202 TRANSACTIONS OF THE 



comprehensive intelligence and with full knowledge of every factor enter- 

 ing into profitable farming. The adjustment of rates should not be upon 

 any nice calculation as to how much the traffic will bear, because that rule 

 leaves no margin for short crops, low prices, or business fluctuations. It 

 ignores the vital principle in railroad building that its success must depend 

 upon the success of patrons, and that railroad enterprises are for all time, 

 and always discount the future prosperity of the region traversed. The 

 relation between carrier and producer is so close and so inseparable that a 

 war between the two always reminds me of an old Latin fable, entitled 

 "Venter et membra.'" 



The stomach fell out with the limbs one day on the contention as to 

 their independence and as to which was of the greater value to the body. 

 Each refused to perform its offices; the body shrunk away and died, carry- 

 ing with it in one heap of mouldering dust stomach, limbs, and all. 



Railroad operators must be accorded ordinary business sense and saga- 

 city; they want dividends, but they don't want to kill the goose that is 

 laying the golden egg. Generally, not always, they are amenable to reason 

 and argument, and can be made to see that their interest is a common one 

 with the producer. Ten years ago I joined certain parties in the estab- 

 lishment of a large lumber enterprise in the upper Sacramento Valley. 

 The freight rates on lumber excluded certain of our classes from competi- 

 tion with Oregon lumber in the lower country markets; our high grades 

 could stand the tariff. We asked a reduction on all classes and grades in 

 car lots to meet our new trade; it was granted on a fair showing of the 

 necessity, and the rates have never since required further reduction. 

 Others have been less fortunate, I am told, but possibly we do not know 

 all the facts. Unfortunately for the interests of all shippers, there has been 

 more of a disposition to make war upon the transportation companies than 

 to meet by fair and persistent argument the matters at issue. The trans- 

 portation companies have been used by political parties to further political 

 ends, and, of course, when thrown into the arena, they had to fight their 

 way out, and meanwhile the people most interested were the sufferers. It 

 was an important event to the producers of this coast when the transporta- 

 tion companies were permitted to go out of politics. The concern of this 

 society is not with these companies further than as they are factors in the 

 problem of our prosperity. As such we may inquire what has been done 

 in the way of reduction of freights especially, and also of fares. It is my 

 purpose to call attention only to such concessions as have been made and 

 rates established in the interest of patrons of this society. I cannot go 

 far into the question of further needs, but I think it should be the interest 

 and concern of this society to do so. 



Under the Cone Commission there was a reduction from preexisting rates 

 to tide-water from twenty-five to thirty-three per cent for the carriage of 

 wheat, corn, oats, barley, flour, mill stuffs, cattle, sheep, hogs, and wool. 

 This was a substantial benefit of great importance to the farmer and stock 

 grower. The completion of the Southern Pacific line made it possible to 

 move our grain to the grain markets of Europe via New Orleans or Gal- 

 veston, and, although this has not been done, we have had reduced rates 

 by sea since this became possible. This reduction by sea amounted to 

 about thirty-seven per cent — more that one third less than previous rates. 

 It is easy to see that on a shipment of four or five hundred thousand tons 

 the saving is important. A saving of one fourth to tide-water, and one 

 third thence to Liverpool, is not to be overlooked in considering whether 

 the transportation companies are 'meeting the people in their efforts to 

 develop the resources of the country and make homes. 



