The San Francisco call., 1895-10-09
WILL OPPOSE REDUCTIONS
A Prominent Official Defines
the Position of the
Railroad.
NOT AFTER THE COMMISSION.
But 1t Is the Purpose OF the Com
pany to Test the Legality
of Its Acts.

When the attention of prominent Off
cial of the Southern Pacific Company was
yesterday drawn to the interview in THE
CALL with Commissioner Stanton, wherein
the latter stated that the railroad company
was issuing new rate schedules without
notifying the commission, and that it ap-
peared to be the policy of the company to
ignore the commission with the ultimate
purpose of questioning it's legal standing,
he said:
The question is not so much as to the legality
of the commission as TO the legality OF the acts
OF the commission. By majority vote the
board has declared its intention to put into
force freight schedules by January l next,
making an average reduction of 25 per cent on
existing rates. Any one knows that the COM
pany cannot stand any such reduction, nor
could any other business or industry in the
State exist If such reduction was made at
once In its earnings or profits. The reduction
proposed by the commission is simply confisca-
tory OF railroad property. The commission has
no power to confscate this property. 1t is un-
fortunate that the commission has undertaken
to do what the courts have repeatedly decided
1t has no right to do. In order that the COM
mission may accomplish any good for the
people, 1t must confine itself within the powers
given it by law: The railroad company cannot
be blamed for insisting that the commission
shall not 90 what it has no right to do.
In view of the fact that the foregoing
statement came from a gentleman high in
the councils of the railroad it unmistaka-
bly, appears that the railroad company in
tends to take the matter of the proposed
25 per cent reduction on freight rates into
court whenever it becomes necessary to
prevent such reductions gong into force.
In reference to the action of the com mpany
in issuing new rate schedules without noti-
lying the commission, as it was charged
with doing by Commissioner Stanton, it
was impossible to get any definite informa-
tion as to whether or not this was being
done with premeditation or as to the i'm
port OF such proceeding.
Assistant General Manager Curtis was
first questioned concerning this and said
such action would not necessarily come
under his notice, but would properly be
done under the direction of General Traffic
Agent Smurr.
When Mr.. Smurr was asked about the
matter he admitted that II any such action
had been taken it was done over his sigma
ture. He then quickly added that all pro-.
ceedings relative to the recent action of
the Railroad Commission were now taken
only under the direction of the law de-
partment of the company. But William
F. Herrin, the head of the company's legal
corps, refused to have anything to say on
this subject for publication, but said the
railroad company was simply acting with
in what it deemed was the law.
According to statement published in
an evening newspaper Yesterday there ap-
pears to be a misconception as to when the
new reduced rates on grain go into effect.
1t was stated that these rates would go
into effect to-day. This is a mistake, for
the twenty days notice begins to run only
after printed copy of the revised rates has
been served on the company.
The assumption under which the mistake
was made was that the twenty days notice
ran from the date of the adoption of the
resolution. This printed copy of the
reduced grain rates was served on the
company on the 26th day of September,
and therefore the new rates do not go into
effect until October 16.
When the commission meets at o'clock
to-day its first business will be the con-
sideration of an amendment to the grain
rates, adjusting determinations in the
Sacramento, Salinas and San Joaquin
valleys. 1t is calculated that the relief
that will be afforded by the adoption OF
this amendment will be greater than that
which will result from the per cent hori-
zontal reduction on grain.