The San Francisco call., 1899-05-14
OF
heVendlCOm-
mission IS Ex-
posed.

ordS show, that up to the present time
there has been expended in the trial of
this case more than $43 900 and that to
conclude it and take it through the courts
of last resort will require a further ex-
pendtture of at least $67 900.
Should we press the cause with due
diligence, in my own opinion, it would re-
qu1re at least the remainder of our term
to bring it to a final conclusion And
then what would be the result so far as
we are concerned? 1t would be- If we won
the case, to have the court declare that
an per cent reduction on grain was Just
fair and reasonable and that the schedule
made in pursuance thereof should be en-
forced as of the date of its service upon
the Southern Pacific Company, which
would run back to period six or seven
years prior to the date of Judgment
In view of these undoubted conditions
existing at this date, and to inevitably
result in the future, is it our duty, repre-
senting the State and exercising a sound
discretion as the agents of the State to
make this extraordinary expenditure
without any compensatory result, which
undoubtedly, in my opinion, would be the
case?
l believe that | am justified in calling
your attention to the fact that it is COM
mon report and undoubtedly the fact that
in nearly all the great grain raising sec
tionS OF the State of California grain
rates have been reduced since the adop-
ton of the resolution in question to an
amount far exceeding a horizontal cut of
s per cent. The truth is, as l have been
credibly informed that in the San Joa-
quin VALLEY in some instances grain rates
have been re uced 90 per cent, and in all
parts of the valley an amount much in
excess of per cent. | am also credibly
informed that in the Sacramento Valley
grain rates have been reduced voluntarily
by the Southern Pacific Railroad Com
pany, in many instances to an amount
equal to SO 1-3 per cent. So that you see
that if these conditions exist and these
statements are true it would be folly on
the part of the commission to further con-
tinue this litigation.
| am advised by eX-Railroad Commits
sioner La Rue, and also by one of the
special counsel of the commission, that
the Southern Pacific Company made an
oral proposal to Mr.. La Rue to eompro-
mise the case. The offer, as [ UNDER
stand it to have been, was that the South
ern Pacific Company would dismiss its
suit in the Circuit Court, on condition
that the Railroad Commission would re-
peal that part of the resolutions reIat-
ing to a. % per cent reduction of all freight
rates, it being understood that the com
pany would submit to the per cent re-
duction of grain rates as of the date of
the resolutions. The objection was made
by the commission, as L understand it,
that the said proposal to compromise was
not in writing, and therefore, and for
that reason only, no action was taken on
said offer of compromise. l understood
Mr.. La Rue and the other members of
the board to say that had said offer been
in writing, they would have accepted
it and settled the case on the terms pro-
posed.
The Southern Pacific Company has not
renewed said oift1 to the present COM
mission or any member thereof as far as
1 am advised Neither has the comm.s-
sion ever suggested to the Southern Pa
cific Company, or its counsel, that it was
willing to compromise the case on the
terms proposed to Mr.. La Rue. Such a
settlement as 1 view the case, since be-
coming familiar with it, and in view of
the changed conditions with relation to
grain rates as above set forth would
not, in my opinion be to the best inter
ests of the grain rate payers in this
State. Wherefore, and as a conclusive,
final and effective solution of the whole
question, provided the same can be le-
gally DONE it seems to me that the whole
resolution covering the per cent grain
rate reduction, as well as the % per cent
genel i horizontal cut, should be by the
COnlInlSSlOIl dl OLCt Itpctiou anu EeSCiUO-
ed. thus leaving the commission free to
adopt rates. based upon present condi-
tons and to adjust, if possible. the nu-
merous complaints constantly coming be-
fore the board of Determinations of
freight and passenger charges. This is
to my mind manifestly the only course
to pursue so that the hands of the com
mission may be united, and it can for it
self take the responsibility of putting
bo constitutional and
tory provisions of the State, as Judge
McKenna has most clearly defined them
to be- Respectfully submitted,
N BLACKSTOCK
II was not to be expected that Will
liam F. Herrin would permit such opin-
ions to go before the public. Although
Rlackstock had proved himself sub
servient to the Southern Pacific he had
in this original report, with a desire to
serve his railroad masters, unwittingly
presented their case in the very man
ner they did not wish. Blackstock is
ANYTHING but clever, and when the
foregoing part of his report was sub
mitted to Herrin Immediately there was
a slashing and cut of pages and a new
report. Herrin changed words, phrases,
opinions He eliminated that which he
wished. He inserted the vitally impor-
tant proposition, which is palpably un-
true. that the hands of the Railroad
Commission will be tied as long as the
grain case is in the Circuit Court.
Herrin changed in this part of the
report the whole aspect of the case He
laid the foundation for the ridiculous
proceedings taken before Judge Nor
row. With the craft of his trade he
expatiated on the expense and time
which it would cost to continue the
case in court. He eliminated every fact
which even his Railroad Commissioner
had been forced in common decency to
admit comparison between what
BIackstock originally wrote and what
Herrin forced him to sign will show the
Southern Pacific Company absolutely
trapped in one of the most audacious
pieces of villainy yet exposed.
The published report, in it's conclud-
ing passages, which mean the revision
of Herrin, reads as follows:
Another important matter decided by
Continued on Second Page.