The record-union., 1895-08-29

SAN Francisco, Aug. 28.-An import
ant meeting of the Railroad Commission
was held at the Office of the Commission
ers this afternoon at l o'clock 1t was an
adjourned meeting to consider the resoiu-
ton offered two weeks ago by Commls-
sioner LaRue making sweeping reouc-
tions in the tariff on grain, and cohse-
quently greatly reducing the income OF
the Southern Pacific Railroad Company.
Commissioner LaRue was early on the
scene. and Mr.. Clark also appeared
promptly. but at the hour set for the meet
ing DIR. Stanton was not on hand, ana MS
arrival was awaited with consioeraoie
anxiety. He came in smiling at last, anu
Commissioner LaRue called the meeting
TO order.
J, C. Martin, attorney for the railroad;
c. F. Smurr, also representing thas COM
pany; w. F. Curtis, Assistant General
Manager, and @. L. Lansing. Controiler
of the Southern Pacific, were IN attehu-
snce. They came armed with stalemeh,s
and figures showing that the rates hau al
ready been reduced to the lowest possl-
BILE figure. and that further reuuctIoh
would be both disastrous and UNJUST W
the company. j. II. Roberts, President
of the Sacramento Transportation Coui-
Dany who had made an earnest pIotess
against the adoption OF the resoIuItoh'
was again on hand to show tEat reouc-
ton of railroad rates would oflFe LIS
company out of business, as IL wouiu oe
unable to compete WILL io"oA
transportation.
A communication addressed to the COM
mission indorsing the resolution passed
bv Stockton Grange was reaQ.
ga letter was also read from the San
Francisco and San Mateo Railroad IN an
ever to a request for copy OF thelr iran
chise. The Secretary had large num-
ber of other letters on various SUBJECTS,
but on motion of DR.. Stanton the reading
was dispensed with in all matters other
than that for which the meeting had been
called.
A communication from NJ. Z. Gonzales.
Nj. D., inclosing petition from the clu-
Zens of Salinas Valley for reduction OF
yates on grain. was read
Taxpayers and wheat-growers OF Blggs
sent similar communication, asking
reduction of 20 per cent. on wheat from
Biggs to Port Costa.
The Secretary then read the communl-
cation from G. L. Smurr, presented at
the last meeting, in relation to passenger
rates on various branches OF the southern
Pacific system, and also one from the
WV
on the Lodi branch. The schedule as
amended by the railroad was approved
by unanimous vote.
w. w. Phillips of Fresno addressed the
commission. He hoped the proposed re-
ductions would be made.
A petition from graln-grOwers and tax
payers of the San Joaquin Valley, pray
ing for reduction of treights on grain, was
also read.
Then a communication was read from
General Freight Agent Smurr, in which
he explained at some length the reason
for what might seem 10 the unlnltIated to
be discrimination In the matter OF freight,
reference being especially made to the fact
that the charges on grain shipped from
san Luis Oblspo and some other Southern
California counties were considerably
lower, proportionately considered, than
those prevailing between other points
and San Francisco. The explanation of
the seeming inconsistency, the writer
argued, was very simple, and he pro-
ceeded to show how the fact that the
grain could be shipped by sea very
cheaply from Port Hartford and other
coast points made it absolutely necessary
for the railroad company 10 lower its
rates in those districts correspondlngly II
it would keep any business there st all.
The summing up OF the whole matter
was not that the interior rates were too
high, but that those on the coast were too
low, or, at all events, that they were
placed at such a very moderate figure,
under the necessities of the case, TO
minimize any chance of profit that the
railroad might have in Transporting the
grain. The railroad. however, simply
had the choice of doing this or of with
drawing entirely from competition in the
districts referred to, and leaving shippers
with no safeguard against the growing
# rrbt mn
DR.. Stanton then submitted a commune
cation and stated before it was read that
he was not in favor Of the reductions as
set down in the resolution, but that he
believed that the various points should
be considered and the reductions made as
they might appear to be wise.
DR.. StantOn'S statement defining his
position was then read as follows:
"SAN FRANCISCO, Aug. %, 1895.
"As Com missioner from The Second
District l submit the following facts for
the consideration of this commission:
''At the session held August Ii, 1895,
the Commissioner from the First District
presented a resolution having for its OBJ
ject reduction of rates upon grain from
all points in California on the Southern
Pacific Campany's Pacific system. The
proposed reduction would be general
cut of 10 per cent. on the rates published
in Grain Tariff No. 2 and Subsequens
amendments, and reduction of 20 per
cent. on rates charged by this company
from seventy-one stations north OF Port
Costa and Sacramento. l was not ac-
corded the privilege of examining this
resolution prior TO the meeting, and con-
sequently could not vote for its adoption.
Copies OF this resolution and the proceed
ings held upon that day have been served
upon the company named in the resolu-
ton, and this company asked for time in
which to prepare data showing that this
order should not be enforced. AS Com
missioner, and basing my conclusions
upon Thorough investigation of the SUBJ
ject. believe that there are many rea-
sons to urge against the adoption of this
measure. The preamble to this order
contains many statements which are not
borne out by the facts of the case and the
order, If adopted and enforced, would
certainly fail to accomplish the results
which have been so earnestly desired by
all who are directly interested in the
question OF transportation In this State.
l speak of the discrimination which ex-
lists on the Pacific system OF the Southern
Pacific Company.
'If the gentleman who presented this
resolution had arranged a schedule, as re-
Quired by the law which governs our
actions, these Determinations would
have been at once apparent and it would
have required much calculation to show
that the charges in different localities
range from .0l7 TO rate exceeding 10
cents per mile. There may be reasons
advanced for these ediscriminative charges,
which, from our worthy Commissioners
experience as a shipper, are entitled to
due respect and consideration; but, if
reasons are not forthcoming, and it is ad-
mitted that these Determinations exist
then l ask how 1t Is possible TO regulate
this condition by adopting such an order
as the gentleman proposes? Would not a