The record-union., 1893-01-27
WESTERN CLASSIFICATION.
Leeds Attempt to Mislead and
Prejudice the People.
The Utter ReckIessness of His State
ments Pointed Out-A Uniform Dis
tance Tariff Would Do Away With
Competition Flagrant AIisrepre-
santatIon

Scrutiny of the official report of the
cross-examination of J. ;. Leeds, man
ager and exponent of the Traffic Associa-
ton, which took place before the Board
of Railroad Commissioners in San Fran
cisco on the 18th inst, reveals some feat
ures of peculiar and serious importance
concerning the question of railroad
freight charges in this State.
j. c. Martin, attorney for the Southern
Pacific Company in the case of the COM
plant brought against that company by
j. II. Shively, asked Mr.. Leeds, the wit
ness for the complainant, if he considered
the Western classification superior to the
local classification now in use by the
Southern Pacific Company, because it
contains a greater number of classes and
therefore covers more ground in more
satisfactory manner? Mr.. Leeds an
swered that, in his opinion, restriction
Of classification would be impracticabIe
and wrong; and he denied that it has
been represented to the public and
the Legislature that classification is
simplified by the use of fewer classes.
When asked if ne was not trying to have
the State Legislature adopt the sugges-
tion of the Traffic Associations legislative
committee that the Western classification
be substituted for the local classification
referred to, because thereby the number
of articles enumerated would be reduced
and the classification simplihed in con-
sequence, he evaded the question, saying
that he was not a member Of that COM
mittee, and that its members probably
lacked experience. He would, however,
try to carry out the policy of his employ
although" added he, with char
scteristic evasion, that committee may
not be my employers"
The fact is that Mr.. Leeds, as the
mouth-piece and fac t0tunl of the Traffic
Association, is laboring to secure the
adoption of the Western classification on
the publicly announced plea OF its sim
plicity.
Recently, the San Francisco Bulletin,
doubtless informed and inspired by Mr..
Leeds, criticised the classification of
paper and paper articles by the Southern
Pacific Company as being carried into
such extremes of detail as only to fuddle
shippers and put them at disadvantage;
and the legislative committee Of
AA6 1LdillG <AS5OG1dLlOn CIltlGlSGO II
as incapable of intelligent discus
sion or settlement by a numerous
legislative body" The inconsistency of
The anti-railroad crusade is made ap-
parent at once by this statement of facts,
especially so when it is known that the
paper classification, which gives rise to
such adverse comment, has not been in
use by the Southern Pacific Company
Tor the last fourteen or fifteen years; and
that it was then an overland and not a
local classihcation; and that it now
classifes paper and paper articles under
three heads only, while the Western
classification employs some thirty or
more specifications. If, therefore, Mr..
Leeds can have any other purpose in
view in his efforts to prevail upon the
Legislature to adopt the Western classi-
hcation than to mislead and prejudice
that body and the people, it is not ap-
parent.
This question was asked Mr.. Leeds:
''It is, also. recommended by the Legis-
lative Committee of the Traffic Associa-
ton that, in fixing rates, there should be
terminal charges at the point at which
the freight is received and at which it is
delivered, which being common to all
freight transported, should first be added
TO the rate, and that there should then be
a cost of movement based on the mileage
over which the freight is carried. Is this,
in your Judgment proper method of
fixing rates ?''
Answer-I would recognize higher
rate per ton per mile for a shorter than
Tor a longer haul and in that way recog-
nize a terminal charge. It takes the same
time to load a car for long as for short
haul. Yes, sir, 1 recognize the terminal
charge.
q. The aggregate charge should in
crease with the distance, but the rate per
mile should decrease with the distance?
A. That is my judgment.
Q. That method of rate-making would
eliminate the elements of competition,
would it not, sir?
a. In the face of competition it would
be impracticable to apply that method of
rate-making.
Mr.. Leeds was sounded as to his views
regarding an established principle in the
making of transportation rates-a prin-
ciple fully recognized in practice under
the interstate commerce law-namely,
that competition necessitates, i'll some
cases, a smaller charge for longer than
for a shorter haul. 1t is plain that rigid
uniform distance tariff would be in con-
hict with this transportation axiom and
absolutely do away with all forms Of
competition arising under it. Mr. Leeds
was compelled to acknowledge the prin-
ciple as an essential and indispensable
feature in transconhnental traffic. When
brought down to the question of competi-
ton in local transportation he was very
evasive. The most that can be made of
what he said is that if certain boundaries
are fixed, it is practicable and harmless
10 prohibit competition within those
boundaries; hence that a uniform dis
tance tariff would be feasible in Califor-
MIA, because, if the law so declares it. the
need OF competition will cease within our
State lines! This is the inevitable CON
clusion to which the argument for a local
distance tariff leads.
In course of the cross-examination il
appeared that while it was publicly an
nounced by the Traffic Association that
it proposed for adoption by the Legis-
lature of the Kansas distance tariff, very
shortly after this announcement and
without any notice given of the change in
programme, another and altogether diff
terent tariff was put forward as substi-
tute. It was claimed for the Kansas tariff
chat although it would reduce the tariff
of the Southern Pacific Company, in the
the aggregate from 25 to 80 per cent, it
,,-o,-ld I,a fairly rernunerafiva IN tho roodo