The San Francisco call., 1895-10-08
1t Adopts a Policy Whereby
the State Com missioners
Are Ignored.
NO NOTICE OF CHANGED RATES.
Commissioner Stanton Thinks the
Boards Legal Standing Is to
Be Attacked.


credit the labors of the Railroad Commis-
| sion in it's efforts to secure for shippers re-
| duced rates.
These new tactics would also indicate
| that the company proposes to ignore the
| existence and to act in defiance of the
| commission.
Heretofore it has been customary for the
railroad whenever it put new rate or
| schedule of rates into force to file copy of
| the same with the Railroad Commission
| for the approval of that body. But quite
recently changes hove been made in rates
in both the Santa Clara and San Joaquin
valleys, but no notice of this action was
given the commission. In each case, how
ever, the rates have been reduced, and
while the shippers have been in conse-
quence benefited. these unheralded reduc-
tons have seriously lnterfered with the
intelligent handling OF the matter of re-
ductions by the members of the commits
sion. They have been and are now work
ing on the schedules that were in existence
at the time they took action making the
per cent reduction, and consequently be-
cause of the fact that the railroad company
has lowered any rates in the meantime the
intended reductions of the commission,
based on rates in vogue when it adopted
the 8 per cent reduction on grain, might
in fact be advances on the existing rates.
This phase of the situation was brought
to the commission by the receipt of COM
munication last week from the Board of
Trade of San Jose, calling attention to the
fact that the Southern Pacific had recently
made reduction in grain rates on the
coast division line, affecting points lying
between San Francisco and San Carlos.
1t was then pointed out that while the re-
vised schedule of the Southern Pacific
Company made the rate from San Jose to
San Francisco but 81 20 per ton in carload
lots, under the s per cent reduced rate of
the commission charge of 81 45 was per-
mitted.
Commissioner Stanton said he had been
taken entirely by surprise by the informa-
ton contained in this communication, and
expressed not little chagrin over the ap-
parently ridiculous position the commits
sion was placed in by the action of the
railroad company, which he denounced as
illegal
"Why," said he, ''this procedure of the
railroad company is without precedent in
the history of the commission. They have
always filed their new schedules with US
for our action, but in this case we had no
| information of any change in the rates
mentioned.
at appears to me that it is the proposed
policy of the company to ignore the COM
mission, with the evident ultimate pur-
pose of defying it and questioning its legal
standing"
"What will the commission do under
the circumstances? was asked.
"That is something that has not yet
been considered by the commission. We
shall probably await some further de-
velopments in the matter. But l believe
| that there can be no question of the legal
| ity of the boards existence
"Will not this action of the railroad peo-
| pie interfere with the intelligent handling
OF the rate reduction matter?"
| Certainly: for where they make reduc-
tions and we get no information of their
action, we may make the rate higher than
that charged by the railroad, but, of
course, the shipper gets the benefit of the
railroad lower rate, for the rate we fix is
simply maximum and the railroad COM
pany can charge as much less than it as it
| pleases.
''This same thing, I understand, has
| been done relative to the rates from points
in the San Joaquin Valley to Stockton. OF
course, where the railroad company has
assumed to reduce rates without our
knowledge or approval, it may attempt to
advance them in the same way We would
have no way of knowing this unless in
formed by the shippers. In this connec-
| tion l want to say that outside of the in
formation we derived from the railroad
| people during the recent investigation, we
have received no data of value to US in
| this question of reductions. The shippers
| seem to be in awful dread of the company
and have lent US no assistance in arriving
| at a determination of what and where dis
ordinations exist. If they would sub
nit such information as / am confident
| they possess it would materially assist us
and benefit them. do not think it is ex-
pected of the members of the commission
to employ detectives to secure this in
| formation, and therefore the only way we
can obtain it is by the voluntary proffers
that may be made by shippers. We will
be only too glad to get it, and extend to all
who make use OF transportation facilities a
most cordial invitation to cooperate in
every possible way with the commission.
| "We shall not however, interfere with
the Southern Pacific people as long as they
make reductions and do not thereby create
determinations. / may add that should
our attention be called to Determinations
that require prompt attention they will
receive it, even if we have to call special
meeting for the purpose. We want to give
the shippers every encouragement to come
| to US for relief.
son Wednesday we shall take UP the
adjustment of determinations on existing
grain rates. and, if we find time, the COM
plant of the cattlemen of the Salinas
Valley that they are charged $40 per car
more than Others under similar conditions
and for the same distance. am anxious
/ to get these grain rate determinations
fixed, as they alone would give great relief
to many sections, and l would favor daily
sessions of the commission until they are
disposed of.
II am thoroughly satisfied that when
| our rates are published they will not prove
satisfactory, but we shall do all we can to
make them so, if the shippers will only
inform us wherein the ground of complaint
lies"