The San Francisco call., 1896-05-16

all transportation companies. On this subject
we are advised by the Attorney-General as fol-
lows:
sI am of the opinion that street railroads
within the meaning and intendment OF the
exception to the definition of Transportation
companies found in the act to organize aud
define the powers of the Board OF Railroad
Commissioners, are such roads only as are
used exclusively Tor the transportation OF
passengers"
Acknowledgement Fitzgerald then quotes
from Booth work on railway law, which
in section 1 says:
A distinctive and essential feature of a street
railway, in relation to other railroads, is that
it is exclusively for the transportation of
passengers and not OF goods.
Acknowledgement Fitzgerald then con-
tinues as follows:
If the franchise OF the electric and motor
railroads in question merely authorized them
to operate them as street railroads, then in as
Stunning to act as transportation companies in
the carrying of passengers and freight, or
freight only, they are unlawfully exercising
their franchises; and if your board will fur
nish me with evidence of that fact will at
once institute proceedings against them to for
felt their franchises and at the same time to
enjoin them from further operating their
roads as carriers OF freight.
Reference is made to the stand of the
Atlantic and Pacific Railroad Company
in denying the jurisdiction of the board.
In this connection the Commissioners re-
port says:
While our predecessors in office may have
accepted this position, we desire TO announce
that we do not in any manner agree to the
same. Our determi nation is 10 fully inquire
into the local affairs and charges of this cor
poration and deal with them the same as with
the affairs OF the other railroad corporations
OF the State.
In the matter of uniform system of
accounts to be kept by all transportation
corporations as provided by the State con-
stitution, the report says:
No commission, TO our knowledge, has ever
attempted the enforcement of this provision
II is most important, and the adoption of such
a system would do much to simplify railroad
affairs and enable this commission TO obtain
information absolutely essential for the trans
action of its business. This subj eet has been
considered by Us for some time and we expect
TO be enabled to perfee and put in force such
a system as is contemplated by the constitu-
ton.
Then come the comments of the COM
AhAcSAOi Oil thS SASoe i19OC VI
freight rates now pending in the Federal
court in this City. They follow:
BY far the most important matter that has
engaged the attention OF the commi ssion has
been the adoption of a schedule of rates for
the transportation OF grain over the leased
lines of the Southern Pacific Company within
this State Almost the entire traffic of the
State is carried by this corporation, and from
our induction into Office its affairs have re-
efved the most careful attention and consid-
Grafton. Complaints of its charges for freight
and passengers transported have been made
and action has been taken reducing charges
and formulating a new schedule of rates, par
ticularly on grain shipments. The proceed
ings incident 10 the subject we deem proper to
state with some particularly.
A full review of the proceedings had be-
fore the commission relative to the rate
reductions attempted last year is then re-
cited and also the failure of the Southern
Pacific Company to put these reduced
rates into effect, and the subsequent in
junction suit of the Southern Pacific Com
pany.
The report then concludes as follows:
The questions ct issue are of the utmost i'm
portance TO the people of the State and in
vOlve not only the right of regulation of rates
through the medium OF the Railroad Commits
sion, but the vital question OF the right of the
people of the State of Cal ifornia, through the
commission, to regulate or to interfere in any
manner with the charges fixed by the South
ern Pacific Company; and, if the position
taken by complainants is sustained all homes
for the regulation of the rates of this CORPORA
tion are destroyed and such charges as they
may deem proper viii be enforced regardless
of the will OF the people.
One of the most unfortunate results of the
issuance of the omnibus Injunction against
the commission has been the prevention OF
any action toward the regulation OF discrimi-
nations against various rail and shipping
points. This is one OF the greatest evils under
which the shippers of California suffer, ana
the determinations are numerous
This board has given considerable study to
the question and finds in almost every in
stance of the more important irregularities
Investigated that the carrier urges as an argu-
ment in favor of these charges that the pres
ence OF water competition is their justifca.
ton. 1t is true that in many sections OF our
State, notably in lhe Sacramento Valley and
shipping points close to the bay, as well as
points upon the coast reached by water and
rail, shippers are more favorably situated for
transportation purposes, but Determinations
are specially prohibited by the constitutional
provision OF section 21, article XII.
The actions of other commissions, including
the highest authority, the Interstate Com
merce Commission, recognizes water compe-
tition as an important factor in rate-making,
and we believe that some legislative action or
constitutional amendment empowering the
Board OF Railroad Commissioners TO determine
the extent of territory affected by this factor
would benefit shippers IN general and deal
iairly by all carriers. The natural advantage
of shipping point having water and rail
facilities should not be destroyed by such
active competition that consolidation of the
carriers would result for mutual protection.
The board was engaged in the task of equaliz-
ing the rates of the Southern Pacific Company
and correcting discrimination in grain ra ties
when enjoined by the Circuit Court.
The board has been unable TO furnish a COM
plete statistical report herewith, as the more
important railroad corporations delayed the
commission by failing to give the required
data, and that which was on file is at present
being used in the Circuit Court. The biennial
report of the commission will contain the
proper statistical information.
JUVENILE BEGGARS.