The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-12-02
U. S. WILL INTERVENE
Or Behalf of the Central Pacific
to Protect It's Debts
AND PREVENT RAILWAY
COMMISSION OF CALIFORNIA FROM
REDUCING FREIGHT RATES.

Aereement-Revised Pay Schedule
Pacific Fast Mail Changes-Gen-
eraI Railroad News.
According to a notice served yesterday
by United States District Attorney Henry
). Foote upon Attorney General w. F.
fitzgerald and Robert W. Hayne, w. w.
toote and j. c. DAILY, counsel for the state
ra4lroad commission, and William f.
Herr1n, counsel of the Southern Pacific
company, the United States government,
says the San Francisco Call, has deter
mined to enter the legal battle instituted
| by the Southern Pacific company for the
purpose of preventing the railroad COM
mission from reducing freight rates over
the lines Of the Southern Pacific con-
pany operated within the state.
The federal governments influence and
| power is to be used against the railroad
commission, at least so far as that body's
jurisdiction in reference to the Central
Pacific Railroad company is concerned.
Like thunderclap from a. clear sky
came the announcement of this new phase
IN the already complicated case to Attor-
ney General Fitzgerald. His first intima-
non OF the proposed Intervention of the
Unlted States government in the matter
was conveyed in the following notice
served upon HIM late yesterday afternoon;
You Will please take notice that on be-
half of the United States of America, and
by authority of the attorney general of
the United States, the undersigned will,
on Monday, the ninth day of December,
1875, at IL a. M, or as soon thereafter as
counsel can be heard, move the said cir
cunt court for leave to intervene in the
above-entitled cause (the Southern Pacific
mission) and to file therein a certain pro-
posed bill of intervention and for an or
der therefor; and further for an order
that said bill of Intervention be served up
on and delivered to the solicitors of the
respective parties hereto within such rea-
Sonable time as may be fixed by said
court, and that the compliments and de-
fendantS here1n have such time as may
be fixed by said court within which to ap-
pear, demur to, plead to or answer said
bill, or make such motion with respect
etc., IL. S. FOOTE,
United States Attorney for the Northern
District Of California.
The Dill of Intervention.
In the bill of intervention, which will
not be filed until December 8, and then
only if Judge Mckenna, of the United
States circuit court permits, it will first
States government are supreme and that
all obligations 10 it take precedence over
those OF any individual, corporation, state
or other government.
1t will be further contended that under
the Thurman act the United States gov
eminent has the right to regulate all the
affairs of the Central Pacific Railroad
company, including the fixing of freight
and passenger rates, on all portions of its
lines and for all classes of traffic, wheth-
er interstate or intrastate. In fact 1t
will be claimed that the Central Pacific
railroad is virtually a government prop
erty, and that therefore neither the state
nor any of its creations or officials, have
any right to Interfere with 1t.
Another contention will be that under
the Thurman act the Central Pacific Rail-
road company is bound to pay to the
United States % per cent OF its gross
earnings, as part liquidation of the &c.
Doc 900 or more owing to the government,
and that no state commission 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 the early liquidation OF the
debt due the government.
The constitutional right of the Califor-
mia railroad commission to interfere in
any way in the affairs of the Central Pa
cific railroad will also be called into ques-
ton.
A further point will be made that no
state has a right to act in such a manner,
even in order to protect the common
wealth, as will interfere with the rights
of all the other states. And 1t will be
claimed that for the railroad commission
to reduce rates on the Central Pacific
railroad would, while affording relief TO
the shippers of California, be preventing
the payment of the claim of the United
states, in which all of the states OF the
union are interested.
Lease of the C. =. to the S. p.
Another interesting and important issue
will be raised in reference to the lease of
the Central Pacific railroad to the South |
ern Pacific company. This lease, it is
asserted. will be disavowed, so far as the
lieved that the investigation pertinent to
this issue will develop some most inter- |
esting Southern Pacific history.
When United States District Attorney |
Foote was seen at his residence last |
night and ash ed regarding the proposed
course of the COVER Nment as outlined in |
the notice he has caused to be served
upon the attorneys of the Southern Pa
cific company and the Railroad commits |
sion he absolutely refused to have any !
thing to say regarding the character Of
the claims that the government intended |
to put forward in the bill of interyen- |
ton He admitted however, that the |
matter has been taken under inStruc- |
lions received from Washington from |
the United States district attorney. Con-
tinuing he said
..All that L am at liberty to say at !
present in reference to this matter is
that on Monday morning, December 8, |
l shall appear before Judge McKenna |
and make a motion to be allowed to file |
on behalf of the government of the i
United States a bill of intervention in
the case of the Southern Pacific company |
against the railroad commissioners of !
the state of California. What the contents
of that bill are to be l am not privhegd |
to divulge. Should [ get the consent of |
the court to file it it will then become "A
matter of record and public property,
but there is a possibility that the court
may not give it's consent to the fling of l.
this document and therefore to make it
public at this time would be giving pub
licity to matters that may never by right
become the property of the public"
Stanton Astonished and Indignant.
Railroad Commissioner Stanton re-
ceived the news Of the proposed inter-
vention of the government in the case
in which he is one of the defendants with
and Indignation.
II do not see," said he, ION what
grounds the federal government can in
terfere in this matter l have always
maintained that the only question in
yolved is as to the reasonableness of the
rates that have been or may be fixed by
the commission. The railroad commits
ion of this state has delegated to it I'M
power to make rates, and If the rates
so made are reasonable and compensate
the carrier for the service performed, it
seems to me that no authority would be
vested in any one, not even the federal
government, to interfere with their &C
ton, as such rates would be perfectly
legal charges for transportation over the
lines of the railroads they affect
THE only schedule thus far issued by
this commission is the one containing
the grain rates, making a reduction of
per cent. AS this reduction was the one
proposed to me | can speak the more au-
concerning 1t. L was parti-
cularly careful in suggesting that meas
ure to be fair with both the shipper and
the railroad company.
while this reduction, had 1T been made