The record-union., 1893-01-24
RAILROAD COMMISSION.
SENATOR GESFORD'S BILL TO
ABOLISH THAT BODY
Taken Up by the Senate Committee
on Constitutional Amend
mentS.

Inc senate Com mlttee on COnstltu-
tional Amendments held it's first meet
ing last night in the room of Department
of the Supreme Court.
Senate Constitutional Amendment No.
s, introduced by Mr.. Gesford, proposing
/ to do away with the Railroad Commits
| sion, was taken up.
Senator Gesford said he had a substi-
tute for the bill which he proposed to
offer. The substitute only differed, he
said, from the original bill in that it pro-
vided that the Legislature, in fixing rates
of fares to be charged by railroads in this
State, shall not exceed three cents per
mile, and on freights two cents per mile
The schedule, or California Distance
Tariff" proposed in the bill remained the
same in the substitute. His object in in
Producing the substitute was to get over
some technicalitieS, he said.
j. b. Leeds of the Traffic Association
was the only witness called. He was not
placed under oath, but proceeded to give
the committee what he said was the as
sociation's reasons for wanting the COM
| mission abolished. The tariff schedule
they had prepared, he said, would yield
a reasonable profit" Their proposed
snort distance tariff was based upon the
present rates charged by California rail-
roads. They had recognized no distances
less than five miles. Leeds said they got
up their schedule to agree with rates
charged in Kansas. By comparison with
the rates charged at present by the South
ern Pacific Company the schedule would
reduce the earnings OF that company % to
30 per cent. on local traffic He had not
collected data to help him out in forming
his ideas regarding any other company
than the Southern Pacific
Senator Earl wanted to know what
would be left the company by wav of
profit if this schedule went into effect.
Leeds replied according to his figures the
operating expenses of the Pacific system
was 50 per cent. Of the gross earnings.
He admitted that he had not in this
estimate included the interest the com
pany had to pay on its bonds. This
interest he understood amounted to S.
615,5S7 II year, which represented at 8
per cent. capitalization OF SI44, ,593, ia
| that Is, the company's Indebtedness.
| The Pacific system covered All miles
lie then read some figures he had made
up purporting to show what the earnings
of the Southern Pacific Company We're
and then he read some to show that two
or three Eastern roads got along with less
profit. The Atchison and Topeka, he said,
used more coal per mile than does the
Southern Pacific, but in answer to a
question asked by one OF the committee
men, said that the Southern Pacific had
to pay s. 10 per ton for coal, while the
Atchison got its fuel for s. 19.
Continuing, Leeds said that other States
had distance tariffs, which were based
upon the peculiar conditions OF those
States, and some were, he thought less
than the proposed schedule embodied in
| the amendment under consideration. He
had figured up that the Southern Pacific
:
road it was operating in California. He
said several Eastern roads got along with
a less profit, and he could not see how
raflrOading in California should cost more
than iu the East. His idea was that the
cost of construction of a road as whole
should not be considered in basing q
schedule of rates, and that the lines in
each State should be considered sepa-
rately.
Senator Earl wanted to know how it
was that the Southern Pacific Company
could get along with less coal in hauling
its trains than the Eastern companies.
Leeds blamed the climate. California
had many heavy grades, but be did not
think that over 10 per cent. of the South
ern Pacitic's traffic went over the grades.
lie then gave the committee some more
bright ideas on the difference between
rallroading in California and in the East.
Here very little stone ballasting was
needed for the roadbeds, and considerable
saving was made on ties. Ties did not
rot in this climate as they do in the East,
and when one is taken out it makes a
good fence-post.
Mr.. Earl wanted to know what the eff
feet of the proposed schedule would be on
roads in this State other than the South
ern Pacific. and Leeds replied that, in his
opinion, they would not be damaged
much. Leeds did not know what the
Southern Pacific Company had to pay for
the construction ofits lines. He had seen
some estimates recently based on what it
would cost to build the lines now. He
admitted that it cost much less nowadays
to build a road than it did when the
Southern Pacitic's roads were built. The
schedule proposed in the bill was lower.
he said, than numerous tariff ratings in
vogue in other States. Tho general rate
he thought, was three cents per mile.
Being asked what he thought would be
the effect Of the schedule upon the com
ing in of competition, Leeds said that it
would not discourage other lines from
building in this State.
The provision in the amendment. to the
effect that 1.-The classification referred TO
in said California distance tariff is that
adopted and issued by the Western Classi-
iication Committee" puzzled the COM
mittee and stumped Leeds. 1t was shown
that the rules OF the Classification Com
mittee would become a part of the Con-
stitution, provided the amendment was
adopted by the people, and there would
be any amount trouble when new COM
modties appeared. They could not be
classified.
Senator Gesford admitted that this was
a defect, and serious one. But he
thought the Classification Committee had
provided for most every conceivable ar
ticle in the list, and the railroad COM
panies could fix its own rates on unclassi-
lied articles.
Leeds did not think that the commit
tees rules would become a part OF the
Constitution, but he was told that he was
wrong.
At this juncJure Senator Carpenter OBJ
jected to going ahead further with the
hearing. He said he did not see the use
OF wasting time with a type-written sub
stitute which only one member of the
committee could read at a time. He did
not propose to work in the dark, and
moved that the substitute be reported
back to the Senate so that it could be
printed.
Leeds objected to this, saying that too
much time would be wasted.
Senator Carpenter replied warmly that
they could not waste time any more fool
isbly than they We're now listening to
Leeds rambling statement, and none of
them knowing what they were consider
ing. The matter was an important one,
he said, and he for one proposed to know