Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-05-12
FARES and FREIGHTS
Report Of tee commissioners Of
Transportation to the Gov
8rnOr of the State.
An Exhaustive Review of the
Transportation Question

AT a regular meeting of the Board of
| Transportation Commissioners, j. C. Beer
stecher, Commissioner for the Second Rail.
road District, offered the following report,
which was adopted by the Commission
Tohis Exeellency, George C, Perkins, Gorernor
On the 4th Of February we had the honor of sub.
mittng our first report to your Excellency In that
report we showed that the labors of the Board had
during the first niue months of its orga zation been
devoted to the acquisition of information regarding
the subjects upon which it was required to legis.
late but that owing to the illness of one of the
Commissioners 1t had not been possible to make an
exhibit of the conclusions reached by u.s. Since that
report prepared we nave been engaged In care.
full consideration Of the existing freight aud passen-
ger rates on the railroads of California with view
to their reduction wherever possible. And we now
present you with list Of tables showing series of
reductions in freight rates which we have adopted
at regular meeting of the Board; and from
which we have the best reason to be-
lieve that the public will derive signal
freight rates affect large class of articles, viz,
wheat, WOOL hides, wood, hay, and other low-pricei
but largely.raised produce dependent upon cheap
transportation for successful production. We have
not as yet made any changes in the bulk of the
charges on general merchandise. Such reductions
may appear feasible hereafter. The tendency of
railroad development has thus far been toward the
dminution of charges In proportion to the
growth OF business. In this way three considerable
and general reductions in freight tariffs have sue
ceeded one another on the Central Pacific and
leased lines within the past five years. We have
adopted the existing rates on general merchandise
as the minimum rates, and we have not thought it
advisable for the present TO make any changes in
the passenger tariff now in operation The reasons
for our course in this respect are such as must
commend themselves to candid judgments
On eaterng upon the duties of our office we found
ourselves impelled by popular demand for sweep
ing reductions in freghs and fares and vested with
power so comprehensive and extensive that the most
arbitrary changes were possible to u.s. But the
moment We began to investigate the subject before
with view to the carrying out OF the supposed
popular desire, we were compelled to realize that
arbitrary and blind action could not be taken with
out putting at risk the interests Of the public
equally with those Of the railroads We discovered
that the mutuay Of interest between the producers
and the transportation agents was in fact SO much
more intimate than had been generally recognized,
that 1t would be absolutely impossible for u.s. lack
ing the necessary knowledge to strike at one with.
out endaogering the other. And when in our search
for information We examined the abors Of our pred
ecessors in this and other States we learned that
they had one and all had the same experience and
that and all had, however slowly reluctantly
been forced to the conclusion, viz that arbi.
trary regulation of railroad charges was not alone
unjust to the railroads, but full of danger and in
jury to the public. 1t may be interesting to quote
in this connection, pertinent paragraph from the
report OF our predecessors in office Messrs Stone.
man, Doyle and Smith. These gentlemen say (p.
l4): GA proposition to fix by law the rates of
Z" freight en- each commodity transported. is a pro-
" posal to determine the proportion in which the
" difference in terminal values shall be divided be-
tween the producer and the carrier, and to value
4" the share allotted to the latter in advance But
difference of terminal values is so utterly diff r.
" ent in the case of the innumerable variety of
(" different commodities carried so various even
% in the case OF the same commodity with seas n.
:" place and circumstance is dependent, in many
' instances the course of market values abroad
" which fuctuates even from day to day, that it is
" simply impossible to frame tariff based on such
division which will not prove either Intellectual on
" the one hand, or unjust on the other"
These and similar conclusions we found to be for
titled by every step of our researches The |
of the situation, the instability of its
factors the necessity Of taking into account consd
erations which c-ud not be dealt with save on the
spur OF the moment, the relations of particular |
interests to the general interest the equities of the
both Sides the main elements of the cost Of
and OF the remuneration OF SER |
classified tariff from a standpoint which practi
cally ignored some OF the vital factors Of rail.
road management, would be simply to involve the |
whole situation in confusion, and to give to the
opponents of regulation plausible argument
against any further experiment in that direction
We we're satisfied, in fact all who have seriously
studied this subject have become satisfied that it
could not be approached with any hope of sats-
factory solution unless it approached with de-
termination to hold the balance evenly between the
interests concerned, and to seek equitable and not
arbitrary settlements OF all issues in dispute. To
the end that these objects might be secured we
therefore adopted resolutions to the following effect
in full Board and by unanimous vote:
WHEREAS, The Constitution has vested in his
Board powers of legislative judicial and execu
character in reference to transportation within
this State, viz: the power to establish rates of
charges for transportation of passengers freight
by railrnad and other transportation companies
and to that end the power OF issuing subpenas and
all other necessary processes the power of hearing
and determining cOupaintS aOainst he rail |
and other transportation companies, aud to that
end to send for persons and papers, to adnini,ter
oaths to take testimony, and to punish for con.
tempt Of orders and processes in the same manner
and to the extent as Courts of record, and to
enforce decisions and correct abuses through the VI
medium of Courts, and to order prescribed and
Uniform system of accounts to be kept by all such
corporations and companies; and whereas, the Con-
stituton dee that every railroad other trans
portation company which shall fail refuse to con-
form to such rates shall be established by this
Board, shall charge rates in excess thereof or
shall fail to keep their accounts in accordance tn
such system as this Board shall prescribe shall re
ined not exceeding 10000 for such offense; that
any officer, agent employe of any such corpora
ion or company who shall demand or receive rates
Of the rates established by this Board shall
be fined not exceeding s., 000 be imprisoned not
exceeding year: and whereas, the Constitution
urther declares that the rates of fares and rephts
by this Board shall be deemed concl,,.
,vely just and reasonable in all controversies civil
md criminal, to which corporations and companies
nay Deeome parties ana whereas, the course of
procedure established in the creation of this Board
iiffers from methods heretofore in use for the ad.
ustment Of individual and property rights, viz
OF juries and review by other tribu.
lals therefore be It !
Resolved That in determining rates Of chsrpes for
OF freights and fares on the various
ines portions Of lines of transportation within
his State. the Board will have regard to the eoui
les existing between shippers and carriers and the
OF private property invested in tra spor
atieS enterprises; and in determining what is o
lust and reasonable rate will consider the value of
he services performed distance of carriage volume
md direction Of traffic. the general character there
If to be fixed by classification as to volume weight
'aue, the liability to accident climatic influence
grades, cnrvatures, costs of manten-
lnce, and that in fixing, establishing or adopting
ares and freghts all parties to all cases arising out
II the adjustment of rates. before any such rates
hall become and be established the rates of this
Board, shall have full and ample opportunity to ap
,ear before this Board, TO be heard in the premses
by counsel or otherwise, to witnesses andl
o this eud shall be entitled to processes Of this
3oard to the end that its judgment may be equita-
lie and IFS conclusions be jus4 and reasonable
Having thus given guarantees Of our desire to act
arly throughout, it became necessary to inquire by
vhas means the interest of the public in reduced III
ates Of transportation could best be subserved. i
We wdse called upon in the first place to determine
vhat constituted reasonable" rates. the Constits.
ion having left that question entirely to our dis