going fast. * Better take advan- tage of it while you can. Just a Few Prices : Men’s Black and Blue Double- breasted Suits, regular price 8750 ...cut to Men's Black and Biue and Mixed Double-breasted Suits, regu- ice $10... .cut to ed | $4.95 lar pric 2 87.45 Men s Black and Blue Silk Mix Suits, regular prices $16 50 ta g0 e ut to $12.85 All High-grade $20 to 825 Dress Suits < ut to $14.85 Men's Good Stylisn Overcoats, velyet collar, regular price $750.........5......cutto 84.95 Men's Fine Dress Overcoats, reg- ular prices $15, $18 and $20 coo C..........cuito$12.85 Wool Pants, regular price $2 R s T Tl () Cassimere and Cheviot Pants, regular prices $3 and $4..... utto $2.45 Boys' Double- breasied Suits. sizes 4 to 14 years, Tegular price $2 50..... .......cutto $1.15 Boy's All-wool Black and Blue Cheviots and Mixed Tweeds, regular prices $4, $4 50 and $5. .cutto 83,35 Boys’ Long Pants Suits, cut from 6 10..... $3.95 Boys' Long P and blue chevio tweeds, in all shades, regular $10, $12 50 and $15 value... . - .cut to §8.45 nd 75¢. 250 Fauntleroy 40¢ Money Back if You Want It. Any purchase not_entirely satisfactory can be returned and the money will cheerfully refunded. B SMMERFIELD &0 Strictly One-Price Clothiers, 924 to 930 MARKET ST, Square Business vs. Fakes. | Ribbons! Ribbons! - SPECIAL SALE THIS WEEK —OF—— PLAIN AND FANCY RIBBONS AT VERY ATTRACTIVE PRICES. These Ribbons are entirely new goods, judiciously selected, and pur- chased at terms such as enable us to offer them to our patrons at marvel- ously low figures. A saving of 25 to 3315 per cent can be effected by pur- (\ chasing during this sale. 500 pieces No. 5 (1 inch wide) AT Pure Silk, 8atin and Gros- 1 Grain Ribbon, in all shades, -—c 80c¢ per piece of 10 yards.... 3V Yard 650613!9098 No. 9 (i}4 inches AT wide) Pure Silk, Satin and Gros-Grain Ribbon, in all 1 shades, $1 20 per plece of 10 — yl::flses $1 20 per plect 0 12 s 750 pieces No. 22 (3 inches AT wide) Pure Silk, Satin and 200 Yard A L g 1. AT yards. PETTPRPN 500 pieces No. 5 (1_inch wide) Fancy Lace Ribbons, $1 45 C per piece of 10 yards. - Yard 500 pieces No. 3 (3{ inches e b e 90c per piece of 10 yards.... 120 pieces Fancy Dresden Rib- bons (4 inches wide), in AT latest floral designs, colors cream, white, Nile green, li- C lac, pink and_light blue, Yard 120 pieces Fancy Dresden Rib- AT bons, 5 Inches wide, colors (W pink, light blue, cream and 0 Yard regular price 65¢ yard. white, worth 85¢, at. RIBBON REMNANTS. 3000 Ribbon Remnants, ranging in lengths from 1 yard up, comprising all this season’s styles. These we will sacrifice at astonishingly low prices. The cost not considered. ' SPANGLED NETS. Just opened. The latest in Spangled Nets in black, gold, silver and iridescent. These are | the choicest goods shown this season. A visit | of inspection is respectfully solicited. NEWMAN & LEVINSON, 125, 127, 129 and 131 Kearny Street, and 209 Sutter Street. REAL ESTATE TRANSAOTIONS. John Nalond to Dora Rochfort, lot on W line of Beideman street. 45 8 of O'Farrell, § 30 by W 6 #lso lot on S line of Sadowa street, 49 E of O; 4ba, W 49 by S 125, block C, Railroad Homestead 0. Lows and Jennie Friedlander to Henrietta Gilen- yson, undivided third interest inlot on S line of Mc- Allister street, 176 E of Lyou, & 25 by S 137 10. Same to Maggie Tennis, undivided two-thirds in- terest in same: $10. James A. and Susan E. Plymire to Nellie B. Benchley, lot on W line of Parker avenue, 150 S of Point Lobos avenue, S 25 by W 125; grant. Margaret Dunn to Jeseph M. Furrer, lot on NW corner of Twenty-eighth and Sanchez streets, W 160 by N 114; $10. Jeremiah Slattery to Mary Slattery, lot on SE line of Howard street, 205 SW of First, S\WV 25 by SE 85; gift. dward Gely (by Louss Gely, guardian) to John H. Meyer, undivided 1-14 of lot on SE line of Fol som street, 400 SW_of Fifth, SW 25 by SE also undiviaed 1-14 of lot on NW corner of K street and Ninth avenue, N 100 by W 125, block 164, Central Park Homestead: $505. uis Gely to Joseph Levy, undivided 1-14 of lot on SE line of Folsom street, 400 SW of Fifth, SW 25 by SE 85: $10. John H. and Eugenie E. Meyer to same, undi- vided 1-14 of same: $10. Hy and Berthe Malafosse, Noemi, Eugenie, For- tune, Elisa and Merie Gely, Bertha, Celestine and Evaristo Bernos, Charles Bouchet and Adeline L. 'nski (nee ' Eoucheu), by Antoine Borel, at- ded'12-14 of same: $5. James E. Damon (administrator estate of George E. Lane) to Henry Meyer lot on E line of Forty- ® 140, 1, SW 145, W 42.11 Sunnyside’ Land Company and California Title Tnsurance & Trust Company 10 G. K. and Ida Dor- sett, lot 28, block 41, Sunnyside; §1 George A. and Arthur M. Hill to Edward C. Har- rison (udministrator of the estate of Samuel Hill), lots 67, 69, 71, 78, 75. 77, 79, Gift Map 3: also lot on SE line'of TLaldley street, 113 NE of Roanoke, NE 100 by SE 100: also on NI line of lot 19, block 32, Fairmount street. 80 NW Bemis and 196 SW from intersection with SE line of Addison with N W line of Bemis, NW 80, SW 63, SE 98 NE orner of Sagamore and Capltol N 125, block D, Railroad Home- stead 1, quitclaim deed; $10. Ann Farrell to William P. Farrell, lot on N line of Hill street. 90 E of Orizaba, E 50 by N 125, block X, Railroad Homestead; gift. Same to Mary T. Farreil, lot on N line of Hill street, 50 E of Orizaba, E 40 by N 125; gift. Same to Catherine F. Farrell, 1ot on N line of Hill street, 140 E of Orizaba, £ 50 by N 125: gift. Frederick M. Griswold and’ Leopold Herin: Diedrich Ceirich, lot 13, block A, Park Hilt stead 2: $5. Edward C. Harrison (administrator of the estate of Ssamuel Hill) to Marie J. Johnson, lot on SE line of Laidiey street, 113 NE of Roanoke, NE 100 i to ome- 00, block 6, Fairmount; 2800. and E. G. Lindley (0 Market and_ Stan- van Street Land Improvement Company, lot on SW corner of Stanyan street and Mountain Spring avenue, W 91:9. S 26, £ 93:10, N 25: $10. Henry D. Bellisle to Dora C. Bellisle, loton E line of Prospect avenue, 75 N of Henrletta street, N 25 by 1 70; gifc. ALAMEDA COUNTY. Elizabeth B. Fish of Oakland to Edward Clark of Oekland, lot beginning at & copper tack in a stake on E line of Grove street, 51 5 0f Ninth, S 49 by £ 100, block 92, Oakland ; $10. Mary E. Wright of Alameda to Alice E. Hanson (wite of E. H.), 1ot on NW line of Sixteent) nue, 76 SW of East Seventeenth street, SW 65 NW 150, being portion of lots 13 te 18, biock 38, San Antonlo, Kast Oakland; $5. David H. and Kate A. Frye of Berkeley to Dun- can 8, Campbeil of San Francisco, lovon E line of Fulton street, 45 S of Carlton, S 60 by E 125, block 1455, Blake Fract. Berkeley 810, oseph J. and Barbara Mason of Berkel same, lot on N line of Blake street, 50 W of i1 worth, W 50 by N 135, being lot 23. block 1454, Blake ‘Tract, map 1 and 2, Berkeley; $10. : George C. and Frances C. Baker to Excelsior Redwood Company (a corporation), 1ot on & line of Berkeley way, 260 W of Center street, W 50 by 5198, bein 1ot 19, block 3, Shaw Tract, Berkeley: Eugene L. Ursenbach of Berkeley to Henry Aurleres of Berkeley, lot on E line of Fourth ::mt,sl%its l\" of finefls, 1‘30’(}_ by E 126. block 47, , Berkeley Land i own I 3 Aggoctdtion, Berkeley: $10. ORI lenry Aurleres of erkeley to Christ - b‘fihxf E‘In ancl!clg I ‘y'fi. Hue Uines . A. Root of Sau Francisco to saj n same. auliclaim deed; $236. g et Villiam P. and Julia S. Ge Willlam . Feary o ?.k;ma,lgf’lf ey 8] 3 ‘wenty-t] -4 3 Ve v y- avenue Tract, Brook- Elsie A. McElrath (wife of J. E.) to 3 Fiske of €an Francisco, lot on W line of lefm:é}k avenue, 440 N of center of Temescal creek and 206.75 N from center line of private road leading from Shaituck avenue to the residence of J. E. McElrath: thence SW 701 03, NW 330, NE719:09, SE 330.35 to beginning, containing 5.38 acres. being portion of Rancho V and D Peralta,Oakland Town: ship; S1 George and Cora K. Thomson of San Franciscoto Thrall of Oakland,lot on NW corner of W 50 by N Tda E. ;}%n:el‘l:lg! wnr{‘lnd ‘Clcllex! avenue, 50, portion of lot 4, bl 3 ub;ildl;l'hc(li, l{!‘erkeley: $100. o sesiome - B. and Laura A. Pinney to William H. - ford, ot 22, block G, Melrose smm‘n?’rmg Bg; - i Tonaiip S " al rminia e of d I L. Beving’ of San Franciscs, 100 S50 Hase Toact Brooklyn Townshi P y: ; $5. uis C. and Ntfile'whlh of San F) to rancisco ‘elix Marcuse of Alameda, lot on N line of Pacific | fourth street, 120 N ot C, N 70 by E 120: also lot | ou NE corner of B and W ‘li‘on.y-thlrd streets, N | ave- | b; | i | | | | o avenue, 50 E of Sherman street, E 200 by N 150, Alameda: $10. Giant Powder Company Consulidated (a corpora- tion) to C. C. Judson (trustee of estate of Egbert Judson), all londs within the limit of Alameda County, 'including all lands which_were conveyed by the Giant Powder Company and re-recorded in 542 d 144; $20,000. Builders’ Contracts. Mary J. Morrizon to G. F. Johnson and L. A. Secor, to erect a two-story bullding on the SE iine of Harrison street, 71:6 of Third. R — HOTEL ARRIVALS. GRAND HOTEL. W H West&w,Dunnigan Mr McRuer&w,StHelena Mrs Field, Bangor, Me J W Patterson & w, N Y Miss F Patterson, N Y H S Patterson, N Y Mrs G Cray, Stockton Miss H Gray, Stockton W Johnson, Courtland F W Lake, Palo Alto W E Price, Palo Alto C F Reed, Anburn W B Fletcher Jr, Ind Mrs W B Fletcher, Ind H T Melvin, Sac R F Blacow, Irvington yward, Livermore J W Smith, Sac S N Sisco, Whatcom A Runckle, Alaska MrsE E Trumson,Seattle O Sposati, Stockton [ alister & w.Seattle M P Sailois, Omaha J P Gardiner.Melbourne L C Schindler, Sac E J Cahill, San Martin _ E O’Neill & w, Soquel E R Thompson,Stockton H 8 Chattenden, Marysvi S H Jackson, Edgewood F E Dunlap, Stockton rs de Ruiz, Vailejo J A Aldrich' & w, Buffalo rs E B Horning, Maryv Mrs E C Linn, Maryville J R Brown, Sacto R P Hool, Cal A W Johnson, Cal Mrs S C Senders, Georgla Mrs B H Scott, Decatur Mrs J T Whitney,Rocklin Misses Whitney, Rocklin H Gillette & wf, Cal C H Dwinelle, Fulton E Berges, Cal R L Weaver, Gonzales W J Lynn, Gonzales J S Brown & wi, Cal J H Rice, Santa Maria C Donovan, Santa Maria J B Kelter, Chicago A Duvall, Livermore F Graham, Deadwood D P Durst, Wheatland J T Whitney, Rocxlin J W Browning Girand 1d H M Patten, Des Molines Mrs N Avinso,Pleas Val Mrs M Allen, Cal W E Edmonsen, US N Dr J M Blodgett, Lodl R Whitlock, Porterfield J H Edwards. Arosi W H Napier, Los Ang F P Black, San jose RUSS HOUSE. G D Chenowith, Alaska H J Weeks & f, Montery E McGettigan, 8ta Rosa T Batry, Mont L S Borndfiller,Germany Mrs Pyat, San Jose J Mackay, Lakeville J R Robinson, Visalla G M Rown, Seattle A G Stuart, Oakland R Y Hampton. Newhall G F Gilson & w, Seattle Mrs S Endisall, Redding J T Robm, Redding C Jones, Redding Mininger, Hornitos 2 “e | ¥ Buttling, Hornitos R L Withem, N Mex A Stevenson, N Mex Mrs N S Hussey, Nev R W Requa, Sisson C R Scott, Or M Powell, San Quentin R E Luninger, Healdsbrg R T Stuart, Oakland J H Martin, Woodland C 8 Dalis, Woodside C T Haywards,Woodside J C Burbown, Eureka F G Christie, B C Mrs Shute & sn, Seattle J L Hardin, Mont Sallie Gordon, Cal R C Stevenson&w, Seattl J Fisher, Nev Mrs L Holtz, Nev. J Bleveton, ‘W FTiffinty, Nev Nev Dr Ritchand&w Sierra V A G Woodward & w,N ¥ G W White, Coburn D F McPhant, Hollister G W Gibson, Seattle G Mitchell & w, Haywrds W A Smith, Haywards, T Callighan, Haywards Miss L Collins, Sacto * C B Major, Amador s H Smith, Towa H C de Vie, Palo Alto B Gordon, Gozales LICK HOUSE. T Rogers, Cal L Bogan, Cal J L Tuthill, Oregon J A Sanborn, Oakland J T Maynard, San Mateo C L Smith & w, Sacto O F cosper, Tacoma M Santee & w, Cal G H Strowbridge, Oregon Nellie H Strowbridge, Or C A Cameron & & Or G A McBain, Nanimo J S Grindle & w, Everett Miss N E Parker, Everets Miss L M Rareshide, La C E Herbert. Mex W Lacy & w, Los Ang A McMillan. La Crosse R C Stevens&w, Seattle Miss I G_Kerrins, Cal Miss A L Kerrins, Cal Mis C H Waller, Seattle Miss N Smith, Whatcom H S Allen, Fresno J Ryan, San Bernardino J F Beam, Cal W J Bell, Visalia F A Schneider & w, Cal E James, Stanford H Eickhoff, San Rafael Mrs G D Kellogg. Cal Mrs E S Groesbeck, Cal D S Groesbeck, Pasadena J ¥ Nordin, Caliente S Lazar & w, Madera R J Thomas, Nevada C Van Norden, Auburn NEW WESTERN HOTEL. R F Hughes, 8t Louls J H Ellsworth, Cal W Butler, Cal J'B Arthur, Los Gatos E Jones & w, Victoria S Ducen, Astoria F Milton & w, Astoria L Goodman, Ashland D M Fras s H Grand, Cas C J Griftin, Cal Miss Booth, Vallejo Mrs M J Jones, Visalla V P Putts, Fresno A B Long, Bosion Miss L Black, Boston M B Wells, Monterey F I Sloan, Baden C B Buck. Menlo J ¥ Eroth, Los An L B Bar, Cal € Cartin, Cal R Morton, Buffalo B Burr, Buffalo L Lucy, Chicago B L Love, Chicago Miss Jacks, Chicago PALACE HOTEL. W J Stocker. England Miss W W Preston, Cal L Jones, Chicago F W Ray, Columbus Mrs T Oppenheimer & o 3 Forhes: Oma oW Fielaine, ont ‘orbes, a ielding, Chf H J Wenham, Chicago F E Lusk, l(’}‘lfxco 5t P Allaire. Minn J Bevan, London S N Smih, Wis Mrs Ford, L Miss A Robinson, L Ang C Biddle, Pa 2% R Irwin Jr, Cal Mrs H W Preston, Cal Miss L Dodge, Palo Alto C Heese, Wash, D C ~ BALDWIN HOTEL. CS Bungess&w, Oakland T McKennery, San Mateo J H Roberts, Sacto MrZiebugwin & w, S Jose T J Crowley. San Rafael T Isaacs, Tacoma L L Lombunage, S Jose MrsRHSabin, Milwaukee W I Hupp, Weaverville ¥ R Bell, Weavervilie T Wincnell, St Louis ~ MrsJBBookenbaugh,N 3 Simmon, Placerville GAMighiavaila, Placervile CWR