The San Francisco call., 1895-12-20
THE RATE PROBLEM,
May Mean a Legal Battle
for the Southern
Pacific.
VIEWS OF J. G. STUBBS.
Considers the Colorado Decision
a Victory for the
Railroads.
APPEAL TO COURTS POSSIBLE.
Chief Counsel Herrin's Opinion of the
Decision of the Interstate
Commission.
APPEAL TO COURTS POSSIBLE.

1t is poss BILE that the recent decision of
the Interstate Commerce Commission, in
the case of the Colorado Fuel and Iron
Company VS.. the Southern Pacific Com
pany ct al, may lead to legal contest OF
even greater magnitude and interest than
that which is now pending in the United
States Circuit Court of this City between
the Southern Pacific Company, the Fed
eral Government and the California Rail-
road Commission.
The digest of the decision of the Federal
Commi ission, as received in this City, IS
not quite clear as TO its full intent. As
generally wed, however, it is believed
to mean that all freight rates between Cali
fornia and Colorado points have been
ordered TO be fixed so as not to exceed rs
per cent of the through rate. This would
mean a reduction of 10 to 40 per cent on
existing rates and the decision, in conse-
ouence, was taken to indicate a blow at
the Southern Pacific and its connections
into Colorado.
In an interview yesterday with J.
c. Stubs. general traffic manager of the
Southern Pacific, it was intimated that q
decision permitting of general reduction
of rates between Colorado and California
points was lust what the Southern Pacific
wanted, provided it did not carry with it
proportionate reductions on Intermediate
business. In fact Mr.. Stubbs' explanation
of the situation allowed it to be inferred
that the case in question was N reality a
test to ascertain whether or not the Inter
state Commerce Commission would be in
duced to set aside the long and short haul
clause of the interstate commerce act so
as to permit of an extension of the COM
mercial relations between California and
Colorado. Exactly what concessions or
advantages the Southern Pacific expected
to secure Mr.. STUDIOS did not state but he
did go on record by stating emphatically
:: that if the decision proved to be unsatis
factory to the Southern Pacific it would be
attacked by resort to the Federal courts.
He spoke as follows:
Inthe first place this has been heralded as
defeat for the Southern Pacific, but this we
don't know till we get the decision of the com
: mission. The fact that they may have ordered
. a 45 cent rate signifies nothing Our conten,
tion was that we could not do tnat, as it would
be a violation OF the fourth clause OF the inter-
: state commerce act-that relating to the long
and short haul-as il has frequently been COLI
strued by the commission.
If the Interstate Commerce Commission
would construe the law SO as to permit us to
. do what the Colorado Fuel ana Iron Company
wished US to do, without damage TO our inter
mediate business, We would be very glad TO do
. it, Now it may be that the decision of the In
terstate Commerce Commission and its order
: are right in the direction OF the pleadings and
according to the position taken by the South
ern Pacific Company. Should it not be they
viii certainly have fight on their hands.
But we cannot tell what the real situation is
till we get the full decision
William f. Herrin, chief counsel of the
Southern Pacific, apparently attached lit
lie weight to the order of the commission.
He said:
This proceeding before the Interstate Com
merce Commission is against not only the
Southern Pacific Company, but some twelve or
fourteen railroad com panies, in other words
against all the carriers over which the freight
in question may move The order OF the COM
mission is not final and cannot be enforced
until it is approved By the United States Cir
cult Court on petition filed for that purpose
In case such petition be filed the railroad
companies have the right to answer the whole
case and have the same regularly tried in the
United States Circuit Court.
The order OF the commission is only prima-
facie evidence of the matters therein stated
before the Circuit Court, and the companies
have the full right to put iii their case and of
course the Circuit Court may find against the
report of the commission. Either party may
afterward appeal to the United States Supreme
Court from the decision OF the Circuit Court.
In view of the facts stated the full text
OF the decision in this important case Is
awaited by all concerned with the greatest
interest