The San Francisco call., 1896-11-11
VALLEY ROAD
GIVEN CREDIT
Official Words of Praise
for the Competing
Line.
Pertinent Comment Made by
Railroad Commissioner
La Rue.
R0AsTs THE HUNTINGTON LINE
Jurisdiction of Street Railroads Viewed
From the Standpoint of the
Commission
RoAsTs THE HUNTINGTON LINE

mem bers of the commission to be lncOr-
porated into the official document.
In this contribution the claims of the
Southern Pacific Company that the s per
cent reduction attempted to be made on
grain rates by the com mission was unjust
and virtually confiscation of the corpo-
ration's property are reviewed in the light
of the heavy reductions brought about on
the Southern Pacific lines by the ompeti-
ton of the Valley road, and some perth
nent and striking comment is evolved.
The question OF the Jurisdiction of the
commission over street railways is also
treated at considerable length and several
new and important points are developed.
On the subject of rate reductions the re-
port will say:
The contention of the Southern Pacific Com
psny was and has al all times been that re-
duction OF rates of freight, as proposed by the
resolution offered bv the chairman OF this
board, would be contiscatory of their prop
erty.
The commission did not adopt the resolu-
ton making reduction OF 10 per cent and 20
per cent as proposed, but did, after 8 long and
careful examination and consideration OF the
question, make an average reduction of per
cent upon all grain rales as then in force from
the interior to tidewater over the roads of the
Southern Pacific Company.
The company claimed that this small reduc-
ton would be confscatory OF their property
that it was unreasonable ana unjust, and COM
menced an action restraining this board from
enforcing compliance with said order reduc-
ing rates.
Since the commencement of said action
above referred to the San Francisco and San
Joaquin Valley Railway Company has been
constructed, and is now in successful oper-
alton between Stockton and Fresno distan ce
OF 125 miles, carrying both freight and passen-
gers and affording additional TRANSFORMATION
facilities 10 the farmers and business COM
muniIy generally of that rich and fertile
country through which the road is located
1t is parall eled on each side the whole dis
tance Hom Stockton 10 Fresno by railroads
owned and operated by the Southern Pacific
Company. AS soon as the Valley road was SO
lar completed as TO enable 1t to transport to
market the grain crop OF the section OF coun-
try through which 1t passed schedule of
grain rates was prepared by said company and
submitted to this commission for its approval
which was upon comparison with the schedule
OF grain rates adopted and published by this
commission found TO correspond with said re-
duced rates. being reduction of about per
cent from the rates charged by the Southern
Pacific Com pany between Stockton, Fresno
and intermediate points prior 10 the compile
ton of the San Francisco and San Joaquin
Valley Railway. In addition to the above
noted reduction the San Francisco and San
Joaquin Valley Railway abolished the switcn-
Ing charge OF 10 cents per ton at Stockton,
which prior to the operation of the Valley
road was charged by the Southern Pacific
The Valley road. also IN connection with
their railroad, made rate from Stockton 10
Port Costa and San francisco by water of so
cents per ton, being reduction of SO cents
per ton from Stockton to San Francisco upon
the rate charged by the Southern Pacific Com
pany between said points.
Believing the schedule of rates submitted by
the Valley road to be reasonable and just they
were approved and adopted by this board.
Notwiths hstanding the contention made by
the Southern Pacific Company in the case now
pending before the United States Circuit
Court, and at all times 10 this board, that the
rates then established and charged were as
low as they could be made and pay reason
able profit, and that the reduction as pro-
ed.lf RQOnteQ wOnl6 entail ha
pany losses so great that the company would
be thrown into insolvency and their railroad
and other property into the hands OF re-
ceiYer, Immediately upon the opening of the
Valley road the Southern Pacific Com pany re-
duced the rates between Port Costa and Stock
ton and all stations on their respective roads
that are in competition with the San Francis co
and San Joaquin Valley Road Said rates SO
made by the Southern Pacific COMPANY were
in many instances lower than the rates estab-
lished by this board, and that were by them
declared and charged TO be unjust, unreason-
able and con1scatOry.
The reductions above referred to, as made
by the Southern Pacific Company, will aver.
age more than 10 per cent lower than the
duction than provided by the original resolu-
tion asking for an average reduction of I5 per
cent on the grain rates OF 1895. With COM
peting road running between Stockton and
Fresno, with water connections to Port Costa
and San Francisco. the business is divided:
usual tonnage to move. Yet with this mate
rial reduction in rates, averaging includInp
the abolition OF switching charges at Stock
the Southern Pacific Company is still being
operated. presumably at profit.
We have not yet heard that it is unable tn
pay its current expenses, fixed charges etc
or that from this slight reduction ana compe-
tition IL is likely to become insolvent and to
pass into the hands OF a receiver.
We believe the rates as now charged from
these competitive points reasonable, lust
and ample, and much as the traffic can
afford to pay.
After quoting. the section of the consti-
tuition giving the Railroad Commission
power ito establish rates of charges for
the transportation of passengers and
freights by railroads or other transporta-
lion companies" the report will refer to
the act of the Legislature defining the
powers OF the commission. In this the
term TRANSPORTATION companies" is de-
clared ITO mean and include all COM
panies owning and operating railroads
(other than street raIlroads) within the
State"
Commenting on this the report will say:
By this act it would appear that it was the
intention of the Legislature to remove from
the commission, SO far as they had power, all
control of street railroads.
While the Legislature may grant the conn
mission additional power 10 aid it in the dis
charge OF its duties and to carry out the inten-
ton OF the constitution, can ii curtail or re-
strict its powers and jurisdiction and take
from it that control which the constitution
evidently intended it should have?
The important question arises What are
street railroads? !? Are they confined to the
corporate limits OF city or town to carry pas
sengers from one point of the city or town TO
another and confined TO the public streets
thereof? =? Or do they include all railroads
operated upon the streets of city or town and
upon The public highways through the coun-
try from one city or town to another and
which carry mail, express matter, passengers
and possibly freight?
Are not all these transportation companiea,
and should they not be unuer the control of
the commission? Or should they be subject
to the control OF the city and county authori-
ties in whose territory they are located?
These are questions of much Importance
which ought 10 be judicially determined at
an early day.
Since the introduction of electricity as
motor power railroads operated by electricity
have multiplied very rapidly, rot only in the
cities, but throughout the whole country.
They have already done away with most of
the roads operated by horse power and are
fast supersedfng those that have been oper-
ated with steam as motor power in both city
and country.
Electric power seems to be especially adapted