The San Francisco call., 1908-10-31
Makes Determined Effort to
Wrest California From
Domination of Roads
In Report TO Governor Demands
Regulations With Provision
of Commerce Commission
Interstate Board Should Be
Given Greater Power, With
Establishment of Rates

attacking with energy ana logic the
existing railroad legislation of Cali
fornia and demanding that new laws
be passed in accord with the pro-
visions of the interstate commerce
act and the advanced laws of Wis
consin and Texas, Attorney General
u. S. Webb in his biennial report to
Governor James N. Gillett has made
q determined step toward wrestling
California from the industrial domina-
ton of the railros9s. Should Gov
ernor Gillett follow the drastic rec
concentrations of the chief legal off,
Ger of the state and the legislature
enact the measures suggested. Califor-
MIA. shippers would be independent for
the first time in the history of state
transportation.
Nine pages Of the p in the report
are devoted TO the urgent subject Of
railway legislation. Attorney General
Webb began with review of the in
vestigation started by the California
state board Of railroad commissioners
on January 16 of this year; stated how
inadequate laws practically paralyzed
the commission; showed where the
state constitution gives full authority
10 the Legislature TO pass adequate
measures, and then recommended most
important acts which should be passed.
MAKES STRONG RECOMMENDATION
In closing the section Of the report
devoted 10 the question of railroad leg
islation the attorney general makes the
following recommendations
The state board of railroad commits
A&ioners should be given power 10 classi-
~ freight, as well as TO establish rates
for the transportation of each class.
The board should be authorized to fix
different rates for the transportation of
the same commodity over different
lines as the difference of locality may
demand, and 10 require fair and Just
division of the charges arising for the
transportation of freight over two or
more connecting roads.
The power to fix rates should extend
TO the regulation Of switching, loading
and unloading and icing charges and
the application of terminal rates.
The commission should have the
same power in the state as has the in
terstate commerce commission in the
union in establishing rates and setting
the time at which they shall become ef-
fective, and should be empowered to
punish deviations from such regula-
tions
The commission should have power to
require that railroad companies furnish
an adequate supply of cars.
The acts constituting discrimination
should be clearly defined, and discrim-
ination, false billing. false classifica-
ton and false weighing should be pro-
hibited.
PROVIDE SEVERE PENALTIES
Concluding. the attorney general
says:
For e violation of any of the pro-
visions OF the act appropriate penalties
should be provided, for in many in
stances II is only through the means Of
penalties that proper observance of the
law can be compelled"
IN reviewing the Investigations
against the Southern Pacific, the Atch-
ison, Topeka and Santa Fe and the San
Pedro, Los Angeles and Salt Lake rail-
road companies, charged with discrim-
fnation, Attorney General Webb refers
TO the dereliction OF former railroad
commissions in not legally establish
ing the rates deviated from by the
companies. He also acknowledges the
aid given the attorney generals office
during the investigation by the Cali
LOIuld dSSOcldLlOn ana us 6IIOT-
ney, o. X. Cushing.
Governor Gillett is advised by the
attorney general that the commission
should have power to regulate not
only transportation charges, but also
various other charges connected with
transportation and the important re-
forms Of interlocking switches and the
block system, and Furthermore, that
the commission should have control
over express companies telegraph and
dispatch companies and steamship
companies plying on the inland waters
OF the state.
There are few states in the union
which have not adopted advanced leg
isiation upon these subjects and Cali
fornia, unfortunately, is one of those
few" declared Webb in the report.
ATTENTION TO BANKS
In a short subdivision, devoted to
banks. Webb calls attention to the fact
that the practice among commercial
bank directors, to borrow deposits
from the concerns in which they are
interested, should be made a criminal
ofense with appropriate penalties "It
is worthy of consideration" asserts
Webb, that the institutions which
failed On this state) were all COM
mercial banks, though many of them
carried savings deposits. II will be
remembered that the present law per
mits officers and directors Of CONNER
cial banks to become the borrowers of
bank funds and deposits. The condi-
ton Of affairs Of the several banks
proceeded against has shown that the
practice OF loaning money to directors
ana onlcers has been one of the chief
causes OF bank failures. In my iudg-
ment similar provision to that of the
civil code concerning savings and loan
corporations, applicable to commercial
banks should be adopted and appro-
pirate penalties provided for its vio-
lation."
given considerable attention in the re-
port, and Webb suggests that tSeIch-