The San Francisco call., 1895-12-03
Two Propositions Made to Sim
plify the Great Railroad
Controversy.
SHIPPERS MAY BRING SUITS.
The Farmers Alliance May Take Up
the Prosecution of the Rail.
road Company.

battle that Will be falrly on before Judge
McKenna of the United States Circuit
Court on Monday next comes a more gen.
eral and deeper interest and curiosity as TO
what will be the ultimate results OF the
suit brought by the Southern Pacific Com
pany to enjoin the State Railroad Com
mission from reducing rates, and the
proposed intervention of the Federal Gov
ernment with the purpose of defending its
interests as a creditor of the Central Pacific
Railroad Company.
Another rather sensational feature was
added to the situation yesterday by COM
munIcation sent to the Railroad Commis-
sioners by Andrew ]. Clunie, who had
been acting as the legal adviser of Com
missioner Stanton until recently, and who
is probably as familiar with all the ques-
tions involved as any one who has figured
in this most important controversy. In
fact it was on the advice OF Mr.. Clunie that
Commissioner Stanton introduced the reso-
luton making horizontal reduction on
grain rates of s per cent, and for this
reason, as Mr.. Clunie stated in part ex-
lanation of his course in addressing a
letter on the subject to the commission,
he now proffers his suggestions. His
communication is as follows:
SAN FRANCISCO Cal, Dec. 2, 1895.
To the Honorable Board Of Railroad Commits
sioRerS-GENTLEMEN: Deeply interested in the
result of the contest now pending IN the Cir
cult Court of the United States for this district
between the Southern Pacific Company and.
your body have carefully watched each step
in this remarkable controversy from the time
of the issuance OF the unwarrantable I'M unc-
ton, restraining the future action of your
board in SO far as the reduction Of rates of the
Southern Pacific Company are concerned, 10
the recent most monstrous action on the part
OF the United States, in attempting to delay
and hinder the State OF California in its de-
fense OF this proceeding, by means OF It's COM
plant in intervention, whereby 1t is sought TO
lend the name and influence of the United
States TO the Southern Pacific Company in
this, their most atrocious attempt to throt-
tie the rights OF the shippers OF this State,
the simple, straight cut one, OF whether grain
tariff l, involving a reduction of 8 per cent on
former rates, allows a reasonable sum TO the
corporation for the services rendered. The
resolutions, the repeal of which is hereby Sug-
gested, were merely acts of declarations as TO
the future intentions OF your commission. I'm
der them no reduction has been made, and as
soon as the I'M JUNCTION heretofore issued is
modified, which IT Will be as soon as its ille-
gality is called to the attention of the court,
you can proceed with such orders of reduction
as you may deem advisable. The people o tthe
State thoroughly understen nd that for the first
time in sixteen years they have In you, gentle
men, body tina will thoroughly protect their
rights and interests and will be perfectly con-
tented with q repeal OF these declaratory reso-
lutions.
Being somewhat familiar with the proceed
ings of your honorable board, desire TO offer
certain suggestions which, in my oDinion, will
greatly facilitate proceedings in the Circuit
Court, and enable you to secure the speedy de-
cision SO much desired.
First-I recommend that your board imme-
diately rescind, annul and set aside any and
all resolutions heretofore adopted by you ex-
pressing any intention or desire on the part of
the board to make any reduction of rates of
the Southern Pacific Company, other than the
ia ken hy hoard whereby
l was adopted and the only vote necessary
10 retain in this matter is that by which this
schedule was finally adopted.
The effect OF this action on your part Will be
to remove from the record and consideration
of the Circuit Court much extraneous matter
with which the railroad has numbered the rec
ord in order 10 befog and muddle the court,
and leave the issue TO be decided by that court.
Second-I recommend that you communi-
cate at once, by telegraph, with Congressman
J. @. Magnire, who IS now IN Washington, in
form him as TO the contemplated action OF the
United States authorities in this City, and of
the TACT that grain tariff does not affect
the interests of the Central Pacific Railroad in
any material degree, and ask him to consult
with the admins tration at Washington and
secure instructions TO the local authorities to
desist from their preposterous attempt to
handicap the representatives OF the State of
California.
If this request is made feel certain that such
instructions will be sent, and thus the compli-
cations incident to the intervention of the
United States in this proceeding will be
avoided. Very truly yours,
ANDREW j. CLuSIE.
In an interview with Mr.. Clunie as to
the full significance of his communica-
ton, he stated that his idea was to get the
issue narrowed down to the simplest posi-
BILE form and then carry the fight through
on it's merits 20 the Supreme Court of the
United States, and determine once for all
the powers of the commission. This ques-
ton, he added, had never been determined
by the Supreme Court of the United States,
for the simple reason that it had never
been permitted to come before that trl-
bunal on clear-cut issue. 1t was always
involved with some technical law point
purposeiy lnteriected by the Southern Pa
cific Company.
Take the case" he continued, "of the
Texas Railroad Commission, upon which
the Southern Pacific Company seems to
rely so confidently. The decision of the
Supreme Court of the United States in
that case is clearly in favor of the present
contention of the Railroad Commission of
this State. 1t will be remembered that
the Circuit Court held that the rates fixed
by the commission were unreasonable and
declared them void and also issued an or
der restraining the commission from max
ing any further changes in the railroads
tariff.
"When the case was taken to the Su-
preme Court it rendered an elaborate de-
cision on the status of the commission,
holding that its creation was not viola
ton of the Federal constitution, but that
the State had the absolute right to regu-
late railroad rates within the State through
its commission, SO long as such rates were
not unreasonable. The closing sentence of
that decision was as follows
It follows from these considerations that the
decree as asked must be reversed in so far as 1t
regtrains the Railroad Commission from
discharging the duties imposed by this act and
from proceeding 10 establish reasonable rates
and regulations, but must be affirmed 80 far
only as it restrains the defendants from en-
forcing the rates already established.
"I know" he continued, "that it is
claimed that the provision in the State
constitution which declares that in all
controversies the rates of fares and freights
established by the commission shall be
deemed conclusively just and reasonable is
a contravention of the constitution of the
United States, as it gives the commission
virtually the power to confiscate railroad
property without due process OF law, by
making rates so low that the railroads
would be operating at loss. l admit that
this clause of the constitution of the State
may be declared unconstitutional, but that
would in no way affect the right OF the
commission to fix rates that are reasonable.
The very fact that the Railroad Commls-