The advocate., 1895-12-11
STATE RAILROAD COMMISSIONS.
The Attempt at Public Supervision Of Bail
roads q Gigantic Farce.

SAN Francisco, November 3O.-lr
September last the California Railroad
Commission adopted a resolution order
ing d reduction in freight rates Of about
% per cent. on all railways operating
within the State. The Southern Pacific
Railway Company appealed to the United
States court and obtained temporary
injunction restraining the Commission
from enforcing the proposed reduction
and the case is now pending Yesterday
afternoon United States DistrictAttorney
Henry s. Foote served upon Attorney
General Fitzgerald and upon counsel
for the California State Railroad Com
mission notice of his intention to
intervene ip the case. The grounds for
the appearance Of the federal govern
ment in the case will be submitted to the
court on December 8, and will, it is under
stood, be that the rights of the United
States government are supreme and
that Rll obligations to it take precedence
over those Of any individual corporation,
State, or other government. 1t will be
further contended that under the Thur
man act the United States government
has the right to regulate all the affairs
Of the Central Pacific Railroad Company,
including the fixing Of freight and pas
senger rates on all portions Of its lines
and for all classes Of traffic, whether
Interstate or rintra-State. In fact, it will
be claimed that the Central Pacific rail
road is virtually O government property,
and that therefore neither the State nor
any Of it's creations or officials has any
right to interfere with it.
Another contention will be that under
the Thurman act the Central Pacific
Railroad Company is bound to pay to
the United States 25 per cent. Of its
gross earnings as part liquidation Of the
$4,000, 600 or more owing to the govern
ment, and that no State commission has
any right to interfere with the affairs OF
the governments debtor in such way
as 10 interfere with it's earning capacity,
and thus prevent the early liquidation
Of the debt due the government.
The constitutional right of the Cal
iiornia 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 right to act in such a
manner, even in order to protect the com
monwealth, as will interfere with the
rights Of all the other States. And il
will be claimed that for the Railroad
Commission to reduce rates on the Cen.
tral Pacific railroad would, while afford,
ing relief to the shippers Of California
be preventing the payment Of the claim
Of the United States, in which all the
States Of the union are interested. An.
other interesting and important issue
win be raised in reference to the lease ol
the Central Pacific railroad to the
Southern Pacific company. This lease
Il Il asserted, viii be disavowed, so fal
as the government is concerned.
United States District Attorney Foott
declined last night to discuss the matter
beyond admitting that it had been taken
np under instructions received from
Washington Until the contents of the
Sproposed bill Of Intervention became a
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