The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-01-26
LEEDS TRAFFIC SCHEDULE.
1t Is Considered by the Senate COM
nittee on Corporations.

SACRAMENTO, Jan. 25.-Ihe Senate Com
mittee on Constitutional Amendments met
again this evening fer the purpose OF fur
theT discussing the amendment proposed by
the Traffic Association. Senator Carpenter
wes not present, owing TO the meeting of
the Senate Committee on Corporations. Earl
chairman, Hart, Ssawell and Burke were
present. Traffic Manager Leeds and other
railroad men were also present.
Senator GesfOrd explained that the prin-
cipal change that had been made since the
bill had been originally introduced was that
the maximum rate of passenger fare WAS
fixed at cents per mile on all roads earning
S4l00 per mile. HI SAID this would ex-
clude from the operation of the bill all the
small railroads of the State and make 1t
apply TO the Southern Pacific only. He said
that the maximum of cents had been
stricken out after elaboration, as cents
appeared to be the maxim throughout
the country. Still another amendment had
been inserted, making the bill apply only
until the Legislature shall act, full power
being imposed in the Legislature TO adopt
new classification and any rate of passenger
fares not exceeding 3 cents per mile. Ac-
cording to the way the bill now stands no
change could be made In the classification
by the cha rman Of the Western classified
tion committee, but the rates provided for
are fixed and rigid until changed by the
Legislature.
Senator Seawell inquired whether or not
there was any precedent in the United
States for inserting in the constitution a
freight and fare schedule.
Gesford replied that there was not; that
this was an innovation. 1T is, D." he said, "a
measure to grant the people tempOra re-
lief pending the adoption OF legislation by
the Legislature. This seems to be the on ly
solution Of the present fficulty"
Mr.. Leeds then stated. in replying to
question, that the rates provided for in the
bill would make a reduction of from % to
80 per cent 90 the local business Of the
Southern Pacific Company; that the through
business Of the company. which is about 30
per cent of the whole, would not be dis
turbed.
Senator Gesford was Of the opinion that
the great question to be decided by the COM
mittee was whether or not the amendment
could be incorporated in the organic law
without conflicting with the constitution Of
the United States. When that was decided
the only question remaining was whether
the rates provided for were fair and
reasonable. He for one would not support
the bill If they were not.
Leeds said that it had been the aim Of the
Commissioners TO lay the basis Of an appeal
10 the courts.
Earl said that according to a decision of
tho United States Supreme Court the Goc-
trlne has been upheld that the rates must
be just and reasonable. and no matter what
they are the courts have power TO review
them. 1t would seem therefore that an
appeal to the courts is unavoidable. Even
If the Legislature should make rates The
courts could review them if this decision is
good law.
Leeds said that if the Legislature acted.
the power would be nearer the people than
il is now. Nothing has ever been done by
the Railroad Commission. The railroads
In this State which are not earning over
$4,000 a mile are the North Pacific Coast,
the California Southern, the San Francisco
and North Pacific and the Arcata and Mad
River.
Earl wan ted to know if. in fixing rigid
rate Of three cents per mile. it was the in
teniion Of Mr Leeds to prevent competing
roads from coming below the figure. The
bill appeared to read that way
Gesford explained that such was the case,
and said the words mot to exceed" would
have TO go in line II Of the printed bill or
the rate would be three cents per mile
absolutely.
Earl said that he feared the reference to
the Western Class iheation In the amend
ment by compelling reference to it for ex-
PLANTATION made the volume called the
Western Classification a part of the consti-
tuition.
Gesford said sueh was the case. Con-
tinuing. he remarked: "Of course, TO put
all the figures of the Western Classification
in the constitution would make it very
pecnliar-looking constitution. But if that
could be done. although it might make the
constitution look peculiar. / would favor
such an innovation. provided that it would
afford the producers the relief they de-
mand"
There was then some talk about the ad-
visibility of ab0lshng the Railroad Com
mission.
Gesford said it was pretty generally ad-
mitted that the commission had been
failure and ought to be abolished. He
thought the proposition OF throwing the
railroad question back on to the Legislature
was little questionable. Still, within the
limitations proposed by the amendment, he
thought il perfectly safe.
Earl was Dot agreeable to this proposition.
he said he was sure that IL the people
would elect three experienced men as Rail-
road Commissioners they would be better
qualified to deal with this intricate problem
than 120 men who only meet once in two
years. lie thought it impractcable for the
Legislature TO deal with IL. II the commits
sion was made up of such men as Mr.. Leeds,
for instance. who knew what ought to be
done, the matter would be quickly adjusted
GesfOrd said that was true. but the rail-
road always managed under. the present
system to FIX" two of the Commissioners
so that they would not act.
With reference to the revenue that would
be derived by the stockholders of the South
ern Pacific under the amendment, Leeds
said he did not think the people should be
called upon to pay dividends on a dishonest
capitalization. Ii the stock of the Southern
Pacific was watered that is not the fault of
the public. He said: II do not think you
should protect everybody's investment
Bad investments are made in railroads as
In other property, and those who have
made them are supposed to have had their
wits about them For instance, 3498 miles
of the Southern Pacific are capitalized for
$500, S05S0 or $685. per mile. 1t is
hardly expected that the people should pay
On this"
Leeds idea was that In fixing rates one
should first ascertain what 1t costs to do
business. then learn the fixed charges, and
then, If a road is entitled to dividends
allow them. II do not believe" he said.
lin paying dividends on stock unless 1t
costs something" He thought the actual
value OF the properties OF the Southern Pa