Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-02-10
TIE CONSOLIDATION.
SPEECH OF sgsAroR vRooaAN UPON
gHE RAILROAD QUESTION.
U1warransed Assertions answered and
Facts Presented-Urjust Discrimina-
tion in Taxation-Etc

During the consideration Thursday OF Assem-
bly, Concurrent Resolution No. u, relating to consol
idation OF the several railroads composing the South
ern Pacific route. Mr.. yrooman, of Alameda,
addressed the Senate, speaking extemporane ,usly,
and of which iul stenographc report is presented,
as follows:
Mr. VI oman-It seems TO me that this is a ques-
tion which should be determined By appeal 70
the and not to tne passions prejudices OF
Senators. / am exceedingly thankful that this dis
cusson has taken psca, for one reason at least it
has led some Of my Democratic brethren to admit
that there are some rights vested 10 the General
Government. | somewhat familiar with the
political history of the country. / am familiar with
its politics. and this is the first time heard
Democrat edmt that there were any powers vested
in the General Gov rnment which State was
bound to respect, and l thankful that
the admission has been made here to-day.
1t was stated by the Senator from the Tenth Dis
trict (McClure) in his opening statement, that the
Supreme Court Of the United States had decided
that there WAS no power in Congress to prevent
State from taxing all of the propery situated with
in the State, except property, the title to which
was in the General Government had hoped that
of the able Senators and lawyers who followed
him would point TO some authority in refutation of
his statement; but not one OF them has shown
authority that effect, and challenge them to do
so. Why 2 AS understand the laws of my coun-
Try concerning this matt r. the State has the excu
sve right to tax every bit OF property within its
borders, except the property the title to which is in
the General Government and, secondly, that the
State has the exclusive right to regulate fregts and
fares within the borders of the State AMI that there
is no power anywhere which divest it OF that
right
Mr.. Reddy-Suppose some one should make
complaint before the Railroad Comm ssopers to the
effect that the railroad had made an overcharge the
Commissioners issue process nd bring the company
before them and try that proposition. Would not
the railroad company immediately take the case to
.~,f1 49, a..
Commits onerssfrom all jurisdiction?
Mr. NrGomau-lf a complaint made by citi-
zen that an Oyercharge had been made for freight
within the state OF California, answer the Senator
that under the Constitution of the State the Rail-
road Commissioners would have the exclusive right
TO determine that question, and there is no power
that could take 1t away from them; say that there
is no law in existence that l know OF which will
ira sfer a from the Board of Railroad Commits
soneTs to the ederal Courts.
Mr. keddy- Are the Railroad Commissioners a
Safe Courtl
Mr Vrooman-The Railroad Commissioners do
not constitute q State Court within the meaning Of
the Federal law which authorizes the transfer Of
clsez. The Boa d of Railroad Commissioners are
peculiar body who authorized 10 act IN egisla-
tive and executive capacity, and repeat that there
is no statute that authorize such a transfer as
YOU have spoken OF. That l may not he misHnder-
stood about the matter, say that Congress has the
right to prescribe the rates for through freights
aud fares, and there is no pow'r in state which
tas right; but when it comes 10 taking of local
freghts and fares that authority in the State Off
GERS, and they cannot be dvested Of it by Congress-
Congress has no powers except such powers
conferred upon il by the Constitution of the United
States. Whenever Congress seeks to exercise a
power, it must place its finger upon the werd line
and sentence Of the Constitution II the United States
giving to it such power, and | ask Senators
who are to follow me upon this question, TO point
TO a single word, line sentence OF the Constitu-
ton Il the United States which authorizes Con ress
TO interfere with state matters far the regua-
tion of freights and fares of railroads or common
carriers is concerned, or far the taxation of
property is concerned Why, sir, tse Senator'S upon
the other side of the question thiuk because this Act
provides that this railroad shall be used fer the
trar sportation of mails and Of supplies for the
army, it thereby becomes Federal agency beYond
the control OF the State Do not the Senator's know
that the Southern Pac fc Railroad to day is an in
strument for carrying tue mails and supplies of the
Government OF the United States? Do not they
know that there is provision Of its charter that in
case OF an emergency, as in the case of war, the
Government has the right to take control of it? Do
they not know that the road is bound to carry the
supplies of the United States to the exclusion, if
necessary, of the supplies OF the citizen Do they
not know that the road Incorporated for the
purpose of atfording speedy transportation of the
mails and supplies OF the United States? And
has anyone ever claimed that fer that reason
it was exempt from taxation? No, sir !
The question was raised years ago concerning stage
coaches, stea DbOats ETC.. that because they carried
the mails of the United States they were exempt
from t1Xation, but the Courts dec ded they were
not thereby exempt. Now, sir this discussion upol
the other side hss taken wide range. Senators
have seen proper to ctl in question and raise the
point that the Southern Pacific Railroad aid not
pay its taxes. Now undertake to say that when
the facts all known there is not fair minded
man in this State but would say that the c7mpany
has done right in fighting the payment of these
taxes so assessed to the bitter end was told by a
railroad manager some months since that it
was immaterial how this litigation turaed out, as
the company proposed to pay every dollar OF taxes
that they owed to the State as the amou t may be
fixed by the local Boards OF Equalization. said to
him Why, sir, tae people of tbs State had treat
ed me as they have you, would never pay q cent Of
tsXes except at the end of execution. under
take to say that there is not miner farmer in
the st te who would rot do the same thing | uu
derstand that e fundamental basis upou which all
taxation is groun1ei is tnat it shall be equal and
uniform, and | understand that the farm of the
farmer, and the nine Of the miner shall be ed
ny the same Assessor aud measured upon ute same
basis. is there any body who will dispute that?i
What have the people OF this State attempted to
do. They say to the Senator from PAGER county,
il you operate railroad lyiag in more than one
county, 1t she'll ne assessed by the State Board of
Equalization, and you shall not be allowed to ap.
pear before the Board, and your property VIII De
assessed at an arbitrary rate irrespective of its
valae and irrespective Of the value of property
alongside of it, They have said to the Senator rom
the Tenth District, %hO owns railroad lying all IN
a single county. your road shall not be assessed In
that way Is there anybcdy who sill tell me that
ths Senator ia the former would not and should
not resist the payment Of taxes 50 assessed? 1
assert tnat anybody who would lot resist that kind
OF trestment Is no man, but a coward.
desire to call the Senators attention to this, be-
| cause there has been sought to be made so much
capital upon this po nt | lay lt down as 4 pr1pesi
ton hat taxation shall he equal and uniform that
the true theory Of taxation is that every man who
has property shall contribute to the support of the
Governm mt and thereby 10 the protec5ia of his
and of lig prRunrkinD ag no
has property to protect and no further. No man
vii dispute that proposition. Now, then, what are
the factsF The facts tina. the State Boards OF
Equalization Of this State have assessed the rails OF
the Southern and Central Pacific Companies at
So coo per mile These rails can be laid down now
for less than 50, 200 per mile Any knows that
rails depreeiate certain percentage every they
are used and Of cour5e they cannot be at any time
worth more after they are laid down than they were
when they were new, ana they have been as5sssed
at $500 per mile more than theg cost new.
Agaiu, the roadway Is taxed at 81, LOCO per mile.
The roadway across the mountains is assessed at $50
per acre. end it is not worth four bits and there is
not man within the sound of my voice who does
not Know this to be he truth. The roadway across
the Colorado and Mohave deserts is assessed at over
$50 an acre. and It is not worth cent acre aud
thousand acres of il could raise healthy fea in
a dry year Is there any man that would pay any
such tax as that2 would not. | would fight it in
the Courts, and if ! won it ! would never pay it.
Notwithstanding all this, the railroad companies
have paid 81 loo 900 taxes within the last two
years. and this in face OF the fsct that the Counts
have held up to this time that there mad been no
legal assessment Of their property, and they were
not liable for dollar OF taxes 60 assessed hope,
Mr. President, that the Senators will excuse me for
this rambling diversion, from the fact that wish to
follow the order in which the subject has been
treated. The Senator from Mono IReddyl said il
was notorious fact that the railroads had resisted
the fixing of freights and fares in this State have
never heard of their resisting any order OF that
kiod. have never heard that the Railroad Com
missioners have fixed schedule of freghts and
fares.
Mr. Reddy-Allow me 10 correct YOU l stated
that prior to the Constitution they had pre-
vented, or endeavored to prevent, the fixing
of freight and fares did not say they
| had resisted any order Of the Railroad
Commission, because majority OF the Commission
never made o-der that they wanted to resist and
probably never would if they had remained in
Office.
Mr. Vrooman-As have said before, have been
a somewhat ctreful observer Of matters connected
with the political aairs of this State and the Rail
road Commission. It is true that the majority OF
the Railroad Commission has never made an order
that the railroad company wanted to interfere with
but don't know tina the minority OF that Commits.