The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1895-11-30

Pacific Road is Concerned.
SAN FRANCISCO, Nov. 29.-The
Call tomorrow will say: According 10
a notice served by United States DIS
trict Attorney Henry S. FOote upon At
torney-General w. f. Fitzgerald and
Robert w Hayne, w. w Foote and ).
c. DAILY, counsel for the State Railroad
Commission, and William F. Herrin,
counsel for the Southern Pacific Rail
road Company. the United States Gov
eminent has determined TO enter the
legal battle instituted by the Southern
Pacific Company for the purpose OF pre-
venting the Railroad Commission from
reducing freight rates over the lines
of the Southern Pacific Company oper-
ated within the State. The Federal
Governments influence and power is to
be used against the Railroad Commits
sion, at least so far as that body's Jurls-
diction in reference to the Central "a
cific Railroad is concerned.
Thus it will be seen that the Attor-
y-GeneraI of the State, who, when
the matter of defending the Railroad
Commission in the action was first re-
ferred to him, thought that he would
not require any assistance, IS 10 nave
two of the most powerful antagonists
arrayed against him in his battle 1of
the Railroad COMMISSIONS contest, IN
which, perhaps the actual existence OF
the commission may be threatened.
Like a thunder-clap from clear SKY
came the announcement OF TINS new
phase in the already complicated case
to Attorney General Fitzgerald his
first intimation of the proposed inter-
f1fa OF n
ment in the matter was conveyed III
the following notice served upon MN
late yesterday afternoon:
You will please take notice that on
behalf Of the United States Of America,
and by authority of the Attorney-Geh-
eral of the United States, the under
signed will on Monday, the 9th day OF
December. 1895, at II a. m, or as soon
thereafter as counsel can be heard
move the said Circuit Court Tor leave
to intervene in the abOve-entitled cause
(the Southern Pacific Company vs. the
California Railroad Commlsslon) ana
to file therein a certain proposed Dill
Of intervention and for an order there
for: and further, for an order that SAID
bill of intervention be served upon ana
delivered to the solicitors Of the respect
i've parties hereto within such reason
able time as may be fixed by said court,
and hat the compliments and defend
fixed by said court within which to ap-
pear. demur to, plead to or answer
said bill. or make such motion with re-
spect thereto as they may be advised to-
Yours, etc, II. ). FOOTE,
~ s. Attorney for the Northern Dis
trict of California"
Similar notices were also served on
Robert W Hayne, ". w Fooote, J. c.
DAILY and William F. Herrin.
It is the usual course in serving no
tice of this character to accompany 1t
with copy of the document it is pro-
posed to file but in this case the notice
alone was sent out, owing TO the fact
that the bill of Intervention was not
ready at the time the notices were sent
out.
None Of the parties who received the
notice had apparently had any pre-
vious knowledge that such a proceeding
was to be undertaken by the Govern
ment. and all were evidently as greatly
surprised over the matter as was At
torney-General Fitzgerald and none of
them had any idea upon what grounds
the Government was going to attempt
to interfere with the functions of a
State commission organized under the
Constitution of the State.
A visit TO the Office of the United
States District Attorney, in the en-
daaVor TO ascertain the grounds upon
which the Government intended to
proceed. proved fruitlesS. as all those
qualified TO speak or having knowledge
% the matter had departed for the day.
From another but thoroughly reliable
authority the salient features Of what
is to constitute the basis Of the Govern
nent's intervention was ascertained.
In the bill of intervention which win
not be filed until December 9th, and
then only if Judge McKenna Of the
United States Circuit Court permits. ii
will first be held that the rights of the
United States Government are supreme,
and that all obligations to it take prece-
dence over those of any individual cor
poration. State or other Government
1t viii be further cOntended that I'M
der the Thurman Act the United
States Government has the right to
regulate all the affairs Of the Central
Pacific Company, including the fixing
of freight and passenger rates on all
portions Of its lines, and for all classes
of traffic, whether interstate or intra-
state IN fact, it VIII be claimed that
the Central Pacific Railroad is virtu-
ally a Government property and that
therefore neither the State nor any Of
its creations or officials has any right
10 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 - per cent. of its
gross earnings. as part liquidation Of
The SO 100000 or more owing to the
Government, and that no State Com
mission has any right to interfere with
the affairs of the Governments debtor
in such way as TO interfere with its
earning capacity, and thus prevent
early liquidation Of the debt due the
Government.
The Constitutional right of the Cali
fornia Railway Commission to interfere
in any way in the affairs Of the Central
Pacific Railroad viii also be called into
question.
A further point viii be made that no
State has right TO act in such a man
ner. even in order to protect the Com
mcnwealth. as win interfere with the
rights of all the other States. And it
viii be claimed that for the Railroad
Commission TO reduce rates on the Cen
teal Pacific Railroad would, while af-
fording relief to the shippers of Cali
fcTnia. be preventing the payment of
the claim Of the United States, in
which all the States Of the Union are
interested.
UnTrrrr