The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1895-10-16
THE COMMISSION RESTRAINED.
Appeal of the Railroad Company
to the Courts.
Attempt to Deprive 1t of Its Property
Without Due Process OF
Law Resisted.

As stated in the telegraphic reports In
the RECORD UNIoN yesterday morhlhg'
the Southern Pacific Company, through
its attorney, w. +. Herrin, Oh Monday
began proceedings in the Unlted oIa'es
Circuit Court to prevent the reduction III
freight rates recently ordered by Inc
Board of Railroad Commissioners OF TINS
State. a temporary restraining ofoei
was granted by Judge Mchenha, which
will prevent the new tariff going lhto
effect until next Monday. when the COM
missioners must appear in court anu
show cause why the temporary ORDER
abould not be made permanent, and the
railroad company be permitted 10 retain
its present transportation charges.
The petition, or bill in equity, as IL Is
termed, is a voluminous document, anu
gives complete and clear statement OF
the claims of the corporation. Ills accom-
nanied by affidavits signed by President
e.. p. Huntington, Secretary hllnke, W.
q. Curtis, assistant to the manager, 7. L.
Smurr. General Freight Agent, ana j. a.
Stubs. Third Vice President, who verify
certain of the allegations contained IN the
petition.
The petition opens with history OF the
Southern Pacific Company, showing lis
organization and Incorporation under the
laws OF kentucky. 1t Is shown that the
corporation has pald-up capital STOCK Oh
$40, 934 40, distributed among lou snare
holders, and operates lines OF railroads III
all parts of the Pacific Coast Ii also
gives the amount OF outstanding Indeot-
eduess of each of the lines owned or leased
by the corporation on which interest Is
payable annually.
Under the terms of the various leases
the company is required TO operate ana
maintain the roads in good repair al us
own expense, pay taxes thereon ana pay
interest on the large bonded Indebted
ness In order to enable the company 10
oDerate the railroads, and to secure 10 II
the possession and use Thereon, tne Claim
is advanced that 1t is necessary thai It's
income therefrOm should be su1nclenl 10
pay the cost and expense OF the malnleh-
snce thereof, and OF It's service. OF lne III
terest on bonded Indebtedness. ana Dc
entitled TO some compensation for the use
of the property.
Extended reference is made to the IN
terstate commerce laws. The company
states that for long time past its inter
state commerce has been transported by
it at rates fixed and promulgated under
the Act on all freight and passenger
traffic arising and transported over the
roads exclusively in the State OF Calltor-
MIA il has been transported at rates estaD-
lished by the Railroad Commission. In
Oregon the rates have been liked by the
Oregon Railroad Commissioners. With
reference TO the rates in this State the pc
tition says:
That the rates SO fixed and charged by
the company upon freight arising and
transported entirely within the State OF
California are now lower, both actually
and relatively, than the rates 80 hXed
aud charged upon freight arising and
transported entirely within either OF the
other States or Territories mentioned.
That all OF said rates, when so estab-
lished, were no more than sufficient TO
enable the company to operate said rail-
roads as aforesaid, aud so remained down
to the commencement OF the year 1874.
That in said year an unusual depression
in business occurred, and the freight and
passengers offered TO the company for
transportation over said railroads were
SO reduced in quantity and number that
the company was unable from the income
derived therefrom, at the rates aforesaid,
10 pay the charges, costs and expenses
necessary for the conduct of its business
and the security of It's property, as here
III before set forth.
That said business depression has
continued TO the present time, aud there
is no indication that it Will be relieved,
or the volume of freight and passenger
traffic being increased during the present
or the next ensuing year; and the COM
pany is informed and believes, and there
fore AYERS, that said business depression
will not be relieved, or such freight and
passenger traffic be increased, during The
present or the next ensuing year.
2"The company further shows that from
time TO time reductions have been made
in its rates of freight on various COM
modities transported by it over the said
railroads SO operated 10y it. wherever the
same has been possible, fair or reason
able, so that there has been gradual and
constant average reduction in its said
rates of freight for more than six years
last past, and that the revenue per ton
per mile derived by the company from
the freight transportation by it for the
period commencing January l, 1889, down
to and including the 50th day of June,
1895, was as follows, 10 wit:
Revenue per ton per mile for 1889,
81 90; revenue per ton per mile for 1890,
81 So; revenue per ton per mile for 1891,