The San Francisco call., 1899-05-15
THE SECRET RAILROAD DossIER.

to the grain case, called, pending before the
Circuit Court of the United States, is prosacay as
founding and reveals such shameless corruption upon
the part OF the principal counsel for the railroad and
Commissioners Blackstock and Laumeister as moth
ing but the experience of the last thirty years would
accredit The fact that through its false assertion of
its complete withdrawal from politics last year, the
railroad was enabled to handle both sides of pending
litigation would be in itself insufferable degrada
ton But the proof now furnished that William F.
Herrin actually dictated not merely the treacherous
action of the two Commissioners controlling the pro-
ceedings of the board, but the very terms in which
their corruption ultimately expressed, transcends
all the revelations of which there is any accessible
record.
Commissioner Blackstock, in his report first pre-
pared, evidently supposed that he accomplishing
the purpose for which he elected But in framing
argument to sustain his contemplated misconduct
his asuteness was not equal the exigences OF the
situation. The railroad in invoking the equitable as
sstance Of the Circuit Court of the United States
it constituted when the suit commenced, had
rendered issues OF the comprehensive character
going the foundation of the powers of the Railroad
Commission and which, if sustained, would have
bound the State hand and foot. In its bill OF COM
plant only the horizontal reduction of IS per
I cent assumed to have been perfected far the
commission had the right to act, but the entire rail
road schedule treated SO completely fair and
reasonable and generous to the public and so
parsmonous toward itself that it was beyond any
possible interference even though the plenary author
ity OF the commission had been conceded The Com
missoners, moreover under the guidance of their
able and faithful special counsel backed by the Attor
ney General OF the State raised Questions affecting
the validity OF the attempted concentration OF railroad
interests in the Southern Pacific Company OF Ken
tucky and asserted the existence OF fictitious and
fraudulent elements in the basis adopted by the rail
road, upon which fair and reasonable returns upon
the investment to be computed. When the or
gina Injunction was restricted to the grain rates,
which covered reduction OF per cent, Judge Nc
Kenna acted upon the affidavit of the Railroad Com
missoners then office to the effect that the resolu
ton altering the horizontally had not been fol-
lowed by schedule, which necessary for its COM
pletion, and that there existing intention OF
further proceedings in that direction.
Notwithstanding the modification of the provisional
Injunction however the issues offered by the railroad
remained in the case for trial and for decision. When
Commissioner Blackstock framed his report he was
not sufficiently comprehensive to satisfy the railroad
on the proposition that all the questions embraced
in the litigation except that of the grain rate had been
completely settled That question had become COM
paratvey unimporant, the competition OF the San
Joaquin Railroad and other influencing hunt
ngton's policy, had led to voluntary reductions,
which as we understand the fact, amounted the
average about per cent In this report also Com
missioner Blackstock prominently alluded to oral
application for compromise made to the commission
by the railroad some years ago, the substance of
which was that if the 25 per cent resolution
scnded the railroad would dismiss its suit. Finally
he suggested that the entire action OF the commission,
as previously constituted, embracing the per cent
grain rate should be repealed and the present COM
mission be left footoose deal with the question OF
rates de
The expurgated and revised edition of Commission
er Blackstocks report nodded by William F. Herrin
suit the wishes OF the railroad duplicates much OF
the original but is designed: First show that,
der Judge McKenna's decision the provisional in
junction the commission was effectuay and perma-
ently estopped from raising the vital PROPOSE
tons that naturally arose under the bill of complaint
as filed; second to avoid the necessity of any explana
/ ton OF the surreptitious attempt to compromise,
which the railroad declined to formulate in writing,
although requested to do so by Commissioner La
Rue and the special counsel OF the Commission third
that there was nothing left in the but the grain
rate of 8 per cent which had become mmaterial and
superfuous and, fourth, that the enormous expense
OF trial justified the commission in sacrificing the
$4,000 already spent. In this way the ground was
cleared so that the foundation might be laid for
in which the whole work would have to be repeated
The central point that the suit before Judge Nor
row was to be ended by the commission ITSELF with
out any apparent participation upon the part OF the
complainant and the railroad hands united SO that it
might proceed with fresh aggressions upon the rights
and the interests of the public
A reflected light is thrown upon this treacherous
and infamous conduct by the repeated declarations of
Mr.. Huntington that the railroad traffic would have
to pay the entire Indebtedness of the Central Pacific
Railroad Company finally adjusted with the Fed
eral Government But far more disgusting than any
matter of dollars and is the proof that in this
State and in this country is possible for the sancty
OF the courts be invaded without their connv
ance and both sides of great legal controversy, in
volvng the deepest principles to be controlled by
railroad attorney using the virtue of hospitality as
cover for the crime of official infdelity sworn duty
to individual pledges and to the vital necessities of the
commonwealth.