The record-union., 1899-04-08
LITIGATION AND THE RAILROAD
COMMISSION.

We published yesterday a fair, full
and calm statement of the facts con-
cerning the litigation relating to the
exercise of powers of the State Rail-
road Commission The lucidity of the
statement was such that there can be
no possible misunderstanding of the
matter
The late commission adopted a reso-
luton that freight rates on railroads
should be reduced % per cent, sweep
ingly. horizontally, and that grain haul
rates should be reduced per cent. Be-
cause of this manifest injustice the
Southern Pacific Company applied to a
Federal Court for relief, and the COM
mission was restrained by the court
in the face of the declaration of a ma
jority of the commission that it was
not intended to effect the % per cent.
reduction until after further investi-
gation-from enforcing the 8 per cent.
grain rate reduction. Practically this
decision amounted to holding against
any reduction of other rates.
That,litfgation cost the State something
over S43,0 200, and to further pursue it
the Department Of Justice says will cost
concerned. AS a result of this knowl-
edge of the facts the present commits
sion has rescinded the resolution of the
old board in its entirety taking in the
8 per cent. reduction on grain rates.
With that action was an accompanying
declaration of the intention of the COM
mission to adopt on Tuesday next a
schedule of reduction on grain rates
averaging S per cent. from the rate in
force in September, 1895. This pre-
sents the, facts as they appear of rec
ord, and concerning them there can be
no manner of misunderstanding
A member of the present commission,
no which the whole subject had been
committed, reported to the body that
1T could either go on with the pending
litigation, or get rid of it and begin
anew, making such changes as justice
would warrant. In the first case The
litigation would not probably be con-
cluded during the term of the commits
sion, and in the meantime the injunc-
tion restraining the board would be IN
effect. The reason, then, for. the action
of the board.in proposing to clear away
the old resolution and cut free from
the litigation referred to is perfectly
clear and obviously sound.
But though the wisdom of the action
taken is undeniable, though it is justi-
fed by every economic reason and by
the plain terms of justice, there has
been made against the commission the
charge that its recent action was In
spired by the Southern Pacific Com
pany, in order to enable the company
to be rid of the litigation, the history
of which we have recited. But that
concealed prejudice is perceived from
the fact that the company has shorter
road to that end by dismissal of the
proceedings, it having been the pro-
moter of the court proceedings. This
disposes of the charge In one sweep.
1t is familiar history that early in
the litigation the Southern Pacific Com
pany proposed to the commission that
II it would rescind the horizontal and
sweeping % per cent. reduction resolu-
tion, and cease effort in that direction,
the railroad company would submit to
the 8 per cent grain rate reduction.
Nothing came of that, and the litiga-
ton has gone on with constantly aug
menting cost, in the taking of testi
mony and the pay incurring of counsel
fees, the Southern Pacific Company
steadily expressing itself as perfectly
confident in the justice of it's cause, and
that it will, if the litigation is contin-
ned, secure judgment as prayed for
against the commission.
Incidental to the litigation a question
was raised concerning the validity Of
leases to the Southern Pacific Company
of the several railroad lines operated
by it. But that issue was settled by the
decision of the court that it could not
be raised because the commission hav-
ing recognized the validity of such
leases was estopped from denying It