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REPORT.

To his Excellency H. H. MARKHAM, Governor of California:

SIR: We have the honor to submit to you the fourteenth annual report; which embraces two and one half years, and ending June 30, 1894. It contains the reports of the various railroad companies reporting to this Commission during the period above named; also the proceedings of the Board during said period, in such detail as the subject-matters warrant. As this is the last report from this Board as now constituted, we deem it eminently advisable and proper to briefly review the work of the Commission during the past four years.

When the present members took the oath of office and were duly installed as Commissioners, and had fully organized, as contemplated by the Constitution of California, on the 5th day of January, 1891, we found, as has always been the case, clamor in certain quarters for a reduction of the freights and fares over the lines of the Southern Pacific system in California. We say the Southern Pacific Company's system in California because we have not heard of any general demand during our term of office for reduction in freights and fares, as charged by the other lines (representing about one third of the total mileage) doing business in this State, but not under the management of that company, so that in fact the demand for reduction was directed against the Southern Pacific Company.

The fair-minded will admit that the equitable adjustment of freights and fares between the carrier and shipper cannot be determined by a superficial examination of the subject, but requires careful study and a thorough investigation of the whole matter, in order to arrive at a just conclusion, and in this connection, we beg to submit, it is surprising that a body of men, defining the policy of political parties, should so forget the functions of a Railroad Commission as to demand, in qualification for that office, that the nominees pledge themselves to prejudge the cases they will be called on to adjudicate, and by solemn promise declare that they will arbitrarily reduce the rates of the railroads 25 per cent, without investigation or opportunity for a hearing.

One of the first resolutions adopted by the Board shortly after its organization, in January, 1891, was the following:

Resolved, That it is the duty of this Board to visit the different shipping points of the State, examine into the management of the railroads,.notify the citizens in the town and surrounding country to appear before our Board with any complaints and grievances they may have to offer, and that this Board take such steps as may be necessary to remove all just cause of complaint.

Resolved, That the Chairman and Secretary of this Board lay out a route, and designate stopping places, dates of stoppage, and notify the citizens along the road of our meetings and the object of such meetings.

In accordance with the above resolution the Board did visit the following-named places, after giving due notice of the time and place of meeting and the object for which it was given, viz.: San Diego, Riverside, Los

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