The San Francisco call., 1895-12-22
Federal Intervention Pleadings
Perfected by the District
Attorney.
MEETS. THE OBJECTIONS TO 1T.
Governments Interest Asserted in the
Central Pacifc'S Traffic in
California.

Friday to his original bill of interven-
ton in the Southern Pacifc's suit against
the Railroad Commission. It covers q
vital point.
The original bill of Intervention was pub
lished exclusively in THE CALL OF SUNDAY.
December l, and the Southern Pacihc's
suit, as is well known, is to prevent. if
possible, the Railroad Commission from
carrying into effect its resolution reducing
grain and other freight rates.
Mr.. Foote's bill did not state in lust so
many words that the Central Pacific was
doing business in California. AS amended
1t does.
The case-suit for injunction, interven-
tion end all-is to come up for hearing on
its merits before Judge McKenna on Janu-
ary 9, unless another postponement is then
taken.
When the argument was made in the
court, December 9, on the right of the Fed
eral Government to intervene as a party
10 the controversy Attorney General Fitz-
geral, in reiterating the position OF the
Federal Government as mortgage of the
Central Pacific, laid particular stress upon
the fact that the Central Pacific had only
zol miles OF line in California, while the
other lines connected with the Central
Pacific in the Southern Pacific system had
covered 75S miles In California. he con-
tended that the bill of Intervention did not
show that pound of grain had been
hauled over the 261 miles of the Central
Pacific from San Jose to the State line
Suppose that the bill of intervention
does not show that grain has been trans
ported over the 261 miles of road" said
Judge Mckenna, ''and the original COM
plaint shows that 1t had gone over this
line, then the bill could be easily
amended"
The proposed bill of intervention must
stai}d or fall by Itself" the Attorney Gen
eraf insisted.
The Government well knew that there
was an original bill and based its bill of
Intervention on it, argued the United
States attorney.
The Attorney General then went on to
say that there was not an allegation in the
bill OF Intervention to show that this pro-
posed reduction of rates in any way al
fected the Governments interests. There
was nothing to show that a pound of
freight had been transported over the
Central Pacific, and he held that the bill
OF Intervention was incomplete and the
grounds insufficient on which to base a
cause OF action.
The Judge stated that the court would
not shut out the Government from inter
vening IN the case if its grounds other
wise were sufficiently established, as the
bill could be amended to show that freight
had been and is at the present time being
carried over the 261 miles of the Central
Pacific in California.
In his opinion next day Judge Nc
kenna said:
II Is objected to the Governments bill that
II does not show any detnment arising to the
Government from the regulation of the rates
fHInk this point Is well taken. How to deal
exactly with II have been somewhat puzzled.
tmight deny the motion without prejudice to
the right OF the Government to apply again
That, however, would only have technicalitv
10 recommend 1t. l think it would be more lust
and lar better TO allow the bill to be fled giving
the Government time to amend it, if the Gov
ernment can, and IL is claimed that it can.
The particular paragraph in the bill to
which Mr.. Foote has attached his amend
ment read:
The intervenors further show that the South
ern Pacific Company Is and for q long time
past has been transporting and viii continue
TO transport freight and passengers over the
said line of the said Central Pacific Railroad
Company between the several States and Ter
ritorleS in which said railroad is situated, and
that such inteIstat commerce is and for along
time past has been transported by it at fair
and reasonable rates. liked and promulgated
under and in accordance with the terms and
provisions of an act of the Congress of the
United States entitled Gan eet to regulate com
merce," approved February 4, 1887.
The amendment lust made to meet the
those of the court is as follows, and, as a
complete paragraph by itself, it comes
next to the one just quoted:
The iuterveuors further show that for a long
time past the Southern Pacific Company has
been and is transporting and will continue to
transport on said line of said Central Pacific
Railroad Company, and wholly within the
State of California, large quantities OF grain
and all other classes OF freight and large num-
bers OF passengers but to what amount or ex-
tent lQterVeQOrs unable 10 state.
That is all. Mr.. Foote is careful not to
commit his bill to any precise statement
of figures, for fear such would jeopardize
the main question Of the Governments
interests as a creditor of the Central Pa
cific. 1t might be difficult to prove
statement involving mathematics. The
bill, as amended, Mr.. Foote considers salts
factory to all parties.
The three cornered fight may now be
narrowed down to the following questions:
Has the State of California the power and
right to regulate the rates of railroads operat-
ing within her boundaries?
Would the interest of the Federal Govern
ment as creditor and mortgage be injured by
any reduction OF the grain rates on that portion
of the Central Pacific running through Cali
fornia?
Must the Intervention OF the Federal Govern
ment, so far as the Central Pacific is concerned,
if sustained, be taken as practical interfer-
ence with the States right to regulate rates on
all other lines within her boundaries-those
under no obligation whatever, financially, to
the Federal Government?
Mr.. Foote saws be would not have in
teryened had the Railroad Commission ex-
empted the Central Pacific from its pro-
posed reduction of rates-would even
t'drop the Intervention proceedings now if
the commission would leave out the Cen
tral Pacific"
The whole basis of the Federal Govern
ment's intervention, he explained, is the
requirement of the Thurman act that the
Central Pacific shall annually pay 25 per
cent Of its net earnings to the sinking fund
for the benefit of all creditors, the Govern
ment included. Mr.. Foote thinks this %
per cent from the Central Pacific in this
State alone should be $549, ,000 per annum,
but the showing made by the Southern Pa
ciic system is that the Central Pacific is
just nov 81, 100000 behind. Evidently the
Thurman act has not accomplished its pur-
f,,rc Z fiY1aa no