The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-09-18
THE RAILROADS PROTEST.
Reasons Given Why the Pro-
posed Reductions Should
Not Be Made.
THE NEW GRAIN SCHEDULE.
1t Has Been Favorably Adopted by
the Board Of Railroad
Commissioners.

Despite the assertion made by General
Freight Agent Smurr that the Southern
Pacific would make no move in opposi-
ton to the Is per cent reduction until
it was served with the schedules based
on this reduction, it has felt impelled to
try its hand at this early stage in estopping
the Commissioners from carrying out their
official programme-that adopted by the
votes of Chairman La Rue and Commits
sioner Stanton-in as far as it relates to
the average reduction of 25 per cent on all
commodities within the State. 1t is APP
parently reconciled to the horizontal re-
duction of per cent on grain, for in the
protest filed with the commission by Sec
rotary Lansing in person no reference is
made to it.
In brief the reasons for the protest are
that Chairman La Rue, by reason of being
large shipper individually, is disquali-
fed from passing on the question of freight
rates; thai the rates proposed are unrea-
sonable, in not being adequate to return
sufficient revenue to pay operating and
maintenance costs, fixed charges and
dividend to stockholders, and that the de-
cision of the majority of the board, evil
IDENTIFY meaning La Rue and Stanton, was
invalid by reason of the two Commission
ers having been pledged to make such re-
duction before the testimony of the rail-
road company was submitted.
To the Honorable Board Of Railroad Commits
sionerS State of California; La Rue, Clark, Stanton
The Southern Pacific Company in the asser-
ton and for the maintenance of its property
rights and those of its lessons, protected by the
provision of the constitution of the United
States, protests against your proposed action
fixing ard establishing its freight rates, as
threatened, outlined and declared by your res
oluton adopted on the 18th day of September,
A. D.. 1895, and entered upon your official
records. AS grounds OF protest this company
specifies:
First-The personal financial interest of the
chairman of your honorable board in obtain.
ing the greatest possible reduction OF transpor
tation rates for land products, and this by
reason of the fact that he is one of the largest
if not the largest, landowner and shipper by
rail of land products in the State, should dis
qualify and does disqualfv him from officially
acting and passing upon the subject of those
rates in which he has so large personal finan-
cial interest. 1t is not consistent with natural
right that any person should officially sit and
act and pass judgment upon a subject in
which his own financial interest is directly in
Volved and which can therefore be largely pro-
NOTED by his decision.
Second-The ma jority of your honorable
board are disqualified from acting III the
premises, because bound in advance of any
investigation or consideration of the merits of
the subject TO largely reduce the mpenSatlOn
to be received by this company for its services
in transportation within the limits of Cali
fornia and this by reason of their unqualified
approval, acceptance and Endorsement of the
platform, resolutions and requirements of
organized political conventions and of their
having promised and agreed to carry out in
their official decisions the wishes of the mem
bers of such conventions, as expressed in their
platforms, resolutions and requirements, adj
verse to the property rights OF this company.
The majority OF your honorable board having
hann oil n OF
and by reason of such approval acceptance
and Endorsement, promise and agreement, are
not free to act and cannot act impartially in
passing upon subject involving the property
rights of this company, and are not qualified
to fairly investigate here and determine when
not wholly free TO render such decision as good
conscience and unbiased Judgment might
demand.
Third-The evidence, testimony and proofs
before your honorable board, of record as the
law directs in your official proceedings, show
the facts to be and the facts are that this COM
pany has not received and is not receiving from
its rates for transportation now in force suf-
Gent revenue to pay any dividend to its stock
holders. and has not received and is not receiy-
ing from its rates for transportation now in
force revenue sufficient TO meet the necessary
costs and the necessary fixed charges of the
operation and maintenance OF the railroad
lines operated and maintained by it, and your
official records do not show and there is not
any evidence, testimony or proof to the con-
trary. Notwithstanding these established facts
the majority of your honorable board have
deliberately pledged themselves, by the terms
of YOUR resolution adopted on the 18th day of
September, 1895, to make such further reduc-
lions upon the freight rates of this company
now in force as shall constitute an average
to at once proceed to make and en-
force freight rate schedules accordingly.
By the adoption of this resolution the majority
of your honorable board have decided to fur
Their reduce the revenue of this company from
freight transportation in the State of Califor-
mia in the fixed amount of 25 per cent to be
apportioned as an average reduction upon its
freight schedules, but to be absolute in its
effect upon the company's revenue in advance
of ascertaining or determining what, if any,
rate is professionally high. and should be low
cred and have definitely determined notwith-
standing the proofs shown by our own records,
and which is without even the shadow of con-
tradiction, that this company is not receiving
for the services rendered by 1t in transporta-
ton revenue sufficient to meet the necessary
costs of operation and fixed charges of its rail-
road operation and maintenance, to reduce the
income from its present freight rates in the
fixed amount OF 25 per cent to be hereafter
averaged and forced upon its present freight
schedule rates for classes and commodi-
ties and between points which you could
not at the time of the adoption of your resolu-
ton specify for the want OF necessary informa-
ton as to present rates.
The Southern Pacific Company is advised
and believes and therefore charges that in so
proceeding you are not acting under any war
rant or authority of law, but are unlawfully
invading its property rights and are turning
the form of regulating into the fact of confis-
eating its property, and that said resolution
was adopted by the majority of your honorable
board and such further action is contemplated
bv them pursuant to the pledge taken by them
as aforesaid and not upon proof and determine
ton as to whether the present rates of said
proceeding and acting you will take its prop
erty for public use without just compensation.
You will deprive it of its property without due
process of law; you will deny to 1t the equal
protection of the law.
Upon each and all of the grounds herein
before specified this company presents this
protest against your further SO proceeding and
acting in the premises and respectfully asks
that this protest may be entered upon your
records.
Dated September IL, 1895.
SOUTHERN PACIFIC COMPANY,
BY CHARLES F. CROKER, Vice-President.
lsEAL1 Attest: G. l.. LANSING, Secretary.
NEW GRAIN RATES.