Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1905-12-21
DEFENDS Mr.. MORTON.
President Declares Attorney General
Acted Correctly in Rebate
Case.

WASHINGTON, D. c., Dec. IS
President Roosevelt has again come
to the defense Of Attorney General Moo
dy in the conduct of the case against
Paul Morton and other officers of the
Atchison, Topeka and Santa Fe Rail-
road company. Correspondence made
public between the President and the
attorney general is intended to COM
pletely vindicate the administration for
the course it pursued in that affair.
The correspondence is the administra-
tons defense Of the action taken last
summer in refusing to follow the advice
of Messrs. Harmon and Judson with
reference to the prosecution of Mr.. Nor
ton and other officers of the Atchison
system.
Proves Immunity of Morton.
On April II, 1905, Messrs. Harmon
and Judson held that upon investiga-
ton of the charge of contempt, evidence
might be forthcoming to show whether
the managing officers had been guilty of
contempt or not"
On May 10 the attorney general wrote
the special counsel that there was no
testimony against any except the minor
officials and Mr.. Biddle, who might
claim immunity, and that as to Messrs.
Ripley and Morton, president and vice
president of the Santa Fe at the time,
some evidence ought to precede an accu-
sation of contempt of court
Absolutely Right, President Says
The Presidents letter to the attorney
general says in part:
| have received your letter of December
49, The facts therein set forth prove in
conclusive fashion that you were absolute
ly right in the position you have all along
taken both as regards the proceedings pro
posed against the officers Of the company,
including Mr.. Paul Morton, recently a mem
Der of my cabinet.
Garfield Makes Report.
The annual report of James Rudolph
Garfield. commissioner of corporations,
points out that apparently the most eff
fective way to settle the question of in
surance control is for the supreme court
to decide whether insurance, as now con-
Quoted, is Interstate commerce, and
therefore subject to federal regulation.
1t adds:
1t is strongly felt that preventive rather
remedial means must be used in dealing
must deal beforehand with causes, not
merely afterwards with their effects.
Congress Must Exercise Power.
No fact of industry is more obvious than
that modern business has outgrown and
wholly disregards state lines, and that the
Jurisdictions or single states, as applied to
the operations of a great interstate bust
ness, are futile and even harmful.
1t is idle to claim that the railroads are
wholly at fault for rebates, determinations,
and other devices for affording to one ship
per improper advantages over competitor
1t is impossible to prevent such abuses by
purely penal legislation.
This does not mean that the antitrust
law has not been beneficial. It's enforce
luent has compelled some respect for the
law, which, until recently, was wholly
lacking But so far etfecting a perma-
nent change of the conditions which the
law denounces, but little has been done
The imposition of a penalty upon COM
bination simply drives the men in that COM
bination to the formation Of another de-
vice for accomplishing the same purpose.
Method Itself Not Difficult.
1t is not necessary to repeat what was
stated in my last annual report regarding
the relative merits of federal license or q
national incorporation law. If the prin-
ciple of federal regulation be agreed upon
there will be little difficulty in deternlin-
Ing which method should be adopted.