The record-union., 1893-02-09


This was case where the shippers
Of Portervilie wanted reduction so
that they would not have to pay more
freight than on the main line. In the
meantime the commission made reduc-
ton ON the main line, which was strenu-
Company on the ground that they had
conducted the branch line at loss of
$4,000 for the preceding year.
Mr.. Litchtield said the commission
adopted a resolution to meet every Mon
day, to give people an opportunity to ap-
pear before them and make complaints.
subsequently the commission arrived at
the conclusion to go before the people,
and went south to investigate some cases
in Los Angeles, Pasadena and other
places, and they advertised widely for
complaints. Mr.. Litchfeld claimed the
commission adjusted matters to their
best judgment in behalf of shippers and
with equity to carriers. Although San
Francisco newspaper had been persist
emily abusing the commission, Mr..
Litchfield said the railroad reporter
of that journal admitted that more
good had been accomplished by the
Commissioners than by all preceding
commissions, and he (the reporter had
reported them all. Mr.. Litchfield spoke
of three insulting letters which Traffic
Manager Leeds had written to the COM
mission, after promising to give as much
information as he could to aid the COM
mission. Mr.. Litchiield said he came to
the conclusion that Leeds simply wanted
to pick quarrel and not to get a reduc-
ton of rates. Litchfield then told about
complaint made by one Sheath TO get a
reduction on ice from San Francisco to
all points. the same as from Truckee.
We tried to benefit Sneath,' said Litch-
field, land the day following one of our
meetings L was considerably surprised TO
read in paper that Sheath charged me
with trying to secure reduction to such
points only as he did not ship his ice."
Mr.. Litchfeld made remarks about
Leeds which showed his belief to be that
Leeds would lie when it served him best
and deceive when occasion called. He
said If Leeds policy of reducing rates
horizontally was carried out, all the small
roads in the State would be ruined. In
speaking OF the charge of incompetency,
Mr.. Litchtield said he had frequently
worked until l o'clock in the morning
TO discharge his duties. He was cross
questioned sharply by Chairman Nc
Gowan, and related his experience from
the time he left the home OF his father
when he promised him he would do
nothing to reflect discredit on his father
or himself. He challenged any man To
say he had not fulfilled that promise.
Up to the time of being elected, Mr..
Litchtield said he knew nothing of rail-
road matters, and he did not now claim
to be an expert, but he said he knew a
great deal more than Leeds or anybody
else like him. He said he had no rela-
tions with the Southern Pacific Company
except in an official way, or when thai
company sent representative to his
store TO purchase tlags. or the like. When
questioned by the Chairman, Mr.. Litch-
neId said he had an agreement with the
railroad company to furnish conductors
with nlOthGS tho ratio n nthpr
tailors would do the work.
Commissioner Rea was subjected to a
searching examination, which lasted
about two hours, after Mr.. Litchtield
took his seat. Mr.. Rea said he had no
apology to offer concerning his official
career. He had started out with the idea
Of equitably adjusting railroad rates and
1ares, but had not as yet accomplished his
purpose. When man, he said, does not
know the cost of building railroads. the
cost to operate and maintain them, he is
cropping in the dark when he attempts to
adjust rates and fares. In his own mind
and heart, MIR. Rea admitted he had
started out prejudiced against railroads
and was still to some extent, and that
made him cautious.
AS matter of fact, he contended, every
decision OF the commission on record is
against the railroad company, save one
That OF Robinson In connection with the
ferry at San Francisco. In that instance
Mr.. Rea said he decided twice IN Robin
sons favor, and reversed his decision be-
cause 1000 signatures to petition from
Oakland requested him to do so, and
probably Senator Earl's was on the list
He claimed Leeds tried to use him to a
purpose, but he succeeded in using Leeds
Concerning the Shlvely complaint, Mr..
Rea said he had in the first instance
started out with the idea six years ago
that the only way to justly regulate rates
was to ascertain the cost OF construction
of a railroad and the cost of operation
etc. Without that knowledge no man
could DO 1t. NJ man in California knows
the facts except the railroad managers,
and he doubted if even they knew them
all.
However, that was his idea of the plan
of procedure, and he had never changed
his mind. He did at first start in to
arbitrarily level rates, and he got a re-
buke from his constituency that settled
him. Then he sought to have a com
plant made under which the facts could
be brought out; under which the South
ern Pacific would have its hands up and
the complainant could come before the
board and invoking its powers, get at the
facts.
While trying to bring this about Leeds
came over here. He thought he saw his
opportunity, so he tried to force Leeds to
file complaint. for he having the finan-
cial strength of the Traffic Association
behind him could make the prosecution a
success in developing the facts without
which no regulation could be effected.
Leeds saw the game and would not file a
complaint. Just at that time Shiyely n
good, shrewd and successful business
man, came to him and said he could
prove the Southern Pacific made $1,000
a mile net, and he wanted to file a COM
plant for a reduction of rates. This was
into Rea's hands. He said it fairly made
his hair stand, for it was just what he had
been striving for, so he encouraged
Shively. The latter wanted to know if
he could be sure the COMMISSION would
20 into it, and Rea told him certainly.
Then he wanted in turn to know if
Shively would stand firm, and he became
so assured.
He saw the complaint before it was
filed: he had one clause stricken out that
was simply foolish and a weakness. His
own attorney asked him if it would COM
promise him, Rea, if he acted as Shively's
attorney, and kea said no. it was lust
what he wanted as he believed him to be
q true man, and so the complaint was
filed and the investigation under it began.
Here Chairman McGowan began an
examination by question of Mr.. Rea, and
for an hour it was one of the most brill
liant of plays of wit and brains. The
sum of it all was that the Chairman
pushed Mr.. Rea to learn why he had not
regulated rates without complaint: if
he thought he had the power to do so;
what were his conceptions of his duty:
was his idea that the commission was ju-
dicial or executive, etc.
Mr.. Rea replied that in ascertaining
facts and in adjusting difficulties the
powers of the board were executive.
When deciding and decreeing on case
tried or complaint filed the powers were
indicial. He bad written 10 Leeds. as set