The San Francisco call., 1895-10-10
THE TRUE PRINCIPLE.

The. following resolutions in regard to
transportation were adopted at the recent
session of the State Grange of California:
1.-THE true principle we declare to be
that property invested in the transporta-
ton business ought to be subject to the
same risks that attend other investments
and no more, and that transportation COM
panies which have been careless or waste
full in their methods of construction or
management. or which have been so un-
fortunate as to lose money through the
questionable practices of their officers, OF
whose property has become deprecated by
decreased costs of construction made pos
sible by modern methods, must themselves
shoulder the loss, just as farmers and man
utacturers are compelled to do under the
same circumstances.
"We therefore declare, as the contention
OF the farmers, that reasonable rates OF
freights and fares are such rates as will
yield reasonable interest with a gradual
repayment of principal upon the current
value of the property, which is to be deter
mined by the cost ofreproducing the same
and we demand that the Railroad Com
mission enter upon the work of ascertain
ing and recording the present value of all
railroad properties, and that thereafter
they shall fix such local rates as are likely
in connection with the revenue estimated
from interstate business to yield fair re-
turns on the investment thus computed,
and whatever this may prove to be we will
cheerfully pay.
1--WE demand of our Representatives in
Congress that they shall use their best eff
forts to cause the same principle and prac-
tiee to be adopted in the regulation OF in
terstate commerce.
These resolutions not only state just
principle, but disclose the superior intelli-
gence and broad spirit of fairness pos
sessed by the farmers of California. 1t is
TO be observed that the principle lying be-
hind that of subsidies is not touched upon,
but that was unnecessary. Still, as it is
important it may be discussed here, as
some confusion concerning it is prevalent
In the case of the subsidized lines of the
Southern Pacific Company, for instance,
the General Government not only advanced
many millions of dollars in aid of the en-
terprises, but gave them besides an enor-
nous part of the public domain. These
favors, had the lines been honestly con-
structed and managed, would have brought
the cost of construction, maintenance and
management far below that which would
be required to-day TO reconstruct the lines
without subsidy. Yet we see that the
Southern Pacific has so burdened itself
with unnecessary debts as to have an
nulled the benefits which the public had a
| right to expect in return for the subsidy
and as to have enabled the company to
exact tolls exorbitant and unjust and pro-
hibitive of the development of the regions
which it trayerses.
1t is as unjust for the people to be made
thus to suffer as it is to permit the com.
pany to enjoy enormous wealth which il
did not earn and maintain charges to
which 1t is not entitled. The whole diff
Guilty is that although the principle of gov
ernmental aid necessarily involves that OF
governmental direction within reasonable
bounds, the Government has been incen-
sistent in neglecting to exercise such direc-
ton and in permitting only one of the
parties TO contract of public policy to
enjoy the benefits. 1t was doubtless a
thorough understanding of this matter
that induced the State Grange to adopt
these resolutions and thus express the con-
ciusion OF ali the great principles consid-
| cred together. The resolutions are so just
that they are earnestly recommended tc
the attention OF the public officers to whom
| they are addressed