Los Angeles daily herald., 1873-12-10
Governor Booth on the Railroad Problem.

The following is the portion OF the
Governors message That refers to
frclehts and fares.
Perhaps the question of regulating
the rates Of railroad transportation has
been clouded by unnecessary difficulty.
Railroads are public highways in pri-
vate ownership. In their construction
they invoke the highest attribute of
the States sovereignty-the right of
taking private property for public use.
Their owners are common carriers
with special privileges. If the State
has not the power to regulate their
charges, she may renounce her claims
to sovereignty. The maximum rates
in California--ten cents per mile for
passengers, and fifteen cents per ton
freigbt--were fixed at u time when
prices and profits were SO much higher
than now, it seems to belong to diff
ferent age. Practically, it is no limi-
tation, affording so wide q margin as
to allow railroad company. to dis
criminate between places, between In
dividuals, to reward friends and pun
ish enemies, and to build up or ruin
the business of any man that depends
upon railroad transportation. This
maximum is not in the nature OF
legislative contract, or vested right,
the Constitution reserving to the Leg
islature the right to alter or repeal the
laws under which corporations are
created.
These things should be kept in view
in establishing rates: There should be
a fair compensation. Discrimination
between individuals should be pre-
vented by penalties. Discrimination
between places should be prevented by
prohibiting railroad from charging n
higher price over any portion of the
road than is charged for the same or a
shorter distance of similar or heavier
grades in any other portion. The rates
and classificatiOns should be published
and posted up at all depots, as the own
ners of toll bridges and ferries are COM
pelled to post their rates; and public
notice should be given Of any cOntem-
plated change. Any express or trans
portatiOn company should be entitled
to the same terms, for the same busi-
ness, in speed, and price, as any other.
If a fair maximum is established,
and uniformity between individuals,
and over distances and grades is com-
pelled by penalties, the question of
classification may be in great meas
ure determined by the necessities OF
business. 1t may not prove necessary
for the law to schedule articles in
classes. Maximum rates can be fixed
for as many classes as are required,
and the companies can make and pub
lish the schedules of each class. 1t
easily suggests itself that the result OF
such legislation may possibly be one
schedule, one class. and the maximum
rate for every article transported. l
do not think so. But if the experience
of the ensuing two years should de-
monstrate that railroad companies,
with fair opportunities to construct
and operate q just tariff of rates Of
transportation, falling to recognize les-
sons already taught, and pursuing an
established policy Of strong-handed
defiance, have neglected or refused to
perform their duties, the next Legisla-
ture, exercising the strong and un-
doubted powers Of government, can
reach them and their operations in
dCtuIIy hCC phSoCoy oChCu-
ule every article of freight, establish
minimum as we'll as maximum rates,
prohibit the consolidation of compet-
ing lines, permit them to own no land
not necessary for their actual use, for
bid employees to furnish supplies to
the corporations, regulate their sys-
TENS of accounts, and compel them by
clear enactments to recognize their
true position, their real obligations,
and their prescribed privileges. No
law is perfect. Under the operation of
the wisest, some cases of hardship and
inconvenience may occur. That is the
best which aims at substantial justice.
There is no local competition between
railroads; there is but one best route
between two points. Besides, in rail.
road capital does not compete-it
combines. Not to compel fairness and
uniformity by law is to tolerate the
abuses and expressions of arbitrary
power.