The San Francisco Call. Newspaper, September 8, 1895, Page 6

THE SAN FRANCISCO CALL, SUNDAY, SEPTEMBER 8, 1895. STANTON'S SUBSTITUTE RATE RESOLUTION. A General Reduction Asked, With 8 Per Cent on Grain. AN ATTORNEY'S LOGIC. Martin Says the Ocean Steamers Will Get a Benefit. Mr. WORKMEN FEAR THE AX The Railroad Commissioners Will Cast Thelr Votes Next Thursday. The Railroad Commissioners are ready to vote on the La Rue resolution propos- ing a 15 per cent horizontal reduction on the grain rate tariff of the Southern Pa- cific and the vote will be taken on next Thursday But in voting upon that measure they will also vote on Dr. Stanton’s substitute offered at sterday meeting of the > per cent nodities with an board, which contemplates a reduct: on various com 8 per cent reduction on n. The board listened to the argument of v Martin at the morning session yesterday, which took on the form of a nterruptions of dwelt Dr. Stanton pointed out in his opinion was not a necessary part of the proceeding A petition was presented from working- men in Sacramento protesting against a i on of frei rates because it would, ay, be taken off railroad employes non the resoiution offered ue and offered his substitute. ded up the railroad company and red that a reduction was necessary, but he insisted that credit should be given ior the recent reduction made. At the opening of the morning session of the board George W. Ficks, Superin- tendent ofi Cemeteries of Sacramento, appeared and asked the privilege of pre- senting the followin on, which he ing it ed was signed by sk and ur laborers to the number of nearly 1000: MENTO, Sept. 6, 1895. To the Honorable d of Kailroad Com- missioners of California—GENT! The un- dersign s of the Southern Pacific q ém 1y, and skilled snd unskilled labor represent to your honorable board have noi beer: prompted in th v or in any other hus act of their own motion and without the knowledge of said company Or any member or agent of it. We, therefore, freely, with entire comprehen- sion of all the matters and things involved, respectully protest against the proposed hori- zontal reduction of freight rates on grains moved by your honorable chairman,and for these reasons, to wi Such reduction will be inequitable, and will so affect the income of the Southein Pacific Company that it will make—and we be lieve of mecessity—a reduction of wages, as about all other charges and burdens of said company are fixed and unyielding. The reduction of wages by the said company —the largest employer on the coast—will be & great injury and permanent harm (o the grower of grain and all produce, and to all furnishers of the supplies of life, and, there- fore, will more then offset the supposed gain for the wheat-growers by reason of the pro- posed reduction, because of lessened consump- tion and for other obvious reasons. We are perfectly and fully aware that this is equivalent to saying that the present rates are equitable, and we say this, because we are con- vinced that such proposed reduction as moved by your chairman will compel said company to cut down the weges in order to retrench suffi- ciently to meet ations of maintenance and operation. Any such result would be little less than & calamity to this State and every interest in it. We therefore, in the name of labor, skilled and unskilled, protest against any such reduc- tion proposed by the Hon. H. M. La Rue, be- cause, if made, it will strike down fair and living weges to & deplorable level, and that example will be followed by employers outside of said company, and the consequences will be felt deplorably all along the line of industry and trade. 3 Mr. Ficks afier reading the petition ad- dressed the commission as follows: The skiiled mechanics and unskilled laborers of Sacramento are deeply and vitally inter- ested in this question for the reason that we believe, and say it without fear of being con- tredicted, that there are more homes owned in Secramento by skilled and uhskilled laborers 10 the employ of the Southern ®acific and those who work in Sacramento than can be found in any other railroad town in the United Btates 1f this horizontal reduction, this cut in the grain freight rates, is carried into effect wil{ the railroad company go to make v nect its expenses of mainten- snce and operation. As an employer of labor, Mr. Cheirman, vou know quite well that thé vital strike will be atlabor slways. This com- pany would not make any exception. The farm labor of Celifornia is probably the orest paid in the State. The wages paid by he manufactnring industries and enterprises, su indirectly, manner, but that th by, both for skilled and unskilled labor, higher than on the farn th shall be mede in the direc e spoken of, it will have its disasirous effects all over the State, because the wages of all skillea and unskilled labor is govi wages paid by the Sc hope tbat in your deliberations on this ques- tion you will consider the laboring men's side @s presented in this petition in connection with the railroad company’s side and farmers’ side of the question. If you do I'am satisfied you will do justice to the iaboring people who speak to you from the lowest condition of labor 1o the highest. The laboring men of Calfornia have nothing to expect from the great land barons of the Bacramento Valley. Nowshall we strike at the very foundation stone of our State in order to satisfy a few land barons who are groweis of wheai—a few theoretical farmers, I was going 10 say, but that is probubly too severe? Mr. La Rue glanced over the signatures to the petiticn and asked Mr. Ficks if they were not mostly employes. Mr. Ficks in- formed him that they were not, and Mr. La Rue said he recognized four of them at first glance. The petition was filed. A communication was received from T. T. Williams, business manager of the Ex- aminer, stating that a witness for the rail- road appearing before the commission had commented on the income of newspaper employes. The communication contra- dicted the witness, and showed an im- provement in the wages of newspaper em- ployes in the past ten years. Denis Kearney, instantly upon the con- clusion of the reading of the communica - tion, branded the statement that he was a witness for the railroad as a lie, though he was the person who presented the state- ment as to newspaper wages to the com- any discourtesy, but I have considered my opinion in the matter: . But Mr. Martin proceeded to avail him- self of the opportunity, which as Mr. La Rue putit, was granted as a courtesy and in the absence of an attorney for the com- mission. Mr. La Rue during the argu- ment by Mr. Martin took occasion to dis- cuss various statements and arguments presented by the railroad attorney, and oc- cupied a considerable portion of the time to the advantage of his resolution for re- duction of rates. The discussion, which Xconsumed nearly two hours of time, fol- ows: Martin—Of course I have taken advantage of vour indulgence in extending the time of this earing another day. Of course I undersiood, as you have said, that there s no attorney here 1o represent the resolution, but I shall make no technical argument. I shall endeavor to group together some facts, and if 1 can say anything that is worthy I have a right to have you consider it, and if anything is unworthy ihen you may discredit it. Butas to standing here occupying & place of grace, I think any- body who has rights to be affected has the legal and’ constitutional right to be beard within vroper bound The proposition before thls commission, and 10 which we have addressed our evidence, is the passage of the resolution introduced by the chairman of this commission. Of course the uitimate result of the resolution, if adopted, is to confer more benefit on the farmers and grain-raisers. The immediate object is to re- duce the rates on grain. The idea of the chair- man is that the farmers of the country are | suffering on account of the financial depres- ion, but that sufiering so far as they are con- cerned grows out of the prices at Liverpool. The proposed means of relief is the reduction of rates. Isn't it well to consider whether the means are adequate? If you find that no benefit can be conferred upon the grain-raisers then the ultimate purpose of the resolution | would not be effected. On that behali let me call your attention to this proposition. Sixty per cent of the grain raised in the Sacramento Valley is not trans- ported by the Southern Pacific Company. In 1894, the last completed year of which we e full statistics, the entire amount shipped from California to Liverpool, brought to tide- water for export, carried by the Southern Pa- 2 per cent of the whole. This bal- 58 per cent isnotdependent upon your T th you said, Mr. Chairman, that roportion would be greater on the crop of 1895 carried by rail to tidewater. La Rue--The railroad carries a great deal of wheat that does not go outside of the State? Martin—I think the proper inquiry is the benefit to be conferred on the farmer in the ex- | port of grain—in meeting the market at Liver- | pool. Itisalso in evidence before you—and I speak of this because there is a manifest desire on the part of the commission that the tarmers may have the benefit of the reduction, if it shonld be determined on—that only 42 per of the whole crop is shipped for export. X Mr. Briggs of Fresno said that at least cent of that was already in the handsof La Rue—Mr. Briggs’ statement was given as evidence and it is a iittle wild. But thet mekes no difference. | _ Martin—There is nobody on whose judgment { I wonla be more willing to rely than yours, Mr. Chairman. If you see fit to give me any infor- mation I will rely on it. At any rate acon- siderable part of the grain isin the hands of the dealers. So this 42 per cent is again re- iced when we consider what benefit will be offered to the grain-raisers. La Rue—This rate will apply to next year's | erop and that might induce more planting. | Martin—But after all I am referring to the ssity of great haste for the purpose of re- ieving the farmers so far as the present crop is oncerned. You cannot be unmindful of this act that in 1894 there was a reduction made v which grain rates were reduced 10 or 12 per cént. How much benefit did that confer on the grain-growers of the State? Notone dollar. La Rue—It did not? Martin—Ne. La Rue—Why not? Martin—Because when you compare the clip- per rates necessary to take the grain from San Francisco to Liverpool you will find every dol- {lar went into tie pockets of those men and not the farmers. La Rue—Would they not have had to pay the same clipper rates if there had been no reduc- tion in the Southern Pacific rates? Martin—That is a theory and not a condition. | We could not tell what would be done. La Rue—There is a reason why the men who own ships raise or lower rates. That was be- cause of the lack of tonnage. Clark — Do you contend that if there had | been no reduction in the grain rates on the railroad the clipper rates would not have been advanced? Martin—Not so much. La Rue—I disagree with you there. Martin—It is & probability, for just the rea- son that dealers and exporters that take wheat from Liverpool will not take the grain if it is put so high into Liverpool. We are shown by experience that when the rail rates went down the clipper rates went up and wheat still moves. La Rue—And wheat goes down. Martin—But the farmer did not get one dol- lar of that reduction. La Rue—No; between the railroad and the ships the farmer doesn’t have much show. Martin—Don’t misunderstand me. I am offering this s & suggestion in arriving at some conclusion as to how much benefit you will confer onthe farmer if the money saved from the railroad rates goes into the pockets of the English shipowners. La Rue—In what other way will vou confer a benefit on them if not by a reduction of freight rates? Do vou assume that every time you make reduction in freight rates the English shipowner will get that much in addi- tion Mertin—I don’t know. When natural condl- tions operate it is difficult to remove them. It is too much for we to answer. Some sugges- tion was made, perhaps by some organized system of farmers’ association, that they might charter their own ship: La Rue—You cannot charter them when they are not inthe market to charter. Ido not think the reduction in the rate of transporta- tion by rail had anything to do withit. It is | not & reasonable supposition that the circum- | stances you have mentioned govern the ton- nage. 1f the supply is limited and the demand great it affects the price of ship rates. It is dif- | ferent in the railroad business, You have a | fixed price, and the farmer has several months | to ship his grain by rail. The ship rates fluc- tuate, the railroad rates do not. Martin—But I rather suspect these fluctua- tions never go toward the grain-raiser, They fienemlly swing (o somcbody else's pocket. ut assuming that yon hope from this resolu- tion there would be 25 per cent of the grain- raisers benefited on the present grain crop, is it right to endeavor to make the railroad com- pany make wheat farming profitable in this State. La Rue—Yes, if it will inure as well to the benefit of the railroad. The farmer can raise two bushels where he only raised one. It was fully demonstrated here the other day that without the grain-raising industry the rail- road would lose one quarter of its business. If they could double that would it not inure to the benefit of the road by increasing its busi- | ness several hundred thousand tons? If they increase the wheat product 10 per cent you can carry that 10 per cent without any appre- ciable difference in the cost. Martin—Then it is your proposition that you will benefit the raiiroad company? La Rue—I did not say ihet, but ultimately it i;(h'ru& They cannot exist one without the othe Martin—Then the interests of the railroad company are to be considered also? La Rue—Certainly. Martin—Of course, as I said, you cannot com- {,el the railroad company to make wheat farm- ng profitable, but if a mutual benefit is to be conferred, much good is acccomplished, but after all we still have the small proportion. But the people are not all directly interested in this traffic. flLl Kue~\\;€’u;e!;|l indirectly interested in he prosperity of the country, for on egricul- tural products the fabric réste siime Mr. Martin, seeming unable to impress the commission with his economical ideas, concluded to try his hand at politics—not the sort of politics which Mr. La Rue intro- duced at a previous sitting of the com- mission. He aid not sav a word about the political expenses of the Southern Pa- cific of his own accord, though that par- ticular phase of politics did creep in. But Mr. Martin desired to convey the idea that the appeals of the workingmen against a reduction in their wages ought to have more weight with the board than should be given to the appeals of pohtical clubs with warlike names. He began it in this ulz‘ls;ion. He was called to order by the | way: chairman. Ny Martin—You will agree with me thi Mr. La Rue asked Mr. Martin if he was | question becomes to mi‘ne extent lngc-..l. :\’:; ready to proceed with his argument or whenever a question of that kind becomes statement or summing up of the Southern | political— Pacific’s defen:e ;xah&sththe re(liuczion in {‘(“m‘:'?“l‘!:°;g:'u;i‘:!wgua‘i aniything rain rates an Ope e would not ex-| .. 5 . gainst the Democratic . Of coul fend his talk o great length. Mr. Martin | jitical demands ought Never 1o be considered ennounced his readiness to proceed and | in matters of this kind, where the rights of was about to do so when Dr. Stanton | property and the people are involved. Politi- begged to interrupt him,intimating that the speech was not necessary so far as he was concerned. Stanton —I will say that I have invurii:led this matter as closely as possible and have retty well made up my mind upon it. I have Ew ed over the testimony and to & certain extent have made up my mind as to how I shall aecide, Isay thatso as to not show you cal clubs with warlike names do not under- stand the question of property rights, and as a rule they do not care to understand them. Rue—Isn’t it very much the same way whitre petitions have been filed by parties not interested in grain growing? mployes of the raiiroad company and laboring men have fi!l?d gotiuonl of the same character that you refer to. Martin—These people—the artisans and mes chanics—have & more direct interest than an Apache club, for instance, would have. I do not care to mention names, but the commission probably knows whom I mean. A general luu%h greeted Mr. Martin’s misnomer of the Troquois Club, which in- terrupted him for a minute. But he re- covered and continued: These working-men are representatives of labor and do_not speak tor us,and I do not propose to follow along the line of their argu- ments. . . There is a great demand for this reduction from those who have no direct interest in the matter, such as political clubs, and the de- mand fs not as general us might’ appear. The money-lenders are largely responsible for it. La Rue—Yes, for the money-lender wants to be assured of the return of the money he ad- vances to the farmer. The merchant also de- sires it because his prosperity largely depends upon the farmer., Sowe have,in addition to the farmer, the money-lender, the merchant and the clubs. They have an interest in these reductions. And so have your stockholders and bondholders an interest in trying to pre- vent the reduction. Martin—While this may be true, I want to recall to your attention the fact that the Southern Pacific bond indebtedness is less per mile than that ot any other railroad in the United States. ~ La Rue—That, aceording to a statement I find in the report of & United States Commission of 1888 of which Judge Patterson was chairman, is not correct. Assistant General Manager Curtis—That was 8 special committee appointed to investigate the affeirs of the Central Pacific only. Martin—It is very important that upon all matters that bear upon this question the com- mission should be accurate in_its information. We are governed by law and not by men. If you should go outside of the law indetermin- ing the matter you would be violating the law. I would like to call the attention ot the com- mission to some points of law. It would not matter if all the tribes were off the reservation and dancing you would have to be governed by the law and personal wishes must be ig- nored. Mr. Martin then quoted from the State constitution to show that the duties of the Railroad Commission are to establish the rates on freights and fares to be charged by transportation companies, and to hear testimony, subpena witnesses, and- other- wise act in the same manner as a court of record. Then he quoted from the State statutes to show that the commission can only act on complaints which shall be presented to it under oath and that decisions must be in writing and the reasons therefor stated. Continuing, he said: You are bound by the testimony brought be- fore you, and it must be under oath. Numerous communications have been received, and some of them anonymous, but only sworn testimony must be considered. This résolution must be considered in the nature of & complaint, and the Southern Pacific’s answer to the resolution is the testimony given under oath. Not your own wishes must be considered. . This commission can never be led or driven 85 some other person points the way. It be- comes your duty to consider everything that has been offered by the Southern Pacific as well as by other persons. But your decision, which must be given in writing, must be based en- tirely on the testimony. Is there anv testimony tbat shows the need of & reduction ? Notone particie. A conclu- sion can be reached onlyon the evidence— sworn statements and testimony only—not_on arguments, You try the right of parties. You are judge, jury and court. If you find there is further evidence you require you should call for it and in the presence of the defendants in order that they may answer it. This should not be proceeded with with undue haste. If you were a judge or & juror you would not come into court with a verdict written out in advance, perhaps, several years ago. It may be said we are trying to put off the time of this decision. What is the evidence in favor of the adoption of the resolution? A comparison of the rates of the Southern Pacific Company with those of other roads in lowa and Tlinofs does not show that there is any real difference. Itonly gives the amounts of the rates without taking into consideration the differences attending the construction, maintenance and operation of the roads. A mere comparison will not give a true basis for adjusting rates. You will remember that there are other roads which more nearly bear com- arison with the Southern Pacific than the Eastern roads; there are the Great Northern, Union Pacific, Northern Pacific and Oregon Railway and Navigation Company. These roads show there are lower rates charged in California than those they have. No romds anywhere are more expensive to operate and maintain than those in California. La Rue—But your grain traffic is mostly over the level roads in the valleys, which are less costly to operate than those over the mount- ains, and the valley farmers should not be made to bear part of the burden of maintain- ing the more expensive roads. Martin—Let me read some fgnres on this point from these statements made by Mr. Cur- s, “If the Illinois roads were under the same expenses for operatitig their lines as the Sopta- ern Pacific, it wonld mean a decrease in_their revenue of $6,300,000. 1f the Southern Pacific enjoyed the rates for operating expenses paid by the Eastern roads, it would save from %5,500,000 to $6,000,000, and would have een able to reduce the local freight rate in 1894 to 134 cents per ton per mile. If we had the Iowa Tates for fuel we should have been able to return £600'000 to tne grain-shippers, and with Illinois prices for fuel $300,000 could have been returned to them.” These facts must accompeany all comparisons of Tates. 1f we have not enough revenue to meet our expenses now what are we going to do when it isstill furiher reduced? We must either be- come bankrupt, or reduce some of our ex: penses. Fuel cannot be reduced. La Rue—Yes, it can. Thereis talk of substi- tuting oil for coal, and this will make a reduc- tion of 60 per cent in the cost of fuel. Martin—That is only a probability of the future. We cannot reduce the indebtedness of the company, and we have to meet the in- terest. La Rue—Mr. Huntington does not seem to have any fears about meeting the debts of the company. Chairman La Rue then read from a New York dispatch Euhllshed in Tur Cary yes- terday, in which Mr. Huntington is quoted as saying: “The Southern Pacific Railroad Com- pany is one of the best corporations in America. Over $120,000,000 has been spent in a permanent way between San Francisco and New Orleans. We are stronger now than ever.” In explanation of this Mr. Martin stated that Mr. Huntington was probably not aware of what was going on here. La Rue suggested that he thought he was, and that probably he had been in- formed that the resolution under consider- ation had already been passed. Mr. Martin then continued : What are reasonable rates? The highest court in the land has decided that rates must be such as to pay all operating expenses, fixed charges and yield some return to the stockholders; how much is not stated, but they must yield something. When the power of the State comes in to fix rates, it comes to this peint, and then its powess are suspended. To go beyond that would the virtual confiscation of the property of the com- pany, which would be in _contravention of the constitution of the United States. What does the evidence show in this case? In 1894 the road's rates did not bring them enough revenue to xl)ly the cost of operation and fixed charges. It was short about $250, 000, and for the first half of 1895 there was a deficit in the receipts of the roads, as compared 10 the operating expenses and fixed charges, of $1,450,000. Their rates now do not gl\'e them suflicient 10 pay expenses and fixed charges. A Rue—How do you account for Mr. Hunt- ington’s statement that the interest will be paid and that the company is now stronger than ever? Martin—There is money in reserve, and this will have to be drawn upon. This led to the remark by Mr. La Rue that he wanted to ascertain how a few men had their $40,000,000 or $50,000,000, while their enterprises apparently did not pay. He said he failed to get this information, owing to the evasion Encuced by the rail- road’s witnesses. To this Martin answered : Does that give you power to reduce their in- come ? You haven’t got that information and you cannot consider it. The proof is, and with- out contradiction, that the revenue does not meet the expenses of operation and the fixed charges. How will you meet it ? ¢ During thedpmlrel! of this investigation it has been said to the Jaborer and the farmer that the raiiroad should be made to divide with the farmer and the !aborer. Divide what? They did not mean to divide the revenue of the company nor its proverty. Then we must divide our deficit with them. We have mnoth- ing to divide but an empty treasury. 1f there is any evidence to contradict the financial standing of this company as shown by our testimony we have not seen it. Is there lnx!nlng outside of this testimony that may influence your judiment 3 2 How rates to be fixed ? All commodities should bear an equal portion of the burden. Is wheat-bearing any more than other commo- dities in comparison to the expense of hand- ling it ? Other rates are notunfairly adjusted. On,what commodity would you suggest that rates be raised, the railrona has adjusted them to the best of its ability. 1 would like to bring about such a state of affairs relative to railroad matters in this State s exists in the country at large relative to the interstate traflic, brought about by the Inter- state Commerce Commission. The latter bod; has the free run of the offices of all the rail- companies and their greatest benefit to the people results from investigations made ing public investigations. We would like to f.‘,‘“v'?“ confidence of the people so that simi- work could be done here. Our books are open to the commission and the company will Alw-ys be glad to explain what may not be clear, There is no power that can compel any one to o business. ut a lose. To reduce rates below &n income that will pay expenses is to_despoil the railrosd. It might be unpopular not to re- duce rates, but you, Mr, Chairman, are not afraid of that. Hew to the line and let the chips fall where they will. There have beenno dividends, and this commission cannot regu- late rates.’ Its power ceases when the rates do not produce a revenue that pays expenses and something, however little, over. The grain rates are less than the average of the rates. La Rue—In comparison with other commod- ities they may not be higher, but the quantity of wheat entiiles it to a 10w rate. Martin—People have a wrong impression about the railroad. They call it the octopus and everything that is bad. Itishard toget the facts before the people. They think the railroad is making lots of money. They be- lieve it has an enormous bonded indebtedness, and that the people are ground down. The fact is that the California roads have less bond- ed indebtedness per mile than'any other road in the United States. According to figures pre- sented here our bonded indebtedness is about $29,000 per mile. West of the Mississippi it is about $31.000 and east of the Mississippi it is much higher. Your power is at end so far a8 the Southern Pacific i8 concerned. La Rue—There is evidence of the prosperity of the reilroad people on every side, while the country is not prosperous. This shows that the railroad has made money. This is also shown by the many improvements and better- ments it has made. Martin—From 1894 to the present time the condition of the road has been such that it has not pnid expenses. +The railroad people are rich” is the only answer that We get to this showing. That cry should not be used. La Rue—That is a fact. They made their money out of the railroad. Mr. Martin then reviewed the early his- tory of railroad operations in this State tu show the railroad projectors were desery- ing of their wealth. His concluding words were : I ask you this: If anything has been said by me worthy of attention give it that considera- tion which it deserves. Decide this matter upon the testimony—the sworn testimony be- fore you. I belieye this commission will de- cide this case as the law directs and according to the testimony given. A recess was then taken till 2 o'clock. There had been considerable guessing as to what Dr. Stanton’s view would be on the La Rue resolution in the light of the volume of testimony adduced from the railroad compang and the various petitions from farmers and from workingmen. e had announced at the last sitting of the board that his mind was in that frame that would require no more discussion or argu- ment, and at the beginning of the after- noon session yesterday he was ready with the written opinion which he had prom- ised and also with a substitute resolu- tion which he had not promised. The opinion, as read by Secretary Newman, was an exhaustive document of some 4000 words, which in substance was as follows: The question tor decision to which I shall direct my attention is: Are the rates charged by the Southern Pacific Company and the leased lines for the transportation of freight within the State of California such as are just and fair between the carrier and the people of the State? On the part of the company the claim is made that the present rates are as low as can be charged in order to enable the company to pay its operating expenses, taxes and interest. As 2 member of this commission, since my induction into office, I have endeayored to ob- tain_from all sources all informafion which would ensble me to act intelligently and con- scientiously upon the questions arising betore this body. The claim was then made that the hear- ing given the Southern Pacific Company was not granted as a right and judicial decisions were cited to sustain this asser- tion. Continuing, this opinion stated : The affairs of the Southern Pacific Company are of a most complicated and anomalous character. A foreign corporation, for ulterior urposes unknown to this commission, organ- ledpoml existing under the laws of the State of Kentucky, entirely without the ownership of & mile of road, is engaged in both local and transcontinental traffic. Operating under its management a large number of leased lines, in many of which the principal stockholders of the Southern Pacific Com?nny own the controlling interesy, it 1s enabled by its system of keeping accounts to so complicate matters as to ren«t:ri! most-diffi- without nndefln{ formal decisions and hold- g1 cult to arrive at & correct conciusion as to its exact condition with regard to its local traffic. This company has expended large amounts of money in the acquisition and maintenance of miles of reilroad in and through mountain- ous country, having but little connection with and being of slight practical benefit to the local traflic of California. The pretended original cost of this road, the cost of maintenance and the interest upon the said original cost they seek to charge against the local traffic of California. To my mind this is improper and should not be allowed. I am satistied that the value of the property operated by this company as represented in connection with their bonded indebtedness is excessive and out of all proportions to thefy real or market value, and that the bonded in- debtedness represents a fraudulent issue. and the fixed charges and operating expenses have been greatly inflated. While honest debts of the companies must be paid, the laws of the country will not permit or tolerate frauds and will not compel shippers to bear the burden of fictitious debts represented by bonds wrong- fully and fraudulently issued oy these compa- nies. Norwill they tax the shipper unneces- sarily to pay exorbitant salaries to officers. This corporation is engaged in the business of contracting, and does a great percentage of the work of the Southern Pacific Company, and receives in payment therefor the bonds of the company benefited. How are these bonds accepted? Honesty would suggest at their par value. The testimony of Mr. Lansing shows that they are given in payment at far less than par, the amount not appearing before the commission, The result is that these bonds have been increased many millions of dollars. It is claimed that we must establish rates as to enable the interest on this debt to be paid from the company’s ‘earnings. For us to adopt any such standand would be & robbery and theéft of the money of the people of California. T-am of the a{ffinion that the company’s rates are unjust, and shonld "be subject to an aver- age reduetion on a!l commodities. The merchantsof San Francisco and of the interior of the State in their present depressed financial condition require all the help that can be extended to them,and no reason can exist why they in common with the farmer should not be given their proportionate bene- fit of any reduction which can be reasonsbly made in freight rates. Again, the farmers of the State are not all grain-growers; the prod- ucts of agriculture are diversified and are all subject to l'rei%iu charges; but uo relief is af- forded them by the resolution before the oard. 1 have determined at this time to waive my objections to a horizontal cut in the amended fil’lln tariff rates prior to the adjustment of iscriminations therein; and am now willing to give to that tariff such reduction as I be- lieve, taken in connection with the reductions already made in December last, to which it is entitled upon the basis of 25 per cent average reduction of all freight rates in favor of which Ihave declared myself. After a careful con- sideration of all ietters in connection with the subject I have concluded that a reduction of 8 Rer cent on all grain rates of said tariff would be fair. The following substitute for the La Rue resolution was then offered by Dr. Stanton and it was read by the secretary : Resolved, That the present rates ot charges for the trausportation of freights in Calitornia gg the Southern Pacific Com{‘uny and its leas lines are un}nn to the shippers of the State, therefore be it Resolved, That the present rate of charges for the transportation of freights in California b; the Southern Pacific Company and its lease lines be subjected to such an average reduction as including such reductions made therein since December 1, 1894, shall equal an average of 25 per cent reduction upon said rates as existence on said December 1, 1894. That the manner of apportionmentand af- fecting said reduction shall be as follows 1. All discriminations in freight charges shall be so adjusted as to make rates uniform between different points of shipment similarly situated in so far as circumstances will permit. Any reduction in rate made for this purpose shall be charged against the class to which the commodity or article belonxu. 2. Each class of freight specified by the West- ern classification or for which a commodity tariff exists shall be entitied to and receive ifs prorata of 25 per cent reduction, determined on the basis of the amont of revenue paid by it to the total amount of said reduction. Provided thet the rate of freight in each class is regulated so as to prevent discriminations in Tates on classes or commodities, said pro rata shall pe fixed by the board. Resolved, Thai the grain tariff hl'(nqh been, since the first day of December, 1894, subjected to a reduction wilch. inclusive of the amount 1o be charged against it fordiscrimination, and the pexcenufe hereinbefore allowed will nearly or fully equal the pmg:rtlon of such average reduction. Therefore, it Resolved, That the rates at present existing for the transportation of in California b the Southern Pacific Company and its least lines, as established by grain tariff 2 and all subsequent nmendmeng thereto, be and the same are hereby reduced 8 per cent, and the secretary of this board is hereby directed forth- ‘with to prepare for publication by this board a schedule of rates in accordance herewith, and when so prepared the same shall be pub- lished at once and take effect as soon there- after as allowed by law, and that on the ado) tion of the revhed‘ general freight tariff of company herein provided for, any further <Yer cent reduction due said grain tariff as provided herein shall be given. Resolved, That this board proceed at once to adopt a revised schedule of rates in accordance herewith, in oraer that the same may be in E’?g on or before January 1, 1896; and be it rther Resolved, That if the necessities of the case so require, this board will at once proceed to the ascertainment of the proportion of reduction due any commodity which, by reason of its nature, requires to be moved between now and the time herein fixed of the taking of said gen- eral reduction. Mr. Clark offered an opinion on the La Rue resolution which did not contemplate, as he explained, the substitute resolution offered by Dr. Stanton, as he had no knowledge of Dr. Stanton’s intention. Mr. ICl:n-k’a opinion was in substance as fol- OWS: It will be seen that an order so general and at the same time so radical in the proposed reduction requires careful consideration of the evidence in_order to arrive at an honest and equitable adjustment of the differences that may exist between the carrier and the shipper. In arriving at that conclusion all party tpm- forms and pledges made by any member of this commission should be cast aside, and what- ever feeling there may be in this State against the Southern Pacific Company, justly or other- Wwise, cannot now be considered. 1 find from the testimony that the average bonded indebtedness of the lines operated by the Southern Pacific Company, operated in Cal- ifornia, is about $29,000 per mile of road. It would seem that it compares favorably with other roads. There has also been shown & marked fallin off in the earnings of the road. In view of all the evidence, I am of opinion that the adop- tion of the proposed resolution as a whole, & horizontal reduction that would notadjudicate the discriminations that may now exist, would be a travesty upon &unioe, and unbecoming the act of a dignified and impartial judicial body sworn to do their honest duty; and I would never sanction an order thatin my judg- ment the courts would not hold to be conclu- sively just and reasonable. In conclusion, while I am unable to sugport the resolwtlon in its present form, Iam in favor of making a reasonable reduction on the lines wherein inequalities and differcnces exist, and bring all the lines operated by the Southern Pacific Company, similarly situated and for like distances, upon an equal basis. Dr. Stanton moved the adoption of his substitute resolution, but the desire of Mr. La Rue and Mr. Clark to be allowed time to consider the substitute prevailed, and the voting upon the original resolution and the substitute went over to the next meeting, which will be held next Thurs- day. In his reasons for asking further time Mr. La Rue said there was much in Dr. Stanton’s opinion with which he did not agree, and other things that were in the rightline. He asked the postponement, as he said, as a courtesy if not as a right. Mr. Clark also asked the privilege of time for consideration on the same grounds. 5 5 Dr. Stanton contended for an immedi- ate vote, but Mr. Clark’s motion to ad- journ till Thursday, September 12,at1 p. M. prevailed, and the commission stood ad jourhed. A STANFORD PROFESSOR, John Norton Pomeroy of This City Called to Palo Alto University. - The Young Attorney and Law Editor to Instruct in Contracts and Equity. John Norton Pomeroy, the junior mem- ber of the firm of Pomeroy £ Pomeroy of the San Francisco bar, will begin work to- morrow as a teacher in the law deparg ment at Stanford University. He is one of the very few ever appointed from this Coast to the Palo Alto faculty, though it numbers over a hundred persons. The appointment was made at the sug- gestion of Professor Abbott, the head of the law department, who wished to obtain a competent teacher of contracts and equity, and in Mr. Pomeroy he believes he has found the man. John Pomeroy is 29 years of age, and is a son of the late Judge Pomeroy, who was the author of numerous standard legal works that bear his name, and at the time of his death in 1885 and for eight previous years was head professor at the Hastings College of Law. In conjunction with his brother, Carter Pomeroy, the State re- porter of the decisions of the Supreme Court, he has edited the later issues of his father’s text books, and was the sole editor of Pomeroy’s ‘“Remedies.” In addition to his legal experienceasa &rnoficiug atlome{ and as a law editor, r. Pomeroy has had an extensive college training. raduating from the Boys’ High School of this City in 1883, he went to Yale and was graduated in '87. taking the highest honors of his class. He spent the next two years.at Yale in post-gradu- ate work in history and political science, and in '89 received the degree of M.A. During the next two years he studied in the law school of Columbia College and then returned to California and entered Hastings, from which after a {34:;’35 work, he received the degree of ‘While at collefie he was editor of the Yale Lit and of the Columbia law journal, and was a member of the Yale senior society of “Skull and Bones,” of the national college fraternity of Psi Upsilon, and of the scholarship order of Phi Beta Kappa. Z A law department was organized at Stanford only two yearsago, with Librarian ‘Woodruff as regular_instructor, with Pro- fessor Abbott of Northwestern Univer- sity as visiting professor, and with ex- President Harrison as non-resident lec- turer on international and constitutional law. Last vear Professor Abbott took up his residence at Palo Alto and devoted his entire time to the law work at the uni- versity. He is a graduate of Yale and of Boston University, and was professor of law at the University of Michigan during 1891-92, and professor of law at North- western University from that time until he accepted his present position. Professsor Woodruff was recently ad- vanced to a full professorship in law and granted a year’'s leave of absence to pursue rivate works and study in the Kast. uring the summer of 1894 he and Profes- sor Huffcuff of Cornell compiled and edited a legal treatise. Last year 101 students, or nearly 10 per cent of the entire student body, took law as a major study, English and "history be- ing the only departments with a larger en- roilment. This year seventeen courses are offered in law, and a large number of stu- dents will %rubably take the work, only four having been lost from the department by . graduation. Professor Abbott has brought his entire law library out from the East and will &Lace iv where it can be used by his students. Uniike professional law schools of the country the coursesat Stanford form one of the regular departments of the university and the student must pass the examination imposed for admission to the university in ordver to take the law work,which is further strengthened by courses in history and economics, four years being necessary to complete the requirements for the only degree granted, that of A.B. ——————————— Nez Perces Indian The Treasury and War departments have taken steps to prevent any disturb- ances at the reservation of the Nez Perces Indians at the date of the paying out to them of the $630,000 appropriated by last Congress. Ulunfiy when Jarge amounts of money are paid out to the Indians, a crowd of hard characters collects about the reser- vation and endeavors to rob and swindle the Indians. At the Treasury Depart- ment’s request the War Department ordered a troop of cavalry to encamp at the reservation during the payment t:})n- serve order. The Commissioner of Indian Affairs also instructed the agent not to pay out any money until the troops ar- rived. The checks for the money left ‘Washington August 1L, NEW TO-DAY. - WONDERFUL CURES. They are reported from hundreds who flocked to Dr. Sanden’s office at 632 Market street last week. Stories of cures witnessed by sufferers in various parts of the city who take advantage of the knowledge they have gained by placing themselves under Dr. San- den’s treatment with full confidence in the power of his belt to relieve them. | Al Nervous Debility, Lost Manhood, Varicocele, Emis= sions, ‘General Waste of Vital or Nerve Force, Fe= male Weakness and all weakness of men or women resulting from early ex- cesses or abuse of vital or= gans. WHAT THE PEOPLE SAY. Excited by, the daily increasing proof of cures after the failure of all other known remedies, and'seeking what at last promises to be the panacea for all ills. Hundreds of people have crowded the rooms of Dr. Sanden during the past week. And all have not been seeking health. Many who called were grateful men and women who had already regained strength through this wonderful Belt, come to thank its inventor for the great giit to humanity which he has been the means of placing within the reach of every sufferer. 3 Many who have been cured two and three years ago have called to express their ratitude for their present healthy state, and none to complain. All express the seepest appreciation of the quick and permanent effect upon disease produced by this belt; And those who had not tried it, who came in quest of health, a look at. the ap- pliance and a test of its powers after seeing the proof of its cures was enough to con- vince them that this was the remedy for them. ‘‘Away with drugs. Discard the doctors who have been leading us on with false promises of cure.” This was the cry of the suffering people who saw with their own eyes their neighbors sound and well through the use of this wonderful belt. Nearly every one who came had a friend whom they knew had been cured by Dr. Sanden’s Electric Belt. One man said that he saw at different times two men criypled and helpless with rheumatism raised from their beds and enabled to return to their work in two days by this belt. Another had a friend who had been almost totally impotent for fifteen years. It restored him completely in two months and he is as strong to-day as any man. A lady spoke of her neighbor, whom she had known for vears as an invalid from nerv- ousness and womb troubles, who had almost miraculously been restored by Dr. Sanden’s Electric Belt and who now claimed to enjoy perfect health. There were dozens of similar stories all in praise of its peculiar, yet simple, power over disease, and those who heard them from the lips of fellow-sufferers in Dr. Sanden’s rooms all left with a conviction of their truthfulness, and those who were able to purchase this won- derful belt did so and many others carried away a detefmination to become recipients of its great effects as soon as circumstances would permit. None could doubt the elec- tric currents that are absorbed into the weakened nerves from this belt. They could be felt plainly, and the flash before the eve when the belt was applied to the forehead left no doubt of its origin. The regulator—a simple device for making the current strong or mild at will while the belt is on the body and which any user of an Electric Belt of the old style will appreciate—is a decided ad- vantage. It assures comfort and ease when the Belt is worn, while the old-style Belts, because of having no means of regulating the current, were either so sharp as to be un- pearable, or the wearer could not feel the current at all, and therefore got no benefit. THOUSANDS ARE CURED. Every day brings new subjects of congratulation to the inventor of this famous Belt. Cures are_reported of cases which were pronounced incutuzble by physicians. Dr. Sanden’s Belt, in its quiet. soothing manner, adds new life to ailing nerves and restores vital power when it has been wasted. It removes disease and restores health to those who have been unable to gain benefit from any other source. TESTIMONIALS. TESTIMONIALS. FROM POWELTON, CAL. FROM KEENE, PowELTON, Butte County, Cal., August 15, 1895. Dr. A. T. Sanden—DEAR SIR: 1 have worn the Belt you sent me now about six weeksand | Dr. 4, T. Sanden—DEAR Ste: It is with pleas- am well pleased with the results. I ha - | ure that I_write you this testimony of the proved & great deal, have no more signs of | great benefits I have derived from one of your weakness, and my friends say I look better | No. 6 Belts which I bought about four months than they ever saw me. I still have some ring- | ago. I was suffering I think from sperma- ing in my“ears, but I have improved a great | torrhcea and other troubles that follow it, and deal in this short time. With your good ad- | through the benefit derived from the Belt, vice I hope to be cured soon. Yours truly, with your treatment and hygienic rules, I can JOHN B. RECKMER. txuth{mlly m‘? I{Kec} \ikf ?]x;ev}' }:nun. Al‘c(‘p; e my sincere thanks for the he ave receive: FROM VENTURA, CAL. Irom you. Very respecttully ?ours, VENTURA, Cal., July 6, 1895. D. PRATT. Dr. A. T. Sanden—DEAR SIR: I Teceived a letter from you some time ago requesting me to state what effect your Belt had on me. It has done me a great denl of good. T am re- lieved of the pain in back and ‘hips that1 had Defore I received the Belt, and must say that I | thirty days since my last report I will try to am perfectly satisfied with it. \°“"'““‘E- give you a clear statement of my case. If there J.KELSEY. | s any symptom of my old trouble present I FROM TRUCKEE, CAL. cannot notice it. All weakness is gone. My mind is clear and bright; memory seems to be Truekes, Cal, June 25, 1895, | good; bowels are regular, and heve bect, in Dr. A. T. Sanden—DEAR STR: 1 now consider | fact, since I started to wear the Belt. My blood myseif entirely cured of nervous debility and | seems in very good condition, in fact I feel Kidney complaint, from which I suffered. I | betier every way than 1 have ior throe years, have gained ten pounds in weight and am feel- | and thank you for the good the Belt has done ng fine. 1must sey, as others have, that your | me. I wear the Belt about three and half Be%t is all you claim for it. You may use my | hours each day. Yours truly, name in your pamphlet if it will be of any ser- THOMAS ATCHLEY. vice to you. Irtemain, ‘Yours truly, Rheumatism, Lame Back, Sciatica, Kidney and Urinary Troubles, Indigestion, Dys« pepsia, Lumbago, Constipa= tion, Torpid Liver and all ailments resulting from ina active stomach and bowsls. CAL. KEENE, Cal.,, Aug. 13, 1895. FROM TULARE, CAL. TULARE, Cal., Aug. 10, 1895, Dr. A, T Sanden—DEAR Stn: As it has been HENRY JOHNSON. FROM NAPA, FROM SEATTLE, WASH. SEATTLE, Wash,, Aug. 4, 1895. Dr., A. T. Sanden—DEAR Sik: I have used your Belt now thirty days, and would say I feal as though I had been greatly benefited by its nse already. Ihave got a few blisters on my back from charging it too strong. I think I will soon be able to re{scrt a cure. ‘Yours respectfully, H. B. CARTER. CAL. NAPA, Cal., July 20, 1895. Dr. A. T. Sanden—DEAR Str: I have used your Electric Belt for about one month, and by its use I have been entirely relieved of those excruciating pains through' my bones that I had before receiving it. I conclude that if T continue its use for two more months I will be entirely cured of the trouble in my hips, shoul- ders and limbs, The \\'nrsl’ lmns are NOW re- lieved. espectfully. = eved. Yours very resp L. FRANCE, Box 347. 5 FROM SAN JOSE, CAL. SAN JosE Cal., July 9, 1895. LATER. - Dr. A: T. Sanden—DEAR The Belt is Nara, Cal,, Aug. 16, 1893. simply doing me a world of good. I feel fine. I wish you would send me some of your books on female weakness. Ithink I can sell one of your Belts to a lady friend who needs it for that trouble. Yours truly, Dr. A. T Sanden—DEAR Se: Would say that up 10 this date I have worn your belt fifty-five days, and I cannot speak too highly in your favor. Icansaylam about entirely cured of one of the worsi cases "‘?‘ ralysis that man is th. wi Yours truly, | apt to be taken down DAVID AL FBZ!\'CF. BYRON JENNINGS. DR. SANDEN'S Is a genuine Electric Belt. An appliance that gives sparks of life into your nerves. Sparks that you feel. Its power is felt upon the surface of the body in one moment. It permeates every vital function of your gody. Every lecturer on the public platform, every physician of note, every scientific work that you read, tells you that “Blectricity is Life.” " Every element of your being_gives demonstration of the truth of this asser- tion. Itisafact. No one doubtsit. With your vital nervesand blood charged with this electric force there is no chance for disease—no place for weakness. It is the f“ndfl?ggfll principal of vigorous manhood and womanhood. Where it is disease cannot be. . Dr. Sanden’s Electric Belt infuses a continuous flow of electricity into the body for hours at a time. Every moment that the Belt is on the body its sparkling, vitalizing powers are felt penetraiing the nerve tissues, filling them with new life, new, healthy vigor, and charging the blood with the vital force which nature in childhood bestowed upon the body. Thousands of grateful patients testify to the curative powers of Dr. Sanden’s Electric Belt. None are too welfw be aided by this wonderful appliance, as it brings the human body as near the goal of perfection in vital force as it ever can get. None are too low to be aided by it, as it can take as a foundation the smallest spark of vitality and build upon it the fullest perfection of vigorous manhood. If youare weak, sick or crippled, see this Belt at once, and a test of its power and a look at the volume after volume of proof of its cures, will convert you to the altar of nature’s truths, and th will be yours from this wonderful spangy “Three Olasses of Men” is Dr. Sanden’s celebrated work on the development of youthful manhood. A pocket edition can be had free at the office, 632 Market street, or by mail upon application. 1t gives full description and price list. Call or address SANDEN ELECTRIC CO., 632 Market St, Opposite Palace Hotel, San Francisco, - Oflice Hours.-8 to 6; evenings, 7 to 8:30; Sundays, 10 to 12. Portland, Ore- gon, Ofice, 355 Washington Street. "d <