EEPOET TO Hon. James W, ReA, President Hon. J. M. Litchfield Hon. William Beckman Railroad Commissioner, BY RICHARD PRICE MORGAN UPON WHAT WOULD BE JUST AND EQUITABLE RATES OF FREIGHTS AND FARES FOR THE RAILROADS OF CALIFORNIA NPVKMBBK, im-i > 1 3 ^. REPORT TO Hon. James W. Rea, Presideint Hon. J. M. Litchfield Hon. William Beckman Railroad Commissioners BY EICHARD PRICE M0RGA:N^ UPON WHAT WOULD BE JUST AND EQUITABLE RATES OF FREIGHTS AND FARES FOR THE RAILROADS OF CALIFORNIA NOVEMBER, 1892 INDEX PAO-K Correspondence, instructions, method of proceeding and investigations made 5,6 General remarks 6-9 Physical characteristics of California 9, 10 Hailroad mountain grades 10 Pennsylvania Central Railroad 10, 1 1 California railroads 1 1-17 Tunnels 15 Snowsheds 15, 16 Ferries 16 Railway termini at San Francisco 17 Illinois, its railways and surrounding States 17-19 Volume of business 19 Equal rates impracticable 19 Value of the comparisons of figures 20 Rates in California 20, 21 The Commission prohibited from anticipating very rapid development . 21, 22 The development of agriculture arid other industries in California 22, 23 Large land-holdings 23, 24 The foothiUs 24 Irrigation 24, 25 Physical characteristics of the States and Territories surrounding Cali- fornia 25 California an exceptional State 25 The construction and maintenance of the railways 25, 26 Character of accommodation and service 26 Freight rates transposed 26 PAGB Factors affecting the operation of roads 27 Bates of Pennsylvania Kailroad compared with rates of Southern Pacific Company 27, 28 Ferry and suburban rates of the Southern Pacific C!ompany compared with others 28, 29 Comparison of the rates of the California Southern and Atlantic & Pacific roads (Santa F^) with the Pennsylvania Railroad 29, 30 Comparison of the rates of other roads in Pennsylvania with California roads, and with the rates in Massachusetts and Illinois 30, 31 Comparison with California of the density of population and increase in nine States 31,32 The railroads of California extend throughout its great and sparsely occupied territory 32 Grain rates. — The cost to the farmers of California a small fraction over one and a half cents per bushel greater than to the farmers of Kansas and other States 32, 33 Nearly all of the railroad companies in Kansas bankrupt , and the con- struction of railroads absolutely stopped 33 The comparative cost of fuel, and the importance of this factor 33-35 Low transcontinental rates for certain products to Eastern markets 3C-40 Rates for the transportation of persons and property from 10 per cent to 20 per cent higher than in other States, justified in California by the excess in cost of fuel alone 40 Conclusions 41-43 Opinion of President C. L. Taylor, of the Chamber of Commerce of San Francisco 43 r EEPORT. San Francisco, Nov. 14th, 1892. Hon. James W. Rea, President, Hon. J. M. Litchfield, Hon. William Beckman, Railroad Commissioners for the State of California : Gentlemen : In conformity with our correspondence and the resolution unanimously adopted by your Board (Appendix "A" ), I present the following considerations and report in respect to " What would be just and equit- able rates of freights and fares, taking into account operating expenses and all other matters of general import bearing thereon and affecting the operations of railroads jsin this State?" CO ^ A report possessing the elements essential to reason- "ably accurate conclusions could not be prepared without ithe aid of data acquired by personal observation, invest- iigation and knowledge of the physical conditions affect- :ing the roads, and also of their business resources, ; present and prospective; I therefc>re asked for and received from you a letter (Appendix "B") to each railroad manager in the State, twenty-three in all, con- ferring upon me the authority of the Commission to ask the railroad companies for transportation and informa- tion in respect to their rates and fares, operating expenses, etc. Under this authority I have personally examined their properties, and, so far as feasible in the time allotted, carefully investigated the rates and fares and the condi- 29902.5 6 tions affecting the operation of practically all of the railroads in the State. The managers, without exception, have given me courteous and valuable assistance. I have also personally traversed all of the principal water lines of transit : the Sacramento and San Joaquin rivers, the bay steamer lines and the coast steamer lines. From these sources much interesting and valuable information in respect to the transportation facilities of the State has been obtained. General Remarks. In the preparation of such a report as you have requested me to make, the data are so very numerous and extensive, that to enable a clear consideration of them as much method will be adopted in their presentation as practicable. Extreme minutia? and useless precision will be avoided, as well as statements too comprehensive, neither of which it is believed would serve to elucidate the questions. The report has been prepared under a full impression of the complex character of the subject, of the importance of accurate conclusions, and of the truth of the considerations on which it is founded. It is also proper for me to state for your information, that in making professional estimates from time to time during a considerable period of years, for European and American capital, of the safe net earning capacity of railways on the Pacific Coast, it has been necessary for me to study the physical characteristics and resources of the State of California and of the adjacent States; also the immediate and prospective gross earnings, and the cost of 02)erating and maintaining its railways. In like manner, and for the same and similar purposes, I have examined into and reported on many other systems of railways in the United States, which in varying degrees are analogous in some of their conditions to the railroads in California, and again others which are merely similar. For this report, in addition to the information acquired of the roads under consideration, as full and just com- parisons as needful and feasible have been made with other roads and systems, but none have been found which are really analogous in many of their conditions to those in California. The latest and highest authori- ties on essential matters have been carefully studied, and it has been my endeavor to make accurate use of them, and also of every available fact or factor leading to sound conclusions. In comparing physical conditions and rates, especial care has been exercised to do so in sufficient detail ; also, as far as practicable, the varying conditions affecting them are presented so that the comparisons may be fairly conclusive and satisfactory, not harmful and mis- leading, as comparisons of the mere figures of rates nec- essarily are. It seems clear that the best method by which the reasonableness of the railroad rates of the State can be properly determined is mainly by fair, just and equitable comparisons, taking into account all con- ditions which affect them. Much light can be obtained too from the rates and conditions, past and present, in the United States at large, in the States separately, and also the rates and conditions of individual railways can be usefully employed. It will not be contended that the rates in the country at large, for the transportation of persons and property by rail, are as a whole unreasonably high and inequita- ble ; but, on the contrary, those who are familiar with the history of railway construction and transportation will readily remember, that continuously since the era of railways began, the highest intelligence and patriot- ism of the people of the United States have been strenu- ously engaged to establish reasonable and equitable relations in this respect between themselves and the railways, and that in a remarkable degree those highly beneficial relations have been adjusted from time to time, as the conditions have changed. It is generally con- ceded that the rates are now in many States as perma- nently established as practicable. In addition to all of the elements of the cost of transportation, the irregu- larities of trafiSc on the different roads, the fluctuation of the prices of the markets, home and foreign, the changing conditions of the country and of its finance and commerce, properly exercise strong influence in de- termining the question of rates. If hitherto in the process of adjustment, at times when there were none and few precedents, the people have in many cases suffered injustice, it is equally true that in many instances the railroad companies have also been inequitably treated. These results on either side were not as a rule brought about viciously, but arose from new and untried conditions and a manifestation of power so marvelous in its beneficent results as to greatly excite the people and the railroad companies, its beneficiaries. But the precedents now existing in the older States, and the information obtained by the States and general Government, throw so much light upon the question of railway rates, that intelligent and careful investigation should prevent serious injustice or inequity being done to the people or the railway companies in the develop- ment of comparatively new States. It is believed, there- fore, that if the principal factors, which are at this time available, are fairly taken into account in considering the railway problem of this State, the conclusions ought 9 to be measurably fair and satisfactory, but of course requiring adjustment from time to time to properly meet changing conditions. Physical Characteristics of California. California embraces two very grand valleys, the San Joaquin and Sacramento ; also numerous lesser valleys and ocean table-lands, all of marvelous productiveness. They are surrounded within the limits of the State by vast and lofty mountain ranges ; broad zones of arable foothills rise from the valleys and table-lands to the line of unproductive altitude on the mountain sides. In the southeasterly portion of the State there is an arid region of comparatively great magnitude. San Francisco bay, about equidistant from the north and south boundary of the State, is the entrepot for commercial exchanges with the world, and it may be truly said that the ample area and great perfection of this harbor indicate with precision what the marine and interstate commerce will require of it in the future. The State has 156,000 square miles, which have been classed as follows, and it is doubtless exact enough for the purposes of this report : SQ. MILES. Valleys 39,000 Mountains 82,000 Desert 35,000 It is safe to say that no State in the Union, possibly excepting Colorado, which invites their construction, presents within itself and pervading the State, conditions so complex, formidable and arbitrary to the construction and successful operation of railways as those of Califor- nia, and, at the present time, of the 4,400 miles of road operated within the State, little or no traffic arises on nearly 20,% of that mileage. 10 For convenience in the further consideration of the question, reference is made to Appendix " D," which presents a comparison of the local rates charged for the leading articles transported by the railroads of Califor- nia. A cursory examination of these tables, and all other schedules of rates in this State exhibited in this report, will readily disclose marked differences in the rates charged, perhaps equal to the diverse conditions under which each road is operated ; but, if those condi- tions are well understood, the apparent want of uniform- ity and seeming inequity in the rates becomes less real, and the question of their reasonableness is naturally held in abeyance by the mind for more complete infor- mation and analysis. Mountain Grades. Superficial observation fails to realize even an approx- imation of the extraordinary difficulties affecting the construction, operation and maintenance of the railways of California, but, as already suggested, very critical analyses of those difficulties and of the cost of operating the roads are not believed to be essential to this report. Accompanying the following descriptive comparison of the grades of the roads in this State with those in other States, illustrative profiles will be found in Ap- pendix "E." Pennsylvania Central Railroad. The Allegheny mountain grades of the Pennsylvania Central Railroad are between Johnstown on the west and Altoona on the east. They are quite familiar to travelers and well known by civil engineers and railway managers. From Johnstown easterly to the summit of the range, a distance of 27 miles, the total rise is 981 11 feet, and tlie grade averages 36 feet per mile. From Altoona wester]}^ to the summit, a distance of 12 miles, the total rise is 984 feet, the grade averaging 82 feet per mile, giving an aggregate rise over the mountain east and west of 1,965 feet in a total distance of 39 miles, the average of the grades being 50 feet per mile. All parts of the mountain line of the Pennsylvania Central receive large local business, and for the maintenance and for operating the road, abundance of excellent timber, stone suitable for masonry and ballasting, cross-ties, wood and coal are delivered at low cost from the forest, quarries and mines adjacent to the line. As a rule, precisely the opposite of these economic conditions exist on the moun- tain lines, and also in a measurable degree on all parts of the railways, of California, also the mountain grades which they have to contend with are very greatly more difficult. For greater convenience, and to avoid repetition, and also because it has sufficient length for comparisons and is the most extensive and important system in California and in the adjacent States, the roads, conditions and rates of the Southern Pacific Company will be made the principal basis for comparisons with the other railroads in California and elsewhere. CALIFORNIA RAILROADS. Southern Pacific System, The total rise of the strictly mountain grades of the main lines of the Southern Pacific Company, within the limits of California, north, east, south and west, is 30,556 feet in a distance of 515 miles, making an aver- age grade of fifty-nine feet per mile. In other words 12 there is thirteen times the horizontal length of grade, and fifteen times the vertical rise, that the Pennsylvania Central Railroad encounters in crossing the Allegheny mountains, which have long been considered in connec- tion with railway construction and transportation as the "great barrier" between the Atlantic seaboard and the Mississippi valley. In addition to the foregoing, the Southern Pacific Company's lines, extending outside of California, and connecting adjoining States, have mountain grades which aggregate 10,818 feet in a distance of 192 miles, or an average grade of 56 feet per mile. On the main lines of the system of the Southern Pacific Company, west of El Paso, the mountain grades aggregate a distance of 707 miles, and a total rise of 41,373 feet, the grades averaging 58.5 feet per mile, about 8 feet per mile greater than the average of the Pennsylvania Central Railroad in cross- ing the Allegheny mountains. Comparing the mountain grades of these systems, the total rise of the roads of the Southern Pacific Company is twenty-one times greater, and the horizontal distance eighteen times greater, than on the Pennsylvania Central Railroad. The Santa Fe system, on its extension through adjoin- ing States and in Southern California, the Carson & Colorado, the Nevada, California & Oregon, and also other roads in California, have, in proportion to their length, to overcome mountain grades equal to those en- countered by the lines of the Southern Pacific System. The profiles, which are a part of this report, will illus- trate this fact. If the railways, which are within the limits of the San Joaquin and Sacramento and smaller valleys, and also 13 on the ocean table-lands, could be considered by them- selves, and their rates established by adopting the figures of the passenger and freight tariffs of some other State, solely because the surface of that State, and those of the valleys and table-lands of California, are similar ; and if the extensions of the railways north, east, south and west, over the great mountain ranges and across the broad mountainous arid regions, which encompass the State, could be disregarded, and the railways in the val- leys and on the table-lands could be separated from the systems of which they are integral parts, — it would greatly simplify the problem of rate-making. But it surely must be manifest to every intelligent and unbiased mind, at all familiar with the practical opera- tions of railways, and the conditions affecting these, that rates so established would furnish no sufficient basis to justify any opinion as to the reasonableness of the pres- ent rates on these lines. If their extensions were discon- tinued and they were cut off, and their termini were permanently established at the bases of the foothills of the surrounding mountains, lower rates to tide-water could doubtless be easily made by such mere comparisons as has been suggested ; but it is more than probable that for many good reasons they would be found to be unrea- sonably low, and that they would have to be increased and made higher than those now existing, to become reasonable and sufficient to operate and completely main- tain the roads. Under such conditions they would fur- nish to the people of California but a tithe of the facilities and benefits now enjoyed. This statement is upheld by facts and the practical opinions of financiers and business men, forcibly expressed by their acts. More than two hundred railroad companies have been incor- 14 porated to construct railways in the areas spoken of, and it cannot be doubted that, mainly for the reasons briefly presented, but few of them have been built. The field is still open ; railroads can be built and equipped at comparatively low cost, because money, labor and the materials that enter into their construction are much cheaper than ever before in this country. The true reason why many of those contemplated have not been built, is because the existing railroads and the water transit, by the San Joaquin and Sacramento rivers and their tributaries, the bays and minor inlets, and also the coastwise ocean transit, are fully equal to the demand, and provide op- portunity for healthy competition. It is a fact of great importance that about 75 per cent of the local commerce of California possesses all the advantages that free-water lines of transit confer. This competitive force is exerted not for six or eight months and then suspended by winter for four to six months, as it is in all of the States east of California to the Atlantic seaboard, north of the 39th parallel of latitude ; but, on the contrary, its influence is continuous every day in each year. Branch railroads and extensions have been and are being constructed by several of the railroad companies of the State, doubtless fully as fast as justifiable ; but these branches are prob- ably sustained as auxiliary lines, and by the application to them of the principle of constructive mileage, or its equivalent, also by the economy of consolidation, and not by the excessively high rates which their expenses and maintenance would require if they were indepen- dent roads. In this connection, reference is made to an interesting and highly instructive letter from Mr. A. N.Towne, second vice-president and general manager of the Southern Pacific Company, which will be found in Appendix "C." 15 Tunnels. The character of the rock in which the tunnels on the lines of the railways in California are constructed is such that they have to be heavily timbered to insure the safe I)assage of trains, which involves greater first cost and much more than ordinary expense for their mainte- nance. On the roads of the Southern Pacific Company alone there are 54,000 lineal feet of tunneling, about six times the total length of the double-track tunnels of the Penn- sylvania Company, including its Allegheny summit tun- nel of 3,612 feet. The San Francisco & North Pacific Railroad, many parts of which are very costly, has more lineal feet of tunneling than the Pennsylvania Central road, pnd it also ascends the Russian river on heavy grades and sharp curvature. The same conditions also exist on the North Pacific Coast Railroad. Snowsheds. Although there is nothing of the kind on the Penn- sylvania Central, or any railroad in the Mississippi val- ley, with which to compare them, it should be stated that on the Southern Pacific System in California there are 175,000 lineal feet of snowsheds, about 170,000 feet of which (32 miles) are continuous on the summit of the Sierra Nevada mountains, where the annual snowfall is from 30 to 40 feet. To withstand this weight of snow, and to pass the avalanches, to which they are subjected in places, safely over them, the sheds are principally constructed of heavy timber for framework, and four- inch plank for covering, making the average cost not less than $45,000 per mile. The maintenance of these 16 siiowsheds, so that they are at all times competent for the purpose intended, is very costly. Not only the effect of snows, avalanches and storms in winter, and ordinary decay, have to be met, but in the summer season there is great hazard and frequent losses by fire. Note : Since writing the above, 4,800 feet of the sheds have burned, involving a direct loss of not less than $75,000.00, and indirectly considerably more. Ferries. Several of the railways of the State approach and reach San Francisco under conditions more than ordinarily adverse in respect to the current cost of operating them. Throughout the United States, for the purpose of over- coming the excessive current expense imposed by ferries, and to facilitate the operation of the railways, very costly tunnels and bridges have been constructed, — most re- cently the St. Clair tunnel under St. Clair river and the great bridge across the Mississippi at Memphis. For the same economic considerations, bridges and timnels of enormous cost are being constructed across the East and Hudson rivers at New York. The main line of the Southern Pacific Company is broken by the straits of Carquinez, across which an expen- sive ferry is maintained for the transfer of passenger and freight trains. There is also a separate ferry from Vallejo across the straits, for the transfer of passengers and express matter. As soon as feasible, no doubt, a high bridge w^ill be substituted for these ferries. The San Francisco & North Pacific and the North Pacific Coast Railways also have ferries across San Fran- cisco bay. 17 Railway Termini at San Francisco. The San Francisco terminus of tlie Southern Pacific System is subdivided by arbitrary natural conditions, and, being separated by the bay of San Francisco, these subdivisions are practically permanent in their location, and cannot be consolidated for convenience and economy. Those exterior to San Francisco are at Oakland and Ala- meda, the areas necessary for them being largely made by the construction of an extensive and costly mole and piers, which are projected nearly two miles into the bay. Connecting its exterior subdivisions with those in the city of San Francisco is a costly ferry system for pas- sengers and freight, that averages more than four miles in length. The San Francisco & North Pacific Railway Company and the North Pacific Coast Railroad Company are subject to this more than ordinary expense in a greater degree proportionately than the Southern Pacific Com- pany, because their termini are similarly subdivided, their ferries are longer and the volume of traffic of each road is much lighter. Further explanation will not be necessary to sustain the statement that, compared generally with the impor- tant railway termini in the United States, those at San Francisco are unusually expensive in respect to mainte- nance and operation. Illinois and Its Railways. Illinois has long been known as the Prairie State, its gently undulating surface lying quite uniformly, about 600 feet above sea-level. The great fertility of the soil throughout its length and breadth, and its numerous other natural advantages, caused Abraliam Lincoln to say, " I have no doubt that the Almighty might have 18 made a better State than Illinois, but I know He never did." These conditions and liberal local aid stimulated the building of railways to an unusual degree, and, as soon as the construction of them was begun, all of the Government lands were literally seized upon, mostly by actual settlers for comparatively small farms. The prices for the land were as a rule $1.25 per acre, and within the land grant of the Illinois Central Railroad Company a double minimum price of $2.50 per acre was paid to the Government. All of the conditions presented the highest known inducements for the rapid construction of railroads and the establishment of varied industries by the people. The Mississippi river on its westerly boundary, the Ohio on the southeasterly, the Illinois passing nearly through it diagonally, the Canal extension to Chicago at the head of the great chain of lakes, the lake harbors and 10,000 miles of railway, now provide for the people of that State (having but one-third the area of California) transportation facilities far surpassing in convenience, and equal in excellence to, those of any State in the Union. Eighty-five per cent of all the lands in Illinois are within five miles of railways in actual operation ; 11:^^ per cent between five and ten miles ; 2^ per cent be- tween ten and fifteen miles, and one per cent between fifteen and twenty miles. The many railways of other States close to the boundary line are not included in this estimate. In the building of the roads, no considerable natural obstacles and difficulties of construction were presented by the material encountered or by the contour of the surface of the State. On the contrary, the topography of the country is especially adapted to the construction and operation of railways ; unlike California, there are no lofty 19 nor vast barren mountains of rock, no mountain grades to encounter, no tunnels, no snowsheds, no expensive ferries, no arid regions, no mountain fastnesses, no deserts. Unlike California in another comprehensive and impor- tant respect, Illinois joins and is almost completely sur- rounded by States, each closely analogous to it in physical characteristics and industrial conditions. From these States an enormous volume of passenger and freight business is constantly poured upon its railroads. Volume of Business. It is a well-known fact that the most indispensable ele- ment by which to justify and properly secure any con- siderable permanent reduction in rates for the carriage of freight and passengers is a sufficient volume of busi- ness moving equally divided, in tonnage and numbers, in opposite directions over the roads. If in this respect there are marked inequalities between railways, it is not probable that a combination of all other favorable fac- tors would establish those having the least volume on an equality with those having the greatest and the most evenly balanced traffic ; at least, not so nearly that the same rates would be reasonable and equitable for the extremes and all intermediates. This statement being susceptible of demonstration and indeed manifestly true, the conclusion is irresistible that as a rule it would be unjust, inequitable and harmful to establish equal rates thronghout a State or the country at large, for the reason that the volume of traffic, and most of the other tangible elements, are nearly every- where unequal and unlike. There seems to be no con- ceivable justification for uniform rates of transportation on railways unless their ownership M'ore vested in the general Government and the Congress of the United 20 States, as a public policy, should establish uniform class- ification and rates for the country at large. Comparisons of the mere figures of rates to determine their relative reasonableness are misleading and harm- ful. For example: At an early day, pork and wheat were hauled by teams 150 miles to Chicago for half a cent a pound. At a later day, for similar freight, eight cents, and, in an exigency, as high as fifteen cents a pound, was paid to team freighters for a like distance from Sacramento across the Sierra Nevada mountains to Virginia City. It is clear that a comparison of the fig- ures of these rates gives practically no light by which to see their relative reasonableness. Even from what has already been said, it will be conceded by persons familiar with the subject that railroad rates which would be equi- table and reasonable in Illinois at this time would be unreasonably low and inequitable in California, but other very important factors will be presented to further demonstrate the truth of this statement, applied not only to Illinois, but to other States lying in the Missis- sippi valley, the conditions of which governing the question of transportation rates have been, and are now, fairly analogous; but they are also all in a remarkable degree at variance with the conditions existing in Cali- fornia. California Rates. The rates established in California for the transporta- tion of persons and property by rail are as a whole higher than those now prevailing in some of these States, but they are lower than tlie rates charged in some States, and in the States alluded to at the time, about twenty years ago, when some of the most important conditions properly affecting the establishment of rates 21 were substantially the same as those which influence the present rates in Calfornia. Many comparisons of rates will be found in the appen- dix of this report, but those figures can be received only as prima facie evidence that the rates they represent are reasonable, unreasonably high or unreasonably low, just as the interest or prejudice of persons making use of them may direct; the figures themselves present only the fact of the difference. The question of the comparative reasonableness of the rates, involving, as that element does, the public in- terest as well as the interests of the railroad companies, receives no answer from any possible consideration of the figures alone. All of the essential conditions and elements feasible to obtain must be employed, to arrive at a satisfactory approximation of what are reasonable rates; and no fair- minded, disinterested person, fairly well qualified in such matters, after a careful examination of the rail- roads of California, and consideration of the physical conditions and other elements properly affecting rates, would declare that the passenger and freight rates on all of the roads ought to be the same for like distances and service. In many instances the fortunes of wealthy and enterprising citizens underlie railways in which they in- vested their money and vitality, lost because inexperi- ence led them to establish rates for their roads by the rates of companies having quite different and more favorable circumstances and conditions. Such instances can be found in California, and others may yet occur from the same and a variety of quite pos- sible causes. In the adoption of schedules of rates for California, the Commissioners are confronted by condi- tions which prohibit them from predicating low rates 22 upon the anticipation that very rapid development of the agricultural and other industries of the State will occur to increase the volume of business, such as referred to in Illinois and its adjacent States, also in Eastern Kan- sas, Nebraska and in the Dakotas. Although such a policy was adopted with good results by some of the railroad companies in the States alluded to, the condi- tions existing in California and in its adjacent States are greatly different, and present no foundation on which to base such a policy. The Development of Agricultural and Other In- dustries IN California. The statement that your Board is prohibited from basing low rates upon anticipated rapid development of agricultural and other industries is sustained by the general situation in California, which must be taken into account in every effort to determine the question of just and equitable rates for its railways. It is believed that the following description is truthful, therefore important and essential to accurate conclusions as affecting the railway problem of California. Of the 100,000,000 acres of land in the State, 25,000,- 000 are claimed to be productive valley lands. 15,000,- 000 acres are arable lands in the foothills of the moun- tains. Of the remaining 60,000,000 acres 38,000,000 are classed as mountainous and 22,000,000 as desert lands. A remarkable proportion of the various products of the earth can be successfully raised somewhere in the State, but the tentative labors of the people, past and present, in the work of adapting those products to all the varying conditions of the climate and arable lands 23 are far from complete, indeed, those arduous labors are but fairly commenced. The uncertainty existing in this respect, and the progress made in adaption, are indicated in a measurable degree by Appendix "F. " This tabulated statement shows that the valley counties, many of which have been distinguished for their immense production of wheat, have largely receded from growing that principal staple, and substituted the growth of other products, and again other counties have in a corresponding degree taken up the cultivation of wheat. In the aggregates of the table it is gratifying to find that great increase is shown in the population, value of real estate, and the area of wheat, fruit, and other farm products enumerated, there being a decrease only in sheep. It needs no argument to demonstrate that the 60,000,- 000 acres of mountainous and desert lands will remain substantially as they now are for a considerable period of time, and will contribute comparatively little that is tan- gible to the rapid development and wealth of the State, excepting the precious and some other valuable minerals, which in California mainly bring wealth but not large and permanent population, or volume of passenger and freight traffic. Large Land-holdings. The development of most of the valle^'^s and much other highly productive land of the State is more retarded by being held in large estates and at unduly high valuations than by the time necessary to suitably adapt products to the soil, or by any other cause. In the aggregate nearly half of the arable land of California is owned in large areas, averaging about 15,000 acres, and they embrace more than half of the 24 choicest land. Also, unfortunately for the development of the State, it is matter of common knowledge that they are held at high, if not for a time at least, practi- cally prohibitory valuations. Even under the equitable rights of inheritance in this country, a considerable period of time will be required for the subdivision of these large tracts so that small, thoroughly improved and productive farms will be sub- stituted for them throughout the cultivable area of the State. This subject is one of such great importance, in respect to railway and all other interests, I have collected and adapted from various sources of information, and collated interesting details of this subject, which will be found in Appendix " G." The Foothills. The comparatively slow development of the foothills of the mountains, which embrace such a large proportion of the arable lands of the State, is apparent from their rugged character, and in what is known of the means employed and the time, money and vitality already ex- pended in the foothill counties, which have been parti- ally subdued and made very highly productive, as many of them are capable of being. Irrigation. Another reason why the development of the agricul- tural resources of California will not be very rapid is found in the question of irrigation. Large areas of the arable portions of the State can only be brought under successful cultivation by the construc- tion of systems for irrigating them, similar to those already constructed at some localities in the central and southern parts of the State. That this will require con- 25 siderable time is apparent, and, also, the experience in this and adjoining States confirms it. Physical Characteristics of the States and Terri- tories Surrounding California. The greatest and most productive State that adjoins California is Oregon, on the north, but, excepting a con- siderable interstate passenger traffic, the commercial in- tercourse by railroad is small. The Siskiyou mountains divide the States, and the products on each side of the range, as a rule, seek tide- water and ocean transit, respectively, at San Francisco and Portland. Adjoining on the east is the State of Nevada and the Territory of Arizona, included on the westerly side of a broad, elevated and broken arid region, extending north and south of California, which is from 1,200 to 1,500 miles wide. This vast area has compara- tively a very limited pastoral capacity, and its agricul- tural capacity is very much less. Mining is the chief industry. On the south of the State is the most unpro- ductive part of the Republic of Mexico, with which there is but little commercial intercourse by rail or otherwise. California an Exceptional State. Sufficient has already been said to demonstrate that California is so exceptional in its conditions that it can- not be properly included in a general consideration of the rates of the railroads of the country at large, and thus determine what would be just and equitable rates for the transportation of persoiis and property within its limits. The Construction and Maintenance of Railways and Their Equipment. The character of the construction of the railroads of California and of their movable and stationary equip- 26 ment, and also their present material and physical con- dition, compare favorably with the construction, equip- ment and condition of the other railways of the United States. The physical evolution of these roads in all de- tails has generally kept pace with the development of the railways of the world. With unimportant exceptions, at no time in their his- tory have the railroads of California been equal in their material conditions to those now existing. There is more and superior motive power and car equipment, a higher standard of track maintenance and better facili- ties of all kinds. Character of Accommodation and Service. The passenger and freight service is as prompt, effi- cient, comfortable and good as can be found anywhere under like circumstances. Rates Transposed. Referring again to Illinois, attention is called to Ap- pendix "H," which presents class rates in effect on the lines of the Southern Pacific Company in California, transposed for the Western Classification, compared with the rates in effect in Illinois for similar distances from Chicago, which on the following lines are also influenced by competition : The Chicago, Burlington & Quincy, Rock Island & Pacific, Chicago, Milwaukee & St. Paul, and the Chi- cago & Northwestern railways. The rates of these roads are established under the authority of the Board of Rail- way and Warehouse Commissioners of Illinois, and the maximum rates authorized are also shown. On the whole this comparison of figures is favorable to the Southern Pacific Company's rates, and if the general 27 physical characteristics of Illinois and its neighbor States are taken into account, the comparison becomes still more favorable, but not so complete and satisfactory as it ought to be to justify a determination as to which rates are the most reasonable and equitable. A compar- ison of the figures, even with the aid of the difference in physical characteristics which have been presented, leaves the question of the relative justice and equity of the rates largely to vague conjecture, also to prejudice and personal interest in all their phases. Before an}' fairly accurate conclusion can be reached, further and more precise investigations must be made in detail, of the conditions spoken of generally, and also of all other factors affecting the operation of the roads, else any judgment will rest on a very imperfect basis. Some of the factors necessary to fairly accurate con- clusions are, the cost of fuel; of materials and labor; the volume and character of the freight traffic and the bal- ance of tonnage; the proportion of passenger and freight business, the permanency of business, its prospective increase or decline; the uniformity of the trafiic at all seasons; the length of the roads and the sources of the traffic on them; the average haul; the existing and probable competitions, etc. In 1870 the total freight moved by the Pennsylvania Railroad was 5,427,400 tons (2,000 pounds), of which 3,582,905 (66 per cent) were made up of coal, iron, stone and iron ores ; and 1,844,495 tons (34 per cent) were of agricultural products, merchandise, livestock and other articles. The average rate per ton per mile for all classes of freight, including coal and for through and local freight, was 1 549-1,000 cents. In 1891 the total freight moved by the Pacific System of the S. P. Company was 5,688,056 tons (2,000 pounds), 28 of which 717,000 tons (13 per cent) were of stone, iron, sand, salt, coal and products of the mines, and 4,971,056 tons (87 per cent) were of agricultural products, products of the forest, animals, manufactures and merchandise. The average rate per ton per mile for all classes, through and local, was 1 650-1,000 cents. There being no division of the traffic accounts enabling a precise statement of the tonnage within the limits of California, the tonnage of the Pacific System is used in the foregoing comparison ; but, taking into account the ferry and suburban business, the following estimate is believed to be a close approximation and accurate enough for the purposes of this report : Passengers Carried One Mile, Year 1891. Pacific System. AVithin the State of California 381,275,038, or 73 % 142,407,297, or 27 % I'll adjoininET States and Territories Total . 523,682,335, or 100 % Freight Moved One Mile, Year 1891 (tons). Pacific System. 832,949,855, or 61 /o 632,541,712, or 39 % In adjoining States and Territories Total 1,365,491,567, or 100 % On the Pennsylvania Railroad at the same date the average rate for through and local passengers was 3 29 cents a mile. Oii the Pacific System of the S. P. Coiu- pariy the present rate for through and local passengers averages 2 16-100 cents per mile. The local rates aver- age 2 73-100 cents per mile. The ferry-suburban rates average 93-100 of one cent per mile, and they represent 66 per cent of all passengers carried by this company in California. This suburban and ferry rate, not in- cluding the free transportation, is lower than the average of suburban rates in the Union, and about 40 per cent lower than the cost per mile to passengers on the New York elevated railways, where the volume of traffic is much more than ten times greater. Note : In the populous and business part of the city of Oakland the people have the privilege of transporta- tion to and fro, free of charge, for a distance of about four miles, and several millions of trips are made an- nually on the trains. Comparing the rates charged by the California South- ern (Santa Fe) in 1891 with those charged by roads in Pennsylvania, which had in 1870 a much greater vol- ume of passenger and freight traffic, the following result is obtained : On the Pennsylvania roads the average rate per ton per mile was more than 3 cents ; the average rate per mile for passengers was 3 5-10 cents. On the California Southern the average rate per ton per mile was 2 617-1,000 cents ; the average rate per mile for passengers was 2 831-1,000 cents. Continuing the comparison with the Pennsylvania Railroad, the Atlantic & Pacific (Santa Fe) from Mojave to the Needles, 241 miles, presents a still greater con- trast. Pennsylvania Railroad average rate per ton per mile, 1 549-1,000 cents ; Atlantic & Pacific average rate per ton per mile, 1 170-1,000 cents ; Pennsylvania Rail- 30 road average passenger rate per mile, 3 cents ; Atlantic & Pacific average passenger rate per mile, 1 81-100 cents. The low average rates of the Atlantic & Pacific are undoubtedly due mainly to the fact that it has little local passenger or freight traffic, its tonnage and passengers being almost entirely "overland" and subject to power- ful competitions. The effect of these low rates upon the operations of the road appears in the following facts : The operating expenses of the road for the year ending June 30th, 1891, including rental of track and rolling stock, but exclusive of taxes, interest and sinking fund requirements, exceeded the gross earnings $37,000. The general deficit for the year, including all requirements, Avas more than $2,000,000. No year since the opening of the road has failed to show a large deficit, the aggre- gate now being many millions. It is quite clear that as an auxiliary line only could the road be sustained. It is also true that the Santa Fe company has been obliged by repeated physical disaster in the Temecula cafion, and very low earnings on that line, to abandon, tempo- rarily at least, that direct route to San Diego. Comparisons with other roads in Pennsylvania, hav- ing about equal length of road and traffic, and corre- sponding in tonnage and passengers with the San Fran- cisco & North Pacific, the North Pacific Coast, Carson & Colorado, Pacific Coast and other roads in California are also favorable to the latter. In 1870 the following rates were in force in other States : In Massachusetts the average passenger rate per mile was 2 61-100 cents ; the average freight rate per ton per mile was 5 62-100 cents local, and 2 90-100 cents for con- necting interstate rates. 31 In Illinois the average rate per ton per mile charged for all classes of freight, through and local, by the prin- cipal roads, was, in 1870, 2 43-100 cents ; and the passen- ger rates were from 3 to 6 cents per mile, a fair average being about 4 cents. Substantially the same rates as those cited for Illinois prevailed at that date in many other States having much greater volume of business and more favorable physical conditions and other factors by which rates should be de- termined than the railroads of California have to-day. It is not deemed necessary to give, in extenso, consid- eration to these comparisons in addition to the general remarks which have already been made. Attention is, however, called to the density of population in those States at that date, 1870, and in 1890, compared with California, and also showing the increase in twenty years : Population Per Square Mile. State. 1870. 1890. Increase Per Square Mile IN 20 Years. Massachusetts New York Pennsylvania Ohio Indiana 181 94 80 65 46 45 20 25 4 5-10 3 276 122 J 16 89 60 67 35 38 17 4-10 7 63-100 95 28 36 24 14 22 15 12 12 9-10 4 63-100 Illinois Michigan Missouri Kansas California The States surrounding and adjoining Illinois now have an average population of 41 per square mile. The States surrounding and adjoining California have an average population of 1 4-10 per square mile, and that is largely made up by including Oregon, whose commer- cial mart is Portland. The increase per square mile in the population of these several States during the past twenty years is worthy of consideration, and is an important factor in determining what would be just and equitable charges for the trans- portation of persons and property in California. . The railroads of California extend throughout its great and sparsely occupied territory. The Carson & Colorado Railroad, having 108 miles in this State east of the Sierra Nevada mountains, is obliged to seek market for the pro- ducts of its territory by the construction of a circuitous road along the mountainous border of the State of Nevada for 185 miles, and thence via the Virginia & Truckee and the Central Pacific roads 285 miles additional to San Francisco. The situation of the Nevada, California & Oregon Railroad is practically the same, the traffic of each pass- ing over arid, unproductive areas and lofty ranges of mountains. Grain Rates. The cereals being at present the chief of the staple products of California, the cost of marketing the surplus, the total bulk and weight of which is greater than any other article transported, is of great impor- tance. A comprehensive comparison of the rates by rail to ocean transit at San Francisco, Port Costa and other bay points, also to San Pedro, Port Harford, and other coast ports from several hundred points in the State, with those existing in Kansas and other States, the staple product of which is cereals, shows that the cost to the farmers of California is but a small fraction over 1| cents per bushel greater than to the farmers of those States. 33 This comparison is made by estimating the average weight of the California grains at 55 lbs. per bushel, and upon an average haul of 150 miles. To determine the relative reasonableness of the rates in Kansas and California, all of the factors spoken of elsewhere in tliis report, and many others, must be taken into account. Two significant facts, however, may be mentioned. First. — The fact that nearly all of the railroad com- panies in Kansas are bankrupt, the deficits from 1888 to 1891, after payment of operating expenses (but probably not complete maintenance), the taxes and interest, being many millions of dollars. Second. — The fact that in 1891 the construction of railroads in Kansas came to an absolute stop. Cost of Fuel. The cost of the fuel consumed in the operation and maintenance of the railroads of California is unusually great ; and there is no probability of materially reducing it. Therefore, being so important and permanent an item of expense, and one that can be readily estimated with fair degree of exactness, it is briefly presented in connection with the more comprehensive comparisons with railway operations in other States, which are made in this report. In California the principal fuel used is coal, a small proportion only being wood. With minor exceptions the results show that the average cost of wood is fully equivalent to the cost of coal, being from $2.75 to $6.00 a cord, delivered on the locomotive tenders. The actual average cost of the coal used by the South- ern Pacific Company on its lines in California is $6.40 per ton, delivered on the locomotive tenders. The aver- 34 age cost to the San Francisco & North Pacific Railroad Company is $7.25 per ton. The average cost to the rail- roads in Southern California is $7.80 per ton, the cost to some roads being as high as $9.00. The average cost of the coal used by all of the railroad companies of California is at least $7.00 per ton, deliv- ered on the locomotive tenders and at the other places of consumption. From Philadelphia and Baltimore to Chicago and St. Louis and thence to Kansas City the average cost of coal delivered on the locomotive tenders of the roads extend- ing throughout Pennsylvania, Maryland, West Virginia, Ohio, Indiana, Illinois and Missouri may be safely esti- mated at not more than $1.26 per ton, — 18 per cent only of the average cost per ton to the roads operated in Cali- fornia. The following comparisons show the vital importance of cheap fuel in the operation of railroads. The cost of the fuel used by the Southern Pacific Company in oper- ating its roads in California was, in 1891, $3,238,880, equal to $1,156.00 per mile of road. The system of the Chicago & Alton Railroad Com- pany from Chicago to St. Louis and to Kansas City, in all 848 miles (not including second track), extends through Illinois and Missouri. The cost of the coal for operating it, delivered on the tenders of the locomotives, was in 1887 $416.00 per mile, being $740.00 per mile less than the cost to the Southern Pacific Company in California in 1891. But there is to be considered the further fact that the passenger and freight mileage per mile of road was much greater on tne Chicago & Alton System than on the Southern Pacific Company's lines. Estimating the passenger and freight mileage of the Chicago & Alton System to be the same as on the 35 Southern Pacific lines of California, shows that the dif- ference in the cost of coal per mile of road operated is fully $315.00 per annum, and that this excess in cost aggregates $2,800,000 per annum, or a fraction more than 10 per cent of the gross earnings of the roads of the Southern Pacific Company in California. The average cost of the coal used by the Santa Fe Sys- tem in California is $7.75 per ton ; therefore, as its volume of passenger and freight business and mileage per mile of road are much less than on the roads of the Southern Pacific Company, it is safe to estimate that, compared with the Alton System, the excess in the cost of this item of expense is considerably more than 10 per cent of its gross earnings. This excess in cost of fuel is an onerous charge in the cost of operating the railroads of California, and it amounts to from 10 per cent to 20 per cent of their gross earnings. The fact that the average cost of coal in California is more than five times as great as the average cost on the lines spoken of, from the Atlantic seaboard to Kansas City, also the gradients being much more difficult and the volume of passenger and freight traffic considerably less, throw sufficient light upon the question to clearly show that comparisons of the figures of rates alone to determine their relative justice and equity will not be accepted or upheld even by those persons least informed. There is not a driver of a transportation team toiling over the vast mountains, or through the desert arid regions of the West, carefully training a " green line mule," who does not at the same time consider and learn to know that the cost of l1\^l7the character of the roads and the tonnage to and fro, and also his own compensation, are important factors by which the rates of his line are made and justified. Low Tkanscontinental Rates for Certain Products TO Eastern Markets. It is well to consider the fact that the railway com- panies have an especial interest in common with the people of California in low rates for the transportation of the various products of the State, for which it is fea- sible to find a market by rail east of the Rocky moun- tains. The managers of the railroads appreciate this fact, and they evidently act upon it by making rates so low for the class of service performed that they themselves are not sure of direct and reasonable remuneration, or even reimbursement of the actual cost to them. But whatever tends to increase the producing capacity of the State is not only beneficial to the people, but also to the railroad properties, and it is doubtless for this reason, and because they estimate indirect and ultimate com- pensation, that the rates are so much reduced on this class of business. The rates which have prevailed this season on some of the important products shipped to Eastern markets by the Southern Pacific Company are presented in the fol- lowing schedule: 37 Rate Per Ton Per Mile, San Francisco to Eastern Points^ on Commodities. — Summer of 1892. 6 2o,ooo Lbs. per Carload. fl is fl ^ a 2 a 2 a 'S o g^ Oft So o a o ^ IS 3» S «8 a . Point. a g"^ £er tou east to St. ouis ; 319 per ton to Chicago. Missouri River 1915 2329 2407 2286 2184 2449 2602 2670 2875 2764 3209 3228 3319 3446 2134 CENTS. 1.30 1.07 1.04 1.09 1.14 1.02 .96 .93 .87 .90 .78 .78 .75 .73 1.17 CENTS. 1.30 1.07 1.04 1.09 1.14 1.02 1.15 1.12 1.04 1.09 .93 .93 .90 .87 1.17 CENTS. 94 St. Louis 77 Chicago 79 St. Paul Galveston 78 82 New Orleans 73 Louisville Cincinnati Pittsburg Cleveland Baltimore Philadelphia New York Boston .... Houston 84 Value per 100 pounds, wholesale prices in San Fran cisco market : Green Fruit, $3.50; Sweet Potatoes, $1.37^; Common Potatoes, $ .57. To fairly consider the rates on fruit it is necessary to know and appreciate at least some of the conditions of its transportation. The minimum weight of fruit in refrigerator cars is 24,000 pounds, the rate on which to Chicago being $1.25 per 100 lbs. from San Jose or Sacramento, the total cost would be $300 per carload of 24,000 lbs. For the service west of Ogden (proportionately within the limits of this State) the amount received by the Southern Pacific Company is $140.76. 40 The weight of refrigerator cars averages 40,000 lbs. Average weight of ordinary fruit car is 24,000 " Excessive weight of refrigerator 16,000 " Excessive weight of refrigerator, return 16,000 " Weight of ice east bound 8,000 " Weight of fruit 24,000 ' ' Total weight 64,000 ' ' Dividing this total weight (64,000 lbs.) by the revenue west of Ogden, $140.76, gives 22 cents per 100 lbs., or $4.40 per ton of 2,000 lbs. The distance from San Jose to Ogden being 870 miles, the result is that the Southern Pacific Company receives in California, and throughout its eastern extension to Ogden, .505 of a cent per ton per mile for its service. The trains that bear this fruit to market receive especial attention, and they are moved over the roads at high velocities, their necessary speed exceeding that of pas- senger trains in many parts of the country. Whatever the views of the managers of the railways may be, I do not hesitate to express the opinion that these rates, under the existing conditions, are not directly remunerative, and that therefore the loss occa- sioned by them, properly ought to be compensated for by clearly defined, direct or indirect, present or prospective, revenues, from other sources. It will be readily seen, from what has been said and the facts presented, that rates for the transportation of per- sons and property, averaging from ten to twenty per cent higher than those in the States east of and adjoining Illinois, are justified in California by the difference in the cost of fuel alone. It has also been shown that the rates charged by the Southern Pacific, Atlantic & Pacific, and the California 41 Southern Railroad companies, for the transportation of persons and property in California, average considerably- less than the rates on Eastern railroads at a time when the volume of their business and density of population were much greater than they are in California at this date. Although it is true that their rates average higher than those of the Southern Pacific, Atlantic & Pacific, and the California Southern companies, the same investigations and comparisons sustain the reasonableness of the rates charged by the North Pacific Coast, San Francisco & North Pacific, Carson & Colorado, Nevada, California & Oregon, Colusa & Lake, Pacific Coast, Eureka & Eel River, San Diego, Cuyamaca & Eastern, National City i i i^- ^ w ...'... ;:;:;; ."!f. ■ii ■J::''-:! i^jjjilljlll^llhlil'ldri x>— s. COMPARISON OF RATES BY DISTANCES ON RAILROADS IN THE STATE OP CALrPORNlA. Ill ...IJ IS ! Is i; i I P I ^ i I ij I I I I c COMPARISON r>-3. OF RATES BY DISTANCES ON RAII,ROADS IN THE STATE OF CALIFORNIA. Ml". .;::::j;:::;; :::::;,::::;: ::;:::j:;:::; ::;::: ■& ::::;; s 1 1 1 i!3 « 3 • 1 J \ \i ! 1 ■ \'A Vi s ; |::::::,.::;::,:, 1 i Jo .s" .« .1^- CL COMPARISON' OP RATES BY DISTANCES ON RAILROADS IN THE STATE OF CALIFORNIA. 3 I i'l ^ Cl COMPARISON OP RATES BY DISTANCES ON RAILROADS IN THE STATE OP CALIFORNIA. ,i''i -; Sa .? COMPARISOll OF RATES BY DISTANCES ON RAILROADS IN THE STATE OF CALIFORNIA. l^yE^[ \i'. 'iSUr:::;::: Jark. .!?.:.;;;; ipbelr'"":::: i 1 "='" i il ;l i! " S" j:.||. ji i ':}3:::::. ii: I.. i: :::::: 1 1 1 1 il ill ■• ;::::' |. ::l: :::::: ±. ::::: S-\ I Ii:. r» -s. ^ COMPARISON OF RATES BY DISTANCES ON RAILROADS IN THE STATE OF CALIFORNIA. sJ"™. i """^"""■^ mp .EMENTS.C.U 1 AMMDNITION. FIXED. L C L. | 1 S * |s 6 1 < « E t4 ^ ■i 3 ^ 11 ^ Jl ^ J s ^ I n tf d s t d P ■i 4 < s d d ^ ^ "i 0.kl>Dad. S.B.&R.M, Sao Bemardmo & Redlanda Motor Railroad. r»— o. COMFARISOI^ OP RATES BY DISTANCES ON RAILROADS IN THE STATE OF CALIFORNIA. IFali" ■OS 1 i 1 1 ,„ :l is ts i 1 1 11 ; ■■■ 'i s 56 i 35 i si il 31 w .-:;-!.;■:: 1 « 5J « .-.- J--.- . S. r>— lo. COMPARISON OF RATES BY DISTANCES ON RAILROADS IN THE STATE OF CALIFORNIA. j 'S. is i 8 36 '5 I* _8 36 3D :::* s i iy I j° r»— 11. COMPARISON OF RATES BY DISTANCES ON RAILROADS IN THE STATE OP CALIFORNIA. 1« j T. 11 i 1 i :::::; ?■;!«! " i ss ..:... f |2k ::i i i 30 i 1 1 4? ,,,., ...... I I i 'i J I I .<^^ I>— IS. ^aMPARISON_OP^TES BY D,STANCES_ON_RAn.HOADS IN THE STATE OP CALB-ORNIA. o'^M^el "ffiS-: ..I , I I I t ' J 1 :::::: | I ■■■■■ >. ! i ::::: I I lo a:TAT8 nHT COMPARISOir OF HATES BY DISTANCES ON RAILROADS IN THE STATE OP CALIFORNIA. COMPARISttI OF RATES BY DISTANCES ON RAILROADS IN THE STATE OP CALIFORNIA. KrugBci r , 1 ..a Nevada Mts 5. 1 fioc/ty lAts I APPENDIX E - PAGE 1. 1 ^ 5 " 4 c i -5 ^ J \ 1 i-i-v^w iiv^-viiwi_ ri\x_,iii_i_ «_^i .111- \ji\r\l^l—^ i^ l lilt— iw^f-^l-f^J IN OTHER STATES Atleghany Mts c roooo ^. \ 1 IN CALIFORNIA WITH THOSE ,1^ jS 15 - ^ 1 1 1 ^ <: 1 1 gs 1 t ■^ 1 1 ^ 1 1 1 y, ; S,! C P i 1 l.nnn l\ V M 1 1 Hor Scale 150 Miles - 1 Inch 7000 1^ -1 ( 2 , 4' ^ tl |. Vert moo Feet - / " A y 1 §> /\ ^f ^^Tx^-^-iZ "t-sV /" / 1 ? , 1' . / \, [ «i * ^ N y ' V n h -^ -sd li k;i- ~^ ^ L 1' § ■WOO / \ ^ uX_- 1 — ^^ X v^ =«. i::>^>^ ks I 1 E 1 1 3000 ■! / ".^^i 'V y N "^ ■^ ^ ===ii aw) i 1 // N /\ S / s y food o" ) SS ^ \ 1 • , 1 1 1i s^ i — ^ Hr- A — x^ — ^^^^ ^ / — — 1000 — — -J = h=^ ^ 4= ^ J u^ f= £ - A- = ;=_ JUJ ^1 ^ loop JS c: it 1 j 1 -^ > i § § - ^^ ' r i ' ^ ' 1 ' ^ \ ^1 ' 1 ' i"^"i~^i~^^ \ Ogden Weiv Orleans Portland t=4^ Cil,forn,s 1 i Jnion t^aciFic Colorado Midland. 5a.nla Fe . Southern Pacific — 1 _ — — ■ ■■- ~ o APPENDIX E - PAGE II • North Pacific Coast ■ 5an rrancisco »"•' North Paaf: ■ Southern PaciFic. Nevada - CaliFornla *«' Oreqoi Carson anrf Colorado . Union Pacrfic Nor Sca/e 25 Miles = / Inch Vert " eOOO Feet = / iSL CALIFORNIA COUNTIES COMPARED, 1810 AND 1830. PTiDdiwl Induitrin iig *5:S »S MiSteSl Ftnoing. sKclt. Fruit. Quittring. DalniDK, Vian. Wine, VegeUblc*. QuinyiDl 48,W4 <»3l l|« ■'*il 1;IS .ss; (M7,976,8m 1*683.669.6: ».:67 I S«.32fi A^iicuUu're.°^tlck?Fniil. tiimberiiiK. Mining. Agric'ullure. DsiiTing, Poultry. Stock, ^'";^J^^,,, r U-a, OOMPABISON OF GLASS RATES Ih BwwmcT OH 8. P. Go's Lnm tn Calh^kdia wrnt Ratss iw Brrscr wituix nn State DUTAHOU ox FoLLowwc Lisiui C B. & (t- R. R.. C M- & St. K »».. c R. 1 C & N*. W. Rv. AlTD IlXtKOU CoUMlutOKKU' MAXIMUM ItATKft. H-6. COMPARISON C ■ In BWBCT OX & P. Co"f Lnna nt CkuniK.-viA iTkav. " '■." .s r I. '>r-7s--iir S. 's. c z. if 'it' i. ^ r r f* J* r r c COMPARISON OF CLASS RATES L (Transposed for Western Classification) w: r Following Lines: C. B. & Q. ! State op Illinois for Similar DistaN' ST P. RV.. C. R. I. & P. Rv.. C. S; N. W. RV.Al, D Illinois R. R. CoMauss ONBBS • MaJ MDM RATRS .0.0. PROM 1 &. ■ ' = . c 1 „ ■= IMEe S..F™.c1.,o fS;;:..,/''^i ■ f f f s'!''l ■ 'n' ,K ] . 1" 3" ciii«go i "■■■ 1 4" ; 1 'f JL f ■1" i' i r iogT.. 1 -|- 1 'S ■S.P.CO Chicago lis 1" ill. fe <;, !=• 5.P.C0 Chicago 1 ii f 1 i 1 i 4" 1 S.P.CC, 1||, '^''^^^^■--'^1 i~ 1. 1; i° l:l.fi. cp,. £ i "C ,1 1- 1 Vi'MEv: SStagT"":":-:::: eS;;""'-°'"' ::: 1 «/* s ilr is 1 I ^ s b i F 51 7" 1;; <" ..lutoom^'iiiiviiiii R«;;vivtv.B-i"Ro;ai ||f«p:.:::::: Chicago ".'.'.'.'.'. JS||;|,:|-; •Illinois R. R. Com i|||E::::: IEe;;;^^;^;;;: 1 36* ils £„";?&::;:;:: Chicago RScY&'aSi-B^Riid; i il ir 1" '9" S.P.CO. C.B.&Q mi^Eer^'iiihium 3^ s ',1 ',',« ii" • S.bi„, ,0 C.m«i«ion.,.' Cl.„ili..lio.. 1 H-rf. COMPARISON OF GLASS RATES L ^^ ?1 "l"'^ i-'."" "• California (Transposed for Wistesn Classification) with Rates ^T. Lines: C- B. it Q. R, R.. c. M L- Commissioners' Maximum ~ Il 1 1 1 r 1 ' ■ 1 ■ 1 M ' 1 . . " "^ ] D E 1 l:|;Sfg:,::::::;: ISr::::::::::.; French C„p i f ,|J? ,;* I» sA ..'¥„ l^sX ]X 3« 3S ?:Siai;::::::^ mi-Ej-aiid;;,;^ il^^;;.:^i _r il> '«- Sm It 1. 31^ !.. Chicago ILoihrop ,;» ,?!? ^" StSlId, .j'tu <» .!. .S-^o^TiKn-, muauJicJ'iin;,; . r"':. . .-..s !'■■ ii ii. l« 6" i. !. =1 Chicago ^ 16« T ij.. 6* 7" ^ en 4' 4 3" ■mD0UR['B.'c«m :• K,5i ir lo" IS ir ir 7" 7" s t 3" chicngc.'::;.' tt» lu : ^ o** iitiEE chSL'S'.:.;:. , !':\::l,.nn ,;- . ,:;: 18 ,* a- i» S /» S' ff' ff' s6Ji » ? ■f 'th 1" •Illmoi, R. R. Com 1 1" „.. I ,j.. "" "" ' ' '■ •S„bicct,o Comn, „ion,« Cl.„l» ».lon. 9 ^^ UNIVERSITY OF CALIFORNIA AT LOS ANGELES THE UNIVERSITY LIBRARY This book is DUE on the last date stamped below OCT 14 193^ 1PR2 5 195S, ''"G 7 1961 Form L-9 20 ?ll-l, '42(8519) AT IiOS ANGELES UBRARY HE 1853 C2M8 .■tRv- • or c A re A. rrjR.^i ^,jj an.,ElES L 008 296 153 3 UC SOUTHERN REGIONAL LIBRARY FACILITY nil III mil III I 111 III mil III III II I II II AA 001 021 r Pi^f'Ar-:yyf^tft'!-:L^ii^j-3\a'r:c*i>^^>*^^:fij^'f'<^t^