Chapters on the History of the Southern PacificDaggett, Stuart
History
Chapters on the History of the Southern Pacific
Daggett, Stuart
Pacific railroads -- History; Railroads -- California -- History; Southern Pacific Company
In two years and seven months the only reductions in rates and fares
secured by the Railroad Commission were certain cuts in the rates on
products of agriculture conceded to the farmer member of the commission
by his railroad friends. The commission formulated no principles and
worked out no effective procedure. Even its reports to the legislature
had little value. The first two were prepared by Mr. Beerstecher, the
third by Mr. Tuttle, former railroad commissioner but no longer in any
official way connected with regulation work. When the commission was
not unanimous in its decisions, the division usually was that of Cone
and Beerstecher against Stoneman—a fact which leads us back to the
question of the nature of the influence which the Stanford group was
able to exert.
Bribery Committed
The charge is made that the Central Pacific bought and paid for
Beerstecher’s services while a member of the Railroad Commission, and
that Cone was so influenced by his personal and business relations
with the managers of the Central Pacific as to be unable to view
their activities in the critical and impartial way which his position
demanded. The evidence in the case is purely circumstantial, but
seems to be convincing. So far as the former is concerned we have the
admitted fact that Beerstecher was richer at the end of his term of
office than at the beginning by at least $12,000 and probably by a
good deal more. As he put it, he thought he saved his entire salary of
$4,000 a year as commissioner, during these years. Beerstecher asserted
incidentally that his legal practice while a member of the Railroad
Board amounted to from $1,200 to $1,500 a year—although the records
of the Superior Court of San Francisco, before which Beerstecher
practiced, show that this was highly unlikely,[274] and the testimony
of the bailiff to the commission is directly to the contrary. $12,000
may be regarded as adequate compensation for a man of Beerstecher’s
type.[275]
Gerke Transaction
Cone’s case is not quite so simple. It seems unlikely that a man of
his standing should have consciously accepted a bribe. There is,
however, direct evidence of a reliable character that Cone was given
unusual consideration by the railroad in connection with the purchase
of certain lands in the northern part of the state, and Cone himself
admitted that while he was commissioner he had bought some lands from a
man named Gerke and had resold them within two or three months to the
treasurer of the Southern Pacific at a profit of $100,000.[276]
Public-domain text, read in full here on John Shaqi.
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