The record-union., 1895-12-11
Important Ruling in the Case Of the Suit
Against the Railway Commission.
THE u S. GOVERNMENT HAS THE
RIGHT TO INTERVENE
A Large Crowd Attends the Races at
the Ingleside Track = Only One
Favorite in Front Yesterday, Sec
ond and Third Choices and Out
siders Capturing the Other Events
Entries for To-day.

SAN FRANCISCO, Dec. 10.-The
United Sta les Government may inter-
vene in the Railroad Commission suit
now pending in the Circuit Court. Such
is the effect of the decision rendered
this morning by Judge McKenna
upon United States Attorney II. S.
Foote'S application, made on behalf of
the Federal authorities at Washington
for leave to do SO.
Judge McKenna began by briefly re-
viewing the position assumed by United
States District Attorney II. S. Foote on
behalf of the Federal Government, and
the contentious made by the counsel for
the Railroad Commission in opposition.
He then went on to explain that the sec
ond and third grounds on which Mr..
F'cote had asked that the Government
be allowed to intervene were those, in
his opinion, of chief moment Mr..
Foote had, in these portions Of his ar
gument, held that the Government had
right to come into the case because of
the fact that as the holder of a mort
gage for many millions on the Central
Pacific lines it had a direct and actual
interest in any proceedings tending to
affect the Southern Pacific system, of
which, the Central Pacific lines formed a
part.
The question then seems to be-" said
Judge Mckenna, has the Government
an actual interest in any branch OF the
proceeding in which it now seeks the
right TO intervene? 1t would seem, I'M
| der the language of the Acts quoted
here yesterday, and referring to the re-
lationS between the Government and
the railroad, that the question almost
answers itself"
Then his honor went on and made it
certain that he intended to decide in
favor of the right of intervention by
holding that the Thurman Act, in Great
ing a sinking fund out of the receipts of
the Central Pacific, had done so with
the express purpose of maintaining it
for the benefit of all the creditors of the
road, including itself. Naturally, there
fore, it would be impossible to deny the
Governments actual and living interest
IL any legal proceedings based on a
proposition to so cut down the COM
pany's receipts that the creation of such
sinking fund might be made impos-
sible.
Then the Judge took occasion to refer
to the structures which had been passed
on the action of the Government repre-
sentative in intervening, stating in
very positive terms that he thought the
action taken the best for everybody
concerned, all the circumstances being
considered. Suppose" he suggested,
that the United States Attorney had
preferred to file an original complaint
in the premises. How might that not
have delayed the final settlement of the
question at issue? In point of fact
what he has done rather tends to fa-
cilitate what is sought to be accom-
plished than otherwise"
The next thing referred to were the
objections raised by the Railroad Com
missions attorneys to the bill of inter-
vention as being defective because it
was not specifically set forth therein
that the Central Pacific carried grain,
and would, therefore, be injured in it's
business by the proposed cutting of
rates. This objection his honor consid-
cred well taken, but he thought nothing
would be gained by taking radical ac-
tion against the bill because of this.
Il might reject it altogether" he
said, 'and give the United States At
torney time to file another, but this
would only cause unnecessary delay
The simpler way, and that which
seems to me to be likely to cause the
least delay, will be to admit the bill,
and give the United States Attorney
permission and time to amend it.
Such, then, will be the order"
Then United States Attorney Foote
said that he would like two weeks
time to amend his bill in intervention,
and after that would desire to have the
case go over until the first Monday in
January before the trial should be pro-
ceeded with. To this no one made any
objection and the order was made ac-
cordingly.
On behalf of the Railroad Commits
sion Mr.. Hayne then asked for week $
time in which to file such additional af-
fidavits as it might seem advisable for
his side to present. The request was
granted, a further order being made
that the railroad company's attorneys
should be furnished with copies of such
affidavits and have a week in which to
prepare others in answer
This ended the proceedings for the
time and the court adjourned