The morning call., 1893-01-04
ITS GREEDY HOLD.
A Review of the Railroad
Situation.
DUTY OF THE LEGISLATURE.
That Body Will Be Asked to Break
the Grip of the Southern
Pacific.
DUTY OF THE LEGISLATURE.

The Traffic Association Is still striving to
free the State from the greedy grasp OF the
railroad monopoly-the Southern Pacific
tyrant. An effort will be made to break its
grip by requiring the Legislature to regu-
late its charges by law. A subcommittee of
the Traffic Association has submitted the
following report to the executive committee,
and it has been indorsed:
The laws OF the State are so extremely def
Gent IN provisions tending TO restrain or prevent
misconduct on the part OF the railroad compa-
MES as 10 suggest that they we're drawn up by
the managers of such corporations and dictated
entirely by their wishes. Such roads are and
have always been. by law, public highways. As
such, they should be open 10 the equal use OF all
parties without favor or discrimination. Rail-
road companies In managing these highways are
in law. managing public tiust. and the profits
derived iherefT0m are allowed them as cOmpen-
satiOn for their services In such administration.
Just as certain public officers are compensated
for their services by fees
They are authorized to acquire right OF way
by the exercise OF eminent domain, but eminent
domain authorizes Tie taking OF private property
only for public Use, hence the tight OF way ac-
Quired BY railroad companies Is acquired for and
belongs 10 the public. The companies are
mercy trustees OF 1t. These principles have
been lost sight OF by our state and the roads
have been treated ia most respects as II they
were merely private property. The companies
have undertaken 10 mortgage their right OF
way, aud IN their charge for transportation TO
discriminate between individuals and localities
In any way that their own interest or caprice
might from time TO time dictate, and We have had
nolaw to punish them or prevent these abuses.
The unrestricted license given by our statutes
10 consolidate two or more railroad companies
into one has facilitated vast aggregatiOns OF cor
porate capital and unity Of management 10 such
an extent that all the principal avenues OF co M
mancati0n in this State were brought under the
control Of a single set OF men, who having tn us
the actual monopoly on ali the transportation Ia
the Slate are enabled 10 constitute themselves
intrusive partners In every business enterprise
aud without contributing capital or sharing risks
10 appropriate 10 themselves such portion OF the
gross receipts as they see fit This is effected by
an excessively complicated and minute classih-
cation OF goods transported. based mainly on the
amount that the owner OF The commodity can
ffOId 10 Iay for carrying II TO market rather
than TO have ii remain on his hands. The same
article Is sometimes included In one ciuss In one
part Of the State and IN different one IN an
other. bis vicious classification is at the bot
tom of most OF the abuses that prevail In railroad
fr. lights. II is all wrong, and we believe un-
lawful.
The lawful basis for transportation over pub
lie roads Is reasonable profit on the cost Of the
service, including therein interest on The liked
capital This a measure OF what the carrier
reasonably deserves TO receive for his services.
II Is cOIOllary iIOm the fact that the roads al e
public highways aud tile tIanspoT;ers common
carriers, and In fact any other rule leaves the
public entirely at The me- ey OF the carrier Now,
as The cost OF iTanSportton Is made up In part OF
such portion of the fixed charges of tile business
as ca ch shipment should properly bear and in
ch argos based on the cost Of The service would
necessarily be made up OF two paris. viz: ~ A
terminal or station charge 10 be the same on
goods OF like character and quantity, no matter
what the point OF embaTkation or destination,
and ~ a movement charge consisting OF rate
per ton per nile OF distance traverSed. In sub
stance this is the settlement arrived al In Eng
land after much controversy, ana since It's adOp-
lion contention over railroad rates has ceased
and eOntentmeDt taken the place OF dlSsatlsfac-
ton.
philosophical classification Of goods. based
on the cost OF The service. would lead to the es
tablishment Of but few classes, aud these would
be Characterized mainly by difference 10 weight,
bulk and facility OF handling for only such char
aeterlsies would require variation IN the ter
mlna charge, and II is quite improbable that any
appTeciable difference IN tile cost Of moving a
car could be recognized as depending upon what
particular goods 1t was laden with.
freight tariff, therefore, based on the cost OF
transportation would be simple enough; but
under The vicious system Of Classifying goods by
tile most the traffic Can bear, so long IN use on
our railroads. the construction OF such tariff Is
a vastly complex affair 1t involves lie euumer-
alton Of as many as thousand different eom-
modites and their distribution into some fourteen
or fifteen classes, dependent upon cost Of pro-
duciiOn, average market value. the expense and
advantages Of packing and shipping them in
some particular way aud The Ike
Following shows the different classilcations IN