The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-03-21

TT was in the above quoted words that
Railroad Commissioner Blackstock, at
the meeting of the Railroad Commits
, sion. Yesterday, proposed to surrender
10 the Southern Pacific Company the
fr7,its of three years Of expensive Huga-
ton undertaken in behalf Of the farmers
merchants and shippers of this state.
This language was part of the report he
submitted to his colleagues, and its sub
stance was subsequently embodied in a
formal resolution, action on which was
deferred until to-day.
If this resolution is adopted 1t will give
TO the railroad corporation even more
than it had the audacity to ask In Its
overtures for compromise with the pre-
decessors of the present commission.
H. NJ La Rue, the chairman of the for
mer board, stated, and his assertion has
not been contradicted, that an offer was
made TO him on behalf of the Southern
Pacific by W. H. Mills to settle the pend
ing controversy on the following terms:
The Southern Pacific Company would put
into effect the s per cent reduction on
grain rates, and would dismiss its suit
restraining the action of the Railroad
Commission, if the latter would agree to
forego any action on the % per cent gen.
eral horizontal reduction resolution.
1t is claimed that the railroad made this
proposition in order to escape the ordeal
of having its books and papers brought
into court and its affairs and business
methods thrown open to The public, as
would be the case If the litigation were
pressed to a conclusion in the courts
Those familiar with the situation hold
that such a ventilation and investigation
would probably result in demonstrating
that the commission would be justified in
making radical rate reductions all along
the line, and that it is this danger which
the Southern Pacific has been desperately
seeking to avoid for the past three years.
BY the resolution of Commissioner
BlackstOCk the terms of this proposed
compromise are not only accepted but the
corporation is exempted from the effects
OF the per cent reduction in grain rates
throughout the State.
The reason assigned by Commissioner
BlackstOck for his extraordinary reSolu-
ton is that TO continue the litigation
would be a inter of great expense to the
people, while the saving to the grain
shippers would not exceed 900 a year.
Commissioner Blackstock had been ap-
pointed a committee of one to Investigate
the pending litigation regarding the per
cent reduction OF grain rates and the pro-
posed 20 per cent reduction of general
freight rates ordered by the last board.
He submitted his report yesterday. After
q complete review of the present status
of the case he presented his resolution
providing for the abandonment of the Iiti-
cation and requested that immediate ac-
ton be taken upon ii.
Commissioner Laumeister while ex-
pressing himself in favor of the rescind-
ment of the % per cent general horizontal
reduction, was opposed to the repeal OF
the resolution passed by the previous
board inasmuch as II related to the per
cent reduction on grain rates. He asked
Tor a postponement of it's consideration.
Commissioner Edison expressed himself
in similar strain, and thought that time
should be allowed himself and his col
league TO consider the report of Mr..
Blackstock in all its essential points. The
latter rather unwillingly agreed to the
postponement, and his argument in favor
OF his recommendation will be heard this
afternoon.
The report in part is as follows:
So far as this case is concerned, it appears
that the only material question presented is as
TO whether or not the per cent grain rate
schedule. promulgated by the commission ie
fair, just and reasonable. 1t is matter OF
common knowledge. and undoubtedly the fact,