The San Francisco call., 1899-05-21
RAILROAD STRATEGY.

State or to Messrs. Foote and Hayne, the special
counsel who have represented the Railroad Commis-
sion and on its own motion dismissed the grain-rate
case There was no possible opposition to the mo-
ton when presented behalf OF the railroad itself,
+ but in a case OF such magnitude in which large pub
lie interests were involved it would have been in
cordance with usage for the courtesy OF notice to
/ be extended In that case, however, the Attorney
General or Messrs Hayne and Foote, possibly all
three might have been present, and the reporters
would certainly have been there 1t was more con
sjstent therefore with railroad methods, for the
expected to happen and for OF its strategic points
to be made and one OF its gross frauds consummaed,
when immediate comment or the suggestion OF awk-
ward questions impossible
The public will observe that litigation COM
menced by the railroad and in which the State has
expended fully forty-three thousand dollars has ended
without the settlement OF any issue it embraced and
alter had accomplished its only real purpose, so tar
as the complainant was concerned 1t will be noted,
also that this result would not have been attained
except through dishonest couson with the majority
OF the present Railroad Commission Messrs. Black
stock and Laumeister. The exact facts should be
recoected that the full measure Of responsibility may
be exacted.
The Railroad Commission in 1906, consisting OF
Hugh NJ La Rue. James l. Stanton and William X.
Clark was not controlled by the railroad 1t adopted
resolution making a horizontal reduction in rates OF
q per cent which was never carried into effect By
resolution and by schedule also, ii used its tull
powers to reduce grain rates by 8 per cent The
Southern Pacific Company sued in the Federal court
and in its bill OF complaint and accompanying aff-
davs covering forty-seven pages OF print, broadly
challenged the right OF the commission to touch its
rates as established by itself which alleged to be so
lust as to disarm even criticism 1t also forth its
various leases OF the railroads constituting the system
under It's control and annexed exhibits copies OF
article MI section D. OF the State constitution,
bracing the provision for fine OF $4,000 and for
convictions OF officers and employees following a
iusal to obey the schedule OF the Railroad Commls-
sioners and the imposition OF different rates the
under which the board was organized and its duties
specified and the statute OF Kentucky, with a sub
sequent amendment, which the basis OF its own
incorporation.
The Railroad Commissioners, through the Attorney
General and their special counsel, filed afidavits in
reply and resisted the sweeping restraining order that
Judge McKenna had granted which held the COM
mission in a wise and the equally sweeping prov-
sional injunction that demanded The argument
on this part OF the lasted for months and went
to the root OF the long pending controversy between
the railroad and the State As printed its apportion
ment between counsel for the complainant and
counsel for the Commissioners was fol-
lows: Attorney General Fitzgerald, $50 pages;
Robert y. Hayne. 6o5 pages; E. S. Pillsbury, 332
pages; William F. Herrin, I3I pages, and John Gar
Der, 644 pages
This was an extraordinary development OF great
issues upon mere application for temporary in
junction and on both sides evinced determination to
bring the controversy in all its phases to definite
and final result The universal opinion throughout
the State-and indeed throughout the Union-was
that for once the railroad had squarey met the claims
OF the Railroad Commissioners and that the decision
in its suit would permanently adjust its relations with
the public
Judge McKenna avoided the decision OF some of
the larger points, reserving them for the final hear
ing, and simply granted temporary injunction re-
straning the execution OF the grain-rate schedule
most elaborate and complete answer to the bill of
complaint was filed, signed by the Attorney General
as the solicitor and by Robert Y. Hayne and w. w
Foote as counsel for the Commissioners. After the
hearing OF exceptions and other dilatory proceedings
the issues to be decided were settled Under the
equity practice the testimony had be taken in the
form OF depositions and some idea OF the magni-
ude OF the work done in the production OF the proofs
may be derived from the fact that the evidence ac-
ualy introduced covers 1854 type-writteh pages OF
which 625 are the direct and cross examinations Of
C P Huntington
Alter lapse Of nearly three years, when the po-
utCaI contest OF 1896 commenced IN TINS State, the
main controversy was almost ready for trial and not
4 whisper had been heard to the effect that the rail
road had been playing with the Commissioners and
deceiving both them and the people. But the cir
cumstances had altered and the Southern Pa
cifc Company dare not meet the struggle it had de
berately invited In relation to the Central Pacific
Railroad Company it had to satisfy its stockholders
and its bondholders and it also fotced to pro-
vide for the payment OF the Indebtedness the Fed
eral Government By continuance OF its mpositions
upon trade, commerce. manufacture and all the other
industrial elements OF a commonwealth rapidly TAX
ing foremost rank in the Union. Among other
facts shown by the evidence that its estimate OF
railroad property for the purposes OF taxation in
round numbers about one half OF its estimate for
the establishment of Just and reasonable rates For
the latter object It's appraisement little more
than $4I,ooo per mile and it evident either that
it not contributing its fair proportion of
that it was literally pltnderinp its unwilling GUS