New-York tribune., 1905-06-22
MORTON AND REBATES.
MOODY,SyCOURSE UPHELD.
Presidents Letters en- 4tchison Case
-Ig. Mortons Statement.
rp ox THE TRIBUNE IuREAu.l ]

-, General VI Ioody and Messrs. Harmon and
.S retained Vas special counsel in the rebate
- g ,.ha pov srnnlent agair5t the Atchison,
--,- Nj Sar Va Fe Railroad. which finally
o.,,,.a7 IN nc r, signation of the special coun-
=, ,7assrs T,,o son and Harmon maintained
-, ~. r,a,a-s ne at of Justice should authorize
-. :. osac.f,e Paul No1fon Secretary of the
- ,,..,ss as vice-pressident Of the Santa
= ..,, e,ec,.I, su pervision of the freight de-
-. NJ Mort on mt St in their estima-
- incurred | a Responsibility for the
-. % ++a ,uasa lreba1es which are the oc-
- - +,,e ,cs-ernr hesits suit even if such re-
-. ~ granted With his knowledge or
consent -
The Prcsiden tsdiscussesi this ISSUE WIN ciiai c
tertstic f1ankness and cH es MS redsoi'S " -
-. 80. ,4cution q Mr.. Morton, of whom
-, .,. highest estimate should not be
-, 7, q letter o Secretary Morton the
r,r.size,t eraphastzes his; commence III ms oeo
=, >z,x-, and lcongratulates the EQul-
table Life Assurance hpahy upoii it"s
cured so able head. I ff1e a..
.a-,,,s ;.y regard TO the integrity
-,,..- - Mr. 55o rton. His expressions or
- - ,,i,,, ara contained in two letters,
sso...o5 +o tbe A t1orney General and the
other to Mr- Morton
The letters were made public to-day ny Iie au-
..,.,..rotion together with a number of others
,srh
5;serence between the department OF justice
,a Messrs Harmon andi Judson, the special
,o,,r.e1 The special cou bsel wished TO bring
,.An,ut proceedings again sst the officers OF the
-ood xrhich would have IL cluded MI MORTON
Their position was that the testimony aoouceu
before the Interstate Commerce Commission es-
.sblished violation Of the CO prt order OF Maich
o5 1902 restraining the company from eA-
ecuting any agreement TO transport interstate
.tet ra11hff her
of the road. This testimony. they oontended'
o~+,+utad a nrirna facie case against the OFF,
cers oe the road and the only way TO ascertain
-.o;, -,,iI. or innocence was Though contempt
proceedings.
Attorney General Moody opposed bringing the
contempt proceedings, >on the ground thst while
the evidence before the commission might sho"
a violation of the injunction by the roao IL con-
tanned nothing connecting any officer OF the
coupsny with such violation. President Roose-
velt took the same view Both the President
and the Attorney General agreed that contempt
proceedings should be instituted i.npersonaily
against the corporations in both the Colorado
Fuel and the International Harvester cases.
The latter case, the President says. stands ex-
actly on the same footing and involves prac-
ideally all OF the Western roads
HOW THE CASE WAS TAKEN UP.
Messrs Harmon and Judson, to the Attorney
General dated February % last. in which was
given review of the testimony In the Colorado
Fuel case before the Interstate Commerce Com
plission, with the conclusion that a violation of
the injunction has been shown. In part the let
said:
From AUGUST. lsee. until Decennber, 1905. the
continuously transported coal for the Colorado
Tuel and nj Iron Con9aRy al less than the published
osr~G 3~, E-o-
GRADE and elsewhere. TO E. Paso. Tex: Derning.
portation interstate commerce This was
cone DE secret arrangsnenf between the two
1699 Pasg billed Il @ at the the 9 BgoHhsd he M rate Of freight
ciuded The osd pIes comy pa yhe Collected 6fs the he
amount shown by the billing and paid over part
making the real charge for transportation less
an ina s ene Pi0s4ee T @ rae Dy Just thar amount At
Slippers were the pulisfed ar Ttes Wifhot 4aost
carried out pls1nly indicate an intention to de-
abe tbe eI eompanv ana fo ss se p16o aa9 70 & f
coal supply the points involved by giving them
sesf q fEanspoTtstion The 1ao<ys for thus favor
dence thus far taken, bUt the fact is clear.
The letter recited that only one of the chief
officers of either company had been called wit
ness and that immunity from prosecution
could be claimed by any of the other officers Of
either company. No papers had been submitted
by the fuel company. and consequently no i'm
munity could be claimed for it Certain papers
had been submitted by the railroad company but
only such are by law made public. consequently
immunity claim would stand thereby. Messrs
Harmon and Judson proceeded to recommend that
the railroad company and all of its principal
officers and agents, perhaps including
subordinate officers and agents. be arraigned for
contempt OF in making and carrying out
the agreement referred
In replying te this letter on March Attor-
neg General Moody expressed satisfaction with
the progress made in the investigation. and con-
cluded with the statement that upon its compile
tion he would confer with the counsel regarding
the action to he taken
FURTHER INVESTIGATION MADE.
The soecial counsel continued the investigation.
and March 20 again addressed the Attorney
General. saying:
We beg 10 say that have made informal in
We can 20 no further Without the use of process
TO secure formal evidence and proof and
and the taking Of testimony before the master ap-
pointed Ior tnat purpose IN tne case pePang IN the
We have doubt that the Jaws have been VIC
and saaia Fe Railroad Company ana those OF the
Colorado Fuel and Iron Company. The former
that case The formal proof required to punish,
them for contempt of court and also criminally If
only BY judicial process. This is ready
hands fn the above named case. The proof ELECTED
before the master will also be available for crirni-
nal proceedings against the Colorado Fuel and Iron
Company and its officers and agents.
As have said go further. and need
are convinced that the facts are as we hsrvo stated
them and 1t only remains to put the proof IN legal
We beg. therefore, that this be considered our
final report to the recommendations for which
asked and await your further Instructions
After more correspondence the special counsel
recommended proceedings for contempt of cour.
but Attorney General Moody after submitting the