The herald., 1896-12-01
The State Commission is a
Legal Body
BUT THE CUT RATES DON'T GO
As Southern Pacific Earnings Are So
Very Small
Santa Fe Factions Are Still Struggling
to Discover Court That Enjoys
Unquestioned Jurisdiction.
Associated Press Special Wire

SAN FRANCISCO, Nov. 3O--Judge
McKenna of the United States circuit
court today delivered his long awaited
decision in the important case of the
Southern Pacific company against the
state board of railroad commissioners,
involving the right of the commission to
restrict freight rates over the company's
lines in this state. Each side claims
victory in the decision, which comedies
the right of the commissions to make re-
ductions in rates, but makes a perma-
nent injunction against the commission
ers, restraining them from making an
8 per cent reduction in grain rates, on
the ground that the profits of the South
ern Pacific did not justify that cut in
rates.
The commission adopted resolution
reducing the railroads schedule of grain
rates 25 per cent. Thereupon the rail-
road brought suit in the United States
court for an injunction restraining the
commission from interfering with it's
rates. The raiiSSad complaint denied
the right of the commission to restrict
rates, alleging that the power was vest
ed in congress alone.
Judge McKenna's decision today was
that the railroad commission is a legal
body, and that it's powers we've not only
judicial but legislative. 1t has the pow
er not only to adjust rates, but to enforce
it's DEGREES.
The Southern Pacific is a corporation
doing business inthis state and is clear
| 1xy 80
mission. The Southern Pacific is there
fore subject to the rulings of the COM
mission, and the court declared it i'm
possible to conceive how any other view
could be taken.
The court also decided that the COM
mission had Jurisdiction over a corpor-
alton, whether local or foreign.
On the question raised by the Southern
Pacific that two of the commissioners
were ineligible to reduce rates because
of their ante-elction pldgs to rduce the
rate, Judge McKenha decided that can
didates had right to make such pledges,
which did not constitute any ineligibil-
ity. The decision. which took three hours
to read, concluded by making rArmanent
the injunction against the commissioners
from enforcing the first reduction of 8
per cent in freight rates on the ground
that the reduction was excessive con-
sidering the earnings of the Southern
Pacific. The court dissolved the injunc-
tion against the commissioners on the
rs per cent reduction resolution, on the
ground that 1t was not a final act, but
was equivalent to declaration of inten-
tion.
The effect of the whole opinion is that
the whole case is left for future final de-
termination should that become ncessa-
ry. On investigation it was probable
that the commission would not find the
cut necessary.
The order of the court was that the
order staying the execution of the com.
missions resolution be continued until
further order from the court and that
the restraining order should otherwise
be dissolved.
The order staying the execution of the
commissioners referred to in the courts
conclusion was as to the eight per cent
grain reduction. Should it insist on its
position as to this it will have to make
out another case before the court. This
the commission will probably do. The
continuance on that point was left for
a trial of the case on permanent injunc-
tion.
AS it has taken year to get decision
on the temporary injunction. the end
in case of permanent injunction pro-
ceedings, it is thought. would be far off.
There is a probability that the commits
sion may change its order and lower the
amount of the eight per cent reduction.
SANNTA FE SUITS.
TOPEKA, Kas., Nov 3O.--In the Santa
Fe receivership case in the United States
district court to determine whether the
district court of Jefferson county or the
federal court shall have Jurisdiction,
Judge Foster today announced that the
matter will be re-argued tomorrow, and
that Judge Thayer, of the circuit court
of appeals of st, Louis, will sit with him.
Judge Foster said that decision in
wolves not only the Santa Fe company,
but question of conflict between state
and federal courts. He believed the
matter could not be too carefully con.
sidered.
ATCHISON EARNINGS.
CHICAGO, Nov. S0.1The net earnings
of the Atchison system for the month IF
October were $1,0S6,343, an increase 1f
$154,436 over the same month of last
year. The net earnings for the four
months of the fiscal year ending Octo-
ber 81 were $3,170,065 an increase of ST.
252,6ss over the same period of the pre-
ceding fiscal year. During the four
months operating expenses were re-
duced $68S,126.