The record-union., 1892-03-23
anpnl Bnkins a1p1nnrr.
ABSO9s EaY PURE

worthy OF consideration: but such has
| not been the case, as d reference to the re-
cent proceedings before this commission
J viii show. When MIR. Leeds was before
| the commission during its consideration
of the Sheath matter, he insisted that it
was the duty of the board to establish one
4 general rate per ton per mile for each
commodity over the whole State. His
attention was then called 10 the fact that
/ the adoption OF such a rule would result
! in driving the Colusa and Lake Railroad
/ out OF business. Mr.. Leeds reply to this
! information was that the general rate
/ should be established, even though the
| result was TO drive the small transporta-
| ton companies to the wall and deprive
| the localities 1t served of transportation
facilities. AS authority for this position,
| which is thoroughly in keeping with the
views and interests of the great trans
/ portation companies, Mr.. Leeds referred
us to the State of Kansas and to the rule
| adopted by the kansas commission. IN
his recent communication MIR. Leeds
further referred TO Kansas compared the
! wheat tariff Of that State with that of
/ California and filed detailed statement
containing bis conparisions.
Mr.. Leetis, however. failed to show in
| either his communication or his state
/ ment whether OF not the conditions are
so similar beS.i eefl transportation in Kan
! Sas and in L california that the Grain rates
J.
! c2pted as standard for the grain rates in
this State. TO sustain his position in this
| respect, also. ne refers to the Kansas COM
mission, and that his attitude in both in
stances IS dlSrngenuous and unfair may
| best be shown by an extract from the last
Official utterances of the authority to
which he refers. The Kansas commits
sion has more clearly than any other III
the Union enforced the fact Of the indi-
Ylduallty OF the railway systems of differ
ent States, and even Of the individuality
/ OF single lines within the same State
The following extract from the reply of
! the Kansas commission to the L nited
States Senate committees inquiries as to
interstate commerce rates contains it's
| views upon these subjects, and it Will be
| seen that they are totally at variance with
the views of Mr. Leeds:
| Rates OF charges upon railroad traffic when
| they become the subject of public or STATE in
| tererence, should, in order to conform with
| the common law requisite of reasonableness
! TO the carrier, as well as TO the shipper, have
/ relation 10 the cost Of construction ana of
| bringing their works up to their present con-
| dfuon, IL all cases at least where the expendi-
ture Tor betterments or cost subsequent to
/ original construction has become capitalized
IN the debt Or stock of the ROAD: the volume
aud character of traffic, both local and inter
state, which each road is able to command.
! tie expenses incident to the operation and
management OF the works, and the amount of
net revenue from the business available to
y
| answer reasonable demands upon the COM
pany for lair dividends to stockholders
10 NJ maximum rates without reference to
! these elements and conditions would involve
| the exercise of arbitrary power on the part of
| the State and III so far as it defeated the fair
| ana just eNRectatlOns of those whose means
! nad oeen invested IN these important enter
prises they would suffer a despotic invasion of
| Inelr legitimate interests. Such is the diver
s.ty OF Gohdillons existing among the numer-
! Gus raj llroads OF the country engaged in inter
state traffic, both in respect to physicai con
| dItion, character ana amount of business and
| their respective abilities 10 earn money each
! road, in fact, possessing Il development pecu-
| llat 10 Itself, that any attempt either by Con-
! gress or commission under its authority to
! establish maximum rates for the regulation of
Interstate traffic would result in FIXING rates
sufficiently high as to enable the less favored
class OF roads 10 operate under them without
detrlmeut TO their permanent prosperity and
! this would be necessary If the princine of
| reasonaoleness of rates were 10 prevail in
| which case the rates would be wholly inoper-
| atlVe, and furnish no criterion to the more
favored class of roads of the amount 10 he
charged for service rendered, or else would
result IN prescribing rates which, though not
| unfair 10 the last-named class, would be un-
J just to the former class OF roads.
| A result so undesirable could only be obvi-
ated oy establishing separate tariff for each
| OF the numerous roads in detail, adapting the
! tariff to the situation and conditions existinp
| upon each line. This would be q work of sncR
| glganuc proportions that no single body of
men, no matter how expert they might be in
tne work, could undertake it with the Slight
| est hope of success.
In the same report the commission de-
clSres that the rates fixed upon cereals in
the mississippi Valley, if applied to the
! whole volume of transportation, would
| conSlgn every road engaged in the bust
ness into bankruptcy
Ihere IS another position which Mr..
! Leeds insists that this commission shOuld
occupy, and with it we do not entirely
agree. lie contends that this commission
eeughI, Oh us own motion and without the
| ming before 1t of a specific complaint. to
/ make frequent changes IN its established
schedules of freights and fares. That
! such change is in the power of the com
mission we have no doubt AS we have
already stated, the commission estab
hSheu upon IT'S entry into office a sched-
! ule OF transportation tariffs and has from
time to time made changes therein. Such
changes, however, have been made and
ought to be made cautiously. This COM
mission has taken the position that most
| important element in commercial pros-
perlty Is stability, and that for this COM
! mission 10 assume to frequently chanre
! transportation rates, either upon specific
commodities or upon produce at large.
! upon mere rumorS or indefinite com
plants, would be to destroy the stability
OF prices and profits throughout the en-
tire 1ndustrial system of our State, and
! thus oyerbaiance all of the atlyantapes
which might otherwise flow from sI1ch
changes.
This commission is prepared to exer-
else Its powers in the thorough revision
OF transportation rates for the State of
| California. 1t finds itself occupvino a
/ position between the two well ll-organized
| interests of the transportation companies
/ and the Traffic Association. each com
pletely equipped with the arguments and
! the agents to present their respective
4 rights. 1t is unnecessary for this com
mission to proceed upon public rumors
/ or general and unverified complaints. IT
would be grave offense for the members
| OF this commission to become the aIly of
either the transportation companies or
the Traffic Association. That the powers
! of this commission are about to be called
/ into exercise seems probable from the
/ widespread public interest in the subject
and from the organization and attitude of
/ the Traffic Association Of California. That
the impending revision Of freights and
fares ought to be the most complete and
! equitable ever undertaken or accom-
/ plished by this or any previous commits
sion appears evident to the members of
I this board.
!, That the commission before enterino
upon duty of this magnitude should
| have before 1T m ax ocfa a,,1