The San Francisco call., 1901-12-03
OIL RATES REDUCED.

n Y reason Of the firm stand taken by Commis-
X soners Laumeister and Edison in the oil rate
- cases the railroads have proited nothing by
the rehearing The decision of the commission is
this time much more favorable to the public than was
the former one The reductions are larger and are
more general in their application, and consequently
will give to the oil men and to consumers greater
degree OF relief from railway extortion. go
The decision of course is not fnal for it is quite
probable the railroads will appeal the to set
aside and grant injunction against its enforce
ment until the appeal has been heard In fact, the
objections made by Commissioner Blackstock render
it almost certain the appeal will be made Those
objections have certain legal form that suggests the
fine Italian hand OF Herrin 1t seems evident he will
make an appeal, for other purpose than that
OF delay, so that he may still persuade the Southern
Pacific managers that he can be of some use them
That fact however does not in any way diminish the
credit due to the Commissioners who have resisted all
and who have given to the public much fairer rates
than the roads were willing to concede.
Unless the courts discover some technical flaw in
the decision or in the proceedings of the hearing it
is not likely the decision will be set aside for it is
clearly sustained by the evidence given before the
Commissioners. The rates imposed upon oil shippers
have been OF the kind sanctioned by the policy of
making all rates high as the traffic will bear. The
reductions made will prevent the railroads from
earning fair profit the oil they haul, but will give
the oil men chance to get their goods to market
at not unreasonable cost Thus the rates prom
lse cheaper oil to and better profits for
producers without in any way wronging the roads
The decision has political as we'll as business
significance The reduction in oil rates is tanta-
mount to a reduction of Herrn. 1t is now evident
that the asue attorney for the Southern Pacific does
not the majority of the Railroad Commission.
He has not been able to cave Commissioner Edison
down the bank. That gentleman has not only stood
firmly by his decision in favor of reduction given at
the first hearing, but upon the fuller evidence brought
Out at the recent hearing has voted for further
ductlons still Herrn has done all he could and he
has failed The commission is not to be pulled down.
Herrin's position is extremely precarious. He
endeavored to get control of the municipal govern
ment, but failed completely In the new Board Of
Supervisors he will not have control of single mem
ber. His services to the water company and to the
gas company will therefore be less valuable than they
have been in the past has been demonstrated that
he cannot control the Railroad Commission and con-
sequently the Southern Pacific will have little use for
him. He has been clever enough to make use of the
Market-street Railway Company in promoting
schemes for the water company and the gas com
pany, but that corporation will doubtless get rid
of him. In fact, there was any reason why the
Market-street company should have employed the
attorney for the water and the gas corporations The
Board of Supervisors does fix street railway rates
every year. does water and gas rates. and conse
quently the Marke-street company has gained moth
ing by uniting with the two corporations to employ
attorney to fix things with the Supervisors 1t is
safe to say the Market street company will not much
longer continue pay pro rata of Herrins salary
for serving the water company and the gas company
and doing politics in their interests.
The defeat. of Herrn's effort to get the oil rates
restored by the Railroad Commission will probably
prove his Waterloo. By the time Mr.. Kruttschnitt
returns the managers of the Southern Pacific
will probably have determined that they cannot
longer find it profitable to retain attorney in COM
bination with the water company and the gas COM
pany. Mr. Herrin has been carrying too many
buckets of water his shoulders. Something is
going to drop.