The record-union., 1899-04-07
Railroad Commission Litigation.

(From the San Francisco Post.)
In September, 1895. the State Rail
road Commission, in pursuance Of its
regulative authority, passed a resolution
declaring that freight rates on the lines
of the Southern Pacific Company. in
California should be reduced % per
cent; that grain rates should be re-
duced 8 per cent from the then existing
rates. The resolution promulgating
this action was offered as a single res
though Chairman La Rue ruled that the
provision relating to the general reduc-
ton of % per cent and the grain rate
reduction were separable, and should
be voted upon separately Under this
ruling the three Commissioners voted
in favor of the 8 per cant reduction of
grain rates. and La Rue and Stanton
voted for the general % per cent. re-
duction. Commissioner Clark voting in
the negative.
Against this sweeping reduction the
Southern Pacific Company obtained an
injunction, issued out of the United
States Circuit Court, and, after a
lengthy and exhaustive hearing and ar
gument, in which Commissioners La
Rue and Stanton appeared by affidavit,
disclaiming any intention of making
any general reduction until further in
vestigation, Judge McKenna decided
that the per cent. grain-rate resolu-
ton should be enjoined, although the
Commissioners were free to make and
promulgate further schedules if they
saw fit. 1t will be observed that the
injunction against the per cent. reduc-
ton was in effect a decision against
any reduction of other rates.
In defending this litigation, the Com
nMssioners expended and incurred liabil-
tiles to the amount of over $4,000, and
the present Attorney General, after due
investigation, published careful re-
port, addressed to the late Legislature,
declaring that it would require S67 900
to be expended on the part of the State
to continue the litigation to final de-
cree.
In view of these facts, the present
Commissioners passed a resolution re-
scinding the entire resolution adopted
by the board in September, 1895, includ-
ing the s per cent. grain-rate reduction,
to which was added a proviso that al
the next meeting of the board, April
10, 1899, the commission proposed to
promulgate a schedule of grain rates,
making an average of per cent re-
duction from the rates in force in Sep
tember, 1895.
1t is evidently the intention of the
commission to free itself from the dis
advantages of the proposed horizontal
average reduction Of 20 per cent, and
to start where the former commission
should have started, by a single reduc-
ton OF the grain rates. In this way the
present commission, if it encounters any
opposition, will have a case of its own
making and will be able to take advan-
tage of the experience in litigation OF
| the past commission
| Before taking this action the whole
matter was submitted to Judge Black
stock, a member Of the commission
who. after due deliberation, submitted o
report to the board, from which the fol-
| lowing is an extract:
| / am further advised, as appears
| by the records and by the report Of
| the Attorney General to the Assem-
| bly,, that up to the present time
there has been paid and incurred in
counsel fees and expenditures in
this case more than $4,000 the
| counsel fees alone amounting to
more than $33 GOO, and it further
appears from like sources that the
future costs and expenses of this
litigation will be at least SCI, COO,
$4,000 Of which will be required as
fees for experts and $30, goo as fees
! for special counsel
| It is evident that the present comm. s.