The San Francisco call., 1901-11-25
THE OIL RATE HEARING.

AN/ made small reduction in oil rates, sud-
denly set the decision aside and called for
rehearing the public expected something funny to
happen. The expectation increased by the state
ment of the Commissioners that the rehearing was
granted at the request of the railroad in order to
permit the oil to make better showing. AS
twas the first time record that the loser in suit
ever asked for trial for the purpose of giving
the winner an opportunity to get bigger verdict it
was recognized that the commission had introduced
novelty in its business and that the vaudeville stage
no longer to have monopoly of original stunts
The rehearing is under way and enough has
been already brought forth to satisfy the expectations
of comedy In the first place, to the surprise of the
commission, the oil men have really strengthened
their case by producing evidence from Traffic Man
ager Bssel of the Santa Fe road to the effect that
while the Southern Pacific charges the general oil
traffic from S. to 81 per for hauling over the
Kern district SWITCH it charges the Santa Fe road
only ST so per car fof the same service Here is
gross discrimination in rates and proof that the
Southern Pacific makes charge of much 81
for service it can afford to render and does render
to certain parties for ST So
1t when the witnesses for the Southern Pacific
came to the 'front.' however, that the comic stunts
began These witnesses one and all gave solemn
seeming and high sounding in support of the
doctrine that cheap freight rates would be injurious
to producers and to consumers If that view be correct
then the world walks in darkness and the Southern
Pacific has the true light From inmemoral time it
has been believed that anything which cheapened
transportation was public benefit. In that belief
of all times and all nations have labored to i'm
prove their roads, construct bridges and in every
way to facilitate traffic 1t for that they substi-
tuted the locomotive for the stage coach and the
steamboat for the sailing vessel. Now it is argued
they were all wrong High freights are a public
blessing
The witnesses who were brought in by Mr.. Her
rim to sustain his new contention were from Los An
gees. They admitted that cheaper rates would admit
the Kern wells to compete with the Los Angeles
wells, and possibly that fact may have had something
to do with their opinion that high freight rates
necessary for the welfare of Kern. One of the wit
nesses said: In my opinion low freight rate tends
to reduce the price Of oil and brings no benefit to
either the producer or the consumer" Another said
that if low rates were established Consumers would
hesitate TO install oil plant for fear the price of
oil would go down." A third witness declared the
oil men ought to form combination to store and
control the output, that the present way of doing
business is waste of $40 gold pieces. Lastly there
was witness who declared that even if the railroad
freight rates and lower prices of oil to the con-
sumer would not benefit the community.
1t would appear from all that testimony that the
reason we have not developed manufacturing enter
prises in California is because fuel and freight
have been too cheap. Were we to make them still
cheaper robody would install an oil plant The dis
covery of oil is to the industries of the
State and the only way can save ourselves is to
apply to the Southern Pacific Company to act the
phlanthropst and fix freight rates high that oil
cannot be furnished to the consumer for less than
present prices.
Had such statements been made by Bill Nye or
Mark Twain Martin Dooley they would have been
greeted with roars of laughter They all estab
lished principles of economics topsy-turvy and up
side down. They excite yearnings for abolition
of railroads and return to OK teams. They give
rise to a suspicion that the why the Southern
Pacific hauls oil for the Santa Fe at ST so per car
while charging oil s. is expectation that the
cheap haul and cheap fuel will ruin the Santa Fe and
thus rid the Southern Pacific of competition. The
rehearing is to be resumed to-day There is no tell
ing what doctrines will be sworn to before the day
is over.
1t is to be noted that Commissioner Edison, who
made the motion and voted for the rehearing is
candidate for nomination for the office of Governor
of California.