The herald., 1896-11-19

would refuse to yield, StdndlnS On tne
expectation that Judge Foster Of the
Federal court would assume jurisdiction
of the case. His authority. resisted by
the railroad people, the receivers re-
course would be to ask Judge Myers
for an order calling out the posse COM
itatus to help him to take possession of
the property Such an order would au-
thorize the sheriff to summon every
male citizen in jefferson county If neces-
sary to put the receiver in possession of
the railroad. Then Judge Foster, pre-
suming that he would assume jurisdic-
ton, would order the United States
Marshal to appoint an army of special
deputies to enforce the processes Of his
court. Then the sheriff could call upon
the governor for the state militia and
the United States Marshal, in turn, could
appeal to the secretary Of war for troops
and thus bring on a collision between
the state and the federal governments.
Nobody looks for anything of this kind
to happen, but Assistant Attorney Cen
eral Goddard says there is ample room
in the case for it, and should the two
courts and the parties in interest become
of the case, miniature war would re-
suit. But it is likely that after a little
furry Of excitement, sober second
thought will come and the case will be
settled without even coming to a hear
ing on its merits before any court.
A DECISION EXPECTED
SAN FRANCISCO, Nov. 1S.-Within a
day or two, or at most within week,
Judge Joseph McKenna of the United
States circuit court will probably hand
down his decision in the case Of the
Southern Pacific company against the
board of railroad commissioners Of the
state of California.
This suit, involving some Of the most
important and interesting questions ever
brought before tribunal was instituted
early in October, 1895, went to trial on
the 10th of December of the same year,
and was submitted for decision May goth
of this year. The action was brought to
prevent the railroad commission from
reducing the grain rates Of the COM
plainant per cent.
1t was contended on the part Of the
corporation that certain language in Sec
tion 20 of article XII. of the state consti-
tuition defining the powers and duties
of the commission, rendered that body
unconstitutional.
On the part of the state, represented
by Attorney General Fitzgerald, ex-
Judge Hayne and w. w. Foote, it was
argued that complainant had no stand
ing in court. First, because it's leases
of the lesser corporations comprising the
Southern Pacific company were void, as
corporation franchises granted by con-
gress or by legislature could not be
transferred without the consent of the
granting power; and, second, because
the consolidation of all the interests of
these lessor corporations was in VIOLA
ton of section 20 of articleXII. of the
state constitution.
Judge McKenna has therefore four
great points to decide: Are the leases
of the railroad company held by the
Southern Pacific company valid, in view
of the laws requiring the sanction of the
grantors in making transfers of proper
ties operated under franchises? Is the
Southern Pacific company legally con-
stituted corporation. in view of the state
constitutional provision against combi-
nations by comllon carrier corporations
Is the railroad commission constitu-
tional body? Are the grain rates estab-
lished by the commission just and rea-
sonable?
The real merits of the issue lie in the
latter proposition, and before the court
comes to this it will have to pass on the
other three questions in the order men,
toned. What most concerns the peo-
pie of California, however, is the status
Of the commission, for should all the
other questions be decided in favor of
the railroad company and the constitu-
tionality of the commission be upheld,
there would still remain the machinery
for bringing relief to the shippers of the
state.
1t is the general impression among
the legal profession who either heard or
| read the arguments in the case that the
constitutionality of the commission will
be sustained.
A SALE CONFIRMED
CHICAGO, Nov. 1S.-The sale of the
Chicago and Northern Pacific was con-
firmed by Judge Jenkins in the United
States court this afternoon.
The decree of confirmation agreed to
by all parties to the litigation recites
that the road is sold to the committee
of the bondholders for the sum of S.
100000. The decree gives the road to the
purchasers subject to the mortgage Of
the city of Chicago for $3.50, 600 and the
mortgages securing 1890, 900 of the bonds
of the Chicago and Great Western rail-
road issued in 1886.
It is admitted that the reorganization
has in it's control 2S,661 of the bonds and
that there are outstanding 1914 bonds
The purchasers have paid into the court
$4,000, the amount due to the owners
of the 1874 outstanding bonds. Three
months time is given for the filing of
all claims that may have priority over
the mortgage, and the United States
Trust company of New York is made the
depository for the cancellation of the
bonds.