The record-union., 1892-12-06
EXPERT MoRGAN,s REPORT.

ployed by the Railroad Commissioners to
examine the railway systems of Califor-
mia, and report whether or not the rates
for freights and fares charged are inequi-
table. The schedules accompanying the
report we have not procured. They are
SAID to be very exhaustive.
1t wes the office of the press of San
Francisco, where thel news originated, TO
have published this report, since it was
submitted to State body sitting in that
city, and is document of first impor-
tance to all the people, treating, as it does.
of subjects that the anti-railroad press
has been constantly harping upon of late
as of supremest concern to the State and
all its commercial and industrial inter
ests.
The report we give very nearly in full.
We have eliminated no part of it, nor
thought or suggestion of the text. But,
In order to make it less lengthy, and thus
consult the convenience of the readers,
some passages we have placed in synop-
tical form, but in all such the thought
and judgment of the expert have been
preserved. and the parts so treated are
clearly distinguished.
At this time this report cannot be COM
mented upon as its merit and importance
deserve. We invite the reading public
to examine it carefully, and to read it in
Judicial frame of mind. Such docu-
ment deserves from every fair mind hon
est and unprejudiced treatment. There
appears to be no allegation in it, no con-
clusion reached by it that the author has
not fortified by citation of facts, by de-
ductions logically drawn and conclusions
legitimately reached.
1t is not surprising that the report has
excited the ire of the anti-railroad news
papers of San Francisco, since it finds
practically that the charges those journals
have INDUCED in are in the main base
less regarding the rates for fares and
freight upon the several railroad lines
of this State.
Colonel Morgan is an railroad engineer
of long experience, and for many years
has made the study of railroad cost. op-
Grafton and charges a speciality. and has
in that direction examined and reported
upon railway systems related to the
entire inland commerce of the ma
ton. That he should find, as the
railroad companies of this coast
have held, to wit: that in Judging
of the justice of rates, the conditions and
circumstances of locality are of first ac-
count, and must control honest Judgment
in making comparisons of schedules of
rates of roads of widely separated locali-
ties, is precisely what ought to have been
expected, since it is the simple, unavoid-
able and ever present truth. No sort of
sophistry, no amout of ranting, no man
ner of vituperation will avail as against
that truth. In fact, as the expert advises
the Railroad Commissioners, comparison
of rates of different railway systems
without comparison of conditions is so
far from being just or beneficial that it is
unjust and harmful.
1t is said that Colonel Morgan has given
the State "a black eye" by those who
have assailed the conclusions reached by
the expert, to wit, that railroad rates are
not inequitable in California, in view of
cost of construction, operation and main
tenance, area traversed, volume of pro-
duction, density of population, growth
of industries, development of resources.
cost of fuel, character and extent of
grades, land monopoly, non-productive
area crossed, etc.
But it is of infinitely greater importance
toknow ifthe expert has spoken the truth.
Our pride may be touched and our vanity
offended, but If this examiner of rail
way environments has told us simple
truth, it will be wholesome admins
tration of what we may have long
needed. No people can afford to con-
ceal from themselves the truth concern
ing themselves. That the State has not
advanced and developed correspondingly
with our hopes and desires the sensa-
tional press charges up to the railway
system of the State, declaring that reduc-
ton of rates all around, like charge on
all roads for the same distance and serv-
ice, would be the cure-au for every bus
mess and industrial i'll felt.
Expert Morgan, on the other hand.
not only denies this conclusion, but
makes clear that the proposed remedy is
not only impossible, but if possible
would be ruinous. He shows that Cali
fornia is and always will be exceptional
in conditions that must be the factors in
determining what are just and equitable
railroad rates; that uniform rates are
impossible if they are not to bear un-
justly upon the people and the carriers,
and finally that rates with US are not
susceptible of the charge of being dis
proportionate to the service, or unreason-
ably high.
awe shall consider the several branches
OF the report fully hereafter. At present