The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-03-21

that the Southern Pacific Company, IN order
TO meet the competition OF the Valley road
has reduced its rates in the territory affected
by that competition, so that the same are now,
and have been for some time, as low or even
lower than the rates prescribed by the s per
cent grain schedule of the commission; also
that reductions have been made by the South
ern Pacific Company in the Sacramento Valley
so that at the present time the difference be-
tween the rates actually enforced by the rail-
road company and the rates proposed by the
per cent grain rate schedule is very small,
such difference. in all probability, not affect
ing the revenue Of the company to extent
exceeding $50 900 per annum. Certainly as the
case stands. the substantial pecunary
matters in issue slight, and the question is
whether decision of these matters in favor
of the State will justify the great expense and
delay which must be incurred in order to reach
a final decision.
am advised by the Attorney General, and by
counsel retained in this case by our prede-
cessors. that it will require enormous labor and
a very wide range of investigation of expert
witnesses and the expenditure of not less than
$50. 900 to prepare the case for submission by
the respondents to the Circuit Court for de-
csion; that it will take years to try tone
counsel stating that 1t will require possibly
five six years another one that 1t will take
not less than four years to take the case
through the Supreme Court of the United
States where 1t would inevitably be taken
should it be pushed to final judgment. I am
further advised, appears by the records and
by the report of the Attorney General TO the
Assembly, that up to the present time there
has been paid and incurred in counsel fees and
expenses in this case more than 900, the
counsel fees alone amounting to more than
s33 co., and it further appears from like sources
that the future costs and expenses Of this It'll
cation will be at least $751; 600 $50, 900 of which
will be required as fees for experts and $50, 900
as fees for special counsel Should we press the
case with diligence, in my own opinion II would
require at least the remainder of the terms of
office OF the present commission to bring 1t to
a final conclusion. and during all this time the
hands of the commission would be so tied that
it practically could not investigate or make
any reduction or changes in the rates now en-
forced. It 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,
il seems clear that the people are interested
far more in securing actual reductions of rates
whenever the same may be had, rather than
that they should bear the heavy burdens of this
litigation. even to secure favorable decision,
which, as have shown would accomplish very
little for the actual benefit of the people
While not desiring to criticize the acts Of our
predecessors, It is evident that a serious mis-
take was made in adopting the so-called 25
per cent freight rate resolution. Had the COM
mission confined its official action TO the pro-
mitigation of rates actually determined upon, it
is not likely that any litigation would have
resulted, in which the people would have
secured at once the benefits of the reductions
made and would not have been called upon to
| hear the expenses OF this litigation. the out
| come Of which is exceedingly uncertain at best.
It is the duty of the commission to secure, so
far as It can legally, reductions IN rates of
| transportation. and It is evident that such
result can be accomplished by any general hor-
! izontal reduction of the rates maintained by
the company; the contrary, the only practi-
cal method of securing any reduction is to in
! Yestigate 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 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 litigation, growing out of the par
| ticular form of the resolution adopted by the
| board.
| In view of these undoubted conditions exist
| ing 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 com
| pensatory results, which undoubtedly will be
required in the future prosecution of this case
I am unquallfiedly Of the opinion that the con-
tinuance of this litigation is not in the interest
| of the people of the State and that It is the
duty of this board far it has the power,
to terminate this litigation SO that 1t may free
It's hands and further expense to the State
| and thereafter proceed by regular methods to
secure such advantages as may be had for the
| benefit of the shippers of freight.
| I find it to be in the power of this com
mission without the consent of the railroad
company to terminate this litigation by re-
| peal, and resentment of the whole resolution
covering the per cent grain rate reduction as
| well as the 25 per cent general horizontal re-
duction. BY the resentment and repeal of this
resolution the entire basis of the suit is re-
moved and the case must fall and with ii the
injunction against this commission, thus leav-
| ing the commission free to adopt rates based
upon present conditions. and TO adjust is pos
| sible. the numerous complaints constantly
| coming before the board of determinations 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 united and 1t for itself take the
responsibility of putting into effect the con-
stitutional and statutory provisions of the State
as Judge McKenna has most clearly defined
| them to exist.
In pursuance of the conclusions reached by