The San Francisco call., 1898-05-01

 OF THE END Southern Pacif1c'S Suit Over Grain Rates Near
 ing a Crisis. Replication Filed and Notice Given That Testimony
 Will Be Oral. A Matter Soon to Be Settled Which Is of Interest to the Entire

Attorney Herrin of the Southern Pa cific Company yesterday filed with the clerk of the United States Circuit Court the Southern Paciflc's replica tion in the suit to restrain the Railroad Commissioners from fixing a reduced schedule of rates
 This suit had it's beginning In an or der of the Board of Railroad Commis- sioners, dated September IT, 1855, whereby the grain rates over the lines of the Southern Pacific in California were reduced 8 per cent. on the 10th of October in the sane year. the Southern Pacific Company filed a suit in equity in the United States Circuit Court against the commission, which had for it's object the annulment or the order as adopted, and to restrain the commission from putting any order into force looking toward the reduc- tion Of any rates then charged for the transportation of freight within the State.
 On the filing of the suit temporary restraining order was granted prohlp- iting the commission from adopting any order whereby the rates for trans portation of freight would be reduced.
 The suit Jagged along until Novem- Der, 1896, when Judge Mckenna, who was at that time on the Circuit bench, made a further order continuing Tn force that part of the previous order which related to the action already ta- ken by the commission reducing the rates on grain, but holding that the Board of Commissioners had the right to enact orders reducing freight rates within the territory over Whlch they held jurisdiction, after satisfactory examination of the books, earnings, expenditures and general financial con- dition of the road Cn which the reduc- tion was to take place. Such order Of the commission, however, must always be subject to the approval or prop erly qualified court.
 From the date of McKennas decision the suit has been dragging along be- fore Judge Morrow in the Circuit Court, going through all the long course of technical chancery proceed ings that are necessarily before that stage can be reached where the issue can be squarely put to the front and decided one way or the other.
 Answers, exceptions, answers and more exceptions were passed back and forth until at last the last technicality had been disposed of and all that re- mained was for the Southern Pacific Company to file it's replication and bring the matter squarely to a head. This the railroad did yesterday, and now it only remains for the day of hearing to be set by the court. The railroad has given notice that it will move to take testimony orally instead of by dispositions and other written statements as is customary in most chancery proceedings.
 The case is one that should excite widespread interest throughout the State, as it's result will be of vital inn portance to every farmer, fruit man and shipper who has a pound of goods to send over the lines of the Southern Pacific.
 Tomorrow at 1 o'clock the Railroad Commission will meet to commence it's examination of the financial condition of the Southern Pacific roads, in order to comply with the above mentioned order of Judge McKenna, and thus lay the proper foundation for a general re- duction of the freight schedule on all the roads operating in the State. It is expected that by the time the com- mission shall have completed it's la bors the public will have obtained more extended knowled of railroad workings in a little while than 1t has acquired during all the years that have intervened since the two oceans were first connected.