The record-union., 1895-08-17

presents itself at this point. The rate of
freight on wheat from the point of ts
production to it's final market must be
considered as unit. The price paid for
wheat in the interior of California Is the
price at Liverpool, less the freight. COM
mission and profit of handling. These
factors unity themselves into the units of
subtraction from the Liverpool quota
California such command of the rate OF
tonnage by sea as to offer guarantee to
the wheat producer that the ocean tom
mage will not be raised corresponding to
the proposed reduction, and the advan-
tage to the wheat raiser be thereby lost?
The entire ocean tonnage is in the hands
of strong syndicate. The rate by ocean
from San Francisco to Liverpool this
year is 36s. as against 25s last year.
The increase of ocean freight affects at
once decrease in the price. The ques-
ton therefore naturally arises: viii the
ton to the seaboard correspondingly in
crease the price of wheat to the farmer?
Or viii the ocean shipper take advantage
OF the situation and increase the tonnage
rate accordingly? What guarantee can
the Railroad Commission of California
offer against this very probable con-
| tingency? That it is probable is dis
closed by the fact that commercially con-
sidered the dealer in wheat controls the
ocean tonnage, and it is his aim to per-
NIT only such rate to the farmer as will
| induce him to make another crop.
Commissioner LaRue Is proposing,
upon the concurrence of his associates on
the commission, to reduce the railroad
rates to the seaboard in the interest of
higher quotation on wheat to the farmer.
| Can he and his associates guarantee the
farmer against a corresponding rise OF
ocean tonnage? Of one thing he May be
certain. The opportunity for the in
crease Of ocean tonnage will be created
Can he depend on the good will, the
generous, philanthropic purpose of the
export ring to resist this opportunity?
In perfect candor therefore we say: Be
sure you want it.
| If the proposed reduction goes into
effect and the river is abandoned as
means of communication with the in
terror; if as the result of that reduction the
| high class income tonnange now carried
| by steamer moves by rail; if as a further
result of the lowering of the grain sched-
the wheat crop now carried by the river,
we say, when these results are achieved,
and the reduction proves to be highly
profitable to the railroads in every re-
spect, the commission and our esteemed
contemporaries will not be able to say
that they were not forewarned of this re-
suit.
The results we have herein outlined
may be ascertained with q high degree of
certainty. tits practicable for the commits
sion to determine what increase of wheat
tonnage Will come to the railroads and
what will be the loss of the river carrier.
1t is within their jurisdiction to inquire
into and determine what percentage of
| incoming freight of high class is now car
ried by the steamers in consequence of
the export from the interior to the sea-
board of grain. It is within their prov
ince to inquire into the fact as TO who con-
trolls the ocean tonnage, and as to what
effect a reduction of interior rates will
have upon the increase or decrease of
such tonnage rate. All these things
should be carefully inquired into before
action is taken.
We accord to Mr.. LaRue's motives an
honest desire to benefit the farmers. He
is himself very large farmer, directly
and personally interested in reduction
of grain rates. He is grain-raiser and
freight payer on that commodity.
In 1879, when the new Constitution was
before the people Of California for ratif-
cation or rejection, we opposed its rstif-
cation, partly on the ground that the
clause which creates this Railroad Com
mission and defined its power was OBJ
iectionable. We said at that time that it
was a device whereby the shipper was to
determine for himself the rate at which
he should be served. We pointed out the
difficulty of forming quasi-judicial
tribunal of this kind which would not be
pecuniarily interested either as shipper
or a carrier.
At ali events. before the grain schedule
proposed by Mr.. LaRue is put into force,
we ask the Commissioner who has pro-
posed the reduction, and the producers
who suppose themselves to be directly in
terested in the establishment of the new
schedule, to be perfectly sure that they
want it.
OF one thing the commission. our con-
temporaries and the public may be well
assured. The railroad rate on grain fr rom
the interior to the seaboard is not the
only factor influencing the price of grain
at the point of production. Can the COM
mission control all of the factors? Will the
reduction result in an increased activity
in the navigation of the river. or will 1t
| eliminate the competition it now offers
| to the railroads of the interior?
We are not supposed to be mindful of
the highest and best interests of the San