Story of the Session of the California Legislature of 1909Hichborn, Franklin
History
Story of the Session of the California Legislature of 1909
Hichborn, Franklin
California -- Politics and government
Comparison of the two measures is not at all to the advantage of the
Wright bill.
The Stetson bill provided fine and imprisonment as penalty for
infringement of its provisions; the Wright bill provided fine only.
The Stetson bill had a definite anti-pass provision; the Wright bill as
originally introduced had no such provision.
The Stetson bill authorized not only the Attorney-General, but the
District Attorney of any county of the State to proceed to enforce its
provisions; the Wright bill granted the Attorney-General alone such
authority.
The Stetson bill required the Railroad Commissioners to meet at least
once in every two weeks; the Wright bill provided that such meetings
should be held monthly.
The Stetson bill gave the Railroad Commissioners authority to make
physical valuation of railroad properties; the Wright bill contained no
such provision.
The Stetson bill recognized all discriminations to be unjust; the Wright
bill provided that no interference should be instituted unless the
discriminations complained of were shown to be unjust.
And finally, the Stetson bill provided that the State Board of Railroad
Commissioners should have power to fix absolute rates, thus insuring
stability of rate schedules, while the Wright bill provided that the
Commissioners should fix maximum rates only, thus permitting the famous
"fluidity" of schedules advocated by machine lobby and Southern Pacific
attorneys.
The contest between the supporters of the Wright and the supporters of
the Stetson bill, finally narrowed down to the question of providing for
absolute or maximum rates.
The provision for the maximum rate in Senator Wright's bill, authorized
the railroad regulating Commission to fix the highest charge which a
railroad may exact from a shipper. This is called the maximum rate. The
transportation company is authorized to lower the rate at will, but it
cannot charge a rate beyond the maximum as fixed by the Commission. This
leaves the railroads to fix a sliding schedule of rates, so long as they
do not exceed the maximum. It gives the railroads the advantage of that
"fluidity" of schedules, which railroad attorneys insist is necessary
for railroad prosperity.
The maximum rate is provided in the Interstate Commerce Act, but the
Interstate Commerce Commissioners, finding it impracticable, have for
years been clamoring for Congress to authorize the fixing of absolute
rates. The cry of the Interstate Commerce Commission has been taken up
by the shipping interests, and from one end of the country to the other
there is growing demand that authority be placed somewhere to make
railroad rates, when fixed by a regulating Commission, absolute.
Public-domain text, read in full here on John Shaqi.
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