The record-union., 1894-07-18
branches or feeders were not built by the

branches or feeders were not built by the
one corporations
"The explanation is very simple. The
reasons are partly indicated in the Civil
Code OF California. Section 29l provides
that articles OF incorporation OF any rail-
road must set forth the place from which
it is intended 10 be run, and all interme-
diate branches, and also the estimated
length of the road.
'Section 293 further provides that each
such corporation. before filing articles,
must have actually subscribed TO its stock
for each mile OF the contemplated work,
the sum of 81. 900. And. before the rlling,
10 per cent of the amount subscribed
must be paid III.
'These provisions of the State law,
taken in connection with the history of
the Southern Pacific system, afford a
complete explanation of the fact that the
system includes numerous leased lines,
each constructed by distinct corpora
ton. Every ybody knows that this great
system is the result of gradual growth,
made up by "A process of accretion.
Branches and connections were built and
added 10 the original lines, from time TO
time, as the development of the State and
the command of resources by the build
ers permitted. The projectors and build
ers OF the original lines never dreamed
OF creating such great system OF roads
| as the Southern Pacific operates to-day.
''In view of the surprising develop
ments of California and of the REQUIRE
ments of our Code, is it at all strange that
: tile system Is made up in the way it is?
How else could it have been built, under
the circumstances and IN accordance
with the law? Clearly there is nothing in
the facts to warrant or support the
preposterous charge of conspiracy and
fraud"
"How about the allegation that the
mortgage OF SIS, COS. 900, executed by the
Southern Pacific to the Central Trust
Company of New York was fraudulent"
''lt IS nonsense, as a subsequent lien
can IN no way impair what is known as
the Governments lien on the Central Pa
citic. There is 10 more reason why such
mortgage should not have been exc
cuted than there is why Mr.. Huntington
should not mortgage his house if he
should want to-"
rs the suit a surprise to the COM
pany?"
Nothing surprises us. Every sort of a
conceivable charge is made against cor
porations in these days. But there has
been no particular reason TO anticipate q
suit OF this Description"
VIEWS OF ATToRN EY-GENERAL oLNEY.
WASHINGTON, July 17.-Attorney- Gen
of the correctness of the published re-
ports as TO the basis and purposes of the
suit brought against the Southern Pa
cltlc at Los Angeles. Late last week the
Attorney General received a telegram
from Attorney Denis stating that he had
| reasons for believing that the Southern
Pacific was not making proper efforts to
run its trains, and asking for authority to
file against the company a bill in equity
under the Antitrust Act of July 2, 1880.
Inls authority was given. ana its inten-
ton was to compel the company at least
to try 10 fulfill its contracts with the
Government for the carrying of mails,
and also 10 make an effort toward resuin-
ing interstate traffic. The conduct of the
Southern Pacific had been in marked
contrast with that OF some of the other
companies In this respect, and it was the
understanding that the suit would be
brought to compel the performance Of its
duties under the law. and as far as he
knew Tor no other purposes. Mr.. Olney
questions the correctness of that part of
the report which stated that one purpose
OF the suit was to cancel and annuI all
agreements by which the Southern Pa
chic anu certain other companies were
consolidated. 1t is the opinion of the
officials at the Department OF Justice that
such consultations are not only legal,
but was contemplated by the Interstate
has not yet been learned.
UNION PACIFIC SYSTEM.
ST. PAUL. July 17.-On Thursday the
receivers of the Union Pacific will be
asked to appear before the court, pursu-
ant to an order to show cause why a large
number of the branch lines of the Union
Pacific should no longer be considered or
conducted as part of the Union Pacific
system, and not be hereafter regard ed as
independent lines. The reason for this
action is that these branch lines are not
earning sufficient money to pay operat-
ing ex penses and taxes. They are con-
stant drain upon the income of the
Union Pacific road, which has been
obliged to advance money to maintain
them. and the receivers ask that their
action at previous times in making these
advances be approved by the court. The
names of the branch lines are indicated
in the petition as follows: Cartoon Cutoff
Railway, Brighton and Boulder Branch,
junction City and Fort Kearney Rail-
way, Omaha and Republican Valley.
Sslina and Southwestern, Denver, Lead
vile and Gunnison, Kansas Central
Railway, Kansas City and Omaha, Atchi-
son, Colorado and Pacific, Atchison,
Jewett County and Western, Washing
ton and Idaho, the Oregon Railway Ex-
tension Company.