The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1893-02-10

branch of the Southern Pacific Company
and compelled a radical reduction II
traffic rates. The result of investigation
satisfied the Commissioners that they haC
no power to order the railroad company
to build branch roads, depots or the like
Tor the accommodation of the people
There should be some law, in the form o
constitutional amendment, enacted by
The Legislature to empower the commits
sion to compel railroads TO do what /!
necessary for the convenience of the
people. An attorney should be allowed
the commission to carry into effect theil
mandates.
Mr.. Bea believed such law legal, ant
ne intended to ask the Legislature to ves
in them such powers.
The commission had endeavored tC
md out the cost of operating railroads
and had they been let alone by the Legis-
iature their purpose would have beer
accomplished and they could then
properly adjust rates on the rail-
roads. The Shively investigation had
so far given them the cost OF
construction and operating and maintain
ing the coast division and northern di-
vision of the Southern Pacific Company.
The Traffic Association never filed a veri-
fed complaint with the Commissioners,
though they had been invited to do so.
Colonel Morgan was employed to ascer-
tam all the facts in connection with the
cost Of operating and maintaining the
Southern Pacific Company. 1t was Mr..
itea's belief. That the conclusions which
would be arrived AZ by such an investiga-
ton would be standard literature on rail-
road matters. lie was not prepared 10
say whether Colonel MOrgan'S report was
a truthful one or not; but when the
Shively investigation is concluded he
Will be prepared with facts TO either tear
1t to pieces or be brave enough to in
dorse it.
The history of the Shively case was
given. MIR. Leeds refused to make com
plant, when Mr.. Shively appeared and
made one. Mr.. Rea satisfied himself
he was earnest in making the COM
plant and that he would stand right
mp and back his statements. The
investigation was proceeded with, and
many facts have been Gscertained. Mr..
Richards. Mir. Reals attorney, is not or
never was in the employ of the Southern
Pacific Company. Mr.. Rea was firm in
the belief that Mr.. Shively was not ac-
quainted with any official of the South
ern Pacific Company when he filed his
complaint. 1t was the belief of Mr., Rea,
based en- his experience as Railroad Com
missioner, that Mr.. Leeds was discharged
from Jay Gould's line because he low
cred the schedule of rates and lost the
traffic. In fact, Leeds told him so. He
believed Leeds was working in the en-
ueaVOr 10 De puIeu DOWN Dy the
Southern Pacific Company.
Chairman MCGOWAN questioned Mr..
Re1 very closely if he believed the Com
lnissioners had power to summon before
them railroad officials and send for pa
pers, etc. He wanted direct answer
Mr.. Rea said it had been done in the
Shively investigation, that books had
been hauled by the wagon load for the
use of the commission. Mr.. Rea said he
did not believe the Commissioners had
been unduly slow in taking such action.
''What means do you want to strengthen
your hands from this legislature was
directly asked by the Chairman. Mr..
Rea answered it was necessary to have
power TO employ experts and an attor-
ney. The Southern Pacific Company has
q peculiar system of bookkeeping, which
is hard to understand. They are kept in
a general way and not segregated in di
visions. In answer TO why the Commits
Sioners did not compel the railroad to
keep their books in q manner not mySti-
flying, Mr.. Rea said he did not find it was
necessary until short time ago, when
the Shively Investigation suggested it.
He did not conceive it his duty to COM
pei the railroad company to change their
system of bookkeeping, which would
entail great expense.
Chairman McGowan read from the
Constitution which vests in the commits
=
for transportation and treights; also Civ
ing the commission power to examine
the books, records and papers of rail-
roads, and power to enfore their decis-
ions. He asked Mr.. Rea if that was not
sufficient for the enforcement OF all
orders the commission might make.
Mr.. Rea admitted it was. No further
questions were asked. Mr.. Rea, on being
dismissed, said in case the findings war
rant the impeachment OF the Commits
sioners, be hoped the railroad, Mr..
Shively and the Traffic Association
would be eXonerated, and he alone
condemned. The Shively's inves-
upright attempt to gain the true
facts and conditions OF the
Southern Pacific Company. He was not
a demagogue, and believed he sustained
himself, and the people would approve of
his action. Mr.. Rea was cut short by the
Chairman on the grounds that the proper
time had not arrived for arguments, but
assured Mr.. Rea he would be given a
hearing later on.
William Beckman was put on the wit
ness-stand. His conduct was honorable,
and he believed he had done what was
right. He considered his position as
Commissioner was judicial one, and he
was informed by attorneys other than
the Attorney-General and District Attor-
ney that the construction he placed upon
the Constitution was the proper one
Mr.. Beckman said he travelled through
his district prepared to listen to any
complaints which might be made and
Furthermore to make investigations. The
commission has accomplished a great
deal by going to the railroad company
and telling them they exact too much
and that they have to reduce their freight
rate. The Commission succeeded in
this way in adjusting matters eduitablv
W roll
pany had said many times they would
not obey orders made by the Commits
sioners, but they were finally forced and
did accede to the terms eXacted. Mr.
Beckman did not recall any instances
where the Southern Pacific Company did
not obey orders, but such conditions
might have existed, but slipped his
memory. The Interstate Commerce
Commission prescribes how books of the
Eel River and Southern Pacific Railroads
shall be kept. Mr.. Beckman admitted
the Commissioners had not prescribed
any mode of bookkeeping for the rail
roads. although he believed they had the
power. He had never attempted to OBJ
tain from the Southern Pacific Company
the cost of building their road, the
cost of maintaining 1t, the interest
they pay on its funded Indebtedness, and
what would be a just profit for them to
make. But he explained himself after
ward that he was aware of the immense
cost necessary for building the road and
the immense cost OF constructing the
snowsheds, etc. Mr.. Beck man based the
regulation of freights and fares on the
original cost of the investment, and al
lowing reasonable interest on the bonded
Indebtedness, cost of operating, the roll
ing stock, accidents and other expenses.
He said he did not take into considera-
ton, as an offset, the grants of lands
made to the Southern Pacific Company.