Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-01-10

let the burden of proof of reasonableness OF
rates be thrown upon the companies let
the State invoke the enforcement OF remedies
at common law when private parties might
be deferred from seeking legal remedy. Ii
unreasonableness is shown, let the carrier
pay the cost of the proceeding as well as the
fine if the carrier proves reasona6leness, let
the State pay the costs. Such rules will be
Just to both carrier and shipper. judicial
investigation alone can determine as to the
Justice or injustice OF transportation charges.
THE RULE oE ACTION.
"If TRANSFORMATION companies will not be
governed by an enlightened seif-interest, nor
make rates which the public can afford TO
pay, let judicial determination be invoked,
and when proper rates are so established let
them remain in force until the business Will
warrant reductions. There should be no
guessing at what can only be determined by
ascertaining the cost and value of the service
rendered, duly recognizing reciprocity Oh
interest between the producer and tine car
rier." ~
The cheaper products of the State will bear
only low rate of transportation. The aver
age rate on wheat for all distances does not
exceed 50 80 by rail, and in no case exceeds
Sc. This is the maximum. To charge more
wo1ld stop its production for general mar
| kets, and deprive the carrier OF return
| freight which would be profitable to MIN,
without being burdensome to the consumer.
Hence there must be discrimination to FAVOR
the producer of the wheat. lea and wheat
move at like cost but Is cents on the tea
and 2 cents on the wheat is not unjust dis
elimination against the owner OF tho tea, out
is lust discrimination founded on the law OF
values. The ton of tea is thirty times the
value of the ton of wheat, and S. per ton on
| the wheat bears heavier on the consumer than
$50 per ton on the tea. Therefore judlclouss
classification of goods is in the interest OF
both shipper and carrier.
| COMPETITION.
| Most public complaints of discrimination
are the result of competition. Take two
competing roads, with like terminl, but OF
unequal length. To forbid differentlai rates
| in such q case would direct all the
business to the shorter road, /. e., the forbid
ding a road to charge less for the greater dis
lance. If navigable river completes with
both roads, the enforcement of such pro-
hibition would shut off through business from
| both roads, because the low river rates would
| have to be met, and this would compel
raising of rates for intermediate points on the
roads to make up the loss. The enforcement
of the rule would tend to cause combination
of the transportation lines and create
monopoly.
LOCAL RATES.
Local traffic on railroads, except at COM
petitive points. is subject to be determined by
| the cost and value of the service. The de-
termination of competitive traffic on like
basis has not been attained in this country:
The Regain bill prohibits the very means OF
accomplishing it. The consolidation OF lines
would destroy, in measure, the greatest IN
centive to economy and a regard for the pub:
lie, except where governing board had
power to enforce division of traffic so as to
| prevent violent fluctuations. Ii farmers and
| merchants would invest somewhat IN trans
portation securities it would be better for all
parties The rights of the shipper are just
and reasonable rates to all, under like circum-
stances and similarly situated; the duties OF
the carrier are to make just charges for every
service, and make no uni just discrimination
against any person or place to meet Compel
ing lines, and to manage the business without
unjust interference on the part of the public.
The Commissioner here introduces an article
on the principles governing railroad rates,
written by NJ de la Gournerie, Inspector
General of the French Corps of Bridges and
Highways, published in the bulletin of the
Society for the Encouragement of National
Industry of February, 1879, and refers to it
as paper of the highest authority.
GENERAL DEDUCTIONS.
The general deductions of the Commits
| sioner are:
l. Competition based upon transportation
by water constitutes a controlling factor in
regulating railroad rates on freight
2. The extensive waterways of the State
should be kept open and improved for the
public use.
8. The navigation of the inland waters
must not be embarrassed by grants of special
privileges.
4. No water frontage, now under State
control should be alienated or allowed to pass
into the hands of any transportation COM
pany.
5. Equal mileage rates are inexpedient and
impracticable. Special rates at such points
should be permitted, open to all shippers I'M
der like circumstances.
6. When competition does not exist, the
only correct standard for determining rates is
| that founded on economics-cost to the car
rier and value to the shipper of the service
rendered.
Z. The advantages arising from freight
classification are all in favor of the producer
and manufacturer of the cheaper and more
bulky commodities of the country.
s. All transportation companies should be
required to exhibit their rates at every sta
ton for the inspection of all shippers
| 9. To prevent railway monopoly of the
| carrying trade the naYlgaole waters should
receive the immediate attention of the Gov
eminent.
TO- Governmental supervision over trans
portation companies should be directed to the
preservation and further development of
competing facilities to giving publicity to
any irregularities and unjust determinations
practiced; to the arbitrament of differences
between shipper and carrier; to interpreting
between different companies which jointly
perform through service; to afford better IA
cilities than at present exist for the settle
ment of unjust charges, and to the enforce
ment of legal remedies for the correction OF
all transportation abuses.
IL The supervision authorized by the new
organic law should not be so exercised as to
relieve the common carrier from liabilities
now imposed upon him by the common law,
| or to impose concurrent responsibility upon
the Government.
u. A uniform system of accounts for all
railroad companies Except street railroads)
doing business as common carriers should be
enforced by the governing authority of the
State.