The record-union., 1895-08-30
RATES ON GRAIN.
The Question Again Discussed Be-
fore the Commissioners.
SOME FACTS AND FIGURES ON
FREIGHT TARIFFS.

Than in Many Eastern States, NOT
xv,tbstauding the Population Here
- Nuch Less-Justice to All is All
the Company Asks for.
SAN FRANCISCO, Aug. 29.-The wneal
rate discussion was resumed by tho Kali
road Commissioners this morning
Messrs. Smurr. Curtis, Martin, Lansing
and other Southern Pacific representa-
tives were in attendance when the pro-
ceedings began, it having been agreed Dy
the Commissioners before their ADJOURN
ment last evening that some of these gem
tlemen might be questioned this morn
ing in regard to the existing freight
charges, the conditions under WHICH Liz
company does its carrying business anu
other matters bearing on the question:
under consideration.
The proceedings began with a state
mont from Attorney Martin OF the
Southern Pacific Company TO the effect
that the latter organization was prepared
to present to tho commission. II DESIRED
pworn testimony bearing on the condl-
ton OF the company's grain-carrylng
business. "But 1 wish to say" added
Mr.. Martin, that the rates on all COM
modities handled by the road are 80
blended and intermngled that 1t seems
almost impossible 10 get at Inc question
of any one set OF charges. we VIII 40
this to the very best of our ability, Dut 1
think that the best way 10 proceed VIII
be Tor a general showing TO be mace Oh
the earnings of the company anu otnel
matters bearing on the matter partiGu-
larly at issue. This will be the broader
way. ,rx
Martin. that l agree with what the
Chairman said yesterday to the elect
that this commission sits here In The po-
sition, to very considerable eXtent. ol d
court But sitting as such court, nope,
gentlemen, it is scarcely necessary LOT IIle
TO remind you that you should Do gov
erped in such action as you may take
ONLY by the actual evidence presented 10
YOU at your sittings. If you do anything
else Won are not a court. do not think
for moment that you will allow your
selves to be swayed by mere popular
clamor, but in this connection L must re-
fer to what has been said so often OF laie
in the public press and elsewhere aDoul
pledges to do thus and 80, said 10 nave
members of this board. Gentlemen, II
Won are to allow your decisions here to
he made in accordance with such alleged
previously made pledges rather than oy
the evidence which you here receive
bearing upon the questions at issue. then
certainly you could not claim TO Dc act
1ng as "a court"
Then MIR. Martin went on TO refer 10
the fact that in the majority OF States hay-
ing Railroad Commissions supreme
Court decisions had been given deprlvlug
such commissions of the arbitrary powers
sought to be in some instances invested
in them to make arbitrary decisions III
the matter of rates. without, II they SO
chose taking any testimony or according
the parties interested q hearing. Where
ever such questions had been carried to
the Supreme Court the decision had been
AGAINST the exercise OF such arbitrary
mower Here in California The question
of the Railroad Commissions power had
never been so tested III the supreme
Court.
Chairman LaRue suggested that this
was because no attempt had yet been
1nade bv the California commission to
DENY hearing to the parties Interested,
81 statement in which Mr.. Martin CO.
incideG. =,
You have not the power. gentlemen"
said Mr.. Martin, "to compel this COM
pany 10 carry freight at IL losing rate.
The property of corporations or OF lndl-
viduals is protected by the Constitution
of the United States. 10 compel IL 10 90
business at lower rates than such as will
enable it to meet its expenses amounts 10
contiscation, ana the Constitution OF the
United States prohibits anything OF this
kind. TO this extent, al least, the powers
of the commission arc limited"
Mr.. LaRue then took occasion To state
hi a
sonable reduction. He added. referring
TO the matter of the pledges made. that he
had not tied himself with any IRON bound
promise. On the contrary, he had, fol-
lowing his own ideas and the advice of q
legal friend of high position and stand
ing, defined his position as that OF one
who proposed to be guided IN every re-
snect by the actual facts as they should
be demonstrated to be.
Commissioner Stanton also made
abatement i'll the same connection. He
had not he said, bound himself by any
pledge, and his understanding of the po
sition of the Democratic party was no
that any horizontal reduction was to bs
demanded upon any commodity or any
particular set OF commo odities. But, ire
spective of any question of pledges previ
ousiy made, he was now ready any Will
ing TO promise to cut down everything z
or 25 per cent, or even more. II he coulC
irst be satisfied that such reduction wa
fair and just, and not cut likely 10 prove
ruinous TO the carriers.
MIR. LaRue professed himself desirou
of securing to the railroads q just anC
Droper compensation, and Attorney Mar
tin then read certain legal decisions de
fining what might properly be meant ol
.'iust and proper compensation" 1t hat
been held by Justice Brewer OF theU nltet
States Supreme Court that the roads wer
as
their operating expenses, fixed charges
such as interest on bonds, etc, aud ais
diyidends. No road was to be compelled
20 leave it's interest unpaid, thereby lead
ING 10 foreclosure and conhscatlon
Neither were companies any moro thai
individuals to be forced to do buslnes
without reward-otherwise without som
profit. :,
Resuming his direct statements, Mr.
Martin went on TO remind the Commls
sioners that the railroad companies OF tn
country were not as a class existing II
financial clover. Many OF them were II
the hands of receivers "a TACT wnlci
seemed 10 indicate that there were peo
pie in the country besides the farmer
who had been feeling the effect OF hare
Zines.
But what about the largo private for
tunes which the projectors and bullder
of the road you represent have accumu
lated ," asked Chairman LaRue.
suppose that these fortunes have beel
so accumulated ?'' said Mr. Martin. I'D,
you propose TO start III here and now Il
punish those who have so accumulated
money!"
Not at all, )" said Mr.. LaRue.
Then Mr.. Martin went on to call atten
tion to the innumersble other interest
represented in the railroad, emphasizing
the fact that if few men had made for
tunes. there were hosts of others wh'
lo. N