The San Francisco call., 1896-04-15
ATTORNEY HAYNE
AND HIS RABBIT,
The ExJudge Closes Every
Hole and Then He
Nabs Him.
IS THE LEASE INVALID? ?
Continuation of the Argument
in the Southern Pacific
Case.
SOME GOOD POINTS SCORED.
A Number of Cases Cited to Fix the
Range of Corporations
Rights and Powers.

Ex-Judge Hayne resumed his argument
before Judge McKenna of the United
States Circuit Court in the case of the
Southern Pacific Company against the
State Board of Railroad Commissioners
yesterday morning, occupying the entire
day. He devoted himself almost entirely
TO the consideration of the lease of the
Central Pacific lines 10 the Southern Pa
citic Company. he contended the lease
was invalid and hence no lease at all, and
furthermore that one corporation could
not merge another into it without the con-
sent of the power which brought both into
existence. This, he contended, had not
been done in the case at bar. The lease
could not be held to be a lease, but only
business contract between two corpora
tions.
In the afternoon Mr.. Hayne resumed his
argument.
"1n this case we are confronted by the
fact of an agreement" he said, 'and that
agreement is to the effect that division
of earnings was to be made between the
Central Pacific Railway and the Southern
Pacific Company, in virtue of which per
cent of the latters earnings should b.
turned over to the former. Now the South
ern Pacific Company actually did the car
y
right, then, has the Southern Pacific Com
pany to share its earnings with the Central
Pacific?
In the case of Richardson against
Drew, the court laid down the principle
that monopoly in trade or business is op-
posed to the interests of The people. 1t is
called destructive alike to Individual COM
petition and prosperity. All com bina-
tions for cornering the necessarles of life
and arbitrarily fixing their prices are there
said to be formidable menace o the pub
lic good. 80.
against the Standard Oil Company, it ap-
pears from the opinion that monopolies
are to be generally regarded as opposed to
! the spirit and letter of the common law
A society having its own laws and rulers
and having under its control com modities
or rights necessary TO the WELL being of the
public, cannot be upheld by the law. This
! was the principle which actuated the SUI
preme Court of Ohio in striking down the
Standard Oil trust.
at is one thing for the State to protect
the rights and properties of individuals or
corporations" continued Mr.. Hayne
quoting from decision of the New York
Supreme Court in the orth River sugar
trust, but it is quite another matter for
courts to recognize, or much less create.
artificial privileges for persons or aggrega-
tions OF persons"
I. r,
''but does not the New York Supreme
Court in that case distinctly refrain from
deciding that the com bination was lille
gal?"
No, sir" retorted Mr.. Hayne, hotlv,
as he proceeded to read on; cant you see
that the whole tone of the opinion is op-
posed to monopolies?'
Still, persisted Mr.. CARRIER, ''it seems
to me as though the court in that case re-
fused in express terms to pronounce uoon
the legality or illegality of the monopoly"
Then why do they pronounce upon it.
as they do in the other part of the opinion?
Why don't they say what they mean?
They ought to, anyhow"
Mr.. CARRIER, by no means satisfied,
started to look up the decision quoted by
Mr.. Hayne, and having found it, one Of
his associates started in to read it aloud.
II protest against this interruption. "
said Mr. Hayne. "If any one who may
wish can interrupt the argument, | shall
never get through. If the court wishes to
see the decision it can be read at any time
in private
'You may proceed, Mr.. Hayne," OBJ
served the Judge, with half smile at the
attorney s 1mpassioned plea for immunity
from interruption.
'In the case of the Texas Pacific Railway
against the Southern Pacific Railway
continued Mr.. Hayne, Ia com bination
for the purpose of strangling competition
was held TO be adverse to the public good
and out OF harmony with public policy.
There Is tendency among corporations
even though they may hate each other, to
combine, where there is prospect that by
so doing they may be able to corner the
public. This tendency is mischievous and
dangerous. Such mbinations are in
themselves bad, and menace to the pub
lie, even If not positively invalid What
ever may be done by such q com bination
whether good or evil. is not to be taken
into account by the court The com bina-
ton itself is bad thing, ana decided by
many courts to be opposed to the common
law"
II would like to have a definite idea as
to the manner III which you regard this
contract between the two lines" inter-
! posed the Judge. "Do you call it a lease ?'
81 don't know what to call it." replied
Mr.. Hayne. 1T is like nothing in the
heavens above. or the earth beneath or in
the waters under the earth. don't see
why | should be the one to baptize such
disguised service. 1t is a bad thing any-
how and there is no salvation for it ire
spective of baptism.
Now the true rule in this matter is to
be found in the case of the Oregon Naviga-
| ton Company against Windsor"
Nv hat were the facts in that case ?" in
quired Mr.. CARRIER.
II haven't the case here" answered Mr..
Hayne, but know it has some bearing
on this case. The decision is rendered by
Mr. Justice Bradley, whom consider one
OF the great Judges of the country"
II am happy to concur with you on that
point" remarked Mr.. CARRIER. II refer.
you understand, to your dictum in regard
TO Justice Bradley"
81 am delighted to have your indorse-
ment, rejoined Mr.. Havne, with be-
witching smile and a courtly bow. He
then proceeded to quote large number of
citations, all of which Mr.. CARRIER carefu lIv
noted down.
I'm considering the points laid down in
these cases" he commented, "the court
must endeavor to penetrate ali disguises
and subterfuges and see the facts as they
are. If an act of a corporation be ultra
wires, and if this lease, or whatever it NAV
be called. be such an act, and furthermore
subversive OF public policy, it ought to be
considered void under every respect. |
Judge Sawyer has maintained that an act |
ultra wires in the strict sense; that is to |
say, without the range of the corporate |
powers, such an act is to be held absolutely |
void. II any of the acts of the Southern |
Pacific Company have been OF this nature