The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-07
THE RATE WAR OPENED.
Beginning of the Contest Be-
tween the People and
Railroad.
PoNDEROUs AFFIDAVITs READ.
The Southern Pacific and the Commits.
sioners Now Before Judge
McKenna.

After numerous delays and an extraor-
binary amount OF difficulty over legal
technicalities the injunction suit OF the
Southern Pacific Railroad Company
against the Railroad Commission in the
matter OF new freight-rate schedule was
begun in the United States Circuit Court
yesterday morning before Judge McKenna
The matter, already SO widely published
and discussed and involving affairs Of
tremendous moment to the people of the
State, brought out distinguished gather
ing of lie al lights and a comfortable crowd
OF others, who were also interested in the
issue. Few expected that the case would
begin without some more preliminary
skirmishing, but they had an agreeable
disappointment in store. Everything ran
along from the start with admirable
smoothness, although Robert Y. Hayne
tried unsuccessfully to secure brief delay
The request was denied and the great con-
test was soon well along in its first stages.
The proceedings were begun in the room
usually occupied by the United States
Court OF Appeals Attorney W. II. Herrin
was early on tn ground prepared to show
what sort OF rights the railroad company
desires acknowledged. With him were
Lawyers CARRIER and j. C. Martin. Attor-
ney-General FITZGERALD was supported by
". W. Foote, Robert Y. Hayue and John
c. DAILY
H. S. Foote, the United States District
Attorney, was present representing the
Government as intewenor. The only
member of the Railroad Commission who
appeared was Chairman La Rue.
When court had been convened Attor-
Hauna Of 60 tho OIL
Commissioners addressed Judge McKenna
upon the matter of a continuance.
"1f the court please" he said 1--WE must
ask that this amended bill of complaint be
stricken from the record If We are to pro-
coed with the case to-day. TWAS not filed
until last Saturday and we have not had 4
reasonable time in which to prepare our
selves in regard to it. Ii it is admitted at
this iuncture we must ask your Honor for
a delay of at least two weeks. u
There have been quite a. number of
delays already" Judge McKeuna replied,
land none further can be granted. The
court has accomm odated its business to
this case three times and cannot further
inconvenience itself and other liteaRts
who have a right to be heard in their
proper ORDER
Attorney Herrin explained that, so far
as the complainant was concerned, there
had been no intention of introducing into
the case any new matter with which the
defendants were unacquainted. There
was nothing OF a new character in the
amended bill of complaint he said, for,
in effect, it was simply compilation or
com bination of the points in the original
com plant and in tn amendment pre-
viously introduced. 1t was designed to
show the financial condition of the lines
operated IN California as apart from those
III the system outside of the State Mr.
ole I'D H.
amendment to which there now was OBJ
lection had been submitted in due legal
course and in proper order, and to the
manner OF its Introduction there had been
no protest.
At this time the court suggested that
the amended bill might be Withdrawn for
a time without any prejudice to the
privilege of the complainants TO introduce
it again. Mr.. Herrin was not disposed to
adopt this suggestion and asked if it might
not be permitted to remain with the
agreement that he would make no use of
1t IN proceeding with the suit until the de-
tense should have ample opportunity to
become familiar with its features
The Railroad Commission lawyers Wig
orously objected to this proposition, and
Judge McKenna again suggested that the
best thing to do would be to withdraw the
amended complaint for awhile. While
upon this subject the court limited rather
pointedly that it might be wise thing if
the attorneys for the railroad com plainants
acted upon his suggestion. He declared
that II 1t were not withdrawn he was not
sure that he had the right to order it
stricken out, but he did know that he
could dissolve the temporary injunction
which he had already granted the COM
plalnants. This put new aspect on the
matter and the amended bill of complaint
was promptly withdrawn.
he Wiz bo
plaintiff corporation original bill of COM
plant by Mr.. Herrin. The bill was a
paper OF ponderous proportions and the
reading consumed a good part of the
morning session. The bill set forth the
amount of the railroad company's bonded
and other Indebtedness, the interest paid
annually the cost of operating the sv stem,
and innumerable other items affecting the
financial condition of the corporation.
This was followed by a recital OF the vari-
Gus reasons because of which the court is
asked to restrain the Railroad Com mission
erS from reducing the freight rates to an
extent that would, it is alleged, materially
iniure the business of the railroad com
pany.
The complaint then went on to tell that
the roads now being operated by the
Southern Pacific Company, including be-
sldes It's actual property its various leased
lines, are being conducted, and have been
Tor years, on the most economical plans
possible. Particularly had a very great
regard been nantes ed for the rights con-
yenience and safety of the travelling pub
lie. The proposed reductions, the COM
plant reads, would reduce the income of
the company Ito such an extent that its
lines could not be conducted properly.
The number of miles of road and the
statement of the company's bonded in
debtedness, the annual interest and oper-
ating expenses, were also touched upon in
an amendment to the complaint proper.
In the amendment it was also set forth
that the receipts of the system in Cali
fornia for the year 1894 showed an excess
over the expenditures of $434, 497 05. Had
the proposed reduced rates been in force.
however, during the year 1894 the total re-
ceipts would have been reduced by at least
81, 1000, which would, of course, have
made a deficit of over 81, 800 900.
The company's legal representative then
referred to the charges made some time
ago to the effect that Railroad Commits
sioners La Rue and Stanton had taken a
pledge before their election to reduce rail-
road freight rates. This action on their
part, he declared, hao disqualified them
from acting as mem bers of the Railroad
Com mission. The objection was also made
to Commissioner La Rue that he is a
heavy simmer of frnjpbt ard boo nov