The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-11-30
GROUNDS OF ITS CONTENTION
Great Surprise Manifested at the
Course of the United States
Authorities.

has determined to enter the legal battle
instituted by the Southern Pacific Com
pany for the purpose of preventing the
Railroad Commission from reducing
freight rates over the lines of the Southern
Pacific Company operated within the
State.
The Federal Governments influence and
power is to be used against the Railroad
Commission, at least so far as that body's
Jurisdiction in reference to the Central
Pacific Railroad Company is concerned
Thus it will be seen that the Attorney
General of the State, who, when the mat
ter of defending the Railroad Commission
in the action was first referred to him,
thought that he would not require any
assistance, is to have two Of the most
powerful antagonists arrayed against him
in his battle for the rights OF the Railroad
Commissions contest in which, perhaps,
the actual existence of the commission
may be threatened.
Like a thunderclap from a clear sky
came the announcement of this new phase
in the already complicated case to Attor-
ney-General Fitzgerald. His first intima-
ton of the proposed Intervention of the
United States Government in the matter
was conveyed in the following notice
served upon him late yesterday afternoon:
You will please take notice that on behalf of
the United States of America, and by authority
OF the Acknowledgment OF the United States,
the undersigned will, on Monday, the 9th day
OF December, 1895, at IL A. NJ, or as soon there
after as counsel can be heard, move the said
Circuit Court for leave TO intervene in the
above-entitled cause lthe Southern Pacific
Company VS.. the California Railroad Commits
sonl and TO file therein certain proposed bill
OF intervention and for an oroer therefor; and
furthur for an order that said bill OF 1nterven-
ZION be served upon and delivered to the
solicitors of the respective parties hereto within
such reasonable time as may be liked by said
court and that the compliments and defend
ants herein have such time as may be fixed by
said court within which TO appear, demur to,
plead to or answer said bill, or make such
motion with respect thereto as they may maybe be ad-
United States Attorney for the Northern Dis
trict of California.
Similar notices were also served on Rob
ert W. Hayne, w. ". Foote, J. c. Daily
and William F. Herrin.
1t is the usual course in serving notice
of this character to accompany it with
COPY of the document it is proposed to
file, but in this case the notice alone was
sent out, owing to the fact that the bill of
intervention was not ready at the time the
notices we're sent out.
None of the parties who received the no.
tice had apparently had any previous
knowledge that such a proceeding was to
be undertaken by the Government, and all
were evidently as greatly surprised over
the matter as was Attorney-General FitZ-
gerald, and none of them had any idea
upon what grounds the Government was
going to attempt to interfere with the
functions of State commission duly and
legally organized under the constitution
of the State.
A visit to the Office of the United States
District Attorney in the endeavor to ascer-
toi, <ia dc vph
ment intended to proceed proved fruitless.
as all those qualified to speak or having
knowledge of the matter had departed for
the day. From another but thoroughly re-
liable authority the salient features of
what is to constitute the basis of the Gov
ernments Intervention was ascertained.
In the bill of Intervention, which will
not be filed until December 9, and then
only if Judge McKenna of the United
States Circuit Court permits, it will first
be held that the rights of the United States
Government are supreme and that all OBJ
legations to it take precedence over those of
any individual, corporation, State or other
Government.
1t will be further contended that under
the Thurman act the United States Gov
eminent has the right to regulate all the
affairs of the Central Pacific Railroad Com
pany, including the fixing of freight and
passenger rates, on all portions of it's lines
and for all classes of traffic, whether inter-
state or interstate. In fact, 1t will be
claimed that the Central Pacific Railroad
is virtually a Government property, and
that therefore neither the State, nor any of
its creations or officials, have any right to
interfere with it.
Another contention will be that under
the Thurman act the Central Pacific Rail-
road Company is bound to pay to the
United States % per cent Of its gross earn
ings, as part liquidation of the $75, 600, 900
or more owing to the Government, and
that no State commission has any right to
interfere with the affairs of the Govern
ment's debtor in such way as to interfere
with its earning capacity, and thus pre-
vent the early liquidation of the debt due
the Government.
The constitutional right of the California
Railroad Commission to interfere in any
way in the affairs of the Central Pacific
Railroad will also be called into question.
A further point will be made that no
State has a right to act in such a manner
even in order to protect the common
wealth, as will interfere with the rights OF
all the other States. And it will be claimed
that for the Railroad Commission to re-
duce rates on the Central Pacific Railroad
would while affording relief to the ship
pers of California, be preventing the pay
ment of the claim of the United States, in
which all the States of the Union are in
terested.
Another interesting and important issue
will be raised in reference to the lease of
the Central Pacific Railroad to the South
ern Pacific Company. This lease, it is
asserted, will be disavowed, so far as the
Government is concerned, and it is be-
lieved that the investigation pertinent to
this issue will develop some most interest
ing Southern Pacific history.
When United States District Attorney
Foote was seen at his residence last night
and asked regarding the proposed course
OF the Government as outlined in the
notice he had caused to be served upon
the attorneys of the Southern Pacific Com
pany and the Railroad Commission he alb
solutely refused to have anything to say
regarding the character of the claims that
the Government intended to put forward
in the bill of Intervention. He admitted,
however, that the matter had been taken
mp under instructions received from Wash
ington from the United States District At
torney. Continuing he said:
"All that am at liberty to say at pres