The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-11-29
LEASES IN JEOPARDY.
Allegations of the Bill Against
the Central Pacific.
It Is Charged That the Transfer Of Railroad
and Telegraph Lines Was Induced by
Corrupt Considerations.

States Circuit Court asking for the cancella-
ton of the leases of the Central Pacific to the
Southern Pacific and OF the Central Pacific
telegraph lines to the Western Union Tele-
graph Company created no little comment
in business and railroad circles yesterday
The bill in equity. which was prepared at
the instance of United States Attorney
General w. H. H. Miller by Special Assist.
ant Charles II. Aldrich of Chicago, is num-
bered II, 121 and bears the following title:
The United States, complainant, against the
Central Pacific Railroad Company. Southern IA
chic Railroad Company ana Western Union Tele-
gJaph Company. defendants.
The bill recites the provisions of acts of
Congress under which "a railroad and tele-
graph line was constructed from the
Missouri River 10 the Pacific Ocean," aud of
the act approved July 25, 1866, granting
lands to aid in the construction Of a railroad
and telegraph line from the Central Pacific
Railroad in California to Portland, Oregon"
THE CENTRAL PXCIFIC's LEASE.
In reference to the lease of the Central
P acifc to the Southern Pacific for 81, 100000
year, the complaint declares:
And your orator AYERS That said defendant.
railroad company. by said transfer aud assign
menI 10y lease Of lis gbt, property and liability
to said Southern Pacihc Company. attempted
and purposed TO weaken or destroy The lien and
security of the Government in and upon its
properties, and 10 postpone or avoid The payment
and satisfaction of the bonds and annual Obga-
lions thereon 10 tile Government, imposed upon
said rairo. company by the act of July 2, 1862,
and the acts ameLdaiory and supplementary
thereto; and further AYERS that the consent and
approval of tile Congress OF The United States
was never obtained by said defendant railroad
company TO the said transfer and assignment;
and that the same was in violation of and beyond
the chartered powers of said railroad company,
and gIess breach of public tiust. OF no effect
M
stances. conferred no rights upon sald Southern
Pacific Company, and should be relieved against
In this suit
THE TELEGRAPHIC COMPACT.
AS to the Geographic compact the bill
charges:
And Your orator AYERS that in all respects the
said contract Is In full force and effect, and
thereby and hereunder The said Central Pacific
Railroad Company up 10 and until It's lease here
inbefoie referred 10 TO The Southern Pacific Com
rany on or about february II. 1885. and there
after said Southern Pacific Company ceased an1,
has ceased 10 this date 10 maintain or operate 4
telegraph line for any public or CONNER ial pur-
pose. and has sought and still seeks TO protect
The defendant telegraph company in its enjoy
ment and possession of its monopoly of such
business, procured and reserved to 1t In and by
SAID contract.
And furthermore, by said contract the earn
ines of said telegraph lines have been largely
diverted from said defendant railroad company
and the amount materially lesSened, which In
and by The acts hereiubefore mentioned was and
is 10 be paid to the Government annually by said
company 10 reimburse il for The interest charges
on the bonds granted said company, aid TO Sc
cure the 1nal payment ana liquidation OF said
bonds; and Furthermore, by virtue of said con-
tract. The equity IN and The lien upon the prop
eTtleS OF said defendaut rall Dad company has
been and is greatly diminished In value.
Aud your orator further AYERS that said con-
tact was beyond the powers OF the defendant
railroad company TO make or tile defendant tee-
graph company 10 receive. and was Induced by
corrupt and improper considerations, which
taint and render Illegal tie same In this court
mn a mi IL ra1
in violation OF tie rights Of your orator in the
premises and wholly without your orators con-
sent.
PRAYER OF THE BILL.
The bill concludes with the following
prayer;
To the end, therefore, that the said defendants
may, If they can, show why your orator should
not have he relief hereby prayed, and the mat.
ter herein alleged may be determined aad The
lhws herein referred 10 enforced. your orator
brings this suit and prays that The lease by
which said Central Pacific Railroad Company
assigned all Its properties 10 said Southern Pa
cifc Company, as aforesaid, be set aside. annul-
led and cancelled; and that the contract between
the Central Pacific Railroad Company aud the
Western Union Telegraph Company may also be
set aside, annulled and Cancelled; and that this
court may by proper order. under certain penal
ties, 10 be herein prescribed. direct the said Cen
trail Pacific Railroad Company henceforih and
through lis own corporate officers and en-
pluyes 10 maintain aud operate, without
favor or discrimination against any person. COM
pany or corporation whatever, telegraph lines
along its entire main lne>and branches for rail
road, Governmental, commercial and all other
purposes ana exercise by ITSELF alone, ali the
telegraph franchises conferred upon II, and the
Obligations assumed by 1t under the grants
aforesaid, aud 10 receive, deliver and exchange
business with all telegraph lines now or here
after connecting with the lines OF railroad on
equal just and equitable terms; and that the
rights OF your petitioner. said defendants, and
all other persons or corporations whatever
claiming any control or interest Of any Kind in
The telegraph lines OF property on or along said
a trail af.f mr. a. moi inlr
said railroad, be legally aseerlained and deter
mined.
An order is then asked directing the de-
PENDANTS, the Central Pacific Railroad Com
pany. the Southern Pacific Company and the
Western Union Telegraph Company to ap-
pear and answer.
LINES AFFECTED BY THE CASE.
Appended to the complaint are copies of
the arguments between the Southern Pacific
Company (of kentucky and the Central
Pacific, and of the argument between the
following railroads: Central Pacific. South
Northern Railway Company, San Pablo
and Tulare, Los Angeles and San Diego,
Amador Branch, Berkeley Branch, Los
Angeles and Independence. parties of the
first part. and the Western Union Telegraph
Company, party of the second part. The
following lines are run under the lease
sought to be Cancelled:
Miles
san franc SEQ TO Ogden. SS3.s2
Eosevile, CAL to the oregon State line 80. 296.50
Latlrop, Cal, TO Goshen, CAL 1868
Niles to San Jose 1854
San Francisco, Oakland and Alameda. -. 1893
District Attorney Garter for the Northern
District of California will conduct the case
in the interests OF the Government He says
he knows nothing in reference to the case
and lie is awaiting. adviees from the United
States Attorney General before proceeding
with the prosecution.
III the Southern Pacific officials located at
Fourth and Townsend streets refused to
make a statement, except Secretary Lansing,
who said the suit had been instituted in the
interest of the Pacific Postal Telppranh