The San Francisco call., 1899-05-15
La Rue's Caustic Language
on Attempt to Dismiss
Grain Rate Cases.
MILLS MADE PROMISE
But the Southern Pacific Company
Avoided Putting It's PROPOSE
tion in Writing.
rx-RA1LRoAD COMMISSIONER

LA RUE was seen at his Sacra-
- mento home last evening by
representative of The Call, and in the
branded in his most vigorous Ian
guage as an outrage upon the people
of this State the efforts of the South
ern Pacific to have the grain-rate
cases dismissed through the agency
of the company's creatures on the
Railroad Commission Laumeister
and Blackstock.
He read the expose of Mr.
Herrin's manipulations in The Call of
yesterday morning and was familiar
with every phase of the case. Con-
corning the statement made in the
original report on the cases, made by
Blackstock and suppressed by Her
rim, to the effect that he had informed
Blackstock that the railroad had ap-
preached him with a proposition to
dismiss the grain-rate cases provided
the commission would recede from it's
20 per cent resolution, he said that
he had been so approached on behalf
of the company by William n. Mills;
but he denied ever having so in
formed BlacksUock
Mr.. La Rue's opinion of this latest
job of the railroad and his evidence
in the case is best told in the wired
report of the interview had with him
in Sacramento, which follows:
SACRAMENTO. May 14.-said ex-
Railroad Commissioner La Rue when
asked tonight by The Call CORE
spondent for statement with reference
to the story appearing in to-osv.s can
fastening the authorship of Black
stocks grain rate case report upon w
F. Herrin:
consider the proposition to dismiss
this grain case one of the greatest ou+-
RACES ever perpetrated upon the tax
payers of California The questions in
vowed IN that case relate TO the power
or the Commission to reduce or estab-
hsh rates not only now but in the fr
ture. They are questions which must
be settled some time, and thev were in
fair way to settlement when the pres
ent Railroad Commission decided to
ask for withdrawal of the litigation
thus resembling the action of the former
Commission
Between $4,000 and $40 0cO of the peo-
pies money had been expended in the
prosecution of the matter and there was
fair assurance that we would win.
Naturally it was to the railroad
company's advantage to have the cases
dismissed, since. had it lost it would
have been liable for many thousands of
dollars in damages.
"Other questions than the mere right
of the Railroad Commission to enforce
reduction were involved. For one
thing, the legality of the leases under
which the Southern Pacific of Kentucky
operated the variously named divisions
in this State would have been de-
termined. OF course, it was to the in
terest of the railroad company to avoid
an issue with such vital consequences
to it,"
Mr.. La Rue said that he did not re-
member ever having spoken personally
to Blackstock upon the subject Of the
grain rate case as related in Black
stocks report. What statements he did
make, he said, were made before the
entire board.
about a year before the expiration
Of the term of office of the former
board" continued he, Attorney Pills
bury, who represented the Hubbard
Searles interests in the East. said tha.
his clients were tired of the litigation
and that he would like to arrive at
settlement. Nothing, however. ever
came of this.
Last year w. H. Mills of the
Southern Pacific Company came to me
and stated that his company was tired
of the litigation, and was willing to
dismiss the injunction suit and put the
s per cent grain reduction in opera
ton, provided the Railroad Commission
would withdraw the resolution favoring
an eventual % per cent general reduc-
tion on freight rates.
II called on Judge Hayne of counsel
for the Railroad Commission. and we
discussed Mills proposition. / thought
it would be a good thing to accept it
since by that means we would gain all
we desired.
Judge Hayne thought favora bly, IF
the proposition and / then had a meet
| ing with Mr. Mills, stating that If he
would put his proposition in writing I
would bring it before the board ills
answered that it was all right and that
he would have the company put in
writing its agreement to dismiss the in
junction suit and accept the per cent
reduction on grain.
Il saw no more of him for ten days.
when he informed me that the company
had decided not to put the proposition
| in writing, but that one of the railroad
attorneys would see Attornay-Ge
| Fitzgerald and arrange the matter with
him
subsequently Attorney General Fitz-
gerald informed me that he had never
| been approached upon the subject. I
stated these facts to the Railroad Com
mission about January 1st last 1 never
! had any talk with Blackstock on the
subject that l can remember
| Mr. Mills was very nice in making
the proposition, but when he was asked
to put it before the board in writing he
failed to act; the railroad company
never made the proposition to the board
| direct1