The San Francisco call., 1910-12-25

! FROM dissenting opinion OF
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the advantage Of having practically
floor level haul to valley points. On
the other hand. Los Angeles can not
escape the disadvantage of having two
mountain ranges to overcome in get
ting into the valley.
wv. r. Scott. assistant general manager
of the Southern Pacific company, testi-
hed-and his testimony is supported by
an exhibit OF engine ratings-that an en-
gine that can haul but six loaded cars
over the Tehachapi grade can haul from
i've to seven times as many cars in the
valley. He also stated that the whole
cost Of service, including operation,
maintenance and all the cost, would be
four times as much over the mountains
from Los Angeles into the valley as for
an equal distance through the valley.
Certainly. these facts should be con-
sidered IN comparison OF rates be-
tween either Stockton or Sacramento
and Los Angeles.
ACTION is ARBITRARY
Il dissent from the order expressed in
the majority opinion that from Stock
ton south the defendants shall so ad-
just their rates as to give Stockton a
differentiar under San Francisco equal
to existing class rates. Not because
Stockton is not entitled to reductions,
for, I believe, considering the rate or.
dered in from Los Angeles, she is en-
titled TO more than the majority opinion
gives her, but I dissent because I be-
lieve the commission has exceeded its
authority in fixing arbitrary minimum
differentials between San Francisco and
Stockton
This is no more or less than a denial
to the consumers of the San Joaquin
valley and the merchants of San Fran
cisco OF the right to enjoy the lower
freight rates, which are always brought
about by unrestricted water competi-
ton, and. furthermore, denies to this
public the right to enjoy differentials to
points beyond the head of water COM
petition, which may properly be and
usually are less than the rates in effect
from the point of origin to the point at
the head of water competition. 1t is,
furthermore, inviolation of the estab-
lished principles of rate regulation that
rates may and should decrease per ton
and per mile as the distance increases
until ultimately the differentials be-
tween two such points as these under
consideration fade out or are elimf-
mated, and accordingly the further dis
tant markets are then served by the
same freight rate from the respective
points Of origin.
OBJECT Is VITAL
The railroad commission law of 1909
restricts the powers of the commission
in establishing rates to the fixing of
maximum rates. Diferentials are parts
of rates and the order of the majority
opinion in fixing arbitrary minimum
differentials between San Francisco and
Stockton, which must be added to rates
from Stockton to valley points in order
to make the San Francisco rate, TO that
extent fixes minimum rates from San
Francisco TO all valley points. This,
in my opinion. is a vital objection TO
the majority decision.
The decision of the majority of the
commission thus tends TO deny to the
public the advantages of free and un-
restricted movement Of freight by
water so far as rail rates to the San
Joaquin valley are concerned.
In my opinion the commission has
no authority in law to restrict the eff
feet Of actual water carriage in low
ering freight rates or differentials so
long as the rail rate is not fixed below
the actual cost of service.
1T seems proper to mention an OBJ
lection to the majority opinion as to
the effective date Of its order. The
railroad commission law of 1909 al
ready referred to specifically states all
orders of the commission. except or
ders for the payment of money, shall
take effect on the twentieth day after
service and as this order is pronul
gated on Saturday December "a, 1910,
and made effective not later than Feb
ruary Is, 1911, such orders is not in
compliance with the law.
GROUNDS FOR DISSENT
Il dissent from the majority opinion
also on the ground that in the order
requiring carriers to adjust rates from
Los Angeles to valley points but three
basic points of reduction are named,
leaving carriers to work out the re-
mainder of their tariffs along unde-
fined lines, except as the maximum
rate. and the requirement to graduate
said rates defines such lines.
It dissent also as to the application
of the lower rates given to Los An
geles. To illustrate, Los Angeles
reaches Fresno by the addition of IL
cents to her Bakersfield rate, whereas
San Francisco. Stockton and Sacra
mento must pay 2s, cents in addition to
their Fresno rate to reach Bakersfield;
thus. under the commissions adjust
ment, these three cities pay for trans
portation over a level haul, over the
same rails, for the same distance and
between the same points imore than
twice as much as Los Angeles. SINH
lar Determinations will follow all
through the valley.
4 most strongly dissent from the
majority opinion and order concerning
rates from junction points to points
on branch lines for the reason that the
order of the commission violates that
fundamental principle of rate making
that the longer the haul the lower the
rate per ton per mile should be, ir-
respective of branch line delivery. I
find no precedent for the rule stated
in the order; in fact, all precedent is
against both the letter and spirit Of
such a ruling.
Further, 1 can not concur IL the
decision for the reason that, in the
absence of an examination into the
commercial conditions applying at Sac
ramento and a determination there
from OF it's relative trade status, ad-
justments are ordered that strike at
Sacramento's interests, and deeply
perhaps justly, perhaps unjustly-affect
the trade relations of her merchants
with all valley points. Before such
action is taken believe Sacramento
merchants are entitled to their day in
court. and / am not willing to join in
a decree so directly affecting that or
any other shipping center without
hearing from such city The fact that
Sacramento did not intervene In this