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14 GRIDIRONS THE FOUR RAILROAD MAGNATES Caustic Comments of| Judge Thompson on the Stanford Case. | i AN ANALYSIS OF THE j ARGUMENTS. ' Believed That the Government Had a Good Case Against the Original Stock- ■ holders. i HISTORY OF THE COMPANY REVIEWED. i , „ According: to the Writer the Found ers of the Corporation Were a Set of Reckless Pirates. ' _____ — — ' "A bolder and more reckless set of pi- j rates never scuttled a ship or cut a throat," | is the way Judge Seymour D. Thompson j speaks of the four "co-adventurers" who \ founded the Southern Pacific system. The decision of Judge Ross in the Stan- j ford case has elicited a good deal of lively i comment in legal circles, but nothing so j terse, trenchant and driving approaches , the notes on the case published by Judge j Thompson in the Aujrust number of the i American Law Journal. The writer possesses one of the keenest I and most forcible legal minds in the coun- ! try. When Judge Thompson's name is found as the author on k leather-covered j lawbook that book Is an authority by the : profession. He is now engaged in fin- ! ishing the monument of his life work, j "Commentaries on the Law of Corpora- ' tions," so he knows what he is talking about when he discusses the pleas of the Kentucky corporation. j The Stanford case, arguments and all, | and the railroad's position under th« law, j have never received such a pen-jabbing as he ha; given them In this article covering i twenty pages. Withal the work is done in ' a calm, judicial way; no pen-thrust is ; thrown away, and each one covers the j point arrived at in an artistic, easeful and forceful way. In a square, manly way the writer tells ■ why he differs in opinion with Judge Ross j on nome of the main points raised in the issue. On more than one occasion Judge Thompson has been led in his writings to express some very forcible opinions on the deoisions-of the Supreme Court of Califor nia. In the present'article he pays that tri bunal the usual caustic, left-handed com pliments. The article is full of biting bits of sar- . casm, one of the sharpest being on the i argument, "Judge Ross deciding in favor j of Mrs. Stanford on a ground neither raised | by the demurrer nor discussed by Judge I Garber in his argument." After quoting Judge Ross' decision in ' the railroad case, Judge Thompson goes i on to nay : "Judge Ross stands high In the profes- i sional and public estimation on the Pacific i Coast. We share in that estimate of his character and talents. We nave often had | occasion to refer to his decisions in terms j of commendation. But we are in this case ' unable to foliow his reasoning to the re sult which he reaches. We have regarded ' the question as a very important public question, and one suitable to be discussed in a public journal. We have, therefore, investigated 'it with some care, in the light of a collection of rules and principles ap- i plied by the courts in determining the lia bility of stockholders in corporations, ] which rules and principles are familiar tons. "The result was that we came to the conclusion that there was no doubt what ever that the United States would succeed in enforcing the liability of such of the stockholders of the Central Pacific Rail road Company as were stockholders at the time when the indebtedness of the com pany to the United States was created, so far as the estates of those stockholders are still amenable to legal process, provided the law were only enforced. At the same time we predicted that the law would not be enforced. We now renew that pre diction. This "language implies a very firm predilection in our minds as to what the law governing the case really is. If anything could shake it it would be the opinion of such a Judge as the one who has now decided the case to the contrary, after the fullest argument and the most thorough and careful consideration. '•His conclusion is not, however, to be judged by the arguments which he has ' heard, nor by the time consumed by him j in preparing his decision, but by the rea- i sons which he gives for that decision. And we submit to the profession that those reasons are entirely untenable. "Judge Ross proceeds, in the first place, on the proposition that the individual lia bility of stockholders for the debts of the corporation is always & creature of statute. This is a disputable proposition. : .;. - "The true theory of that immunity from liability to pay the debts contracted by their agents in their behalf is that it is in the nature of a franchise, which immunity does not exist, in the absence of an affirma tive grant of "t from the Legislature. Such an affirmative grant is indeed implied from the grant of the franchise of being a corpo ration, and it is said that the individual liability of stockholders is always a crea ture of statute, because when the Legisla ture desires to negative the implication it generally does so by a statutory provision. "Behind it all, however, there remains the proposition that, since the exemption from individual liability is a franchise granted by the Legislature, the exemption does not exist unless the Legislature has the power to grant it. Bnt there never has been an hour since California was a State during which its Legislature had the power to create a private corporation with limited liability. This power is excluded oy the following provision of the first con stitution of California: 'Each stockholder of a corporation, or joint stock association, shall be individually and personally liable for his proportion of all its debts and lia bilities. "The Legislature of California could not, i if It should attempt to do so, in the face of | this constitutional provision, create a pri- ] vate corporation of limited liability. "This makes the proposition that indi vidual liability is always a creature of stat ute totally inapplicable to the subject un der consideration. — - ■ . . "The next proposition decided by Judge Ross is that this provision was read out of the constitution of California in 1864 in its [the court's] decision in the case of French v&. Tesche maker, and he holds that decision binding upon him in this case. It is true that the Supreme Court of California did decide in that case which was not a railroad case — that this provision of the constitution of California was not self-enforcing because of its indefiniteness and because the same constitution contained another provision in the following language: 'Dues from corporations shall be secured by such indi vidual liability of the corporators and other means as may be prescribed by law.'. . "This decision is so extraordinary, so utterly opposed to common-sense, that it has not met with much favor in other jurisdictions. * * * lie true construc tion was to give effect to the positive and distinct mandate, and to give effect to the other clause by construing :t as an addi tional enabling act empowering the Legis lature, not to cut down the Hftbility al ready commanded, but to impose an addi tional liability if it should see tit. The liability explicitly commanded was a pro portionate liability; the Legislature was by the other section empowered to go fur ther and to make them liable as full part ners in solido, each answerable for all the drb's, if his private estate should be so larjre. just as the stockholders of the Glas gow Bank were answerable. "If it be replied to this that no matter how absurd — no matter how unworthy of respect the decision of theSupTerae Court of California may be — yet, as it is a decision of the highest tribunal of that State, constrn ing the constitution of that State, that, de cision is binding upon the courts of the United States, tlie answer is that there is no rule making it absolutely binding upon those courts. * * * "The principle that the Legislature of California could not by statutes enacted after the contract under consideration was made put the stockholders of those rail road companies in a worse position than the contract had placed them is stated by Judge Ross in his opinion, though the statement involved a misapplication of the principle, for all the legislation in ques tion is plainly remedial. "But waiving this and assuming with Judge Ross that this subsequent legisla tion is not remedial, and consequently that the Legislature of California had no power to enact it so as to make it apply to the rights of the Central Pacific stockholders, yet he overlooks the correlative propo sition that what the Legislature of Cali fornia cannot do against the Central Pa cific stockholders the Supreme Court of California cannot do against the United States. • * * The decision in French vs. Tescbemaker, under the constitution of the United States, could no more be allowed to strike clown the rights of the United States, vested under the pre vious contract, than an act of the Legisla ture of California could be allowed to have this effect. Nor can this conclusion be evaded by merely calling one kind of State action legislation and the other kind in terpretation. "If the interpretation is absurd, contrary to the plain reading of the constitutional provision under which the rights of the United States became vested, then the Su preme Court of the United States wili not, by following that interpretation, 'immolate auth, justice and law. The writer then dissects the case of French vs. Teschemaker and says it was an action brought by certain taxpayers to enjoin the Board of Supervisors from issuing city and county bonds in aid of the Western Pacific and the Central Pacific Raiiroad Company. The issue was author ized by the Legislature on the express cbn ditionthat the city shall not be liable for any of the debts and liabilities of said companies. The railroad companies were already largely in debt and the taxpayers feared they would be involved to a greater ex tent than the subscription for the bonds. "The case was, of course, decided in favor of the railroad companies," goes on the writer. "That is to say the court decided, under the statute, the liability of the municipal corporation could be waived, provided any person, in giving credit to the railroad company, would expressly stip ulate in the contract to waive it. "The Judge who wrote the opinion in this case, on quitting the bench in 1869, went into the service of the railroad company and died in its service. "But assuming that Judge Ross is right in the foregoing proposition, his third Eroposition tnat the Central Pacific stock olders are not liable, under the provisions of the general railroad law of California enacted May 20, 1861, and consequently in force when the contracts in question were made and when the indebtedness was created by the issue and delivery of the United States bonds, is clearly untenable, and there is no decision of the Supreme Court of California in the way of a Federal tribunal holding the Stanford estate liable under thia statute." After quoting the Jong statute, the writer Bays: "It will be seen that Judge Ross simply reads the statute out of existence and does it on the authority of French vs. Teschemaker. Not that French vs. Tesche maker construes the statute, but because Judge Ross finds this statute 'to be little more definite than section 36 of article IV of the constitution, and no more definite than the provision contained in section 32 of the act concerning corporations passed in 1850, which was held by the court in French vs. Techemaker to be insufficient to give a reasonable and practicable opera tion to section 36 of article IV of the con stitution of 1849.' " "We cannot see wherein the above statute is indefinite for any purpose con nected with the suit of the United States brought to charge the Stanford estate. It seems to us to be very explicit and definite on all essential points. We are not now addressing the legal profession of Califor nia; they have become used to judicial decisions reading statutes, and even con stitutional provisions, out of existence. We appeal to our professional brethren throughout the country generally, to know whether the above statute is not just as definite and certain as similar statutes which have existed in New York and many other States which the courts have en forced without difficulty. • • • "But not content with reading the statute out of existence,£the learned Judge dis covers another ground for reaching the same conclusion, in the conception that the acts of Congress under which the sub sidy bonds were issued were emergencies, and that they 'unmistakably show that no personal liability of the individual stock holders was contemplated, either by the United States on the one side, or the rail road companies and their stockholders on the other side.' * * • In the thousands of cases relating to the statutory liability of stockholders, decided by the English and American courts, not one can be found advancing such a doctrine; and even the decision in French vs. Teachemaker is to the contrary. "Authorities need not be cited to the proposition that all public grants are con strued most strongly in favor of the Gov ernment and against the grantees, and that a doubtful charter or other public grant does not exist, because whenever it is doubtful the rule in question resolves the rule in favor of the Government. Columns of adjudications could be cited to thia effect. Therefore, even if the grants embodied in the acts of Congress under consideration were doubtful and ambigu ous with respect to the point under con sideration, this rule wottla resolve all such doubts in favor of the United States. "But they are not doubtful. Not a line, not a word, not a hint is found in them which suggests the idea of a purpose on the part of the United States to release any security to which it was entitled under the existing law. The argumentof the learned Judge is a pure structure of his imagina tion. Public rights are not to be given away to private individuals UDon such vague and imaginary conceptions. ''In one portion of his opinion Judge Rosa goes into some of the public history connected with the building of this conti nental railroad not directly referred to in the bill. If he had extended his researches downward through the public history he would have discovered that the four co adventurers who had received the aid from the Government began by 6windling the Government through a. false representa tion made to a committee of Congress as to the distance at which the foothills of the Rocky Mountains commence from the city of Sacramento, out of double the amount of aid per mile that was really due under the terms of the statute fora con siderable number of miles; that they im mediately organized an outside corpora tion composed of themselves for the pur pose of building the road by contracting with themselves in the form of a railroad corporation at a price enormously in ex cees of its real value, paying themselves in the bonds of the United States issued under the statute,ana issuing to themselves stock composed of pure water, and for which no value was ever fixed by them; that they paid themselves $34,000,000 THE SAN FRANCISCO CALL, TUESDAY, OCTOBER 8, 1895. in dividends upon this stock; that they expended nearly $5,000,000 for purposes which their president, Leiand Stanford, refused to disclose on oath, which pur poses were not disclosed by any vouchers and which expenditures a Congressional committee reported as having been proba bly made in influencing legislation ; that ihey persuaded the Government to release its first statutory rnortgp.pe and take a pec ond lien, in order that they might better carry out their purposes: Ihat instead of making a further provision for the repay ment to the Government of the prin cipal and interest of the subsidy bonds, they depleted the revenues in the building of branch lines, and that they have finally leased it to a fraudulent corporation, or ganized by themselves in tne State of Kentucky, having no property there and never intending to have .any property there, and none of its members living there and never intending to live there, which corporation now holds it in its grasp, wears out its rolling stock an.i slowly strangles it to death; and that, on the other hand, they oppressed the com merce of California with extortionate charges and exorbitant freight contracts in a manner that cried shame to the people of the whole United States. "A bolder or more reckless set of pirates never scuttled ship or cut a throat. It is to such men that the rights of the United States are to be given away on such rea sons as those disclosed by the opinion under consideration." FRESNO RAISIN PACKERS The Story of the Shameful Treatment of the Girls Confirmed. Labor Commissioner Fitzgerald Very Angry at the Conduct of Bonner & Co. Labor Commissioner Fitzererald is very angry on account of the treatment of the forty-five women and gtrls sent by him to work in Bonner «fe Co.'." raisin-packing establishment at Fresno. Last. Thursday he sent the women to Fresno to fill an order and the account of their sufferings was publi?hed in Sunday's Call. The girls upon arriving at their destina tion found, contrary to their expectations, that no provision had been made for their board and lodging. For several days they almost starved to death, subsisting entirely upon raisins. At last they appealed to a Catholic priest, who started a subscription and provided for their immediate wants. The girls were unable to earn over 60 or TO cents a day packing raisins, being inex perienced in that line of work. The com pany refused to pay them anything until the amount of their railroad fare, $4, which was advanced by the company, had beon made good. Mr. Fitzgerald yesterday said: In sending those women to Fresno I made particular inquiry as to the standing and re sponsibility of Bonner & Co. This company's San Francisco agents is the Williams-Brown Fruit Company of 116 California street, and the man from this firm told me and told the women what they would receive for wages. He said that the women could earn from $1 to $1 50 a day, and that, as the packing-house ia in the town; the packers could get cheap food and lodgings. I made a more direct inquiry and sent this letter: September 27. Messrt. Charles O. Bonner & Co., Fresno— Gentlemen: In reply to your telegram of to day I answered by wire, "Tuesday morning, special rate $4 in lots of fifty." The reason I say Tuesday morning is that to-morrow (Satur day) is a half holiday with us, consequently all arrangements for shipping these girls will have to be on .Monday. Kindly send me full particu lars as to the wages and accommodations which these girls may provide themselves with in your city; also as to their probable net earn ings, in order that they may know exactly what they are to expect. Please do not exag" gerate in any particular, as I prefer the disap pointment upon this end and not in Fresno. Awaiting an early reply, I have the honor to remain yours truly. E. L. Fitzgerald, Labor Commissioner. The answer was on the line of the agent's statements, and the women and girls were sent last Thursday. I was Intending to send fifty more, but I will not. I am surprised that a firm such as Bonner & Co. is represented to be should treat any one as these girls say they have been treated. "They are a fine and highly respectable set of women. The firm should have paid them at least enough to pay for their food and shelter. As soon as I read Thk Call 1 telegraphed to a lady 1 who was to some extent In charge of the women and giris for particulars. I just received a reply, in which she wires: "Highest wages earned was 00 cents. Will be in San Francisco to-morrow evening and give you full particulars." This confirms the published account of the various troubles, and the whole affair is a mat ter of profound regret to me, as I was very par ticular in selecting the packers to send to Fresno. I did all in my power to protect the women before sending them out. I would not have been more surprised if 1 had learned that Bonner & Co. had clubbed the women than to hear of the shameful manner in which the women and girls have been treated. GUNS UNDER THEIE VESTS. The White Divorce Cbi« and In- cidents Connected There with. The Supreme Court decision on Mrs. White's $100,000 lump alimony is long overdue, but she is waiting with every confidence that the lower court's award will be confirmed. For ten years the White divorce case has been in the courts, and everything written about the cattle king's affairs has been read with interest. Mrs. White has been waiting for her $100,000 for months. She expected it Saturday, and days before, and she looks for it to-morrow and the days following with the same confidence. The three months allowed the Supreme Court for filing a decision have passed some time since, and the receiver and deputy receiver are look ing after the cattle king's property in terests in the mountainous districts of Mendocino. They carry guns up there and the job of the deputy receiver is not a pleasant one, as Mr. Downs explained in The Call last Friday morning. Clarence White, Mrs. White's brother, who killed "Wylackie John" on the steps of a Justice's courtroom in Covelo, carried a gun. He carried it in front, just under the last button of nis vest, so says Mrs. White, and "Wylackie John" had his in his hip-pocket. As young White was about to enter the court room John made an insulting remark and reached for nis gun at the same time. Clarence was too quick for him and "Wylackie" sleeps 'neath the daisies. "That was only an instance," said Mrs. White yesterday. "They all carry re volvers, and when I read that article in The Call, which contained my exact words, by the way, I made the re mark that some one else would be shot sure. It may be that I am unnecessarily timid, but 1 nave lived among them up there and have reason to fear violence where those unacquainted would see nothing to occas ion their apprehension." Mrs. White is borne out in her state ments by Deputy Receiver Downs, who had the nerve to invade the cattle king's stronghold after being told by reputable citizens of Ukiah that he would not come back alive. "They all carry guns up there," he said, "and the most of them have them in front, where they can get at them handily. But, 'I went, I saw, and I conquered,' as the quotation goes, "and I lived to get back." In the case of "Wvlackie John" it was found his gun caught in the lining of his pocket while he was trying to get it out to shoot youn« White. At present Clarence " hite is more feared than any man in the county. He has a ahooting reputation, Charles I of England was styled the Martyr, from the manner of his death. The same title was given to Edward martyr of England and to Louis XVI of Fiance. A VENUS FOR THE STAGE Marion Nolan to Make Her Debut in Society Plays at New York. AMBITIONS BEYOND POSING. The Girl Whose Beauty Has Made Her Famous Is Bound to Be an Actress. Marion Virginia Nolan, the San Fran cisco girl who won distinction by being chosen two years ago as the model for a statue to represent the beauty of the Golden West at the World's Fair, is to be the next California candidate for theatri cal success in the East. Following as she does in the line of the illustrious actresses who have gone from this State she will muke her debut in New York early this winter. She has signed a contract, and in about two weeks she will start for the East to begin her first tour. It is Miss Nolan's beauty, particularly in her perfect proportions, that has made her MARION "VIRGINIA NOLAN, THE LATEST CALIFORNIA ACTRESS, IN THE CHARACTER OF JULIET. [From a photograph.] . .'..'. famous, but her own ambition has always been to take up stage work of the best kind. She has persistently refused offers to travel with spectacular companies, one of the flattering offers that she received having been made by Manager Henderson, who was here with his extravaganza com pany last winter; and while she has been posing for artists and occasionally taking minor parts on the local stage, she has been studying to fit herself for the profes sion to which she has hoped to attain. In the East this season she is to take leading parts in society plays, and though her record as a California beauty will be made a strong feature in the advertising, the beauty will be displayed only in such costumes as ladies would be expected to wear in public. "1 hope to get into the higher plays sometime," said Miss Nolan when she was asked about her Eastern ventures, "but for the present I have to do as I am ordered, and I am ordered to do society plays. "Ophelia would be my favorite character and I think that I could do better in that than in anything else, thought I don't know why. "Yes, I would like that better than Juliet, though I hope to sometime play Juliet — on the stage of course. I would rather take the part of Virginia than of Juliet, and in some way it aeems to me that I could do better in that. "Why?Oh, I don't know; perhaps it is because I do not like Romeos very much. "Yes, Desdemona I would like pretty well. I do not know just what plays I will have to go into in the East, but I will be satis lied to try any gentle role that may be as signed to me. Ido not want any heary, masculine staee work, and I will not un dertake any rough comedy parts. I hope to succeed either in the line of acting that I have chosen for myself or to fail alto gether." Miss Nolan, who takes the name of Marion Virginia from the famous Revolu tionary general, is in her nineteenth year. She was only 16 years old when she was unanimously chosen as the model for the statue in the famous Venus contest, which caused columns of comment in the news papers from San Francisco to New York and Boston, and was even discussed at considerable length in the English publi cations. During a period of six or eight months the girl posed for the sculptor, Rupert Schmid, but the latter found it impossible to complete the statue in the time allowed and Mrs. Waite's project of exhibiting Cali fornia beauty at Chicago in competition with the imported works of ancient and modern masters had to be given up. Sculptor Schmid and Mrs. Waite were so enthusiastic over the work that had been begun, however, that the sculptor com pleted the statue, though too late to send it to Chicago. Then the statue was exhib ited in the Ban Francisco Art School in the Hopkins mansion, on Nob Hill. An at tempt to secure the, work for the Mid winter Fair was made, but the owners of the statue did not like to take the risk at tached to the statuary corridor of the Egyptian art gallery and the Venus re mained at the Hopkins Institute until Rupert Schmid started with it for Italy, at the expense of a syndicate organized here by Mrs. Waite, to chisel the statue in marble. Since she was the model for that statue Miss Nolan has posed several times for painters, among them a European artist, who, while traveling in this country, was attracted by the newspaper accounts of the Venus contest, but she declares that her posing day? are over. "It is hard work," she said, when ques tioned about that employment, "much harder than people seem to imagine, and most of the artists cannot afford to pay enough to make the posing remunerative. I have followed that occupation in order to obtain the opportunity to get the educa tion needed for the stage, which has been my only ambition ; but as for the value of the advertising in the Venus contest— as it was called — I would be glad to never have had it. I would rather go on the stage, if 1 could, as an ambitious girl than as a California Venus, and I tnink I would have a better chance of ultimate success. "As a result of the posing and all that was said about it, I received some offers from the managers of spectacular com panies, and some of them were financially tempting to me, but I knew that if I began in that line it would be just &s well for me to literally accept Wolsey's advice and fling my ambition away." Last winter Miss Nolan took a part in "The Black Crook" with a local company. During the living-picture craze she was persuaded by an enterprising; manager to appear in several artistic poses at the Cali fornia Theater, and afterward she was with Robert Bowling's company in this City and Oakland. These are the only ventures she has made on the stage, though in sev eral places managers have made use of her name. Daring the past two years the young woman lias devoted most of her time to studying elocution and dramatic art, and her teacher, Mrs. Meiville-Snyder, declares that aside from her personal beauty she is one of the brightest and most promising pupils that has ever entered the school. Mrs. Waite, ever since the time of the beauty competition, has been a strong friend to Miss Nolan. "There is nobody that has had more serious obstacles to overcome in following out any high am bition," she says, "and there is nobody that has overcome the obstacles any better. " Miss Nolan was engaged to be married to a young Englishman, who, upon the death of a few older members of his family, would become the Earl of Ripon. She admits that the engagement is broken, and though she refuses to say anything more about the subject, it Is known that the disagreement between the nobleman and his promised bride arose at the Mid winter Fair, when Miss Nolan concluded that she did not want for her husband a nobleman who could be attentive to the dancing girls. PHILBROOK YET SHUT OUT The Disbarred Attorney's Pc- titions in the Supreme Court. A Labor Day Meeting In Which Jus tice Beatty Made No Concessions. Horace W. Philbrook, the disbarred at torney, spent a large portion of yesterday in the Supreme Court, but he failed in his attempt to haye the disbarring order set aside. He had a couple of motions in relation to the Levinson estate to submit to the court, and in connection with these he presented a motion to set aside the decree by which he Is disbarred. "We do not care to hear anything about the sentence in that case," said Chief Jus tice Beatty promptly, when Mr. Philbrook alluded to'the matter. "I would like to argue it if the court — " And here the petition was again inter rupted by the Justice. "No, we do not want to hear it." "But, your Honor, it is a point in this case, and my argument ought to be heard." "We do not care to hear it; the order of the court is irrevocable." "It is an issue, if the court please, and a hearing; ought to be given." . "The court does not consider it an issue, and it cannot be heard." Attorney Philbrook sat down and no more was said about the matter. The petitioner's notice to be substituted for Ira P. Rankin as administrator of the John Levinson estate was denied, as the case of Rankin vs. Newman is no longer before the court. The question of Mr. Philbrook's right to appear as the Levinson attorney before Judge Sanderson of the Superior Court was taken under advisement. There were several lawyers in the court during the hearing, and Mr. Philbrook was opposed by E. R. Taylor in the mat ters pertaining to the Levinson estate. Const Seamen Confident. The members of the Coast Seamen's Union consider that the recent order of the Ship owners' Association to reduce the wastes from $2 50 to $10 a month is to ali practical pur poses a doail letter. At a meeting of the union last evening the report was made that since the order went Into efl'ect last Tuesday, only one vessel, the schooner (Jotaina, that sailed Fri liv, went to sea with a nno:t pay crew. Four ol Simpson dk ('o.'s schoonors and one of Charles Nelson's schooners sailed with crews at the old rato of wages. It is believed by the sailors thai this effort to force down the wages >s over and that the old rate of wages will be maintained. Use our Bank Stock pads for figuring pur •'OSes. As salt to the system, so is Bank Stock ..or the eyes The Mynell-Rollins Company, 'I'J. Clay st.. make millions of bank pads. * RAILROAD IN REBELLION It Adopts a Policy Whereby the State Com m issioners Are Ignored. NO NOTICE OF CHANGED RATES. Commissioner Stanton Thinks the Board's Legal Standing Is to Be Attacked. Recent developments would seem to i indicate that the Southern Pacific Com pany has adopted anew method whereby it evidently seeks to make useless and dis credit the labors of the Railroad Commis sion in its efforts to secure for shippers re duced rates. These new tactics would also indicate that the company proposes to ignore the existence and to act in defiance of the commission. Heretofore it has been customary for the railroad whenever it put a new rate or schedule of rates into force to file a copy of the same with the Railroad Commission for the approval of that body. But quite recently changes beve been made in rates in both the Santa Clara and San Joaquin valleys, but no notice of this action was given tne commission. In each case, how- I ever, the rates have been reduced, and while the shippers have been in conse quence benefited, these unheralded reduc- ; tions have seriously interfered with the intelligent handling of the matter of re- j ductions by the members of the commis- : sion. They have been and are now work ing on the schedules that were in existence I at the time they took action making the 8 \ per cent reduction, and consequently be- j cause of the fact that the railroad company , has lowered any rates in the meantime the intended reductions of the commission, based on rates in vogue when it adopted '• the 8 per cent reduction on grain, might : in fact be advances on the existing rates. This phase of the situation was brought to the commission by the receipt of a com- ! munication last week fToni the Board of ; Trade of San Jose, calling attention to the i fact that the Southern Pacific had recently made a reduction in grain rates on the ! coast division line, affecting points lying j between San Francisco and San Carlos, j It was then pointed out that while the re- ; vised schedule of the Southern Pacific | Company made the rate from San Jose to San Francisco but $1 20 per ton in carload lots, under the 8 per cent reduced rate of the commission a charge of ?1 45 was per mitted. Commissioner Stanton said he had been taken entirely by surprise by the informa tion contained in this communication, and expressed not a little chagrin over the ap parently ridiculous position the commis sion was placed in by the action of the railroad company, which he denounced as illegal. "Why," said he, "this procedure of the railroad company is without precedent in the history of the commission. They have always filed their new schedules with us for our action, but in this case we had no information of any change in the rates mentioned. "It appears to me that it is the proposed I policy of the company to ignore the com- j mission, with the evident ultimate pur- ! pose of defying it and questioning its legal standing." "What will the commission do under the circumstances?" was asked. "That is something that has not yet been considered by the commission. We shall probably await some further de velopments in the matter. But 1 believe that there can be no question of the legal ity of the board's existence.'' "Will not this action of the railroad peo ple interfere with the intelligent handling ot the rate reduction matter?" "Certainly: for where they make reduc tions and we get no information of their action, we may make the rate higher than that charged by the railroad, but, of course, the shipper gets the benefit of the railroad's lower rate, for the rate we fix is simply a maximum and the railroad com pany can charge as much less than it as it pleases. "This same thing, I understand, has j been done relative to the rates from points j in the San Joaquin Valley to Stockton. Of j course, where the railroad company has ; assumed to reduce rates without our I knowledge or approval, it may attempt to advance them in the same way. We would have no way of knowing this unless in formed by the shippers. In this connec tion 1 want to say that outside of the in formation we derived from the railroad people during the recent investigation, we have received no data of value to us in this question of reductions. The shippers \ seem to be in awful dread of the company i and have lent us no assistance in arriving I at a determination of what and where dis- ! criminations exist. If they would sub- j mit such information as I am confident ! they possess it would materially assist us and benefit them. Ido not think it is ex pected of the members of the commission I to employ detectives to secure this in- i formation, and therefore the only way we can obtain it is by the voluntary proffers , that may be made by shippers. We will be only too glad to get it, and extend to all who make use of transportation facilities a most cordial invitation to co-operate in every possible way with the commission. "We shall not, however, interfere with i the Southern Pacific people as lone as they ' make reductions and do not thereby create ! discriminations. I may add that should our attention be called to discriminations that require prompt attention they will receive it, even if we have to call a special meeting for the purpose. We want to give the shippers every encouragement to come to us for relief. "On Wednesday we shall take up the adjustment of discriminations on existing grain rates, and, if we find time, the com plaint of the cattlemen of the Salinas Valley that they are charged $10 per car more than others under similar conditions and for the same distance. I am anxious to get these grain rate discriminations fixed, as they alone would give great relief to many sections, and I would favor daily sessions of tn» commission until they are disposed of. "I am thoroughly satisfied that when our rates are published they will not prove satisfactory, but we shall "do all we can to make them so, if the shippers will only inform us wherein the ground of complaint lies." |i?f&i?t He<b SENT FREE It Is a matter of vast importance to mothers. The manufacturers of the QAIL BORDEN EAGLE BRAND CONDENSED MILK issue a pamphlet, entitled "INFANT HEALTH." which should be in every home. Address NEW YORK CONDENSED MILK CO., 71 Hudson Street, New York. HEW,:', TO-PAY. , What a Pudding j What a pudding the \ people of Frisco are ! I | having with our i 'I WHITE TAGS. We're j I not compelled to color | ! them. Just plain | I white tags — but oh \ the figures on them ! ] Look here : | | WHITE jt JO TAGS. j i Men's Black and Blue Serge J | and Cheviot Suits, very | [ latest Autumn styles. Sin- i \ gle or double breasted sacks. \ I Made by Stein, Bloch & Co. j \ of Rochester, N. Y. The \ I perfection of high art tai- ' ! loring. But we won't de- I | ceive you; they're not worth • I $20. You can't duplicate ! | them, however, for less than i ! $15 on the Pacific Coast. ! ! Come and see them to-day. \ \ WHITE jjjJIO TAGS. | i - | :i ' ! !\ ■ \ I ' Just keep your eyes j ! on the WHITE TAGS ; ; of the "New Daylight Store." I H. ROMAN & CO. j 1 Comer Rffl and Market. fiDOLPHSCHOENFELDS SHIRT IDZEIfOT AND BOY'S CLOTHING! ; 1316 MARKET STREET, Directly Opposite Seventh. v We now offer Wonderful Bargains In choicest Men's Wool Underwear suitable for the comlnsr season. DON'T MISS IT! 32 dozen MEN'S FINK ALL-WOOL HEAVY DKHBY KIBBED SHIRTS AND DRAWERS brown color, at 8 7 Vie each, worth $1 50. 32; dozen VICUNA ALL-WOOL HEAVY - SHIRTS AND DRAWERS at 75 each worth $1 25. 48 dozen HEAVY ALL-WOOL CAMEL'9-HAIR SHIRTS AND DRAWERS at sOc each. worth $ 1. 32 dozen GRAY RIBBED HEAVY ALL-WOOL SHIRTS AND DRAWERS at 500 each. worth $1. BOYS' CLOTHING! NEW DEPARTMENT ! LOOK IN OUR WINDOW! GREAT BARGAINS! NEWEST IN REEFER SUITS at SO, »1 75 and $ 2 00 per suit. ALL-WOOL Yon SUITS, a?es 13 to 19, fine make, m $4 00, f 5 00 and $6 00 per salt. OVERCOATS at $1 50. *2 00 and « 2 50. JBTS"In this department every garment 13 marked CLOSE TO ACTUAL COS>f TO GET YOUR TRADE for this new line we have added. Country orders will receive prompt attention. ADOLPHSC¥OEi\TELD'S 1316 MARKET ST., Directly Opposite Seventh. BARGAINS IN WALL PAPER, ROOM HOLDINGS AND WINDOW SHADES. Large Stock of Fine Pressed Papev at Less Than Cost. Paper-hanging, I Tinting and Frescoing. 811 MARKET STREET. JAMES DUFFY A CO. Easily, Quickly, Permanently Restored. /3>_-.. Weakneisj Nervonsnenn, Debility, and all the train V~/vG\ °' ev^ s from early errors or d£s\r-& yBS later excesses, the results of J8 >V'V v overwork, sickness, worry, 3k XT \T iV \ etc. Full strength, devel- /Ocjft IL-__,i I opment and tone given to >M»7ni>il' -^Ar^0 evpr or £ a and' portion favtt&mla ofthobody. Simple, nat- /^/TK^ljM ural methods. Immwil- -1/1 ll\m \\ lV*" / ato improvement Been. Failure impossible. -'.000 referenceß. Book, explanation and proofs mailed (sealed) free. ERIE MEDICfII CO.. Buffalo, H.Y. I Ho Percentage Pharmacy, 953 Market ISL J^HFVmgY PILLS! i WMKBoiiii«S 0 fSr ÜBE - SE £° Ac ' """WOIiAITS SAFE slDE£SfiiaUAßo:',«lfn.coji Qphcifw: Co,PnaZ?a,