The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-10-02
RAILROAD FRE1aHTs AND FARES

The common carrier Is entitled to a
reasonable and just compensation for
his services. At common law the prin-
ciple is that what is due him, in case of
difference, is to be determined by a
court ami jury. AS railroad transporta-
ton is so immense, and such vast sums
are invested in the business, 1t is i'm
practicable to attempt to determine
what is due by direct action in the courts
Freights and fares should be regulated
on the basis of the value Of railroad
property, the necessary expense of op-
Grating and the volume of traffic. Legis-
latures have long recognized the utter
impracticability of resorting to suits in
court to determine what is reasonable
and just, and hence they have passed
laws prescribing maximum rates, and
have created commissions with various
degrees of power. In California and
Texas commissioners have authority to
prescribe rates for the railroads. The
commission in this state made a sched
ule Of rates, which has not been carried
into effect because the United States
court at San Francisco enjoined the ex-
ecution, and there has been no final
decision in the case.
The late state Democratic convention
put into its platform a plank defining
the principle on which rates and fares
should be prescribed, and 1t is both just
and practical. 1t is we'll known
that there is much fraudulent and fic-
titious capitalization, and that very few
roads are worth the amounts at which
they are bonded and stocked. The con-
vention said:
We reiterate the position repeatedly
asserted by the Democratic party of
California that in the limitation of
freights and fares by the state railroad
commission no allowance should be
made for interest on fictitious capital
ization of any railroad companies; that
reasonable interest should be allowed
upon the actual investment in the con-
struction of the railroad, including sta
lions and terminals and upon the ac-
tual value of rolling stock and other
property used in connection with rail-
road transportation, and no allowance
should be made as or for interest upon
the value Of any privilege given by the
people to such companies; and no al
lowance of interest upon any bonded
Indebtedness beyond the actual value
of the railroad measured by the cost of
reproducing 1t, at any given time at
which rates are to be fixed.
In determining this allowance to be
made for opera ting expenses of rail-
roads the commission should provide
literally for the wages of men employed
thereon, and all railroad companies
should be compelled to pay wages in
accordance with such allowances.
While the conventions of some other
parties have had the courage to declare
against exorbitant charges by railroads,
and to denounce their abuses the Demo-
cratic convention not only made its po
sition in favor of the public clear and
unmistakabe, but it did what is of
practical benefit by pointing out the
principle on which rates can be ma
terially reduced without endangering
the interests of labor or doing injustice
to capital. It's position is in striking
contrast to the tame and subservient at
titude assumed by the late so-called Re-
publican state convention.