Omaha daily bee., 1905-12-18
HISTORY OF SANTA FE CASE
President Gives Out Tive Letters Referring
to Recent LITIGATION.
NO EVIDENCE AGAINST PAUL MoRrol
Attorney General Moody Reviews the
Proceedings and Court Find
inRs on the Action for
Contempt.

WASHINGTON, Dec. 17.-Some important
history concerning the action of the gov
erument against the Atchison. Topeka &
Santa Fe Railway company was made
public today by authority of President
Roosevelt both as regards the proceedings
against the company itself and as regards
the further proceedings proposed against
the officers of the company. 1t was in the
form OF two letters under date of the 18th
and 18th, respectively. the one being writ
ten by Attorney General Moody and the
other by the president. The letters quote
court decisions and contain considerable
information concerning the action of the
president and the attorney general in the
Santa Re case particularly with reference
TO the work of the special counsel, Messrs
Harmon of Cincinnati and Judson Of ST.
Louis. who were employed by the govern
ment to inquire into the facts of the case
and who subsequently withdrew from 1t
because their recommendations as to the
prosecution of the Santa he were not
adopted. The history of the Santa Fe case
is reviewed in the letter by Mr. Moody and
the attorney generals position is approved
by the president in the second letter.
you direct mo-" the attorney general
reports, ito furnish you with a concise
history of the case against the Atchison,
Topeka & Santa Fe company, in which
that company was charged with unlawful
rates and practices in the transportation
OF coal for the Colorado Fuel and Iron
company and a statement of the bearing of
the recent decision of Judge Phillips of
the circuit court OF the United States for
the western district of Missouri upon the
case and especially upon the action which
sou have heretofore taken respecting it,.
The attorney general recites the investi-
cation and report of the Interstate Com
merce commission, which report suggested
the roads practice was in violation of a
restraining order issued against the rail-
way company in March, 1902, upon bill
in equity brought by the United States.
The attorney general reported to the
president that proceedings under the re-
strainng order could not be maintained.
Under ordinary conditions" the letter
continues 1.-The advice which l gave you
would probably have been regarded by you
as conclusive against the undertaking of
any action based upon the restraining
order, but the circumstances were extra
ordinary, and as "A great public interest in
the case existed, aroused by the fact that
Mr.. Morton, a member of your cabinet,
company charged with the management of
the traffic during a part of the time in
which the practices complained of existed,
I therefore suggested the employment of
special counsel. and you directed their en-
ployment"
The instructions to them dated February
IA last presented two questions
First, in what manner. if any, the in
junction was affected by the decision OF
the supreme court in the Missouri Pacific
Railway Company against the United
States, and second in case coal is within
the scope of the injunction at all by reason
of the rejection of the clause in the de-
transporting amy other interstate traffic
at less than it's published rates, whether
this general injunction to obey the law
I has any force or virtue in It in view OF
parts of the recent decision of the supreme
| court in the. Beef trust case.
THE special counsel" the attorney gen
! eral says, entertained an opinion upor
! those two questions, different from that
had expressed to you and that opinion. by
your direction, was acquiesced in for the
purpose of further action"
The letter reviews the contempt proceed
ings brought against the company itself
! by the presidents direction and Judge
Phillips order on December last quash-
ing the informatons. Judge Phillips cited
in this connection the opinion OF the SUI
preme court of the United States in the
Beef trust case, and held that the record
furnished no foundation for imputing tC
Messrs. Ripley ana Morton, president anc
vice president of the road a the time, any
personal responsibility for the alleged VIC
lation of the interstate commerce law. Thu
attorney generals letter concludes:
| / have stated that Judge Phillips ISSUED
the restraining order drawn into the ques
ton by the informations for contempt TIT
order was issued by him after full argu
ment by counsel for the United States anC
for the railway company, Undoubtedly hi
decision in the contempt cases was incon
sistent with his decision upon the origina
bill in equity praying the injunction,
demurrer which he overruled, subsequent!
issuing the restraining order. But sine
his first decision the supreme court ha'
decided the cases of the Missouri Pacif
Railway company against the United State
and Swift against the United States, am
Judge Phillips regarded these two decision
fatal to the validity of the RESTRAINING
order / need hardly say that in m
opinion the decision of Judge Phillips is
correct expression of the law, because, a
you know, 1t is in conformity with the ad
vice given you at the very threshold q
these proceedings and at all times fror
then until now believed by me to be souno
In any event the decision is final becaus