The San Francisco call., 1896-04-16
The Attorney Asks Why Califor-
MIA Must Pay for Other
States.
THE JUDGE ASKS FOR LIGHT
A Judicial Amende Honorable the
Sequel to a Few Moments of
Private Talk.

Still achieving, still pursuing, Attorney
Hayne keeps on arguing in the Southern
Pacific case before Judge McKenna of the
United States Circuit Court. He shows no
sign of weakening or firing, and will prob
ably not conclude before the end of the
week, if indeed then. Yesterday he read
an extract from the late Senator Stanford S
testimony in relation to the combination
between the Central Pacific Railway and
the Southern Pacific Company. The testi-
mony was TO the effect that the com bina-
tion had ''all the advantages OF pooling
contract" and that its main or rather its
only purpose was the staving off of any
thing like competition between the two
roads.
Are we children" asked Mr.. Hayne,
'9hat we should now believe this combine
to be a simple lease when the president of
the company testifies under oath that it is
not?'
The case of the San Diego Water Com
pany against the San Diego Flume Com
pany was cited to show that merely par
tial restraint of business competition may
be permitted, in case that the combination
whereby the restraint is brought about be
not formed for the purpose of unduly IN.
creasing rates paid by the public for a
commodity or privilege of public nature.
The decision, he contended, was not ap-
plicable TO the case at bar, and should not
have been cited by the counsel on the
other side. The present case, he said
dealt with combination, not, as in the
San Diego case, to furnish water or any
thing else to one city, but to control the
entire railway traffic of IN entire State.
II believe" interposed Mr.. Pillsbury,
"that there are about twenty railways in
the State which are not owned by the
Southern Pacific Company"
Yes" rejoined Mr.. Hayne, wheeling
about and facing his interlocutor, land
fine railways they are, aren't they? Per
haps you refer to lines like the Marin
County affair; and then some sawmilIs
have railroads of their own. But these
are not worth mentioning or taking into
account in this case. If they were the
Southern Pacific Company would have
swallowed them up long ago.
Nov, as to unlawful combinations" re-
sumed the eloquent barrister, taking leave
of Mr.. Pillsbury with a crushing glance.
"a com bination may be unlawful either
by reason of its purpose or by reason of
the means which 1t EN- ploys to achieve a
purpose in itself lawful The Southern
Pacific Company, by a mere agreement
among Its head officers, has no right to set
itself up before the public as the manag-
ing board of 4 hospital, of church or Of
anything else than transportation COM
pany."
Couldn't it run a cemetery" ?" inquired
Mr.. Pillsbury.
81 concede that point" answered Mr..
Hayne. 'The railroad kills great many
people, and there would seem to be GER
tain propriety in its having place to put
them after ii had finished them.
Now, returning to the matter of uri-
lawful combinations between corporations,
I contend tbaf ha foSt IN,
and the decisions which l have cited form
a mine OF facts from which we are forced
TO deduce that the combine between the
Central Pacific and the Southern Pacific is
unlawful IN its ends and purposes and ut
terly unlawful in its methods
LAS to the California business of the
company, 1t is not rash to state that the
California traffic yields the railway fully
so per cent of its annual earnings, the
transcontinental traffic bringing in a very
slim 20 per cent. Now the railway folks
say that the transcontinental traffic does
not pay to any appreciable extent, and in
many States it does not pay at all. Hence
they essay to raise rates in this State in
order to recompense themselves for loss
incurred in other parts of the country
This IS most unj just and iniquitous at
tempt. Ii California is to be responsible
for the expenses of traffic in other States
then she ought to be able to have some
tulIS W say dDOub the Otl6rWlSe
one State would have the right to paw its
debts and discharge its obligations by put
ting its hands into the pocket of its neigh
Dor. II the company wished to build a.
road to Alaska, surely we in California
ought not to be obliged to paw it's ex-
penses."
Il would like to ask" interposed Judee
McKenna, ''what would become of Cali
fornia if she did not share in the expenses
OF the transcontinental railway. If the
through line were discontinued our State
would be isolated from the remainder of
the Union. The railway is not altogether
State affair, since it passes through a
number OF States. May it not be consid-
cred as a whole and its rates calculated
from the earnings of the entire system Pr
eff that principle were recognized, 4"
answered Mr.. Hayne, "where would it
take us?'
'It is who am asking the question, +"
said the Juuge. 1--WE have to decide this
case in accord with the principles of law
] only ask how you think an interstate
railway can be operated unless Its rates be
calculated upon the earnings OF the whole
system? Could it pay its expenses? Could
it be run at all ?"
There are too many railways now," re-
joined Mr.. Hayne. "a railway should
not be built unless it can pay on the
places through which it is to pass. One
State ought not to pay the railway fares OF
another"
a long discussion between his Honor
and the mercurial barrister ensued,
wherein each displayed a strong desire to
find out what the other was driving at,
but the effort on both sides met with only
Indifferent success. Mr.. Hayne read a
long extract from an opinion of Justice
Deady, contained in the Twenty-Five
Federal Reporter, which he contended
had direct bearing upon the case before
the court. A compromise between him
self and the Judge was at length effected,
neither side yielding point, and his
Honor promising to read the decision
quoted and find out for himself what it
really deciaed.
Mr.. Hayne concluded by saying that it
would not be right to 90 out of the State
in order to calculate local rates for Cali
fornia. However, in case external busi-
ness were taken into account in estimating
rates charged in California. the entire out.
side earnings would have to be taken INTO
consideration. The steamship lines. leased
and otherwise, the Mexican Central Rail-
way and all the other paying ventures of
the Southern Pacific Company should at
least aid California in bearing the burden
OF recompensing the company for losses