The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-12-01
road which is within the State of California as

AFORESAID.
The intervenors further show that that por-
ton of the said resolutions having reference to
the reduction of grain rates was adopted by
the unanimous vote OF all of the members OF
said board, and the remainder Thereon was
adopted by the vote OF defendants Hugh NJ
La Rue and James l. Stanton. defendant Will
liam r. Clarke,yoting against the same.
The interTenors further show that, pursuant
to said resolutions, said defendants have pre-
pared schedules of grain rates in ACCORDANCE
Herewith applying to said Central Pacific
Railroad within the State of California, and
on the Goth day of September, 1898,
served the same upon the said Southern
Pacific Company, and are proceeding to prepare
schedules OF rates upon ell other classes OF
freight shipped over said Central Pacific Kali
road within the State of California, in accord
ance with said resolution, and threaten to and
will at the earliest possible period. and not
later than January !, 1896, unless restrained
by this honorable court put the same into
force and effect, and will attempt to compel
said Southern Pacific Company to comply
herewith. That there is no reason to believe
that the volume of business upon said Central
Pacific Railroad will or can be increased by or
by reason of such proposed reductions in rates
or otherwise by which said proposed reduced
rates can become or lie just or reasonable.
And the interYenors aver that there can and
will be no compensatory increase in the bust
ness and tonnage OF said Central Pacific Kali
road resulting from said proposed reduced
rates, and, as the intervenors are informed and
verify believe and therefore aver, there viii be
no appreciate or substantial increase what
ever from any cause in such business or tom
mage. That said proposed and threatened re-
auctions of the rates of said Southern Pacific
Company were declared and resolved upon by
said defendants as said Board of Railway Com
missioners arbitrarily and without any evil
dence having been taken or adduced before
said board which showed or tended to
show that said proposed reduced rates
were or would be just, fair or reasona-
be promulgated and put in force on the line o.
said Central Pacific Railroad, operated by said
Southern Pacific Company in California as
aforesaid are and will be unjust, unfair and
unreasonable, and confseatory OF The property
rights of said Central Pacific Railroad Com
pany and the United States as its creditor, and
as q lienholder upon the property thereof; that
no evidence was introduced before said board
showing or tending to show that the present
rates were unreasonable or unjust, but, to the
contrary, all the evidence before said board
said Southern Pacific Company, collected upon
said Central Pacific Railroad, were and are not
in excess of just and reasonable rates upon the
commodities transported by 1t.
The 1nterYenors further show that such rates
proposed as aforesaid to be put into effect by
said defendants, will require said southern
Pacific Company TO carry upon said Central
Pacific Company many classes OF freight at less
than cost, and that such loss cannot and Will
not be made good in whole or in part, by rates
on other commodities fixed pursuant TO the
resolutions aforesaid of said defendants. That
such proposed reduced rates cannot be adopted
or put or continued in effect upon said Central
Pacific Railroad without serious ana lrrepdra-
able injury to and destruction of the property
and property rights of said Central Pacific
Railroad Company and OF the United States,
its creditor, and as a lien holder upon the prop
erty thereof.
That the railroad and property of the said
Central Pacific Railroad Company, upon
which the intervenors have lien and IN
which they have the property rights and In
terest before referred to, have no other or
different value or use than as railway prop
erty, ana as the same are operated In the car
riag2 OF the persons and commodities Tor hire,
and that the intervenors' lien thereon and
their property rights and interest therein are
determined and fixed by the productiveness
and ear ming capacity thereof.
The intervenors aver that II the reduced
rates proposed as aforesaid are established
and put into effect by the defendants the re-
suit will be serious and irreparable reduc-
ton in the value or the lines or the railroad
and property OF the said Central Pacific Rail-
road Company and serious and irreparable
reduction in the earnings thereof, thereby i'm
pairing, taking and destroying the inter
Venors property an interest therein.
And the intervenors fear, apprehend and
allege that under said reduced rates proposed
and threatened by said defendants, the said
Central Pacific Railroad Company will be I'M
able 10 earn or provide for the full interest
upon its first mortgage bonds, and that its abil-
ity to pay or discharge its obligations due to
the iutervenors as aforesaid will be impaired
and destroyed; that If the productiveness and
earning capacity OF said Central Pacific Rail-
road Company shall be so impaired and de-
stroyed as aforesaid, said Central Pacific Rail-
road Company will be wholly unable TO pro-
vide for or pay the interest due upon its first
mortgage bonds, or to make any further pay
ments in discharge OF the obligations 70 the
United States and that the lien for the security
of said first mortgage will be enforced through
foreclosure proceedings carried to decree and
sale, and that upon such foreclosure and sale,
the said railway and property Will not bring,
by reason OF its arbitrarily diminished earning
capacity, a sum equal to the amount OF 1ndeot-
edness secured by said first mortgage, thus
leaving no property or surplus with which to
discharge the obligations due by the Central
Pacific Railroad Company to the intervenors as
hereinbefore stated.
The intervenors show that the effect and
operations OF the action OF said defendants, in
accordance with their resolution hereintofore
set forth and threatened, Will be to deprive the
intervenors of their property rights and in
terest in said Central Pacific Railroad and the
intervenors aver that they would be so de-
prived of said property rights and interests
without due process OF law, and III violation OF
the constitution and laws OF the United States
The intervenors further aver that, prior TO
the election of said defendants, Hugh NJ. La
Rue and James l. Stanton. as members OF said
Board of Railroad Commissioners, each OF said
defendants was nominated as q candidate 10
the electors OF his respective district by the
State convention of one of the leading pOliti-
cal parties within the State of California; that
in the platform adopted by said convention
there was contained the following resolution
and pledge, TO wit:
"Resolued That the charges for the transport
tatlOn or freight in California by the Southern
Pacific Company of Kentucky and its leased
lines should be subjected to an average reduc-
ton of not less than 25 per cent, and we
pledge our nominees for Railroad Commission
ers to make this reduction"
That said platform was indrosed and said
resolution and pledge were accepted and con-
sented TO by each of said defendants as
nominee as aforesaid of said convention, and,
as the intervenors are informed and verify
believe, neither OF said defendants would have
been so nominated by said convention except
upon condition that said platform, resolution
and pledge had, prior to such nomination,
been so Endorsed, accepted and consented to by
him; and each of said defendants did present
himself for election to the electors OF his re-
spective district upon said platform and said
pledge therein contained, and did publicly rep
resent and declare, as an inducement to secure
his election, that if elected he would subject
the charges OF said Southern Pacific Company
upon Its leased lines, including said Central
Pacific Railroad in California to the reduction
specified in said pledge; and that in conse-
quence OF said pledge and inducement taken
and offered as aforesaid, as the intervenors
are informed and verify believe and therefore
aver, the electors of their respective districts
were induced to and did elect said defendants,
La Rue and Stanton, to their said offices as
members of the Board of Railroad Commits
sioners of the State of California; that by
reason of the promises said defendants, La Rue
from acting as me mbers of said Board of Rail-
road Commissioners in determining or fixing
the rates OF freight TO be charged or collected
upon said Central Pacific Railroad in Califor-
MIA.
And the interyenors aver that the actions of