The herald., 1894-07-18
THAT SOUTHERN PACIFIC SUIT
Attorney. General Olney Cues
tions Its Basis.
He Did Not Intend It to Annul Elk.
listing Conditions.
A Statement OF His visws-District At
torney Denis Holds That tho De-
-artmsnt VIII Sustain
Him.

WASHINGTON, July 17.-Attorney CT IN.
eral Olney today expressed his doubts
OF the correctness OF the published re-
ports as to the basis and purpose OF the
suit brought against the Southern Pacific
Railway company at Los Angeles. Late
last week the attorney general received
telegram from Attorney Danis 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 bill
in equity under the antitrust act of
July 2, 1890. This authority was given
and its intention was to compel the
company at least to try to fulfill its con-
tracts with the government for the carry.
ing OF the mails. and also to
make an effort toward lesuming
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
1t was the attorney generals under
standing that the suit would be brought
to compel the performance of its duties
under the law, and as far as
he knew. for no other purpose.
Mr.. Olney questioned the correct
ness OF that part of the report
which stated that one purpose of the
suit was to cancel and annul all agree
ments by which the Southern Pacific
and certain other companies were con-
solidsted. 1t is the opinion of the
ofhc;als at the department of Justice that
such cancellations are not only legal
but were contemplated by the interstate
commerce act. Just what the facts are.
has not yet been learned.
In regard to the above dispatch
U nited States District Attorney Denis
sad last night to HERALD reporter:
Inc opinion that the combination
-eferred to in the bill in equity !
filed yesterday is legal, cannot !
% held in the department OF Justice, as
ne point against the legality has been
vice argued in the United States
upreme court by the government. and
n my Judgment the only reason the
'onrt had not held such a com bination
o be illegal is that it decided the cases
iavor OF the government on other
"Of course cannot tell you what the
understands, but I
'lred him on Friday. substantially tell
ng him that evidence was in our posses.
Ion OF an unlawful com animation in
estraint of trade by the Southern Pa
Inc company, and asking for authority
bring suit under the act of
uly, 1890, against that unlawful
ombination. He wired me the next
morning. Let. act of July 2, 1890, BIS
nloEesd -Ggaiaat all riesers. Including
You are hereby authorized to bring ap-
,ropriate suits to that end
"ReIying on that dispatch and the
act that it ia matter of public
knowledge that the Southern Pa
,ifc company was 30 combined
with various corporations, the whole
being styled the Southern Pacific COM
oany of Kentucky, Mr.. Call and myself
could see no more appropriate time to
enforce this all but forgotten law.
81 am absolutely sure that the attor.
ney general will approve OF my course,
when be has had an opportunity OF
reading my report OF the facts to him."]