The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-22
Why Harmon and Judson Quit
in The Santa Fo Case.
ROOSEVELT BACKS MOODY.
Likewise Favors Federal Control
Of Insurance Companies.

~ne President Takes Occasion. in Approx.
ing MortOns Course in the Rebate
Matter. TO Express Confidence in His
Ability TO Resenerate the Equitable
He Writes to Moody That the Gov.
eminent Has No Intention OF Pro-
ceedlns Against Individuals Unless
the Evidence Observation-Disclosures Ex.
plains His Part In santa Fee AFFAIR
He'd Ordered That Injunction be
Obeyed, but subordinates Failed Him.
WASHINGTON, June 2l.-A new chapter
In the Atchison scandal was furnished to-
day when the complete correspondence
tetyeen the AttorneyG General and the
srecial counsel for the Government in the
rroposed proceedings against the Atchison.
Topeka and Santa Fe Railroad Company
vas given ont at the White House. 1t ap-
rears from this correspondence that the
designations Of the special counsel, ex-
Attorney General Judson Harmon and
Frederick y Judson, were accepted on
June IL.
Among ether interesting things the cor
respondence shows that the precise point OF
difference which caused the rupture be-
tween the Administration and its special
counsel was that Messrs. Harmon and Jud-
ron advised the criminal prosecution Of the
Achi-on's officers, including Paul Morton.
the former VICE president Of the company.
4 ~
.a ruled that the company only, and not
It's a GERS. should be prosecuted.
In the remarkable exhibit made public
Attic White House too day appears not only
the correspondence between Attorney.
General Moody and Messrs. Harmon and
hudson bit letters whih passed letween
the President and Mr.. Moody a long state
nent from Paul Mort on in which he at last
speaks ont plainly in regard to the alleged
Achison rebates. and long letter from the
President Mr.. Morton in which Mr. Roose-
velt discusses both the Atchison rebate
case and the Equitable Life Assurance
Society There is apparently no connec
ton between the Equita BILE controversy
and the railroad case, which occupies the
chief place in the volume of correspondence
but the President talks about it freely
and concludes with the opinion that life
insurance companies should be brought
under the supervision of the Federal Gov
eminent.
THE CASE AGAINST THE SANTA Pc.
The date Of the first letter is Feb %. This
letter was addressed TO the Attorney
General by Messrs. Harmon and Judson
md no hat hp 6f
the Interstate Commerce Commission in
the alleged unlawful rates and practises in
the trans portation of coal and mine sup
plies by the Atchison, Topeka and Santa Re
was fully sustained by the evidence. The
special counsel reported that from August,
1902, until December, 1901, the railway COM
pany continuously transported coal for
the Colorado Fuel and Iron Company at
less than the published rates then in force
from various points in Colorado and else
where to Ell Paso Tex. Deming n. NJ,
and other places, to which such transport
aton was interstate commerce.
The report Of counsel was. furthermore
that the special transportation was effected
by means Of "a secret arrangement between
the two companies under which the coal
was apparently billed at the published rate
Of freight, although in fact the price OF
the coal was included"
This letter refers to the order OF the
Circuit Court for the Western District OF
Missouri in March. 1902. enjoining the
Atchison company and its officers from
executing any agreement to transport any
Interstate traffic at other than the published
rates, and recommends that the Atchisor
company and all its principal officers and
agents who had, during the period above
named or any part thereof power and au.
hority over traffic agreements and freight
rates, ne ARA gned for contempt of court.
Mr. Moody cautioned them against pro.
oeeting hastily and finally advised that
action be taken against the company with
out including the officers. The counsel
then wrote pointing ont that the individuals
In charge Of the company were really the
ones guilty Of violating the Courts order.
Attorney General Moody replied to this
e'ter on May 10. and freely expressed his
reluctance to appear against the officers
he referred to the Interstate Commerce
COMMISSIONS report. saying;
i have examined this report and a tran
Srpt Of the testimony taken by the COM
mission, do not find any testimony re-
atng TO the conduct Of any except minor
officials and Mr.. Biddle, who may claim
10 have obtained immunity by testifying
July before the commission. For instance,
10 be specific, there is not syllable of testi-
mony that Mr.. Ripley, the president of the
road or Nlr. Morton, then one of its vice
Presidents had any connection whatever
WIN the departure from the published
rates IN favor of the Colorado Fuel and
non Company. or that they knew or sls-
ircted that transportation was furnished
70 TINS company in any manner different
ron that prescribed by the open and pub
After great consideration, I am OF the
oplhon that some evidence ought to pre-
.ede the accusation and that an accusation
grave IN lis character ought not to be
.aade IN. SIS there appears before it is made
'.ne evidence in support of 1t.
n l have submitted the foregoing to the
PRESIDENT and he authorizes me to say that
We approves the conclusion which / have
,eached and directs that proceedings for
,b s OF the injunction be begun against
"e railroad company only"
HARMON AND JUDSoN QUIT.
Messrs, Harmon and Judson, writing
nglh Cincinnati on June 5. reiterated their
. .piton that the officers were prima fdcie
et!i,y OF disobedienoe. They concluded:
ri, mat we have said is peculiarly true
=. she great corporations of our day. They
ssrnhot b" imprisoned and punishment by
, S,,e Is not only inadequate but reaches