Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-05-11
CALIFORNIA.

CALIFORNIA.
Railroad Commissioners Report to the
Governor.
SAN Francisco, May 10th.-The Railroad
Commission met this morning. Commission.
ers Cone, Beerstecher and Stoneman present.
Upon calling the meeting to order, Com.
missioner Stoneman rose to question of
privilege, and referring 70 the reported inter-
view with Commissioner Beerstecher, as pub
lished after the last meeting, denied the
statements therein set forth, as far as they
related to him.
REPORT 70 THE GOVERNOR.
Commissioner Beerstecher then presented
voluminous report, signed by himself and
Commissioner Cone. and addressed to Gov.
summary: The reduction made by the Board
in the rate of freights affects grain, wool,
wood, hay, cattle, hogs, sheep and other lew.
priced but abundant products depending
upon cheap transportation for successful pro.
duction. For the present the Commissioners
adopt the existing rates on general merchan-
disc as maximum, and have not thought it
advisable at present to make any changes in
the passenger tariff. Although there was a
demand on the part Of the public for sweep.
ing reductions, the Board, after Investigating,
came to the conclusion that !" arbitrary and
blind action would not be taken without put
ting at risk the interests Of the public equally
with those of the railroads. In this opinion
the Board found itself supported by similar
Boards of other States, and was fortified in
tine conclusion by every step in its own re-
searches.
The instability of its factors, the necessity
Of taking into account considerations which
conld not be dealt with save on the spur OF
the moment, the relation of particular inter-
ests, the equities of the case on both sides,
the main elements of the cost of trapsporta-
ton and of the remuneration of service-all
and each convince us that to undertake to
compile classified tariff from standpoint
which practically ignored some of the most
vital factors of railroad management, would
be simply to involve that situation in con-
fusion and to give to the opponents of regu.
lation plausible argument against any fur
ther experiment in that direction.
The report then goes on to consider the
differences in the way OF determining what
ia reasonable tariff, and states that the be-
view to furnish certain percentages of profit
upon a certain amount of real or fictitious
capital, is fa)lacious. The watering of stock
has DO practical connection with freights or
passenger charges. Whoever doubts this
may satisfy himself by careful review of all
stock. watering transactions which have taken
place in this country during the past ten
years, and a comparison between these trans.
actions and the current tariffs. The question
of what are reasonable rates may be supposed
to depend largely upon the amount Of rail,
road earnings but in what proportion these
earnings should be divided is a matter con-
cerning which most radical difference OF
views exists.
The report then referred to the extensive
railroad system of California, which had out
run the wants of the country, the limited
amount of freight carried and the fiuctuation
in the value of railroad traffic. Attention is
called to the difference il status between
roads on this coast and those in Eastern
States, where competition enters as a power
full factor in fixing the rates.
the merchant has been unable to tell from
"day to day what the staples in which he
dealt would be worth. He could not venture
to increase or diminish his stock without en-
countering most serious risks. He was forced
to gamble against his inclination. In this
way all business has been disturbed, and un-
certainty and loss have been entailed upon
the commercial classes"
The report then refers to the absence of
fluctuations in tariffs due to competition in
this State, as an instance that the railroad
companies have not engaged in speculation in
the products of the country. In this respect
the situation has been to the advantage of
the public.
The report also thinks that the practice of
charging according TO the value of merchan-
disc is the best the exigencies Of transporta-
tion admit of.
The railroad maxim, that the higher the
maximum the lower the minimum rate will
be- is enunciated, and an attempt is made
to show the application. To make
large reductions upon general merchan-
disc would be to cripple transportation,
but, in fact, it would still more certainly
cripple production, for these interests are
linked together ;" but in the following SEN
tences the report states that reductions in the
class of freight mentioned above were neces-
sary, for their market value is low, and it is
so restricted by competition that it can sell
dom be raised If, therefore. these staples
cannot be carried at very low figures, they
must forego transportation altogether, and
that is equivalent to ruin of all producers
who have settled outside of certain limited
area surrounding the centers OF distribution
and shipment.
IF the rates on general merchandise were
reduced, the report says there could be
no reduction in the case OF staples. An
ether difficulty in the way of fixing
rates is stated to be the instability
Of the relations of the railroad to the country,
which is so constantly changing, developing
and demanding new facilities. In view of
all these considerations, the Board is assured
of the impossibility of venturing upon any
arbitrary or sweeping measures.
Had we entered upon the work in a spirit OF
rancorous hostility to the railroads, and q
vindictive resolution oinjure them, weshould,
in all probability, have accomplished nothing
beyond engaging the State in interminable
legislation; but by setting before ourselves a
standard Of equity as guide for our conduct,
we have succeeded in obtaining from the rail.
road companies acouiesence in q scheme Of
reduction which must bs productive of great
present benefits to the public, and which
affords an encouraging earnest of future
and perhaps even more important changes
The report was adopted, and the BoarG
adjourned till IL o'clock tomorrow morning
Resumption OF TranIc-A,sessmcnts and
Dividends.
SAN FgAscIsco, May 10th.-A dispatch
from the ONCE or tnS Utah Nortnsln ISaif
road at Ogden says that the trains which have
been stopped by washouts since the 4th inst
will probably begin running again tonight.
yellow Jacket leyies an assessment of 81
Hale & Norcross levies an assessment OF 81
cents.
Northern Belle declares the regular divi
dend of 30 cents, AMI an extra dividend Of 2;
cents.
Grand Lodge, i. o. o. r.
SAN Francisco. May 10,h.-The Crane
Lodge, L o. o. f., was called to order to
| day by Ezra Pearson, G. N. All the gran,
! officers were present, and a full quorum o
representatives. Credentials were receivet
and referred, and q recess OF an hour taken t
allow the committee to report, at the end O
which time the committee reported. The re
port was adopted, and 167 representative
and II visiting Past Granas were introduce
and the Grand Lodge degree conferred upo
them. Standing committees were appointe
! and reports of officers read and referred.
Determined Snieide-Dcafh Of a Wei
/ known Lady.
STocKToS. May 10th.-William Burnet
an old man, deliberately jumped into Stool
ton channel this morRing and was drowned