The San Francisco Call. Newspaper, September 5, 1895, Page 9

THE SAN FRANCISCO CALL, THURSDAY, SEPTEMBER 5, 18Y5. 9 WHAT PRESIDENT HUNTINGTON'S SALARY 5. One of the Questions Asked, but Not Answered. LEASES AND VALUATIONS information on Them Desirea by the Railroad Com- mission. THEIR QUEST UNFRUITFUL. No Dividends by the Southern Pacific, but Its Stockholders Are Content. another bad day for the Southern Pacific Company yesterday in the investi- gation of its financial affa by the Rail- road Commission in connection with the consideration of the La Rue resolution providing for a horizontal reduction of 15 per cent on all grain rates within the State. Several questions were propounded by the commission which the railroad’s wepresentatives evidently felt compelled to evade or to refuse to answer. A flat declination made to state the salary of President Huntington, and no disposi- tion was shown to supply the commission the valuations of the various railroad ies, nor to give the terms of the between the Southern Pa- ympany and the roads that it op- 1 controls. The commission also impossible to get an explanation of the situation which permitted the leased (roads to make a profit while the Southern ¥ had never, since its incorporation fin 1885, declared a dividend. Itdid learn, however, that the stockholders of the leased roads were also stockholders of the s Pacific Company. Secretary Lansing of the Southern Pacific « resumed his testimony on the status of the comvany when the n of the Railroad Commission began ay morning. He read a statement the passenger traffic over the nes of the company during 1892, 1893 and 15894, as follows: ® PASSENG ...|$11,285,000 $10.943,000, $9,557,000 al attention was called to the dif- e between the passenger revenues of 2ars 1893 and 1894, showing a decrease of about $1,380,000 during the latter year and to that between 1892and 1893, showing a net decrease of $352,000 for the latter year. The increased through traffic during 1893 wa counted for by the travel originating by reason of the World’s Fair at Chicago, and the decrease in local traffic was ac- counted for by both the depressed con- dition of business and the tendency tosave money to go to the fair. Chairmsn La Rue—Didn’t the strike of 1894 nterfere conisiderably with business? Attorney Martin—1It did. The latter gentleman suggested that the freight fizures be next given and explained by Mr. Lansing, but Commissioner Stan- ton, evidently with the purpose of saving the time of the commission, said it was unnecessary to do so, as those already sub- mitted would suffice for the use the com- mission wanted to make of them. He then asked There ness s & difference in the bonded indebted- << of the years 1893 and 1894 of about $2,900,000—an incresse during the latter year. i There s nothing toshow that. ell, there is an increase in the id during that year of per cent would mean an 900,000 worth of bonds. . But in' figuring the interest s of all the companies there are a calculations to be made. I will a statement showing what I mean long end involved explanation). here_is an increase of interest ng to $175,000. Doesn’t thatimply an ese of the bonded indebtedness? Rue—It may be increased interest on 8 been e ). which at of abo ur 000 of the California lines? to an extent that would in- terest to this extent. were acquire 3 and 1894 in interest seemed to Lans in Southern istent. re were bond issues on other you state? m’t think there were. they mot redeemed g roads than th Lansing—I Martin—Have their bonds? Lansing—Yes, sir. They have redeemed £8,400,000 worth of them from the proceeds of Jand sales of the Southern Pecific Railroad. On the 12th of this month $100,000 was ap- vlied in this way. A portion of the net income is also thus applied. La Rue—Are the bonds canceled? Lansing—Yes, sir. Canceled and retired by : compan La Rue—Does the Southern Pacific Railroad own these lands, or have they been sold to the n Development Company or some other corporation? Lansing—They are owned by the Southern Pacific Reilroad. La Rue—Is the expense of the land depart- 1ent charged in part 1o the other roads? Lansing—No, sir. It is charged to the South- ern Pacific Railroad. The receipts are pledzed for the redemption of bonds. La Rue—How about the Central Pacific land rant? B amsing—The receipts from its land sales are also applied to the redemption of bonds, and the same is done in reference to the California and Oregon land grant. La Rue—Was there not & price limit placed on the granted lands by the Government, and was not a sale of them made to other compe- nies =0 as to'be able to get higher prices for them? Lansing—No, sir. Land can now be brought from the railroad as low even as 25 centsan some of Rue—And some as high as $507 ensing—Yes, but not much is sold at that price. The value of these land grants has al- Wways been greatly exaggerated in the public mind, as they were at the Start in the minds of the riilroad people. La Rue—What amount was realized from the sale of lands? Lansing—I can’t tell. At this point Mr. La Rue returned to the question of what President Huntington'’s salary is, as Mr. Curtis stated on Tuesday that for this information he would have to refer the commission to Mr, Lansing. He said: r. Lansing, we were referred to you to tell us what the amount of Mr. Huntington’s sal- ary is. Martin—We don’t lhlnkgou should ask this uestion. You have not the right to regulate the expenses of the road. g La Rue—You have agreed to give us the ex- pe $0 as to allow us 1o know how to regulate T rteltigently, o in—We don’t know how far this inquiry If we are required to give the details al Mart mey go. of expenses, ineluding individual salaries, it might embrace my own, which would em- barrass me in the presence of ail these gentle- men You can’t turn this into an inquisition dy’s private affairs. het if we should ask where certain Woald that be legitimate? No, sir. We pay outcertain amounts for expenses, and these you may know. How- , there seems to be a general desire to know r. Huntington’s salary. If you wouldn’t go into the details in regard to the others we Wwould give you this. y anton—i believe we have the right to go the salaries of all the officers. Itis mat- ter of public value. " Martin—This board is not an inquisition. Stanton—You object to give us all the [y | | formation as we need it, yet you stated that the inquiry would be broadened in its scope as we proceeded. . Martin—This is private business. We will furnish the expenses of the roads and you can | say they are 100 bigh, and so' with regard 1o the total amount-for salaries, but not for the salary of & single man. 1 have not the right to go into the private income of Dr. Stanton nor 10 learn how much mon u are making in your private business, M airman. La Rue—We are not under investigation. . Martin—To investigate a single man’s stand- ig is an inquisition. I suppose the impres- sion prevails that Mr. Huntington is absorbing a large amount as his salary. Well, I have no objection to Mr. Lansing stating the salary of Mr. Huntington or that of any other owner of the road. S B Lansing—I think I can make an explanation { Mr. Huntington’s salary and that, of other officers, and the manner in which ?hey come into the operating expenses, and evidence that they are not exceesive, without the objec- tionable feature of stating the personal affairs of Mr. Huntington and those who fix their own salaries as the board of directors. These sal- aries were fixed a number of years ago. They were fixed at a certain rate, \vgirn has been re- tained. Mr. Huntington's is the same as those of four others, who still represent an owner- ship in the company. The Southern Pacific Company operates, owns and controls other properties, and their services are given in connection with all these properties. Their salaries are divided among the various roads to which they give their services. The percentage of the gross earnings | is the basis on which each road contributes to | the salaries of these officers, but the salaries are a fixed sum. The amount is considerably less than they pay other officers, and is not a fair compensation. It is merely a nominal amount, and has been the same for twenty-five years. It was fixed then. La Rue—That does not tell us what the amount is. Lansing—My objection to stating the amount of Mr. Huntington’s salary is that he has in the past been made the object of publicat- tacks and hasalso been attacked by the press, and it might be offensive to him to have the amount of his salary given to the publie. La Rue—It might help to do away with that feeling against him. Lansing — My statement should have that effect then. La Rue—Then you decline to answer that question 7 Lansing—Yes, sir. Clark—Would you state the officers getting more pay than Mr. Huntington? Lansing—I do not care to do so. Can you state how the salaries of the presi- dent and other officers range in comparison with the salaries of other roads—whether they exceed or are less? Lansing—I have had a general knowledge of Eastern roads. I think they are about the same as here. panies have eminent men, who have large in- comes, and were paid large salaries to secure their services. President Jewett of the Erie demanded $130.000 & year. The story goes that he received that compensation. These men in the Southern Pacific are not paid for their services. It is simply a nominal amount. La Rue—I notice that the principal owners are officers in these various companies of the system. Do they receive one salary or does Lansing—Their single salary is distributed among all the roads. None pay a special Iam secretary of & number of compan ually. The salaries between the different roads of the Southern Pacific system are fixed by the accounting department, without constltation with the head of the company. La Rue—You said yesterday that thestock of the Central Pacific Company was owned by Englishmen. Where are the first mortgage bonds principally owned? Lansing—I cannot say. Idon’t think they are owned here. La Rue—Have you the knowledge whether the principal men in the railroad holds much of those bonds? Lansing—I do not think they own many of the l&onas. They were disposed of 8s s0on &s issued. La Rue—The road was largely constructed by the Contract and Finance Company, and they received a large portion of their compen- sation in bonds, and that company was formed almost wholly of owners and managers of the Lansing—Yes, and they used them imme- diately to get money to geton with the road. They became personal creditors and used their entire personsl credit to advanee the interests of the company. As soon as they got the bonds themselves paid for the road they sold the bonds and nsed the money again in extending the road. The bonds were sold in Europe in early days, so I am informed, and the interest on bonds is not paid out to any large extent in California. It is paid in New York, to a large | extent, through the New York and London banks. We get the evidence of payment, but the coupons ao not tell whoowns the bonds. a dearth of interrogations, resumed the subject of reduction of prices of commodi- ties and railroad traffic rates, on which he was speaking at the close of the session of the vprevious day. He presented the pamphlet to the commission. It showed that in the 20 years from 1873 there was a reduction on food in general of 1714 per cent; on particular articles an average of 1734 per cent; on silver 33 per cent; on passenger rates of the Southern Pacific ern Pacidc 48.5 per cent. the previous day, and said: inga little ourselves. Lansing—You will have to be your own judge. I have tried to show what the actual result is from the earnings, after paying the expenses of the company. S Le Rue—In hauling large quantities, if you put on twenty cars and then add five extra, the cost of hauling the extra five is very little; but should not an average be made on great tonrage which would enable you to reduce the rate to a very low one? Lansing—It is known very well that a com- modity shipped in large quantitiesis carried at a cheaper rate per ton per mile than & com- modity shipped in smaller quantities. You will fina that results in the lowest rates being applied to the necessaries of life, La Rue—Can you explain why the rate on flour, which is the most common commodity, end which costs the poor man as much as the Lansing—I suppose the traffic department has a very good reason. I have mever heard the discussed and have had nothing to do vith it. But taking the ordinary conditions of consumption of flour it may be called a con- sumption of wheat. There is an enormous quantity of wheat shipped that is never made into flour in this State. Flour is in a condition for consumption and is of greater value in that condition. And the things of greater value usually pay the higher freight rate. La Rue—I think on all the other roads I have examined, with & few exceptions, wheat and flour are carriea at the same price. Lansing—It must be in cases where it is the wholesale rate on flour in carioads and even trainloads. Itis not in the case of the ship- ment of & barrel of flour by a grocer and does not affect practically the cost of a loaf of bread or the bread supply of 2 family for & year. Attorney Martin—Is it your impression, Mr. Cheirmen, that the rate should be the same? La Rue—I have no impression. 1 just want to get information. The wheat rateis higher than corn, or oats, or bariey. Wheat is the highest rate. . Mr. La Rue, having obtalned no definite information on that subject, then turned to the Sacramento-bridge subject. saying: The information I have is that on that bridge proposition, of the amount $35,000 donated y the two counties, Yolo paid $5000 in cash and $5000 in unpaid taxes, and Sacramento County paid $15,000 in December, 1893. Why does that not appear in the report of the in- come? Lansing—No, the settlement has not been made and will not be until the charges come in. However, whatever hes been received is on the books and stands to the account of “Sacramento bridge,” and will remain there | till the account is ready to close. Attorney Martin—If a passenger train is moving from station to station and one or a dozen men get on you cannot tell waat would be the cost of carrying an additional pas- senger? Lansing—That is it. Attorney Martin—But there is no trouble about the cost of moving the train? 1)Lansing—No. Stanton—Bat would it not be supposed that the rates would be lower in the case of addi- tional trafic? 3 Lausing—Yes, if you hold a commutation ticket yon do not have to pay so much. La Rue—It has been said that you cannot tell what it costs to move & ton of wheat, and yel you carry from 500,000 to 1,000,000 tons a year of grain_or wheat. It seems to me you ought to be able to teli what it costs to move ton. O ansing—1 think it is self-evident that you cannot do it. You might make s mathemati- cal calculation that might be approximately correct, but you cannot tell whether it is more In certain csses the Eastern com- | | each company pey them a salary? | | receive no compensation from them individ- | largely | road. i | Mr. Lansing having exhausted the sub- | ject of salaries and bonds, and there being | 2 per cent, and_freight rates on Eastern | lines were reduced 45.7 per cent; on South- | Mr. La Rue then referred tQ.the matter : of computing rates, recalling a question of | If you must guess at your information, I | suppose that we would be werranted in guess- | rich man, is about double the rate on wheat? | Lansing—A calculation of that kind has too many concealed quantities in the way of small items of expense. La Rue—There is a difference between carry- ing passengers and hauling wheat. The pas- senger gets on and off, but the wheat does not. Attorney Martin—It would hardly be right to take the cost of & train that runs without injury, as most trains do, and apportion to that train the cost of a washout of another train. Stanton—It seems to me, then, that all the rates are arbitrary. Attorney Martin—That brings ul‘; the subject introduced at the beginning of the investiga- tion. Isit not bester (o take the entire freight traffic and consider it at one time? If the reve- nues are too high apportion_the reduction on the traffic of the road. This investigation, after taking up this one item, illustrates the difficulty of dealing with particular commodi- ties of traffic. I will ask to introduce verbal testimony from the operators of the road. Lansing—I think Mr. Smurr can explain the principles of the practice. Attorney Martin—I do not like to leave any subject with any cloud upon it that can_be removed. An inquiry was made by you, Mr. Chairmen, with regard to the losses ot these roads to the Southern Pacific Company that contained the idea of absorbing the earnings without making the dividends. You remem- ber the inquiry? La Rue—Yes, I also asked if, regarding the diverting of the traffic from the Southern Pa- cific to the Central Pacific, when if they had received their full share of the traffic would they not be able to meet their interest. Attorney Martin—I will ask Mr. Lansing if the Southern Pacific Company’s guaranteed revenue equal to a dividend of 2 per cent.was not canceled? Lansing—Yes, sir. Attorney Martin—How is it with the leases of the other roads to the Southern Pacific Com- any ? Lansing—The leases are generally in terms that the Southern Pacific Compeny shall operate the railroads, collect all the income, pay all the expenditures of operation and fixed charges of the railroads and give to the re- spective railronds what they earn—the net profit, if there is any; if not charge the roads with the net loss. La Rue—Does the company charge the roads with_that loss, or does the Southern Pacific stand it? Lansing—Tt is charged on most of the leases. Some of the roads gain ana lose alternatively. But itis very rarely a dividend is paid. The Southern Pacific Company is not only the lessee, but owns and controls the capital stock sreat many of those lines. The Southern Pacific Railroad is an independent road. La Rue—In other words they run their own ing—Yes, it may be stated in that way. e—Owning the stock they make both | sides of the contract? Lansing—Yes, and so they stand in together. | La Rue—What becomes of the stockholders | outside of the Southern Pacific Company? Is the money diverted from them to loan to other arties? s Lansing—The Southern Pacific Company does not own ashare of Central Pacific stock, Dbut the other lines are run together and they | have a common interest in the traflic. | La Ruc—The individuals who own the South- ern Pacific may be individual stockholders in the Central Pacific? Lansing—Yes, they may be and no doubt they are to a certain extent. Ido notknow | whether they own the control or not. Martin—Is there any such thing as s diver- | sion of the earnings of one of these leased roads to_the benefit of another? Lansing—No. La Rue—I meant the diversion of the traffic. Lansing—That subject has been thoroughly investigated by the Government committee. Stanton—You say you can apportion the earnings of the différent companies. Then why is it not also possible to apportion the Pa- stem in such & way that you can get the | earnings of the lines in California? Lansing—Because we show the earnings of | the railroad companies or try todo that. Itis | quite an expensive thing to do. | Mr. Lansing told ail about the process | of arriving at a conclusion by the use of | certain items on certain basis, and finally By aid he was getting off the track and switched him back by asking how he could determine how each com- any owned a percentage of its interest. Ir. Lansing explained that if one man { owned one 10ad and another man another road and operated them together they divided on a basis of mileage. Then they got into the dividends and Mr. Lansing | said that the division of earnings was not | arbitrary because it was agreed to. The diversion of traffic was again exploited, re- sulting in the assurance by Mr. Curtis that it was always subject to interstate traffic. The subject of stockholders was introduced by Dr. Stanton, who asked: Mr. Lansing, who are the stockholders of the Southern Pactfic Company ? | Lansing—Well, I cannot tell them from mem- | ory. There are some I remember—Mr. Hunt- ington, €. F. Crocker, D. H. Hubbard. There may be 100 others. Sianton—But you can_give the names of | those who own the stocks and bonds in the | aifferent companies. Lansing—No; I cannot. There is nothing to i show who they belong to. They are negotiable and pass from one to another. That is & trans- action of which no record 1s_kept. The origi- nal stockholder may have sold his stock and it may float around, but it still stands in the | name of the person to whom it was originally is: A great deal was sold in Europe and {in New York. Soitismaintained in the names | of persons who do not own it. I don’t know | about the control of the Central Pacific stock | whether it is in Europe or San Francisco. I now there is a good deal held in Europe, in London particularly. La Rue—When you have a meeting of the stockholders for any purpose you are governed he books; or do you have anystockholders’ meetings ? Lansing—Yes, by the stock on the books. Le Rue—Whether they own the stock or not | they act ? Lansing—The stock of the character I speak of is voted by proxy. La Rue—Who do the proxies come from ? Lansing—The parties in whose names the stock stands on the books. The commission then adjourned till 2 o'clock. ‘When Lansing resumed the stand in the afternoon he was asked whether the Southern Pacific Company, as the financial institution of the leased lines, operated tdl'ilem as one system. He replied thatthey d. Martin—Does this increase or diminish the cost of operation Lansing—It diminishes the cost. Martin—Is _the construction work done charged at exactly cost, or is there some com- mission allowed on it? | * Lansing—It is charged at cost. ! Martin-—When will yon furnish an explana- tion of the bonded indebtedness? Lansing—To-morrow. Clark—What is the present valuation of all the lines owned and operated by the Southern Pacific Company in California? Lansing—The valuation would be differently estimated by different persons. There is & valuation for taxation and another for invest- ment, and maybe for other purposes. Stanton—What is tire valuation for taxation? Lansing—I don’t know. The amount of taxes paid by the companies is about $1,000,000. Sometimes it is more and sometimes it is less. Last year they were les¢? than the usual amount. La Rue—What do you mean_ by stating that there are different valuations jor taxation and for investment? Lansing—1f a person were to investin the stock of the company he would value if on a different basis than that on which it is valued for the purpose of taxation. La Rue—Is the amount for which the prop- erty is taxed about iws valuation? Lansing—No. The assessment on our prop- erty is more in proportion than that generally placed on other property. There was further questioning along this line, but it failed to induce the witness to give any figures. Commissioner Clark started the inquiry along a new channel by asking: Was the 2 per cent dividend guaranteed by the Southern Pacific Company to the Central Pacific Railroad based on the cost of that road? Lansing—No; on the capital stock. La Rue—Was'the capital stock not greater than the cost of the road? Lansing—I don't know. La Rue—The capital stock was & fictitious value, I believe? tal stock is only a part of Lansing—The capi the cost of the road. Part is represented by the bonds. La Rue—The capital stock paid for the con- struction of the road, the bonds for the im- provements? Lansing—Different methods are adopted by different companies. The Central Pacific never sold any of its stoek, or very little of it. La Rue—But it got to be very valuable? Lansing—Yes, sir. La Rue—Then on what is the 2 per cent paid? Lansing—On the amount of stock issued. There was considerable issued. Clark—They do not get that 2 per cent now? Lausing—No, sir. Barnaby Dougherty—Isn’t this 2 per cent really about 10 per cent on the selling price of the stock? The 2 per cent guaranteea the Cen- tral Pacific was on its capital stock and was #1,360,000. Sometimes it earned the 2 per cent over and above its expenses, and the Southern Pacific paid it nothing. or less. La Rue—No, I do not suppose you can tell absolutely to a thousandth of a cent. E Attorney Martin—If you have any uugggeahun 2 to a method, Mr. Chairman, we will be very | lad to attempt 1t. 4 La Rue—I have no suggestion. In answer to a question by Commis- sioner Stanton witness stated that the last dividend paid to the Central Pacific by the Southern Pacitic Company was on Septem- ber 1, 1893, and that the lease with the Central Pacific was changed on January 1, 1894, and that the Central Pacific now gets only what it actually earns. _ Commissioner Clark then asked for the passenger traffic for the first six months of 1895 and Mr. Martin sugeested that Mr. Lansing produce these figures at some future time. —Can you give us the terms of each Company with the railroads? Lansing—Not from memory. T Rue.—Where do the Souliern Pacific stock- holders get their profits? Martin—Assuming they get any? Lansing—They don’t get &ny. La Rue—How do they exist? They certainly don’t undertake to run & large corporation like the Southern Pacific without being com- pensated for doing so? Lansing—They are also stockholders in the other companies. The Southern Pacific Com- peny thus bas had to run very close to the wind ever since it has been in operation. La Rue—Doesn’t the Southern Pacific make the rates? Lansing—Yes, Sir. La Rue—Then the other companies may make money while the Southern Pacific loses or does not make any. Is1t,then, right for the Southern Pacific to come here and ask that its rates be not reduced? Lansing—I don't know that this is done. The whole system is operated as a system. So far as traffic is concerned no discrimination is racticed on any of the different leased roads. hte“ revenue all goesinto the same general pot. This ¥irtually ended the examination of Mr. Lansing so far as the commission was concerned, and Denis Kearney asked per- mission to put 2 3uesnon before the wit- ness was allowed to go. This was given him and he asked Mr. Lansing what the custom was in proportioning any loss or deficit in the revenue. He ~inquired whether it fell upon the stockholders, the tax collector or wage-earner. Despite the fact that he made the most strenuous ef- forts to get a categorical reply he was un- able to do so. He then explained to the commission that his object in asking the question was to show that whenever the revenue of the company fell off and it was necessary to reduce expenses the burden fell upon the laborer. At the conclusion of Mr. Lansing’s testi- mony a communication from Captain Rob- erts of the Sacramento Transportation Company was rtead, in which the writer complained that the proposed reduction contemvlated by the La Rue resolution would drive his company off the river. He stated that the profits of the business from 1882 had been very large, incréasing the capital from $620,000 to $1,000,000. But carload rates have been fixed, cansing a shrinkage in the trade of San Francisco of at least two-thirds of its former volume. This, with the reduction made by the Southern Pacific in December, 1894, has caused the business to be unprofitable, and were it not for the brick business, warehouses and lumber interests the com- pany would be compelled to suspend. He showed that the gross receipts on 50,000 tons of grain for last year were $104,332 and expenses $90,987, leaving a profit of $13,344, which, by the 15 per cent reduction in rates proposed, would be absorbed and leave the company in debt $2305. Captain Roberts was not present toargue his cause and the communication was filed without action. Attorney Martin asked to place Mr. Smurr on the stand in order to correct an impression fiiveu publicity through the newspapers by a statement of Chairman La Rue that the Southern Pacific had not reduced rates on grain in the past twenty years. Mr. La Rue explained that he did not mean to convey the impression that no reductions had been made, but they were not commensuraté with the increase in tonnage and decline in the price of wheat. Mr. Smurr took the stand and testified, presenting a statement of reductions made, showing the rates from the following named towns to San Francisco in the years mentioned : Marysville—1873, £4 40 per ton; 1879, §3 25; 1881, %2 90; 1894, $2 50. Ridley—1873, $5 40; 1875, $4 75; 1881, $3 2051894 Biggs—18" 40; 1875, $4 80: 1881, 3 3 elson $3 60 4, $3 10. Station—1873, $5 80; 1875, $5 05; ; 1894, $3 20. 5; 1875, $5 35; 1881, $3 70; i 3, $3 30. Shaws Station—1873, $6 40; 1875, $5 45 1881, 83 75; 1891, $3 70; 1894, §3 30. Nord—1873, $6 60; 1873, $5 50; 1881, $3 75; 1894, §3 30. Cana—1873, $6 80; 1875, $5 60;1881, §3 55; 1894, $3 30. Vina—1873, §7; 1875, $5 75; 1881, §3 95: 1894. %3 30. Rosson and Red Blufi—1873, $7 50; 1875, $6 1881,314:81394,35({ 40. Tipton—1873, §7 80; 1874, $6; 1881, $4 65; 1HQI‘, $3 80. Gostien—1873, §7 60; 1874, $6; 1881, 84 50; 1894, §3 70. Fowler—1873, $7 20; 1881, $3 60. Minturn—1873, §540: 1874, $5; 1881, §350; 3 10. 50; 1894, § Merced—1873, £4 20; 1881, $3 10; 1894, $3. Turlock, 18 40; 1881, §2 75. Modesto—1873, 20; 1881, $2 50. ‘s"r\,.li:;lnAIS73. $3 20: 1874, $2 80; 1881, $2 30. Morons—1873, $2 80: 1874, $2 20: 1881, $2. Reductions from the following named sta- tions to Post Costa, which latter was estab- lished 1880 or 1881, are here given from the time of the establishment of the rates to the present time, or December, 1894, the date of the last reduction made by the Southern Pa- cific Company on grain rates: 5 Marysville, $2 40 to $2 25; Nord, 25 to $2 80; Chino, $3 20 to $2 80; Cana, 35 to _;3 gg; Vins, $3 45 to $2 680; Taylor $3 50 to Mr. La Rue called attention to the fact that the reductions to Port Costa were made after a lapse of fourteen years, and that in the rates to San Francisco the state- ment showed in most cases there had not been a reduction since 1881 until that made last December, which was a period of four- teen years. He also said that the state- ment supported his allegation in part, though he had not meant to convey the idea that no reduction at all had been made in twenty years. Mr. Smurr continued in the same line, showing similar reductions on similar dates of rates on grain from some of the same points to Sacramento, and contended that the object of the statement was merely to show that some reduction had really been made in_twenty years. He declared the Southern Pacific was doing all it could to take care of the farmer, and admfitted that the farmer was at presentin a bad way—from drought and depreciation in prices. He_ then presented another state- ment, showing the wheat crop reports of California from 1831 to 1833, maintaining his former assertion that the average for thirteen years was 21,114,400 centals. Fol- lowing is the tabulated statement: Years. Centals. Bt 4,780 121,230,300 117,639'800 a com- munication which had been sent to the comemission asserting that there had been adrop in ocean rates of $250 within the last thirty days and a prospect of a further reduction of $150 before January I next and presented 1n refutation some rates Yn:seuted in shipments reported at the San rancisco Produce Exchange in August. He did not know whether thev were recent charters, but asked to file the statement with the commission. It was received and filed. Attorney Martin interrogated Mr. Smurr for the purpose of corroborating Mr. Lansing’s statement that vhe cost of trans- Egrting a ton of grain per mile could not computed. The same ideas were resented by Mr. Smurr and Mr. Martin ina len§chy discussion whichoccupied the remainder of the afternoon. Barnaby Dongharp was on hand with a question as to the difference in the cost of hauling flour and wheat, and he was an- swered by the statement that as flour was the more valuable commodity it cost more. Denis Kearney, with the wage question on his mind, wanted to know if the loss by the 15 per cent reduction would not be made up out of the wages of the working mih-omf men. He was informed that the $300,000 loss to the company would have to be made up somehow. % “Don’t dodge ihe wage question,” said Mr. Kearney, and Mr. Smurr told him that the testimouy so far given showed thatthe payroll was the only flexible item, but that 1t wouldn’t affect the price of his 'brud. as suggested by Mr. La Rue, as it would the 5 earnings of the wageworker, if the reduc- tion should be made. After Mr. Martin had announced that he desired at the next sitting of the board to go into the possibility of determining the actual cost of hauling particular commodi- ties, the commission adjourned till 10 o’clock this morning. CHARLIE KAIN'S CASE. The Boy Who Lost Part of His Skull Improving Rapidly. Charles Kain, the 15-year-old boy, whose case has attracted the attention of the medical profession, was removed from the hospital in the ambulance to his father's residence, 2480 Market street, yesterday afternoon. The boy had his skull fractured by a runaway horse in Golden Gate Park on Sunday, August 18. A piece of his skull, four inches square, had to be removed, and a quantity of brain matter was lost. Drs. eil, Thomson and Fitzgibbon operated upon him, but from the nature of his in- juries they did_not expect he would live many hours. He is still alive and hasbeen physically getting stronger every day. Infortunately he hasalmost entirely lost the power of sEeeph, owing to the loss of a portion of his brain matter, but he will re- gain it, as the power is expected to develop In another portion of his brain in time. He is fully conscious and understands what is said to him: AFTER THE RATTLER TEST. The Improvement Clubs to De- mand Its Unconditional Repeal. If the Supervisors Refuse Actlon the Matter Will Be Taken to the Courts. Ordinance number 2760, commonly known as the “blue-rock ordinance,” must go. This much was decided on at a meet- ing of all the improvement clubs of the City, beld under the auspices of the Point Lobos Improvement Club at B’nai B'rith Hall last night. It was not the blue or gray rock against which the assembled representatives rebelled, but the *‘rattler test” to which all rock must be subjected before it can be accepted by the Street Superintendent for paving purposes. t was decided at the meeting last night that the time for severe measures had arrived. All requests of the past had been i[f'lnored, and they now proposed to test the legality of the ordinance in the courts, provided one more agpeal to the Super- visors proved futile. T. G. Parker, presi- dent of the Point Lobos Club, acted as chairman, and, after briefly outlining_ the objects which they hoped to attain, said: A great many blocks of bituminous-rock pavement, with foundations of red-rock con- crete, have been down on the streets of this City for many vears, and most of them are as %uod to-day as they were on the dai they were aid. Wheneverany defective blocks are found it ean readily be seen that the defects, if there areany in the foundations, are caused by im- proper mixing of the material and by poor wmkmnnxhig on the part of the contractors. The block of bituminous-rock pavement on Front street, between California and Sacra- mento, has a red-rock foundatien, and, al- though it has been laid for about seven years, it is as good to-day as it was the first year, an there is as much heavy traffic upon tbat block as there is upon any block in the City. The biock on Van Ness avenue, between Hayes and Market streets, has also the red-rock concrete foundation and has been down for several %c‘e‘an. and no better block can be found in this In an alley situated in_ the rear of Ninth street, on which the stables of C. A. Warren are situated, a bituminous-rock pavement was 1aid about five or six years ago upon a founda- tion of red-rock macadam, and, although there is a great deal of traflic in that alley, many of Mr. Warren’s teams passing over it daily a number of times. the pavement is re- ported to be as good to-day as it was five years ago, and as good as any that can be found in this City. Many other blocks can be cited in a similar manner, but these three, being situated in different parts of the City and being subjected to & great deal of travel, will suffice to show that 2 concrete foundation made of red rock is equal, if not superior, to auy other. For every defective block of {pnvement with red-rock foundation two defective ones can be shown with foundations made of blue or gray rock concrete. At the same hearing and subsequently on several occasions the Superintendent of Streets, Thomas Ashworth, & man of large experience in matters pertaining to street work, havin; served two full terms as Superintendent o Streets before this present terr, emphatically declared that red rock is in all respects as good as the gray or blue rock, and that in some re- spects it is better. Thiswas followed by several enthusiastic speeches, in which the Solid Eight Super- visors came in for a litile more than their share of apuse. Byron Diggins showed samples of gray rock, taken from Lombard and Pierce streets, that had onlg been down thirty days. The rock exhibited was_partly pulverized and that was the condition of the entire street. ‘‘Gray Bros.,” he said, “‘select their own rock, and put it through a private test before it is placed on the rattler machine. By this means the edges and corners were worn off, and consequently the rock lost practi- 2u|7ielly nothing when subjected to ordinance 61 T. J. Hegerty, T. C. Newberry, Charles Alpers, Daniel Sullivan and Joseph Figel also spoke at length against the ordinance, declaring, in strong language, that it was unconstitutional, because it gave a monop- oly to one man. Mr. Figel introduced a resolution, to the effect that a committee of seven be appointed to wait on the Super- visors and respectfully, but positively, de- mand the repeal of an ordinance that com- pelled the people to pay $250 a load for what z:aulc}7 be had for 75 cents. If the Supervisors then refused to take any action, the fight would be carried to the courts. The following committee was appointed. after which the meeting adjourned : Joseph Figel, Charles Alpers, F. C. Newberry, Luke Battles, Charles Lane, T. F. Hegerty and T. G. Parke; DREW A BEAD ON HIM. A Prisoner Attempts to Escape From the Sheriff of Calaveras County. Sheriff Thorne of Calaveras County reached the City Prison last night on his way to San Quentin with Thomas Joy, who has been sentenced to six years for forgery. Joy was later takento the Re- ceiving Hospital to have a fractured arm attended to. The Sheriff said tbat after the stage in which they traveled had gone some dis- tance from San Andreas Joy made a break for liberty. In jumping from the stage he fell and broke his right arm. This did not stop him from running and the Sheriff, after drawing his revolver, started in pur- suit. He called ugon_.voy to stop and fired a shot over his head to intimidate him, but it had the effect of increasing his speed. The Sheriff stopped and deliberately drew a bead on Joy's head. “Now, stop,” he yelled, “or I'll blow your head off.” Joy knew his reputation as a dead shot and prompily stopped and threw up his hands. e A PENENIFE FORGERY. Peculiar Case Brought Up by the Street- car Company. A most peculiar case of forgery has been discovered by a Howardgsireet car con- ductor, and the arrest of J. P. Mufler has followed as a consequence. Muller boarded a Howard-street car at Tenth street on August 7 last, and offered the conductor a transfer, properly punched so far as the time was concerned, but suspicious looking otherwise. He took the man’s name address, and at his leisure examined the ticket closely. He found it to be bogus, and when the case was reported to the company, Muller was arrested. He said thata boy gave him the transfer, and that he cut the time mark out of the slip with his pocket-knife. A warrant charging Muller with forgery was then sworn out, and he was arrested upon it. [PLANS OF NATIVE DA, Those of All the San Francisco Parlors Are Now Com-~ plete. THE LATEST SOCIAL FEATURES. Reports From Sacramento Indicate a Magnificent Celebration in Prospect. The last San Francisco Native Son has returned from Sacramento with his pock- ets bulging with receipts, contracts, agree- ments, etc., which is a sign that all the San Francisco parlors have completed arrangements for all things necessary to the proper carrying out of the order’s | twentieth anniversary celebration. Colonel Frank Neville of Pacific Parloc ‘was the last of the many on the committee of arrangements to return, and he said that although he thought before leaving San Francisco that Sacramento was going to do great things for the boys, what he saw during his stay was beyond even his generous idea of what the celebration will be like. The three or four days remaining before the great day arrives are being devoted to the perfecting of the various plans of a strictly social nature. For instance, on Friday evening at Sacramento El Dorado Parlor No. 52 will *‘open the ball’’ by re- ceiving at its headquarters, Smith’s Hall, on Seventh street, between K and L, the Mayor and the city officials of Sacramento, members of the joint committee of Native Sons of Sacramento and the carnival city and representatives of the press of Sacra- mento and vicinity. Financial Secretary Minord T. Arey left for Sacramento yesterday to take charge rated for a corps of artists from this City. and introduce them to Native Son hospi- tality on Friday evening. Pacific Parlor No. 10 sent invitations to every parlor in the State for its reception at beadquarters on Monday afternoon. Columbia Parlor’s invitations to the grand officers of the N. 8. G. W. have been out for a week. Columbia will banquet the grand officers on Monday night. L. F. Byington, chairman of the San Francisco transportation committee, re- ported yesterday that in addition to the special train leaving Sacramento Monday, September 9, at 8 A. M., another special will leave about 3 a. ». Tuesday, Septem- ber 10, for the accommodation of all who wish to remain to see the grand electric illumination Monday night. This news re- lieves the minds of the anxious Native Sons, who feared they would not be in time for work Tuesday morning if they re- mained Monday night to see the electric displny. Niantic Parlor No. 105 held its last meet- ing before the celebration Tuesday night, and reported that it would attend the cele- bration in a body, uniformed in dark suits, white vests with black buttons, white straw hats with black bands, black necktie and carrying Japanese parasols. A hand- some badge in the National colors has been adopted, and the parlor’s beautiful banner, which has been carried in its van for nine years, will once again flutter in the breeze. Niantic's headquarters are at the Capitol, where the parlor will enter- tain friends and guests on the 9th. The parlor will take along as a special feature its heavy-weight member, Finlay Cook, who shares honors with Grand Treasurer Henry Martin of Stanford Parlor as the biggest Native Son in the City Golden Gate Parlor’s arrangements are now complete, and Secretary Eberhart re- orted Eesterdsy that its uniform would e black dress suits, white straw hats, vests and gloves. Japanese sunshades will complete the attire. Four past presi- dents will carry the handsome banner owned by the parlor, and the members will receive their friends at Pythian Castle, corner Ninth and I streets, from 2to 5 P. M., Monday, the 9th. On Sunday night, beginning at 11 o’cleck, the parlor’s Golden Gate encampment degree will be conferred on a large number of candidates. Apout seventy-five members of Presidio Parlor No. 194—the baby—will rally round the new bear and American flags, which the parlor has ;’ust purchased, and go to Sacramento with them. The new banner of this parlor will be carried for the first time in parade. It is adorned with a beau- tiful painting, representing the Presidio in early days. e SAN JOSF BIOYCLE RAOQES. A Large Number of Entries for Some of the Events. The bicycle races of the Garden City Cy- clers at San Jose on the 9th inst. will doubt- less bring out a big crowd, as the entry-list is large and good sport isassured. Follow- ing are the names of those who will com- pete: Mile scratch, class B—R. L. Long, B.C. W.; 7.5, Hall, B. C, W.; Tony Delmas, 6. C. C.; W' F. Foster, 0. C.W.; Allen Jones, 0. C. W. Horace Slater, B.C.'W.; H, C. Smith, G, C. R. Cushing, G.'C. C.; G. A. Nissen, A. A. C.; W. J. Edwards, G. C. C. Two-thirds mile handicap, class B—Same en- tries as above. Half-mile scratch, A—F. R. Haley, L. C. C.; V. H. Tuttle, J. A. Delmas, G.C.C.; J. Bell, V. C.C. Ted Belloli, 8. J. R. C.; W. J. .C.; F. 8. Joost, G. . C.;_A.J.Sehmitz, G. C. C.; H. J. Drake, G. C. C.; H. B. Freeman, unattached; T. T, ‘Kell, unattached; H. Downing, G. € G W, Jamison, G. C. D. G. Hayne, P.V.W.: N.Ackerman, B.V.W.;J. Gosbey, G. C. C.; A. E. Nelson, €. C. C.; J. Willoughby, P. V. W. W. C. Klotz, C.C. C.; R. E. Dow, G Smith, G. C. C.; 8. J. F. N.'Byrne, 1. C. C. E.Chapmen,' 0. C. W.; , class V.W. 8. E, R. 8. Collins, R. A.C. P. Mott, R. A. C.; T. R. Thurber, A. C'; A. Har rington, 8.J. R. C.; Gus Navlet,8.J. R.C.; F. L. Seybolt, . C. C.; 8. B. Vincent. B. C. W.; H. Sternberg, G. C. C.; J. P. Jaegeling, 1. C. C.; J. 8. Egan, 1. C. C.; E. C. Barl C.; F.H. Seaward, G. C. C.; George H. Seig, G. C. Ray Hogg, 8. J. R. C.; F. C. Smith, unattached} 100! Always FIRST Gail Borden § Fagle Brand CONDENSED [ITILK L% [ 3 For 35 years the brand. It i 3 i economial. isthe g Best and the most A PERFECT FOOD FOR INFANTS 8 ° o000 000000 of the headauarters which, are being deco- | He will receive the guests of the parlor | Peter Morrin, 8. C. C.; Jesse F. Ives, R. A. C.; C. D. Bates, R. A. C.; J. H. Dieckman'Jr., K. A. C.; H.. W. 'Squires, A. A.C.; A. H. Agnew, A. A C.} J. H. Otey, A. A. C.; G. H. Craits, & Al C.; H. Hutchison, A.'A. C. One mile handicap, ciass A—F. R. Haley, L. C.C.; V. H.Tuttle, P. V. W.; H. E. Gimmen- stein, R, C. W.; L. H. Henrioulle, unattached; J.A. Deimas, G. C.C.; Ted Belloli, S.J. R.C.; W. J. Bell, V. C. Schmitz, C. C. F. 8. Joost, C. C. C.; A. J. H. W. Welch, B. C. W.; H. C.; L. T. 0. Ison, C. C. C.; H. J. Drake, G.C.C.; T. T. Kell, unat- C.; W.K. Jamison, VW, €. Mad: R. 8. Collins, R. A. C.; W. R. Baker, bey, W W, ;'J. 8. Gos! sen, R. C. Klotz, C. C. L. Holling, B. C. W, Tantay, O. R.E. Dow, G. C. C.} 7 Hammond, . C.; 0. B. Smith, G. C. C.; S. J. McKnight, A. B. C.} F. N. Byrne, L C. C.; P. Metcalfe, I. C.; B cnn?msn, 0. C.W.: C. M. Smith, G. C. C.; P. Mott, R.-A. C.; T. R Thurber, A.'C.; A. Harrington, 8. J. R. C.; W. Benson, 8.'J. R. C.; F. L. S Olson, ‘A, C.; Ernest M Ison,’ A. C.; Vineent, B. ¢. W.; H. Sternberg, C. C. C.; A. M. Smith, unatfache J.8. Dawson, 1.C. C.; Edward_Langer, L. C. C. J.P. Jaegeling, 1. C! C.; J.S. Egan, L. C. C.; E. C. Barley, I C. C.; M. Quimby, A. C.; John Wing, S. J.R.C.; F. H. Seawar L.; George H. Selg, G.C.C.; G. Ray Hogg, S.J. R. C Peter Morrin, 8. F. C.Smith, unattached; ; Jessie F.Ives,R.A.C.; | C.D. Bates, K. A. C.; J. H, Dieckman, R. A. C. | T.¥. Smith, A.A. C.; P. M. Lefevre, A.A. C. W. Brouillet, A. A.C.; W. W. Squires, A. A. . Otey, A. A. C. . A, Tandem, one mile, scratch, class A—R. E. Dow and C. M. Smith, G. C. C.; W. H. Reid and . 3 C. C.; George and Fred Sey- . C. C.; V. Benson and G. Hardenbrook, R.C.; F. H. Seaward and J. A. Delmas, G. €. C.; J. H. Dieckman Jr. and C. D. Bates, R. A, C.; A" H. Agnew and J. H. Otey, A. A. C.; A. K. and E. L. Macabee, unattached. SPECIAL SALE ——FOR— THREE DAYS ONLY! TEURSDAY Shandon Bells | SALE PRICE Toilet Soap, 25¢ Regular Price, Pexr Box. 50c a Box SALE PRICE Olive Green Castile Soap. 20c This soap is 99¢ made from 4=lb. Bar. pure olive oil, free from all SALE PRICE 25¢ alkali ; it soft= EACE. ens the water by neutraliz- SALE PRICE 15¢ ing the alkali. EACEI. Pure Linen Handkerchiefs Fine embroid- ered edge, reg- ular price 50c Japanned Coal Hods, Regular price 25c. STHEVERY BESTONE TO EXAMINE YOUR eves and fit them to Spectacies or Eyeglasses with instruments of his own invention, whose superiority has not been equaled. My success has been due {0 the merits of my work. Office Hours—12 to 4 P. M. A LADEES' GRILL ROOM Has been established in the Palace Hofel N ACCOUNT OF REPEATED DEMANDS made on the management. It takes of the clty restaurant, with direct_entra) Market st. Ladies shopping will find thi desirable place to lunch. Prompt service and mod- erate charges, such as have given the gentlemen’s Grillroom an international reputation, will prevai 1n this new department. GEORGE H. FULLER DESK CO. 1s the Place to Buy . DESKS, CHAIRS And All Kinds of OFFICE FURNITURE g 638-640 Mission St. HOLSE, Of the National Capital. First class in all appoint- ments. G. DEWITT, Treas. American plan, $3 per day and upward. ANSY. PILLS! SEND &c. FIR’ SRECIFIC Con ERd DO YOU KNOW THAT THERE I8 SCIENCE IN NEATNESS ? BE WISE AND USE SAPOLIO MA tionof & Co 000 RESTOR This table E Viiser the et Tt 3 P A ‘yous or, dhuufl:( the generative organs, g Fainsin the Back, Seminal Emissions, Nersous Davii, Fioepies, Unliness o rains, Varicocele and sting Drains, V: a1l losses by day or night. " Prevents quicks hecked Tosds v s orthcek. T néss of fl'!&h‘%&h i notcl and all the he of tency. CUPIDENE cl the. BEFORE awo AFTER [iunaysand the urinary 55.-’;“‘::: Al imparites o oo b CUPL ngthens and restores small weak o o pd e not cured by Doctors is 'I‘s’«gn‘ae ninety per cent are troubled with -e/I0N '3 ATe ' - lent cure, 1750 o bor.ate for §5.00, by mal. Send for FRER ciroular and et R Address DAVOL MEBICINE CO., P. 0. Box 2076, San Fraucisco, Cal. For Sata by BROKS' PHARMACY, 119 Powell strees.