The San Francisco call., 1899-05-14

sources that the future costs and ex-
penses of this litigation will be at least
$67, 900 more, $50 900 of which will be re-
quired as fees for experts and 10000 as
fees of special counsel. Should we press
the case with diligence, in my opinion it
would require at least the remainder of
the term of office of the present commits
sion to bring it to final conclusion, and
during all this time the hands of the COM
mission would be tied so that 1t practi-
cally could not investigate or make any
reduction or changes in the rates now en-
forced. 1t seems to me that, even if we
could be assured of a final judgment in
this case, the expenditure of time and
money necessary to accomplish this end
would not be justified, even to reach such
a result: on the contrary, 1T seems clear
that the people are interested lar more
in securing actual reductions OF rates
wherever the same may be had rather
than that they should bear the heavy bur
dens of this litigation, even to secure a
favorable decision, which, as L nave
shown, would accomplish very little Tor
the actual benefit of the people.
While not desiring to criticize the acts
of our predecessors, it is evident that
serious mistake was made in adopting the
so-called % per cent freight rate resolu-
ton. Had the commission confined It's
official action to the PRONUNCIATION OF rates
actually determined upon, it is not like
ly that any litigation would have resulted,
in which case the people would nave Sc
cured at once the benefits of the reduc-
tions made. and would not have been
called upon to bear the expenses or TINS
litigation, the outcome of which is eX-
ceedingly uncertain at best. 1t is the
duty of the commission to secure, so far
as 1t can legally, reductions in rates OF
transportation, and it is evident that no
SUCH result can be accomplished by any
general horizontal reduction of the rates
maintained by the company; on the con-
! trary, the only practical method of Sc
! curing any reduction is to investigate
each class of rates and to remove such
determinations as may be found and to
reduce any particular rates or classes of
rates which may be found exorbitant, to
| the basis of a reasonable and fair rate.
When this is done, it is certain that the
company will not have the advantages
which it has secured in the present liti-
cation, growing out of the particular
form of the resolution adopted by the
| board.
In view of these undoubted conditions
existing at this date, and of the results
which are certain to accrue in the future.
is it our duty. representing the State and
exercising sound discretion as the agents
OF the State, to make the extraordinary
expenditure without compensatory result
which will undoubtedly be required in the
further prosecution of this case? l am
unqualifiedly of the opinion that the
continuance of this litigation is not in the
interest of the people of the State, and
that it is the duty of this board, so far
as 1t has the power, to terminate this lit
| igation, so that it may free its hands and
har
thereafter proceed by regular methods to
secure such advantages as may be had
for the benefit of the shippers of freight.
l find it to be in the power of this com
mission, without the consent of the rail-
road company, to terminate this litiga-
ton by repeal and resentment of the
whole resolution, covering the per cent
grain-rate reduction as well as the % per
cent general horizontal reduction. By the
resentment and repeal of this resolution
the entire basis of the suit is removed
and the case must fall, and with it the in
junction against this commission, leaving
the commission free to adopt rates based
/ upon present conditions and to adjust, If
possible, the numerous complaints con-
stantly coming before the board of dis
elimination in freight and passenger
charges This, to my mind, manifestly is
the only proper course to pursue, so that
the hands OF the commission may be un-
tied anG it can fer itself take the respon-
sibility of putting into effect the consti-
tutional and statutory provisions of the
State as Judge McKenna has most clearly
defined them to exist. -a. .--
In pursuance Of the conclusions reached
by me and stated in the foregoing re-
I,ort / have prepared and shall submit
for the consideration of the board reso-
luton to accomplish the purpose therein
recommended. Respectfully submitted,
n. BLACKSTOCK,
Railway Commissioner, Third District,