The record-union., 1895-10-18
AN IRRESPONSIBLE ASSERTION
BOLDLY CHALLENGED,

For many years q portion of the press
of this State has declared that the South
ern Pacific Company's system was over
bonded; that bonds of various roads had
been sold and had realized an amount
largely in excess of the cost Of construc-
ton; that this excess represented q ficti-
tious capitalization which required cor
responding fiction in the establishment
of rates of transportation to support it.
To state this in another form, it has
been repeatedly asserted and persistently
maintained that the rates of tranporta-
ton established by the Southern Pacific
Company were unjust, unreasonable and
extortionate, and those making this as
sertion have depended upon the allega-
ton that the roads are over bonded and
over-capitalized, and that a corresponding
excess of burden is placed upon the
shipper to support the fictitious invest
ment.
Relying upon the truth Of these asser-
tions. perhaps, the Railroad Commission
of California has given notice that it In
tends to introduce measures looking to
the reduction OF freight rates within this
State of % per cent; whereupon the
Southern Pacific Company appeals to the
courts for protection against threatened
confscation of their property.
This bold challenge of full and COM
plete judicial inquiry should not escape
public attention. At last irresponsible
assertion is to undergo the scrutiny Of
judicial inquiry. It is in order now for
those who have made the assertion that
the lines OF the Southern Pacific Com
pany are over bonded to come forward
and establish the truth Of that claim. 1t
is In order now for those who declare
that excessive rates are charged to come
forward, and in an open court establish
that statement by showing that interest
on the capital invested in the railroads
themselves can be earned and the operat-
ing expenses met by lower rates of
transportation. This is the issue at the
bar of the Circuit Court Of the United
States Let 1t be understood that this is
an issue which is made by the railroad
companies themselves. By appeal to
court for q restraining order, which they
ask shall be made perpetual against
the threatened reduction by the Rail-
road Commission of California, the
railroads have made it possible to secure
the most searching investigation, and the
most complete disclosure of all this
class of fact. 1t will be within the PROV
ince of the court to inquire into every
fact bearing upon the question of the
legitimacy OF the rates of transportation.
1t viii be within its province to make tn
most searching disclosures Of the cost OF
construction. the amount of bonded in
debtedness, the cost OF operating the
roads, the amount of earnings and every
other fact which has bearing upon the
question OF the justice and reasonable
ness of the rates as now charged.
We call upon our contemporaries who
have heretofore alleged that the railroads
are over bonded and over capitalized, and
that their statement of the cost OF operat-
ing are falsifed, to come forward and
make good their assertions. The judicial
inquiry about to be made viii disclose ali
the facts, and if the allegations derogatory
to the railroad companies can be SUBJ
stantiated, now is the time to expose once
and for all the fraudulent methods of the
Southern Pacific Company, if its methods
are fraudulent, or forever after forego
irresponsible assertions of this kind.
At last the absolutism and infallibility
fthe Railroad Commission is also to un-
dergo judicial inquiry. At last the high
est courts of the land are to apply the
standards of justice to the extraordinary
mowers with which the Railroad Com
mission OF California is supposed to be
wasted by the Constitution OF the State.
At last we are to know whether three
men have right to confiscats the prop
ertv of the carrier for the benefit of the
shipper. At last we are to learn whether