New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-12-01
GOVERNMENT INTERVIEWS.
SOUTHERN PACIFIC GETS A POWERFUL
ALLY
RIGHT OF THE STATE OF CALIFORNIA TO IN
POSE ITS RATES on THE BIG RAILROAD
COMPANY TO BE DISPUTED IN BE-
HALF OF THE GENERAL
GOVERNMENT.

GOVERNMENT
San Francisco Nov 3O-In September last TIA
California Railroad Commission passed resolution
ordering reduction In freight rates OF about % per
cent all railways operating within the state mo
Southern Pacific Railway Company appealed TO the
United States Court and obtained temporary IN
junction restraining the Commission from eniorc-
ing the proposed reduction. and the case is now
pending Yesterday afternoon the Federal Govern
ment through United States District Attorney
Henry =. Foote. served the following notice upon
Attorney General Fitzgerald and counsel for the
California State Railroad Commission:
You Will please take notice that, on behaii % ths
United State" Of America and by authority OF inc
signed will on Monday. the 9Th day OF December
1885, at i m or as soon thereafter a. counse can
Pacific Company VS.. the California Railroad com.
m and to and o m order sn
Their for an order that said Dill OF lntefve Ss
respective parties hereto within such reasonable
time may be fixed b. sad Court b, Ssd .s nst ins
as may be nxed by said Court within which lei, to
make such mention with respect ,heresS az they
may be advised to. Yours etc, n >. FILL; -
California.
similar notices were also served on Robert W.
Hayne W. W. Foo'e, J. {. DAILY and william +.
IIerrn.
II IL the usual course In serving notice o. ths
ment 1t is proposed to file. bat In this case the
notice alone was sent out. owing the fact that
the bill OF Intervention was not ready at he time
the notices were sent out.
None OF the parties who received the notice had
apparently any previous knowledge that such .
proceeding was to be undertaken by the Govern
ment, and all evidently greatly surprised
the matter Attorney-Cieneral Fnzger-
aid. and none OF them had any idea upon what
grounds the Government was going to attempt 70
interfere with the functions OF State Commission
duly and legally organized under the Constitution
OF the State
In bill OF intervention which Will not be hled
until December g. and then only X Judge Mckenna,
Of the United States Circuit Court, permits II VIII
first held II said that the rights OF the United
States Government are supreme and That all ooii-
cations to it take precedence over those OF any ndl-
yidual corporation, State other Government. II
will be further contended that under the thurman
act the United State sGovernment has the right to
regulate all the affairs Of the Central PACING Kali
road Company including the fixing OF freight and
passenger rates all portions OF Its lines, and Tor
all classes Of traffic, whether Interstate or intia"
state In fact, 1t will be claimed that the Central
Pacific Railroad is virtually Government prop
erty. and that therefore neither the state nor any
OF It's creations officials have any right TO inter.
fere with It.
Another contention will be that. under the Thur
man act the Central Pacific Railroad Company IL
bound TO pay the United states p per cent OF
$50 or more owing to the Government. and that
no State commission has any right TO interfere
such a way as to interfere with its earning ca:
pac.ty. and thus prevent the early lquldaton os
rSht Of the California Railroad Commission to in:
terfere in any way in the affairs OF the ssntrai
a further point viii be made that no State has
right to- act in SSn s wifi En- WITH
the rights OF all the other states Ana IL VIA adu 90
rates rate on the Central Pacific Railroad would. while
affording relief TO the Shippers OF csiiLoaT I,.
S States IN which ali the states OF the Union ar:
interested Another interesting and i,s 1ss
the Central Pacific Railroad to the Southern Pa.
ss sS f nh' a. Lease the
eerned and is beevsd d aS me some ost ion
Sssc nsssS to discus. tn.
mnder instructions received from washington I'm.
the contents OF the proposed S o 2! Ss
could not disclose it's nature oo,,,., the rsu.
Railroad comm!ssoner Stanton reseysa 5he
OF the proposed intervention WIN i - Solv
and Indignation. He deemed 1t me neixn , 81 ,on IN
,S S nme al the present time when there existed
grave doubt whether its debt wouid ever
p ha Se Government had no proper legal standing
in the case and might as well sttemp, 20 e ,nYss
from the Central Pacific: owing TO- the great no nd
In the tax levy OF inns Yea, o.. "he abroad
washington. Nov SO-The San Francisco dispatch
stating tina, United States District-Atorney Foots
haa nouaed TO the Attorney General o. that state
and the attorneys OF the California Board or hai'
road Commissioners that the United states NAG
| determined TO contest the action or the Comm-s-
| soners In ordering the Southern Pacinc Raiiroad
COMPANY 10 put in force schedule OF reaucec
| rates was read with much interest by the on1ciae
Of the Department Of Justice. Assistant Attothey'
General Russell who is in charge OF iitisa ION as'
feeling the hand grants and bond-aided railroads:
said that District Attorney toote had sc,sd
| tha matter without specific instructions from ms
Attorney-C General HIS position as the legal rep,
rssentative OF the Government In tnat sta,e S a
tha general instructions from the Department Mr.
/ Rmssell said were sufficient warrant ior me pss
rtci-Attorney acting as he had, especiay y NJ y,
! relieved the case TO be one demanding iHmeuiate
/ ottention The interest OF the Government IN WY
case II IL had any. '" Russell explained was nuSS
no,s tho lessee OF the central PACING road whc9
was a debtor TO the United states In the sum o.
many millions OF dollars