The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1893-02-02


railroad shall be subject to the constitu-
uonaL Limitation. If there can be any
reasonable answer given to this, Mr..
Chairman. from any gentleman, would
like 10 hear it uow''
Nh. Gestord said the idea in presenting
the bill was that the rates of freight and
fares were only for temporary purpose:
only until the Legislature could fix the
rates.
Mr.. Martin said that did not relieve the
Dill from the difficulty. Remember YOU
are making constitutional provision
under which you declare that certain
roads shall have maXimum; roads
which according to the thirteenth annual
report OF the Railroad Commissioners,
whose gross earnings are shown to be
$1,000 per mile and over. What viii you
do with road which now has y, 800,
and In two years from now amounts to
$1,000 gross earnings per mile? What
will you do with ii? Is it subject to tho
constitutional Limitations or not9''
Mr.. Gestord wanted to know how he
(Air. Martin) could fix it.
Mr.. Martin said he was not there for
that purpose, but only TO point out the
defects in that part of the thirteenth
annual report liking the class to which
road belonged, and so its rate was an alb
sIlrdlty on the face of it. Mr.. Martin
then asked what would be done with the
competing" road that Is 10 be built; the
only popular railroad on earth, the rail-
road that everybody is i'll love with
and III favor OF, and which will
get ali the traffic. You say TO it:
Here you are to be bound by
the Constitution. You are to be limited
by this constitutional provision to three
cents per mile and the California distance
tariff, and they say, NO, that only APP
plies to roads which, according TO the
thirteenth annual report of the Railroad
mile, and that report does not cover us
Under this constitutional ameudm ent
ana by any fair construction OF it. only
those roads are included whose gross
earnings, as shown in the thirteenth an
nual report OF the Railroad Commission
erS exceed $1,000 per mile, and there is
no other inference TO be obtained from il.
But if the maximum were different. if
some other plan were fixed, what would
be the reSult?H
Mr.. Martin then showed by way OF
illustration the result on Colonel Kidder's
road tho n. &. n. e.. IL was ambitious
to get out of the ''little road" class,
and hoped to earn over 81, 900 in the near
future tother roads held the same hopes).
but the moment it would reach the limit
the reduced rates Of the big roads'i (or
$1,000 gross-earning roads, would apply,
and down would come its revenue 80 per
cent. Then its earnings would necessarily
fall below the s., GOO limit again, and up
goes the rates, only to be knocked down
again the moment the coveted notch was
reached. The absurdity of the bill was
soapparent that even the committee them
selves could not refrain from smiling. Mr..
Gesford was unable TO answer Mr.. Mar
tins cllnching arguments. He regretted
Mr.. Leeds was not present. or the real
author OF the bill, as he would like an
answer TO his questions.
''lSut. Mr.. Chairman. there ia npOfhar
which seems TO me to be a serious obiec-
ton to the bill. The first resolution that
was proposed provided for the use Of the
California distance tariff; also for the
Western classification, signed by j. T.
Ripley, who if he does not become inn
mortalized Ivy having his name inserted
in the Constitution, will certainly be so
by Mr.. Johnson's speech OF last night;
but 1t proposes In this bill a classification
not subject to change, and while il was
suggested, l think, by someone OF the
members OF the committee that the bill
referring to that classification does not
make that classification part of the Con-
stitution permanently, | have read it
carefully, and while there may be some
possible doubt on that question, | think
fair construction Of that provision per-
manently fixes that Western classih-
cation. with all It's benefits or de-
merits, in the Constitution ITSELF
and the making of rates is another.
And while classification necessarily lies
at the very basis OF rate-making, on ac-
count of the great number OF cOmmOdi-
ties subject to transportation, yet it is en-
tirely distinct thing-a distinct matter
fromithe liking of rates. Classification is
this: 1t is a determination Of what COM
modities shall have the same rate That
is all classification l., and il is made be-
cause 1t is almost impossible to make
rate-sheet big enough. broad enough so
people could see 1t, 10 cover the $500 or
1900 different articles that are now the
subject of railroad transportation; and.
to avoid this, il has become necessary To
group certain commodities together.
MIR Smurr has called my attention to
one proposition. and there are others
which / wish Mr.. Leeds was here to an
swer. If this classification becomes part
of the Constitution there would be quite
a number OF commodities that would not
be provided for.
MY attention was called particularly
to one-ore, which, instead of being class
ihed, that important commodity TO the
transportation companies and TO the peo-
pie of this State, instead of receiving q
classification and rae, is by the Western
classification itself referred to a sDecial
rate. Now, what will you do with the
Western classification? You have got to
take that special rate to which that CLASH
fication applies, and it doesn't apply 10
California, because the ore isn't carried
under the special rate of that Classified
ton Committee, and there are other COM
modities OF the same kind. While the
Western classification is in use in certain
portions of California, l am informed by
Mr.. Smurr that there are thousands Of
commodity rates which are taken from
that classification and all other elassiflca-
tons as well. You can't do it,
l. l. 4 -
ton. because the goods which are classi-
fed there must take the same rate, and.
therefore, that most important thing to
the industries of this State, the commodity
rate, would be abolished except in so far
as the distance schedule itself does pro-
vide for some three or four commodity
tariffs.
"Wine, an industry which greatly con-
Germs the special district OF Senator Ges-
ford, is placed under the Western classifi-
cation in the second class. Why? Be-
cause they don't make wine on the lines
OF the Eastern roads which control tho
Western classification. They don't ship
it except they deal in the higher class
wines, and this wine comes in the second
class-and the maximum rate by this
schedule would raise the wine rate from
Napa and the points further up the valley
over and above the commodity rate which
the Southern Pacific Company now is
giving. OF course generally it wouldn't
raise the rate, but you can see where the
danger is of adopting fixed classifica-
ton.
Taking away the right to make these
commodity rates, taking out these things
which are of leading interest 10 the peo-
pie Of this StaIe-take them out of tho
commodity ciass-which is always a
lower rate than the class rates, and fix
them formally under the Constitution in
the second class, and it would be ruin to