Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-05-05

commissioners the power OF c0nnsca.
ton. They intended the Board to
act in calm and judicial spirit.
1t should proceed upon no other
theory than that of right and justice,
founded upon a sufiiciepcy of legal evil
dence. The principal benefit to be derived
from action by the Board is to prevent
transportation companies from unjustly
discriminating between persons and places,
to compel every carrier to give to every
shipper rbe same rights and privileges and
advantages for the same compensation as
it gives to every other person similarly sit.
uated, and this includes a redress of
alleged grievances under special contracts
and rates for merchandise transportation.
As to cases of favoritism, the Board has
every facility for discovering whether or
not they exist. The Board is not to
assume that such things exist, but
to act only when formal complaint
is made. Each case must be determined
by the evidence produced in it, and in the
light of its own circumstances. In other
words, each case involves trial of ques.
tions of fact, and the application of the law
as in all other Judicial proceedings He
advises the Board to sit at different points
to afford the people opportunity to set
forth complaints. As to discrimination be.
tween places he has no knowledge of any
special cases. There is a discrimination
between competitive points and places on
the same line which are non. competitive.
At first glance it would seem only reason
able that the carrier should not be allowed
to charge for the lesser more than for the
greater distance. II the Board CONSTITUTES
the Constitution, that railroad companies,
in order to compete at point on tide or
navigable waters, with the cheaper mode
of transit which such waters afford, offer
rate of charge that will secure the bust
ness to the railroad, and that they are,
therefore, prohibited from charging any
higher rate at any other point upon their
road where there is no competition by
water, then it will necessarily result that
railroads will not be carriers from such
competitive points, and the movement of
freight to and from such points will be left
to the owners of the water craft. In other
words, these points will cease to be what
are termed competitive points, and the
shipper will be deprived of the advantage
arising therefrom, and the reason is that
a railroad cannot be operated for the
movement of property as cheaply as ves-
sells propelled either by steam or sail. II
the railroad companies were compelled to
accept at all points upon their road, only
the prices which barge or schooner CON-
ing into competition with them at a partic-
ular place compels them to accept, they
would, in large number of cases, do
their business at an actual loss. A
railroad company accepts the business
of competitive point at the competitive
rate rather than not have it at all, because
its trains moving in certain direction, and
having certain fixed charges, it does not
sustain any absolute loss by transporting
the freight at such lower or competitive
rate. 1t has certain fixed train expenses
which have to be met whether the cars are
wholly or partially loaded, and therefore
all the goods that it can get into its train
within the capacity of q single train to
carry, add to the general profit, although
portion of it is underpaid. But if the
whole of the merchandise carried on that
train were undergrad, the expenses of run
ming the train could not be met. 1t may
seem very onerous to person whose bust
ness is at a non-competitive point to be
charged higher rate than is charged to
one whose property is carried longer dis.
lance in the same direction but, as we
see, this is not the fault of the carrier In
all parts of the world advantages in the
way of carriage accrue to places situated
where there Is competition between the
inland and the ocean carrier; so that it
cannot be said that higher rate of charge
by q railroad company to a person situated
midway between two ports than is charged
for the whole distance between said ports
is an intended discrimination between
places. The person thus situated between
the two ports is under physical disadvan-
tage which no railroad company can over
come. The shipper at the competitive
point takes the advantage of his position
and compels the carrier by rail to move his
goods as cheaply as the water carrier will
do it, and as the business at the non com.
petitive point is not of sufficient volume to
load all the cars which can be pulled In
one train, the carrier is compelled to &C.
cept the less remunerative business rather
than pull over long distance cars but par.
TALLY laden. a shipper at tidewater
reached by ocean vessels compels the rail
road to accept the ocean rate for grain car
riage to Liverpool, for instance. But as
the bulk of grain to be sent abroad is
grown at some distance from tidewater, it
must be hauled there before it can have
the advantage of the competition between
the vessel and the railroad. If train on
its way from San Francisco to the Gulf of
Mexico stops at way station to take on
the grain grown in the vicinity, it would
not be just to require the railroad to ac-
cept at that point the same rate of trans
portation which the shipper of San Fran.
= ,alta1 ~ 70 he -
the water competition. The most onerous
terms which can justly be put on the rail
road would be to require it to take the
grain at the San Francisco rate, adding the
usual charge for transportation to San
Francisco This is the practice usual upon
all railroads, and it is from this practice
that the charge of discrimination against
places is made but in reality there is no
such discrimination. II all the grain raised
in California were rendered the railroad at
San Francisco to be moved to the Gulf of
Mexico and thence to Liverpool at SIS per
ton, it could not accept pound of it, and
the shipper at the competitive point would
lose the benefit of the railroad competition.
As TO the questions what would be fair
maximum rate to allow for transportation
of property and for carriage Of passengers
In California, he says that had he been
asked some years ago, he would have at
tempted to answer. Butafter ten years close
attention to the subject, he does not feel
competent to give replies that should form
the basis of action by the Board. Expert
ence has taught tnat it is only by the ex-
istence OF what may be thought to be very
high or extravagant maximum, that low
minimum, or a reasonable average rate is
possible. By allowing the carrier liberal
or even generous possible maximum, where
the service is extraordinarily difficult of
performance, can he afford to transact his
ordinary business at low or reasonable
rate. Before rigid and arbitrary rate can
be fixed which will do justice alike to the
shipper and the carrier. there are almost
innumerable questions to be considered
The grades over which trains are to be
hauled, the density or scarcity of popula.
ton, the high price or cheapness of fuel,
the distance from the base of supplies, 50