The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-12-10
LAWYERS LOCK HORNS
Opening Skirmish in the
Battle Against the
Railroad.
FEDERAL INTERVENTION
Government Bill Submitted and
Arguments Heard in the
Circuit Court.
WILL PROBABLY BE ALLOWED.
United States District Attorney
Foote Defends His
Position.
WILL PROBABLY BE ALLOWED.

The Local heavy-weights in the proceed
,nos nj the Southern Pacific Company
AGAINST the State Railroad Commissioners
had their preliminary skirmish in the
limited States Circuit Court Yesterday.
II was day of intervention and conten-
+ion The railroad brought suit to enjoin
the Commissioners from enforcing their
resolution to reduce the freight schedule on
all the lines operated in California. The
resolution adopted by the Commissioners
provided for reduction of per cent on
grain and an average cut of % per cent on
al freight.
Now the United States Government,
through the Attorney General and District
Attorney, steps in with a petition of inter-
vention. 1t is based on the ground that
the proposed reduction of rates would in
terfere with its collection of the % per
cent of the net earnings of the Central
Pacific, which is a part of the Southern
Pacific system, and the chances of final
settlement of the claims of the Govern
ment would be impaired. The time of the
court was occupied yesterday in listening
to the arguments on the bill, and at the
close of the afternoon session the belief
was expressed that Judge McKenna would
probably allow the Government to inter
vene on the ground that it has right to
protect its revenue.
The Railroad Commissioners were rep
resented by Acknowledgement Fitzgerald,
Assistant Attorney General Anderson, W.
W. Foote, Robert Y. Hayne and Attorney
Daily. ". I. Herrin and ]. G. Martin,
for the Southern Pacific, throughout the
day sat silently behind fortifcation of
lawbooks. District Attorney Foote rep
resented the Federal Government.
T. L IL -
District Attorney Foote established his
right to appear as the legal representative
OF the General Government, and then read
the petition of Intervention which has al
ready appeared in full in the public press.
He clearly defined the position of the
Southern Pacific Company and the Board
of Railroad Commissioners. The Com
missioners had adopted resolution, max
ing a horizontal reduction of per cent in
the freight schedule on grain and % per
cent on all other articles of commerce, the
reduction to go into effect as speedily as
possibly on all lines of the Southern Pa
cific Company and leased connections.
The Southern Pacific Company had
brought suit to enjoin The Railroad Com
missioners from making the proposed
freigh E-rate reduction, and IL was to this
suit that the United States Government
/ came with a bill of intervention. The Dis
trict Attorney argued that as the Govern
ment held mortgage on the Central Pa
citc Railroad running from San Jose, in
this State, to Ogden, in the State of Utah,
and under the Thurman act, passed by
Congress on May 7, 1878, % per cent of the
net earnings of the road was to be paid
into a sinking fund provided for in the
act, the Government had the right to in
tervene since the threatened reduction in
freight rates would jeopardize its interests
and its revenue and interfere with the final
settlement Of its claims against the road in
question.
Congress alone has the right" continued
Mr.. Foote, "by reason OF the United States
Government possessing a lien on the Central
Pacific Railroad, 10 adjust rate matters, and
the Railroad Commissioners, by their proposed
reduction, would interfere with the collection
OF the 25 per cent OF the net revenue OF the