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AYES.

mortgage, deed of trust, contract, or obligation, less the value of such MR. ROLFE. I move to amend by adding that five copies be placed security, shall be assessed and taxed to the owner of the property, and upon each member's desk. the value of such security shall be assessed and taxed to the owner MR. EDGERTON. I accept the amendment. thereof, in the county in which the property affected thereby is situate. The motion prevailed. The taxes levied shall be a lien upon the property and security,

RESOLUTION OF INQUIRY. respectively, and may be paid by either party to such security ; if paid

MR. RINGGOLD. I have a resolution to offer. by the owner of the security, the tax so levied upon the property

THE SECRETARY read: affected thereby shall become a part of the debt so secured; if the owner of the property shall pay the tax so levied on such security, it shall Resolved, That the San Francisco Gaslight Company, of the City and County of constitute a payment thereon, and to the extent of such payment, a full San Francisco, be and is hereby directed to furnish to this Convention a statement discharge thereof.

setting forth the number of meters which said company has furnished to consumers

gas since the organization of the company, the amount of money deposited with Sec. 6. Every contract hereafter made, by which a debtor is obli- the company for meters furnished, the amount of money refunded for meters taken gated to pay any tax or assessment on money loaned, or on any mort. back by the company, and the amount of money the company still retains as gage, deed of trust, or other lien, shall, as to any interest specified deposits for meters. therein, and as to such tax or assessment, be null and void.

Resolved, That the Secretary of this Convention be and he is hereby directed to Sec. 7. No corporation, except for benevolent, religious, scientific, or of the San Francisco Gaslight Company.

forward immediateiy a copy of the above resolution to the President and Secretary educational purposes, shall be hereafter formed under the laws of this State, unless the persons named as corporators shall, at or before filing

MR. RINGGOLD. I bave been requested to introduce that, and I the articles of incorporation, pay into the State treasury one hundred now inove its adoption. dollars for the first fifty thousand dollars or less of capital stock, and a Adopted, on a division, by an affirmative vote of 80. further sum of twenty dollars for every additional ten thousand dollars

MR. ESTEE. Mr. President: I now move that the Convention of such stock; and no such corporation shall hereafter increase its capital resolve itself into Committee of the Whole, for the purpose of further stock without first paying into the State treasury twenty dollars for every considering the report of the Committee on Corporations other than ten thousand dollars of increase.

Municipal. Sec. 8. No license tax shall be imposed by this State, or any munici

PREVIOUS QUESTION IN COMMITTEE OF THE WHOLE. pality thereof, upon any trade, calling, occupation, or business, except the manufacture and sale of wine, spirituous, and malt liquors, shows, motion to amend Rule Fifty-six, of which I gave notice on Saturday.

MR. DUDLEY, of Solano. Mr. President: I desire now to make my theaters, menageries, sleight of hand performances, exhibitions for profit, and such other business and occupations of like character as the Legisla

MR. TINNIN. Mr. President: The previous question has been ture may judge the public peace or good order may require to be under moved and carried several times in this body, and I think it is very special State or municipal control. But the Legislature may by law satisfactory to the members. In fact I think it the only protection that

we have had the last few days. I move that it be laid on the table. impose any license, or other tax, on persons or corporations owning or

The ayes and noes were demanded by Messrs. Reynolds, Heiskell, using franchises or corporate privileges.

Sec. 9. The Legislature shall provide for the levy and collection of Tully, Joyce, and Dudley, of Solano. an annual poll tax of not less than two dollars, for school purposes, on

MR. REYNOLDS. Mr. President: I want to see this Convention put every male inhabitant of this State over twenty-one and under sixty upon the record on this subject.

MR. HUESTIS. I rise to a point of order. years of age, except paupers, idiots, insane persons, and Indians not

MR. HEISKELL. Yes; ten or a dozen of you rise to a point of order. taxed. Said tax shall be paid into the State School Fund.

MR. HUESTIS. The gentleman has no right to consume the time of Sec. 10. The power of taxation shall never be surrendered or suspended by any grant or contract to which the State shall be a party.

the Convention in discussing a motion to lay on the table. Sec. 11. The Legislature shall provide by law for the payment of all

THE PRESIDENT. The point of order is weli taken.

The roll was called, and the motion to lay the amendment on the taxes on real

property by installments. Sec. 12. The Legislature shall by law require each taxpayer in this table was lost, by the following vote: State to make and deliver to the County Assessor, annually, a statement, under oath, setting forth specifically all the real and personal property Andrews,

Heiskell,

Moreland, owned by such taxpayer, or in his possession, or under his control, at Ayers,

Hitchcock,

Nason, twelve o'clock meridian, on the first Monday of March.

Boggs,
Holmes,

Ohleyer,
SEC. 13. Assessors and Collectors of State, county, city and county, Brown,

Howard,

Porter, town, or district taxes, shall be elected by the qualified electors of the Burt,

Huestis,

Pulliam, county, city and county, town, or district in which the property taxed

Campbell,
Hunter,

Rhodes, for State, county, city and county, town, or district purposes, is situated; Caples,

Inman,

Rolfe, provided, that vacancies may be filled by appointment, according to

Chapman,
Johnson,

Shafter, general laws.

Cowden,
Kelley,

Shurtleff,
Sec. 14. The State tax on property, exclusive of such tax as may be Crouch,

Lampson,

Smith, of Santa Clara, necessary

to
pay the existing State debt, shall not exceed forty cents on Davis,

Larkin,

Stevenson, each one hundred dollars for any one year.

Estee,
Larue,

Terry,
SEC. 15. A State Board of Equalization, consisting of two members Estey,

Lewis,

Tinnin, from each Congressional District in this state, shall be elected by the Fawcett,

Mansfield,

Townsend, qualified electors of their respective districts, at the general election to Finney,

McComas,

Tully, be held in the year one thousand eight hundred and seventy-nine, and

Garvey,
McConnell,

Van Voorhies, every four years thereafter, whose duty it shall be to equalize the valu- Glascock,

McCoy,

Waters, ation of the taxable property in the State for purposes of State taxation. Graves,

McNutt,

Wilson, of Tehama, The Boards of Supervisors of the several counties in the State shall Gregg,

Moffat,

Wyatt-56.
constitute Boards of Equalization for their respective counties, whose
duty it shall be to equalize the valuation of the taxable property in the
county for the purpose of county taxation.

Barbour,
Herrington,

Ringgold,
SEC. 16. The State Board of Equalization shall assess the value of Barry,

Hilborn,

Schell, all the property of all railroad corporations in this State. For the pur- Barton,

Hughey,

Schomp, pose of taxation, the value of all lands, workshops, depots, and other Belcher,

Jones,

Smith, of 4th District, buildings belonging to or under the control of each railroad corporation, Blackmer,

Joyce,

Smith, of San Francisco, shall be apportioned by said Board to the counties, cities and counties, Condon,

Kleine,

Soule, cities, townships, and districts in which such lands, workshops, depots, Dowling,

Laine,

Stedman, and other buildings are situate; and the aggregate value of all other Doyle,

Lavigne,

Steele, property of such railroad corporation shall be apportioned by said Board Dudley, of Solano, Lindow,

Sweasey, to each county, city and county, city, town, or district in which its road Eagon,

McCallum,

Thompson, shall be located, according to the ratio which the number of miles of Edgerton,

McFarland,

Tuttle, such road completed in such county, city and county, city, town, or dis- Evey,

Morse,

Vacquerel, trict shall bear to the whole length of such railroad.

Farrell,
Nelson,

Walker, of Marin, Sec. 17. The value of the capital stock of a corporation shall be Filcher,

Neunaber,

Walker, of Tuolumne, assessed in the county in which its principal place of business is located, Freeman,

O'Donnell,

Wellin, and separately from all other property belonging thereto; and such stock Freud,

O'Sullivan,

West, shall be assessed at its market value when the assessment is made. The Gorman,

Prouty,

Wickes, real and other personal property of such corporation shall be assessed in Grace,

Reddy,

White, the several counties respectively in which the same is situate. The value Harrison,

Reynolds,

Mr. President-58. of such stock, over and above the aggregate value of such real and other Harvey, personal property, according to such assessment, shall be taxed in the

THE PRESIDENT. The question is on the adoption of the amendcounty in which the principal place of business of such corporation is ment as offered by the gentleman from Solano, Mr. Dudley. The Secrelocated; and the value of such real and other personal property shall be tary will read it. taxed in the several counties respectively in which the same is situate.

THE SECRETARY read: The shares of stock belonging to the stockholders in such corporation

" Amend Rule Fifty-six to read as follows: shall be exempt from taxation; provided, that the provisions of this sec

"RULE FIFTY-SIX. tion shall not apply to railroad corporations.

Sec. 18. The Legislature shall pass all laws necessary to carry out “ The rules of the Convention shall be observed in Committee of the the provisions of this article.

Whole, so far as they may be applicable, except that the ayes and noes MR. EDGERTON. I move that nine hundred and sixty copies of the shall not be taken, and that the previous question shall not be moved." draft be printed.

MR. DUDLEY, of Solano. Mr. President: I am not classed as one of

XOES.

FOREIGN CORPORATIONS.

AYES.

the talking members of this Convention, and I make this motion to-day, MR. ESTEE. Will the Secretary please read the section as now because I think that I saw a great deal of inconvenience arising last amended? Saturday from moving the previous question. The situation seems to THE SECRETARY read : be this: a section is brought up for consideration, and one member Sec. 14. Every corporation, other than religious, educational, or moves an amendment, then another member moves an amendment to benevolent, organized or doing business in this State, shall have and the amendment. No more amendments can be offered until these are maintain an office in this State for the transaction of its business, where disposed of. They are discussed until the patience of the Convention is transfers of stock shall be made, and in which shall be kept for inspecexliausted. The previous question is moved, and no more amendments tion, by every person having an interest therein, and legislative comcan be offered to the section at all. We have no chance to vote upon mittees, books in which shall be recorded the amount of capital stock any amendments except the first two. I am willing to limit the time of subscribed, and by whom; the names of the owners of its stock, and debate, but certainly I think we should have a chance to consider and the amounts owned by them respectively; the amount of stock paid in, vote upon more than two amendments. I hope the amendment will and by whom; the transfers of said stock, the amount of its assets and be adopted.

liabilities; and the names and place of residence of its officers. No The ayes and noes were demanded by Messrs. Burt, Tinnin, Kelley, foreign corporation shall do any business in this state without having at Wellin, and Huestis.

least one place of business and an authorized agent in the same, upon MR. ROLFE. Mr. President: 1 am opposed to the way the rule whom process may be served. stands now, and I am opposed to the way it is proposed to be amended; Mr. TERRY. My amendment is withdrawn. therefore I shall vote against the amendment. It is as the gentleman THE CHAIRMAN. The question is on the amendment offered by the says: a proposition comes before the Committee of the Whole and some Committee on Corporations as amended. gentleman moves an amendment; another gentleman moves an amend- THE SECRETARY again read the amendment as amended. ment to that. Then we get tired of discussing it, and the previous MR. TERRY. It says, and doing business." question is moved and carried, and then we only have the right, as I THE SECRETARY.' It says,"or doing business." understand it, to vote on these three propositions, without giving any MR. BARBOUR. If it reads that way there is a repetition, because opportunity of making other amendments; whereas, it is possible that if the word "or" is used it refers to the foreign corporations, and they neither the proposition nor either of the amendments suit the Conven-are, according to the amendment of Judge Hager, required to keep an tion. I think the evil could be avoided in a different way--by allowing office where the business is transacted. the previous question to be put and carried, but with such a modifica- The amendment as amended was adopted. tion that after we vote down all the amendments pending, then other amendments may be offered. But I shall simply vote against the

MR. ESTEE. Mr. Chairman : I now offer an additional section, to amendment changing the rule.

follow this section, pursuant to a report made by the Committee on CorThe roll was called, with the following result:

porations other than Municipal.

THE CHAIRMAN. The Secretary will read section fifteen, as reported
Ayers,
Harrison,
Reddy,

by the committee originally.
Barbour,
Harvey,
Reynolds,

THE SECRETARY read :
Barry,
Herrington,
Ringgold,

Sec. 15. All railroads, canal, and transportation companies shall be
Barton,
Hilborn,
Schell,

common carriers and subject to legislative control. Any association or Belcher, Hughey,

Smith, of 4th District, corporation, organized for the purpose, shall have the right to construct Blackmer, Jones,

Smith, of San Francisco, and operate a railroad between any points within this state, and to conCondon, Joyce, Soule,

nect at the State line with railroads of other States. Every railroad Dowling, Kleine, Stedman,

company shall have the right with its road to intersect, connect with, Doyle, Laine, Steele,

or cross any other railroad, and shall receive and transport each other's Dudley, of Solano, Lavigne,

Sweasey,

passengers, tonnage, and cars, loaded or empty, without delay or dis-
Eagon,
Lindow,
Thompson,

crimination.
Edgerton,
Mansfield,
Tuttle,

MR. ESTEE. The section I offer was offered by direction of the
Estey,
McCallum,
Vacquerel,

Committee on Corporations, to precede this section fifteen, and be
Evey,
McFarland,
Walker, of Marin,

numbered section fifteen.
Farrell,
Mills,
Walker, of Tuolumne,

THE SECRETARY read :
Freeman,
Morse,
Waters,

Sec. 15. No corporation organized outside the limits of this state shall
Freud,
Nelson,
Wellin,

be allowed to transact business within this State on more favorable condiGarvey, Neunaber, West,

tions than are prescribed by law to similar corporations organized under Gorman, O'Donnell, Wickes,

the laws of this state. The Legislature shall enforce this section by Grace, O'Sullivan, White,

appropriate legislation. Graves, Prouty, Mr. President-63. THE CHAIRMAN. That is offered as an independent section, but

operates as an amendment.

MR. FAWCETT. Mr. Chairman: I offer an amendment to the sec-
Andrews,
Holmes,
Ohleyer,

tion proposed.
Boggs,
Howard,
Porter,

THE SECRETARY read :
Boucher,
Huestis,
Pulliam,

“Amend section fifteen by adding: 'A corporation or association may
Brown,
Hunter,
Rhodes,

be sued at the county where the contract is made or is to be performed, Burt, Inman, Rolfe,

or where the obligation or liability arises, or breach occurs; or at the Campbell, Johnson, Schomp,

county where the principal place of business of such corporation is sitCaples, Kelley, Shafter,

uated, subject to the power of the Court to change the place of trial as Chapman, Lampson, Shurtleff,

in other cases. Cowden, Larkin,

Smith, of Santa Clara, MR. ESTEE. Mr. Chairman: That does not seem to be pertinent to
Crouch,
Larue,
Stevenson,

section fifteen that was just handed up.
Davis,
Lewis,
Terry,

MR. FAWCETT. I think it does.
Estee,
McComas,
Tinnin,

MR. ESTEE. Section fifteen was on foreign corporations.
Fawcett,
McConnell,
Townsend,

MR. FAWCETT. It may not be pertinent, but before we pass all these
Finney,
McCoy,
Tully,

sections on corporations I wish to offer that, either as an amendment or Glascock, McNutt, Van Voorhies,

as an independent section. Gregg, Moffat,

Wilson, of Tehama, THE CHAIRMAN. The gentleman can offer it as an independent Heiskell, Moreland, Wyatt—55.

section. Hitchcock, Nason,

MR. FAWCETT. I submit that it would be more proper added to THE PRESIDENT. It takes a two-third vote to change a rule. The section four, but inasmuch as we have passed that, I suppose it is too amendment is lost.

late. I will therefore offer it as an independent section, after the section

offered by the gentleman from San Francisco is disposed of. I withMR. REYNOLDS. Mr. President: I give notice that I will, on

draw it as an amendment. to-morrow, move to reconsider the vote by which the resolution in rela

The section offered by Mr. Estee was adopted. tion to printing the Journal was this day indefinitely postponed.

MR. SMITH, of Fourth District. Mr. President : When this rule MR. FAWCETT. I now offer that amendment, to be known as secwas first changed, it was changed by a vote of the minority only. There tion sixteen of the chapter on corporations. were no ayes and noes called at that time. According to that the rule THE SECRETARY read : still stands.

Sxc. 16. A corporation or association may be sued at the county CORPORATIONS.

where the contract is made or is to be performed. or where the obligaMR. ESTEE. I move that the Convention resolve itself into Com- tion or liability arises, or breach occurs; or at the county where the mittee of the Whole, the President in the chair, for the purpose of principal place of business of such corporation is situated, subject to the further considering the report of the Committee on Corporations other power of the Court to change the place of trial as in other cases. than Municipal.

MR. HERRINGTON. Mr. Chairman: With unanimous consent, Carried. įThree o'clock and fifteen minutes P. m.]

why might not that be attached to section four? IN COMMITTEE OF THE WHOLE.

MR. FAWCETT. Mr. Chairman: I suppose the object of this amend

ment will be readily apparent to all. Under our system, corporations THE CHAIRMAN. The pending questions were the amendments to have a legal residence at their principal place of business. The result section fourteen. The gentleman from San Joaquin moved to strike out is that corporations in this State are legally resident, nearly all of them, the words “ other than religious, educational, or benevolent,” in line one, at the City and County of San Francisco, and that under our rules of and insert the words “ having capital stock."

practice, those who have litigation with such corporations must go to

NOES.

NOTICE,

SUITS AGAINST CORPORATIONS.

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RAILROADS.

REMARKS OF MR. MCFARLAND.

REMARKS OF MR. BROWN.

the City and County of San Francisco to sue. For instance, if the gen- from the decision relative to the power of railroads and their duties to tleman from Los Angeles has a cause of action against the Southern the people. Pacific Railroad Company, he must go to the City and County of San The second proposition is, that “Any association or corporation, organFrancisco with his cause of action; bring his suit, carry his witnesses, ized for the purpose, shall have the right to construct and operate a and maintain his litigation there. That operates unjustly and unfairly. railroad between any points within this State, and to connect at the I think that the rule ought to be, that a person having a cause of action State line with ailroads of other States.” That was merely for the against a corporation should be entitled to meet at the place where the purpose, should the time ever come when there would be an opportucause of action has arisen, where the obligation or liability arises, or the nity for a competing line, to give that line an opportunity of running breach occurs. We have transportation companies plying on the South to the State line of this State to connect with any other railroad that Pacific Coast-steamship companies. It often happens that shippers might come from any other State or Territory for the purpose of transthere lay a cause of action against a steamship company, and they have porting freight and passengers to this State. to go to San Francisco at great expense, delay, and inconvenience. The The next was: “Every railroad company shall have the right with effect of this amendment will be to authorize them to sue at the place its road to intersect, connect with, or cross any other railroad, and shall where the cause of action arises, or at the principal place of business of receive and transport each other's passengers, tonnage, and cars, loaded the corporation. I think it is eminently just. Perhaps it may be said or empty, without delay or discrimination.”. The object of that that it more properly belongs to the Code of Civil Procedure, but it is was to prohibit any railroad company from favoring one competing line quite as important to the rights of the people as many of the provisions over another, and transporting their passengers and freight or their contained in this report.

cars to the exclusion of others, and thereby freezing out, if I may use The section was adopted.

the term, any connecting line. This section was taken almost verbatim

from the Constitutions of Pennsylvania and Missouri. In the PennsylTHE CHAIRMAN. The Secretary will read section fifteen of the vania Constitution it is section one of article seventeen. It reads: report, now numbered section seventeen.

* All railroads and canals shall be public highways, and all railroads THE SECRETARY read:

and canal companies shall be common carriers. Any association or Sec. 17. All railroads, canal, and transportation companies shall be and operate a railroad between any points within this state, and to

corporation organized for the purpose shall have the right to construct common carriers and subject to legislative control. Any association or connect at the State line with railroads of other States. Every railroad corporation, organized for the purpose, shall have the right to construct and operate a railroad between any points within this state, and to company shall have the right with its road to intersect,

connect with, connect at the State line with railroads of other States. Every railroad other's passengers, tonnage, and cars, loaded or empty, without delay or

or cross any other railroad; and shall receive and transport each the company shall have the right with its road to intersect, connect with,

discrimination." or cross any other railroad, and shall receive and transport each other's

Now these were the evils that were attempted to be remedied by your passengers, tonnage, and cars, loaded or empty, without delay or dis- committee in reporting section fifteen, and I will state to the gentleman crimination. Mr. O'DONNELL. I would like to add to that section the following poses is quite unnecessary, unless he wants to destroy the harmony of

from San Francisco, Mr. O'Donnell, that the amendment which he prowords: “The Legislature shall, by appropriate legislation, establish a this article. If he does, why of course he had better adopt it. The tariff of prices to be charged for the transportation of passengers and proposition is covered by sections nineteen, twenty, twenty-one, and freights on railways in this State, by which all such railways shall be twenty-two. Section nineteen provides against discrimination, and secgoverned." MR. ESTEE. It does that now.

tion twenty provides for Railroad Commissioners, fixing their powers and Mr. O'DONNELL. I offer it as an amendment. I will send it up.

duties. I hope that all amendments for changing this section, so far as THE SECRETARY read the proposed amendment as above.

the regulation of freights and fares are concerned, will be voted down.

Mr. McFARLAND. Mr. Chairman : I think that this code ought to MR. BROWN. Mr. Chairman: I was wishing before it came to a be amplified a little. We say every railroad company shall receive and vote upon amendments to know more precisely with regard to the transport each other's passengers, tonnage, and cars, loaded or empty. meaning of the language in the fifteenth section now before us. I

Now in order to make that effective we ought to provide that each railacknowledge that I am not able to fully comprehend it with the present road company should have a certain width gauge. They might come lights that I have before me. It says: “ All railroads, canal, and trans- with narrow gauge cars and our roads would not take them. It does portation companies shall be common carriers, and subject to legislative seem to me that if they are going to take the cars from the other States control. Any association or corporation, organized for the purpose, that it should be so arranged that the cars of other States and our own shall have the right to construct and operate a railroad between any should be the same gauge. points within this State, and to connect at the State line with railroads of other States." Now, I do not fully comprehend that portion about

REMARKS OF Mr. O'DONNELL. organized for the purpose.” It seems different when there is a purpose Mr. O'DONNELL. Mr. Chairman: This section embodies a great spoken of; but what that purpose is, I am not able to understand. Is it popular demand. It is a measure which involves simply this propositransportation companies That is spoken of? If it is for the purpose of tion: Shall the people control the corporations, or shall the corporations being a transportation company, I am not sure of it by the language. control the people? That is the question now before this Convention. If it means organized for the purpose of being common carriers, any The section I think is a little cloudy, and delegates do not exactly undercompany organized for that purpose, it does not seem to be clear. There stand the reading of that section. It says here in section fifteen, or is also legislative control spoken of, and it is not clear whether it is for section seventeen as it is amended: “All railroads, canal, and transthem or not. What follows afterwards seemed at first to explain it: portation companies shall be common carriers and subject to legislative "shall have the right to construct and operate a railroad between any control. Any association or corporation, organized for the purpose, shall points within this state, and to connect at the State line with railroads have the right to construct and operate a railroad between any points of other States.” Now, instead of the latter part being the purpose, within this state, and to connect at the State line with railroads of other there are several purposes spoken of, and I thought before voting upon States. Every railroad company shall have the right with its road to it I would wish to hear what the purpose is, whether organized for the intersect, connect with, or cross any other railroad, and shall receive and purpose of common carriers, or organized for the purpose of an associa- transport each other's passengers, tonnage, and cars, loaded or empty, tion, as immediately precedes it.

without delay or discrimination." MR. BARBOUR. I move to amend section seventeen by inserting Now my amendment is: “The Legislature shall, by appropriate legisafter the word “control,” in the second line, the words, “ railways and lation, establish a tariff of prices to be charged for the transportation of navigable canals heretofore constructed, or which may hereafter be con- passengers and freights on railways in this Štate, by which all such railstructed in this State, are hereby declared to be highways, and shall be ways shall be governed.” There is an addition. That is the reason free to all persons for the transportation of persons and property thereon, that I offer the addition there. As it is now, they have a right to charge under such regulations as may prescribed by law.”

their own prices for passengers and freight. The corporations have bee THE CHAIRMAN. The first question is on the amendment offered controlling the people for the last fifteen or sixteen years. It seems by the gentleman from San Francisco, Mr. O'Donnell.

pretty near time that the people were controlling these corporations. I MR. CAMPBELL. I sent up an amendment there.

hope that amendment will be added to that section. THE CHAIRMAN. That amendment will be the second question. MR. AYERS. Mr. Chairman: I trust that the members of this comTHE SECRETARY read the amendment offered by Mr. O'Donnell. mittee will incontinently vote the amendment down. This State has

Mr. TINNIN. Mr. Chairman: I desire to call the attention of the trusted long and patiently to the Legislature of this State to handle that committee to the amendment. It seems to be the entering wedge to question. They have not done it; and it behooves this Convention itself defeat the Commission that the committee have decided upon. I merely to handle it; and I believe that this report, further on, provides an desire to call the attention of the committee to the fact.

effective way by which we can gain control of that matter. MR. WHITE. Mr. Chairman: I hope the Convention will not enter- MR. HOWARD. Mr. Chairman: I wish to say to the gentleman tain that amendment. If the gentleman is opposed to the plan of the from Sacramento that, so far as the Central Pacific and the Southern Committee on Corporations, his time will be when we reach the twentieth Pacific are concerned, the Act of Congress provides that the gauge shall section. It will cause a great deal of confusion in the whole argument. be uniform, and it also provides that they shall receive freights and I trust that the Convention will observe the object of it and vote against passengers from other roads and run the cars over their roads. it.

MR. LAINE. I desire to call the attention of the Chairman of the

committee to the wording of this section. I think you will find that MR. ESTEE. Mr. Chairman: Section seventeen, or section fifteen as the word “ railroads" ought to be “railroad.” You make railroads it is printed, was drawn up by your committee to meet two or three common carriers instead of railroad companies. propositions. First, that all railroads, canal, and transportation com

MR. ESTEE. That is right. The Secretary will strike out the letter

" there. panies shall be common carriers, and subject to legislative control. Of course we are aware that they were common carriers, and that common carriers were subject to legislative control, and that expression was taken MR. HALE. Mr. Chairman: I hope that this amendment will not

REMARKS OF MR. ESTEE.

"s"

SPEECH OF MR. HALE.

prevail. I see that the vote upon this question must necessarily be a rates, have proven to be abortive. In other words, he proceeds to reason test vote upon much more than appears upon the face of the proposed out and reach the conclusion, that for the purpose of regulating fares and amendment. I beg the indulgence of the house while I attempt to freights it is impossible to effect it justly and beneficially, either to the point it out. As has been very truly said by the Chairman of the com- people or the railroad companies, by any statute of the State regulatmittee, the adoption of this amendment will be striking a blow, if not a ing fares and freights. For instance, it is true, and it will be plain to death-blow, to the scheme presented in their report, so far as it applies every gentleman who is familiar with the subject, that it would be to a Railroad Commission. For the purpose of showing the correctness utterly unreasonable to expect any railroad company to transport from of this conclusion, I will take the liberty of reading section nineteen. San Francisco to the State line, or between any points in this State, a It is not now before the house, but I wish from it to show that the pro- cargo or a carload of silk goods at the same price that it would convey posed amendment is not necessary :

for the same distance a carload of barley, or wheat, or potatoes. It “Sec. 19. No discrimination in charges or facilities for transportation needs no illustration to show the truth of this. It is also true that it is shall be made by any railroad or transportation company between not feasible; it is not reasonable to suppose, perhaps, that you can transplaces or persons, or in the facilities for the transportation of freight or port over all portions of any given line freights at the same rate. The passengers within this State, or coming from or going to any other State. grade of the road, the facilities for furnishing fuel, and other conditions Persons or property transported over any railroad, or by any transporta- necessary to transport a train of cars, whether carrying passengers or tion company or individual, shall be delivered at any station, landing, freight, or both, are immensely different, and the cost depends upon or port, at charges not exceeding the charges for the transportation of these conditions. Hence, from these as well as other considerations, persons and property of the same class in the same direction to any more which I will not now undertake to detail, it is obvious to every one that it distant station, port, or landing. Excursion and commutation tickets is practically useless to lay down a fixed and inflexible rule as to rates for may be issued at special rates."

railroad transportation, as it must be done, if done by statute, fixing The next section provides :

maximum or minimum, or both maximum and minimum rates, for the “Sec. 20. Three Railroad Commissioners shall be elected by the transportation of passengers or freights. qualified voters of this state, at the regular gubernatorial elections, and In view of these circumstances, in view of the fact that a wise managewhose salary shall be fixed by law, and whose term of office shall be ment will take into consideration all the facts and all the elements which four years. They shall be qualified electors of this state, and shall not enter into the account of cost of transportation, it is necessary to have be interested in any railroad corporation, or other transportation com- somebody, some Board of men, if you please, who are authorized both pany, as stockholder, creditor, agent, attorney, or employé, and the act for the people and for the railroad companies, to have and exercise this of a majority of said Commissioners shall be deemed the act of said Com- most important discretionary power. The committee have (and I think mission. Said Commissioners shall have sole power, and it shall be wisely) presented a plan whereby they propose that the people shall their duty, to correct abuses by railroad corporations or other transpor-elect three Railroad Commissioners, who shall be at once the agents of tation companies; establish rates of charges for the transportation of the people of the State and of the railroad companies, and equally passengers and freight by railroad or other transportation companies, bound to do justice to the people and the railroad companies, and they and publish the same from time to time, with such changes as they may are to fix and regulate all these railroad questions. That is the plan of make; report to the Governor, annually, their proceedings, and such the committee, and it is one that I beartily favor. Now it will be underother facts as may be deemed important; hear and determine complaints stood that when I say the vote upon this question must necessarily be a against railroad or other transportation companies; affix penalties and test vote, I allude to a vote upon the pending amendment, which, if enforce them through the medium of the Courts, and perform such other adopted, will be equivalent to knocking on the head the committee's duties as may be prescribed by law. Nothing in this section shall pre-scheme of a Railroad Commission. vent individuals from maintaining actions against any of such com- Mr. Chairman, as I have said, we have had some experience upon panies. It shall be the duty of the Legislature to confer all such further this subject. We are not alone. Other States have had experipowers on the Board of Railroad Commissioners as shall be necessary to ence likewise. I think it will be quite out of the question for any genenable them to perform the duties enjoined on them in the foregoing tleman on this floor or elsewhere, to show that any beneficial results sections."

bave resulted in any case from any attempts at State regulation of railMr. Chairman, it will be observed from the construction of the sec- roads, in the form of statute laws fixing maximum or minimum rates tions I have read, that they deal with the matter in detail. The scheme for passengers or of freights. But they have in various instances of the committee is substantially this: that so far as the regulation of succeeded in the attempt to exercise a wise and just and reasonable tariffs for the conveyance of passengers or freight upon railroads in this power of the State over these railroads, through such provisions as are State are concerned, they shall be determined by the Railroad Commis-proposed here by this committee report. Now if any one should question sioners. Now, sir, I am quite aware of the fact that there is a divided whether this proposed State control will be well and justly exercised, he sentiment on this subject; that there are two opinions as to the proper will have to question the wisdom of the people to make wise selections. mode of reaching this one result, namely, the exercise by the state of That there is need of this control, that the State has power to exercise it, and its proper supervision and control over railroads in the matter of con- that it is our duty to do it, I think is obvious to most men at this day. The veying passengers and freight. The committee's report proceeds upon question is, how should we do it? That is the great question. I think the assumption, as I take it, that it is unwise to attempt to regulate fares the committee have reported wisely upon this proposition. They have and freights by the terms of statute law. Am I correct, Mr. Chairman? provided that the people shall elect à Board of Commissioners, confer CIR. ESTE!. Yes.

upon them the power and the duty to decide all questions between the MR. HALE. Now, we have not been without experience in this people and the railroad companies, and then remove this notorious matter of trusting to the Legislature to control corporations. I say this source of vexation, excitement, and corruption from the halls of our without reflecting upon any body. While the State, from the first, has Legislatures, and relieve us from the turmoil which it occasions among claimed the right to control corporations in various acts, public declara- the people, and place it where there will be a wise, calm, and just exercise tions and laws, and I might add, that while the United States and the of the power of control by the people of the State over these railroad Courts of this country, both State and Federal, have upheld and sustained companies. as the prerogative and power of the State to exercise this control over Mr. Chairman, I hope this amendment will be voted down, and the railroads in the conveyance of passengers and freight-while, I say, that in lieu of it the Convention will adopt the scheme presented by the this is true, this other fact stares us in the face, that we have been committee as shadowed in section nineteen and twenty of their report. attempting, through the medium of the Legislature, to exercise this con- MR. WICKES. Mr. Chairman : I think the gentleman who offered trol for the past fifteen years, and thus far all efforts at success have been this amendment was premature. I do not think

the vote upon this secabortive. I suppose, without being particularly familiar with the views tionof the committee, that they are of the opinion (judging from the past) Mr. FILCHER. I have been informed that the gentleman is waiting that we would be likely to have a similar experience in the future, and an opportunity to withdraw it. they have presented this scheme providing for a commission consisting of MR. WICKES. If gentlemen would moderate their zeal to offer three Railroad Commissioners to be elected by the people, to become the amendments it would be better. agents of the people and the railroad companies, and fix and determine Mr. O'DONNELL. Mr. Chairman: The Legislature at its last sesin all cases the scale of prices for passengers and for freight upon rail-sion passed a law regulating the fare on these railroads in San Franroads in this State.

cisco-these street railroads--and it acted splendidly. The fare for a For myself, Mr. Chairman, this plan meets my unqualified approba- single ticket then was ten cents. They made it five. 'I cannot see why tion. I had the fortune-perhaps I should say the misfortune--at quite the Legislature cannot regulate these steam railroads just as well; but an early day, to introduce into the Legislature of this state the first bill at the same time I will withdraw my amendment until we reach secever proposed for the regulation of fares and freights. It did not become tion twenty. a law. I need not deal with a detail or explanation of it. At nearly

Mr. CAMPBELL. Mr. Chairman : I sent up an amendment there every session of the Legislature, from that time until this, efforts have some time ago which I now offer. been made to pass bills of that kind, and they have either proven THE SECRETARY read : wholly or partially abortive to accomplish any beneficial exercise of " Amend section seventeen by inserting in line four, after the word State control over these railroads by such means.

• railroad' the words, 'other than a street railroad.'” I do not propose, sir, to discuss the reason, why that has been the case. MR. CAMPBELL. Mr. Chairman: As the section now reads it I may call attention to this one fact, and would allude to a public docu- would, I am afraid, be liable to the construction that any person might ment, or what is in the nature of a public document, an open letter construct a street railroad through the streets of any city at any point written by the President of the Central Pacific Railroad Company-I that he might desire to do it, and that would be attended with vast puballude to Governor Stanford. I doubt not it was written in the hope lic inconvenience and great danger. For that reason I have offered that it would be read and appreciated by the members of this con- this amendment. I presume there will be no objection to it on the part vention. While utterly disagreeing with the conclusions reached in that of the Chairman of the committee. I suppose the clause was not communication, I recognize, and you will all recognize, the soundness of intended to include that class of roads. many of its views. The soundness of many of them, and I think I MR. ESTEE. Mr. Chairman: It was not intended to reach street might say most of them, are most prominently illustrated in our past railroads, and I do not think it could possibly be construed to mean railexperience, in our attempts to legislate upon this subject. To regulate roads of that kind, but I do not see as there is any objection to the fares and freights by the establishment of maximum and minimum amendment.

66

SPEECH OF MR. MCFARLAND.

MR. EDGERTON. Mr. Chairman: I would suggest to the Chairman would not be able to read it if I had, to this fact, that the Granger cases, of the Committee on Corporations, a fact that is probably not in his so called, or the railroad cases, followed after the decision in the Elevator mind for the moment—that in all this railroad legislation, street rail. cases, and after the adoption of the Constitution of Illinois, which roads are excepted. They are carried on upon an entirely different declared these elevators public elevators and public warehouses. Now, basis from the general railroad system. It is left very much to the while the Court does not lay particular stress upon the provision in the municipalities where they are in use. I think the suggestion from the Constitution of Illinois, nevertheless it followed the decision in the gentleman from Alameda, Mr. Campbell, a very pertinent one. As the Elevator cases, and declared the right of the State to control railroads, section now stands, it would include street railroads.

and based it upon their public character. That it was not an interference MR. ESTEE. Mr. Chairman: It was not intended to reach street with a private right, but being clothed with a public character the State railroads, and for one of the committee, I see no objection to inserting thus obtained its jurisdiction to regulate their rates I maintain that the words, “other than street railroads."

the same proposition is true with regard to railroads. MR. LAINE. Mr. Chairman: I must confess that I am somewhat in It is their public character as public highways that is the foundation the condition of the gentleman from Tulare, Mr. Brown, in regard to for the authority of the State to control them, whatever we do or whatthe second clause of this section. The way it reads, I do not know that ever shall be decided on. This decision binds every Court, up to the I catch clearly its scope and purpose.

presume it is intended merely highest tribunal of the land; and this declaration will come within the to make a provision that railroads may connect with other roads at the scope and purview of their own decision upon the subject in the Granger State line, but the way it is written, I confess I am not able clearly to cases and in the Elevator cases. I never understood why the committee understand it. Being in that condition, I have prepared an amend- should have left it out. It seems to me an indispensable proposition and ment, to read in this wise, if that is the understanding of the committee: a declaration that is just as necessary as and more necessary than the * Any association, or corporation, organized for railroad purposes, except declaration that they are common carriers. I do not know, and the street railroads, shall have the right to connect at the State line with the people of this state do not know, but that the time will yet come when railroads of other States.” That makes it shorter, if that is the purpose, they will not only want to act upon the declaration that they are public but I confess that it is not at all clear to me.

highways, free to all persons for the transportation of their persons Mr. ESTEE. I think you have hit one point and missed another. and property theoretically, and under proper control and regulation, Any association, or corporation, organized for the purpose, shall have but that they shall declare that communities and places along the the right to construct and operate a railroad between any points within lines of the road, undèr proper regulations, can put their own cars and this State, and to connect at the State line with railroads of other States.” their own locomotives upon these public highways. Whilst not deprivThe whole section, this clause and the next one, gives them the right to ing any body of their property, whilst not depriving them of their franmake a railroad and operate it to a certain point, and provides that there chise, pay all due and proper bills that may be coming to them, but at shall be no discrimination between railroads in favor of one or against the same time make the only possible competition in the State of Calithe other. That is the point. Of course, if the gentleman's amend-fornia-perhaps the only kind of competition that is possible under the ment is thought more correct, if it represents the ideas better, or is peculiar geographical formation of this State. I hope that the comstated more clearly, then we have no choice or taste about language, but mittee will adopt the amendment. there are two points in ours-constructing a railroad and operating it between any points within the State, and also to connect with the rail

Mr. McFARLAND. Mr. Chairman: I wish to ask the gentleman roads of other States. MR. FILCHER. Mr. Chairman: It occurs to me that the same

from San Francisco, Mr. Barbour, if he means, when he provides that explanation might be necessary in other sections of this same article.

a railroad shall be a highway, that any person can use it for the transAnd, in order to avoid any ambiguity, or misconstruction of the Con- portation of goods; whether

he means that every person has the right stitution relating to railroads, I would suggest to the gentleman from to use it for the transportation of general freight, putting cars and loco

motives upon it. Alameda, that he withdraw his amendment here, and offer it as a sep

Mr. BARBOUR. Yes; under such regulations as may be prescribed arate section, something in this shape: "Nothing relating to railroads

by law. in this article shall be construed to apply to street railroads." There

Mr. McFARLAND. I supposed you meant that a railroad shall be might be a doubt about several sections the way it is. If the committee intended to apply the article to this class of roads, of course it would be a public highway, upon which any person can put such cars and loco

motives as they please. better in. If they intend to apply it only to the general system of steam roads, then I think the adoption of the section to this effect is very declaration is made upon the same ground that we declare the right to

MR. BARBOUR. The gentleman misapprehends ine. I say this important.

MR. ESTEE. There will be no objection to that when we reach it. control fares and freights. The same power can put a proper regulation MR. CAMPBELL. I withdraw my amendment then.

upon the use of the roadbed, regulating the schedule time, and making a time table.

Mr. McFARLAND. Then I understood the gentleman right. He Mr. BARBOUR. Mr. Chairman: I ask the Secretary to read the says now that railroads shall be public highways, upon which any peramendment I sent up.

son can put cars and locomotives, in the manner provided by law.

That is what the railroads in this State are to be compelled to do, and THE SECRETARY read :

“Amend section seventeen by inserting after the word “control,' in the Legislature is to fix up some schedule of time upon which you, or I, line two, the following:

that Railways and navigable canals heretofore or anybody can run a train of cars. I do not care to argue

quesconstructed, or which may hereafter be constructed in this State, are

tion. I merely wanted to know what his idea was.

I would like to call the attention of the committee to the two final hereby declared to be highways, and shall be free to all persons for the transportation of persons and property thereon, under such regulations sentences or clauses in this section. They certainly ought to be amended

in some way. The second clause is entirely unnecessary, it seems to as may be prescribed by law.!! MR. BARBOUR. Mr. Chairman : This matter of declaring railways

The general law provides that anybody can build railroads in any public highways was discussed in the committee, and the committee part of the State, from one end of it to the other, by paying for private compared various Constitutions of the States, many of which have the property. What is the use of saying that they may connect with other same provision, and at first adopted this language which I have intro- lines outside of the State, for they have that right if they choose to do duced here from the minority report, but on a subsequent day the com

so, anyway. This clause is simply useless and unnecessary. The last mittee, while I was not present, struck it out. Now, Mr. Chairman, in clause reads: “Every railroad shall transport each other's passengers.” my opinion, that is one of the most indispensable declarations in this Now, each other's passengers refers to the preceding plural. It does article concerning corporations. In my opinion it brings it exactly nies shall transport each other's passengers and cars. The clause seems

not seem to me that it is grammar or common sense to say the compawithin the modern decisions in regard to the power of the State to control railroads. If I understand the decision of the Supreme Court of all" and the third word in the plural, it might perhaps help the

to need amendment--I hardly know how. Now, if that first word was the United States in the railroad cases, called the Granger cases, following after the decision in the Elevator cases, the People against Scott and case some. But, certainly, it does not mean anything to say that every Munn--that decision in favor of the right to regulate and control and railroad company shall receive and transport each other's passengers. prevent abuses and discrimination on the part of railroad companies, of any other company? They are common carriers, and bound to take There was nothing in the decision which directly reversed the former all passengers. There is no use in providing that they shall receive decision with regard to the inviolability of these contracts, but it went passengers, for they are bound to receive all passengers. They are purely and solely upon the ground of their being clothed with a public effect. I do not see any necessity for putting these provisions in.

common carriers, without any declaration in the Constitution to that character and conveying a public interest. Now, there is nothing in the declaration that a railroad is a common carrier, as I understand it; that is contrary to all the definitions found in the books. Angell on MR. SMITH, of Fourth District. Mr. Chairman: As I understand it, Railways, and many others pronounce them public highways. I con- the only amendment is the one offered by Mr. Barbour. sider that a better expression than common carriers, although I have no THE CHAIRMAN. Yes, sir. objection to making use of both expressions. But when you say that MR. SMITH. I am somewhat surprised at the committee omitting they are public highways and free to all for the transportation of pas- this part of the section introduced by Mr. Barbour-this amendmentsengers and property, you strike at the greatest abuse of all, and that is inasmuch as I have looked over all the new Constitutions of those States discrimination. As to the common carrier characters of them, that is all that have dealt with this railroad question, and found without exception right enough so far as it concerns the right to regulate fares and freights, that they contain this provision, or substantially this provision. “And but you must use the other declaration, that all persons and communities when I consider further that in making railway and canal companies shall have the right, without discrimination, to have their property common carriers, that it is only half of the question, I am surprised at transported over these public highways under proper regulations. I this able committee leaving out the other half. Of course, you can't make consider it a very beneficial proposition to declare that they are public the roads common carriers, no more than you can make a river a comhighways free to all persons for the transportation of persons and mon carrier. You can make the road a public highway and the company property, subject to legislative control. I would call the attention of a common carrier; you can declare a river or canal a public highway, the Convention, although I have not the decision here at present, and I and the company plying thereon a common carrier. Now this question

REMARKS OF MR. BARBOUR.

.

me.

SPEECH OF MR. SMITH.

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