The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-12-01


amendment of said flrSt-named act' (Which said
Hctof May ,1S7S, is usually called the Thurman
act, expressly recognized the consolidation OF
said corporation under the name OF the Central
Pacific Railroad Company and ratified said con-
solidatlon and treated the said consolidated
Central Pacific Railroad Company as vested
with all the rights and liable to all the bur-
dens, duties and obligations imposed by the
Congress OF the United States upon said CON-
panies under the terms of said Act of July 1,
1862, and OF the several Acts amendatory
thereof and supplementary thereto, and that
by the terms of said Act OF May z, 1878, the
said Central Pacific Railroad Company is re-
quired on or before the LIST DAY of February in
each year TO pay into the Treasury of the
United states all amount aggregating % per
cent OF the whole net earnings of said rail-
road, ascertained and defined as in said Act
provided, for the year ending on the 31st day
OF December next preceding.
The interyenors further show that the said
Central Pacific Railroad has outstanding first
mortgage bonds to the amount of $27, 900 600,
which are by the provisions of said Acts OF
Congress given priority TO said lien OF inter
venors.
The intervenors further show that the COM
pla1nant is CORPORATION organized and exist
ing under the laws of the State of Kentucky
and under and by virtue of an act of the Gen
eral Assembly of the Commonwealth of Ken
lucky entitled IAN act to incorporate the
Southern Pacific Company" approved March
II, 1884, and by an act amendatory thereof,
entitled IAN act to amend an act to incOrpor-
ate the Southern Pacific Company" approved
Company is in the possession of and operating
the said Central Pacific Railroad, claiming the
right so to do under an alleged lease from the
said Central Pacific Railroad Company. by the
terms whereof said Southern Pacific Company
IS required to pay out OF the earnings OF said
railroad the sums required 10 be paid to inter
venors by the Central Pacific Railroad Com
pany under the provisions OF said Thurman
act.
The intervenors allege that said lease was
made without their authority or consent, and
that the same can in no way affect or preju-
dice the rights or interests of the intervenors
under the acts OF Congress aforesaid.
The intervenors further show that the de-
PENDANTS, the Board of Railroad Commissioners
of the State of California, Hugh NJ. La Rue,
James 1. Stanton and William R. Clarke, mem
bers OF and constituting said Board of Railroad
Commissioners, are citizens and residents of
the State Of California, and derive any and all
power, authority and character as such board
from and under the provisions of section %,
article MI, of the constitution of the State OF
California, and by an act OF the Legislature OF
the State OF California, entitled, IAN act to Or
ganiZe and define the power of the Board OF
Railroad Commissioners" approved April Is,
1880, and that by said act the office OF said
board was and is fixed and established at the
City and County of San Francisco, in the
northern district of said State of California,
and said La Rue. Stanton and Clarke are resi-
dents and inhabitants OF said northern dis
trict OF California.
The intervenors further show that the said
lines Of the said Central Pacific Railroad Com
pany are and for some years last past have been
operated by said Southern Pacific Company
under said lease from said Central Pacific Rail-
roSd Companys part of one entire railroad
system, generally known and called the Pacific
system of the said Southern Pacific Company
but that the accounts of the said line of said
Central Pacific Railroad Company have been
kept separately by said complainant, and the
full amount of net earnings required by saiu
Thurman act have from time to time since the
commencement of such operation up TO the
end OF the, calendar year 1894 been paid for
the Central Pacific Railroad Company by said
complainant into the treasury of the inter
venoTs.
The intervenors further show that under and
by virtue of the grants and franchises in and
by said acts OF Congress made and granted,
the said constituent corporations OF said Gem
trail Pacific Railroad Company constructed and
equipped a line of railroad now the property
. of said Central Pacific Railroad COMPANY
commencing at the city of San Jose, in the
State of California, and running through the
State OF California, the State of Nevada and
the Territory OF Utah, to point at or near the
city OF Ogden, IN said Territory, a distance of
S5S.S7 miles, of which 261.13 miles, extend
ing from said city of San Jose to the easterly
line of the State of California, are entirely
within the State.
The intervenors'further show that the said
Central Pacific Railroad Company or its lessee.
the said Southern Pacific Company, Is entitled
to obtain from the operation of said Central
Pacific Railroad an income sufficient TO pay
the cost and expense of the maintenance there
of of the service thereon and OF the interest on
and discharge the obligations OF said Central
Pacific Railroad Company to the United States
specified bv said Thurman act.
The intervenors further show that the South
err Pacific Company is and Tor a long time
past has been transporting and Will continue
to transport freight and passengers over the
said line OF the said Central Pacific Railroad
Company between the several States and Ter
ritories in which said railroad is situated, and
that such interstate commerce is and for long
time past has been transported by it at fair
and reasonable ties, fixed and promulgated
under and in accordance with the terms and
provisions OF an act OF the Congress of the
United States entitled San act TO regulate
commerce." approved February 4, 1887.
The intervenors further show that the Con-
gress OF the United States has the ex-
elusive jurisdiction to regulate rates
for freight and passengers over the said
lines of said Central Pacific Railroad Com
pany, and that by the terms of section Is of
the act of Congress of July /, 1862, aforesaid,
which has not been amended or repealed, the
said Central Pacific Railroad is entitled to have
and receive net earnings TO the amount of 10
per cent upon its cost before rates can be re-
duced, and such reduction can then be made
if such rates are reasonable in amount.
And the interyenOrs allege that by reason OF
the premises they have direct and pecuniary
interest in the maintenance OF reasonable rates
OF said railroad.
The intervenors further show that the rates
for freight and passenger traffici arising and
transported over that portion OF the Central
Pacific Railroad Company's said railroad lying
within the State of California. now charged by
the said Southern Pacific Company, are not
higher than is reasonable and just.
The intervenors further show that any re-
duction on said rates will make it absolutely
impossible to realize from the operation of the
said Central Pacific Railroad Company net
earnings 10 the amount OF 10 per cent OF its cost
as contemplated by section l8 of said act OF
Congress of July l, 1862, or to any other
amount, and inteTvenors viii thereby be de-
prived of any portion of said net earnings as
might otherwise become payable to it under
the provisions of said Thurman act, and such
portion OF such net earnings will be irretriev-
ably lost to them.
ing the premises the defendants, as such Board
fornia, did, on the 18th and 18th days of Sep
TENDER, 1885, pass and adopt the following
resolutions, TO wit:
"ResotUed, That the present rates of charges
for the transportation OF freights in California
by the Southern Pacific Company and its
leased lines are unjust to the shippers OF the
State; therefore, be it
"Res0LUed, That the present rate of charges fol
the transportation OF freights in California by
the Southern Pacific Company and its leased
lines be subjected to such an average reduc tion
as, including all reductions made therein since
December, 1884, shall equal an average reduc
ton OF % per cent upon said rates. as in ex
istence on said December l, 1894.
"That the manner of spportionment and
effecting said reduction shall be as follows:
"First-All discrimination in freight charges
shall be so adjusted as to make equal rates be-
tween different points of shipments similarly
situated, IN SO lar as circumstances will per