The San Francisco call., 1901-10-09
OIL SHIPPERS
WIN A VICTORY
Railroad Commission Re-
duces the Rates on
Petroleum
Blackstock Dissents From De-
cision and Files Volumin-
Gus Opinion.

The shippers Of crude petroleum from
the Bakersfield district have won a sigma
victory over the railroad companies tina
carry oil from the valley points to Sal
Francisco. For several months the cas-
of John lie Blanc against the Southern
Pacific and Santa Fe railroads has beer
waged before the Railroad Commission
The best attorneys in the law depart
ments Of the public carriers were called
into service and the case was tried with
earnest legal and forensic force.
IL is now all ended. The real point OF
contention was whether the rate Of 4.
cents a barrel charged by the railroads
was unreasonable or not TWO Of the
Railroad Commissioners have found that
it was. They ascertained that the profit
of carrying amounted TO s 4-10 cents on
every barrel Of petroleum This has been
pronounced unreasonable by two OF the
COmmisSiOners-C. S. Laumeister and E.
B. Edison; so they have fixed a new rate
which will take effect November l, al
81 $40 cents per barrel
y. Blackstock in a voluminous opinion
dissents from the decision on legal
grounds and concludes that the complain
ant has failed to show that the former
grounds that would justify the board in
setting aside said rate and promulgating a
new one in its stead.
The maximum rate to be charged for az
crude petroleum from Bakersfield to San
Francisco or from all points where the AZ
cent rate prevails will, after November l.
be reduced TO BIS cents per barrel. The
decision of the board On the question of
charges for switching cars on spur and
sidetracks is reserved until the next reg
ular meeting, which has been set for No
vember Il.
Rates Found to Be Excessive.
The decision in full is:
In and before the Board Of Railroad Commits
sioners Of the State OF California
John lie Blanc, DlaiatilL, vs. The Southern
Pacific Railroad Company "a corporation), The
Atchison, Topeka and Santa Fe Railroad Com
pany "a corDOrationl, The San Francisco and
San Joaquin Valley Railroad Company "a cor
poration) and the southern California Railway
Company "a cOrDoraUion), defendants
The above entitled cause came on regularly
for decision this Sth day Of October, 1901, pur-
suant to adjournment, heretofore regularly
taken Evidence. both oral and documentary
haVIngz been BY All parties heretofore presented
Commissioners, all parties being at all times
duly represented at each and every hearing,
and the cause having heretofore been regularly
based upon the figures presented bv the de,
fendant corporations that the cost to the de-
fendant corporations of Transporting crude
petroleum by their respective railroad lines
OF 8l4 miles. 80 80 cents per barrel, and that
such cost is less from points on their respect
i've lines north Of Bakersfield 10 San Francisco.
This cost is calculated upon. what. ap-
piled TO this particular haul and freight, this
rations a most liberal basis of estimate but
is nevertheless for the purposes of this case
accepted by this board.
The board further finds that the charge by
the defendant eor2orations 70 the shippers Of
of from Bakersfield and all points in Califor-
MA north of Bakersfield and south of San
Francisco to San Francisco is uniform
ant corporations at 42 cents per barrel is
40 cents per barrel.
pasl~oe5 Alio--ol Doo-..L1. n-HA
The board further finds that reasonable
profit for such transportation by the defendant
corporations from Bakersfield and all points in
California north Of Bakersfield and south OF
San Francisco TO San Francisco would be and
As 2-l0 cents per barrel, or 1919 per cent net
profit per barrel. and that such profit in view
of the extent and volume of the business of
transporting crude petroleum. as presented by
the evidence. is a reasonable. fair and lust
amount TO be allowed TO and charged by the
defendant corporations such profit, and
that a rate of 81 SO cents per barrel for such
tranCI crtation from Bakersfield and all points
in California north Of Bakersfield and south
Of San Francisco TO San Francisco would be
z reasonable, fair and just rate to be allowed
TO and TO be charged by said defendant corpo-
troleum.
II is therefore adjudged. ordered and de-
creed that 81 $40 cents per barrel be and the
lished as the maximum rate to be charged by
the defendant corporations, or each or any of
them, for the transportation of crude petro-
leum from Bakersfield and all points in Cali
for1iia where the present rate of 42 cents per
that the present and existing rate of ~ cents
per barrel for such Transportation be and the
same is hereby reduced from q cents TO
81 $40 cents per barrel Such maximum rate
of 27 SO cents per barrel to take effect and
be charged and after November l. 1901.
1t is further ordered that the decision of this
board on the question Of charges for switching
cars on spur and sidetracks and for use of said
spur and stdetracks alleged in the COM
plant herein. be and the same is hereby re
served and postponed until the next regular
meeting Of the board, to wit, on November
i. 1901. al the hour Of o'clock y. m.
Dated San Francisco October s. 1901.
f. B. EDISON