The San Francisco call., 1905-06-22

poration Itself. II the transactions set fortl
In the report Of the Interstate Commerce Com
mission in regard TO the departure from tn,
published rates by the Atchson. Topeka and
Santa Fe Railway system in favor of tn,
Colorado Fuel and Iron Company are withir
the terms OF the injunction, the evidence be
clearness that that injunction has been VIC.
lated and the railroad company has beer
guilty OF contempt of court.
against the managing officers of that com
pany, including presumably the president, the
vice president in charge Of the traffic depart
ment. the general freight and traffic manager
and other officers whose duties relate TO the
transportation of freight. saying:
we are clearly of opinion that the report
OF the commission with the verified copy OF
the testimony before the commission would
be sufficient basis for an attachment in con
tempt against the corporation and its manag-
in. officers
WOULD ELIMINATE OFFICERS.
| haxe examined this report and a trans
cr1pt OF the testimony taken by the commits
SION; l 90 not find any testimony relating
ana Mr Biddle, who may claim to have OBJ
talneo Immunity by testifying fully before
the commission. For instance. to be specific,
there Is not sointilla of testimony that Mr.
RIPLEY, the president Of the road, or Mr. Nor
ton. then one OF its vice presidents. had any
connection with the evident departure from
tne published rates in favor of the Colorado
fnel and Iron Company, or that they knew or
this company in any manner different from
tnat prescribed by the open and published rate
-seItHeI ot tnese oinclais were in the rernotest
way referred to in the testimony or In the
report Of the commission Surely. IL would
not be contended that upon this state Of facts
that these officials were subject to a penalty
Tor CONTEMPT of court.
Nor have understood that it has been your
opinion that upon such a state of facts any
iuolNlduaIs would be liable to punishment for
contempt Your view, as 1 have understood It,
mas been that, corporations must always
act through their officers and agents, there is
a presumption that those who are charged
with the management of their affairs are re-
sponsible for the conduct of a corpora ton
which violates an Injunction; that that pre-
Sumption warrants an accusation for contempt
against its officers and agents where the cor
poration has been guilty OF contempt and that
upon investigation OF the accusation testimony
may be taken which will show whether or not
the officers accused have themselves been
guilty of any conduct which has aided in
bringing the corporation into contempt of
do not understand. however, that with
such evidence you would be of the opinion that
penalty for contempt
After great consideration 1 am of the opin-
ion that some evidence ought to precede the
accusation and that accusation so grave in
its character ought not to be made unless
there appears before It is made some evidence
On support Of IT. 1 realize fully that ! have
can question ii. The possession of the power
carries with IL, however, the responsibility for
us serupulous exercise. In this case, upon the
facts which have stated. I have reached the
conclusion that i ought not to make the ap-
plication for an attachment for contempt
against the officers OF the railway company
1 have felt that ii was due to you that YOU
should receive an exact statement of the
views which entertain and the reasons which
have controlled my decision.
have submitted the foregoing to the Presi-
dent and he authorizes me TO say that he ap-
proves the conclusion which / have reached,
and directs that proceedings for contempt of
the injunction be begun against the railroad
company only Very respectfully,
w. II. MOODY, Attorney General.
HARMON AND JUDSoN RESIGN. .ss
The letter in reply TO this contains
the designations of Messrs Harmon and
Judson. 1t was dated at Cincinnati,
June 5. 1t follows:
We have received and carefully considered
your letter OF the 10Th ultimo, and regret that
you DO not approve our Recommendation of
February 2s last, which We repeated with
turther reasons in our letter OF April IL We
appreciate the very great weight to be given
your conclusion, but are deeply impressed
win the gravity of the matter and its i'm
that we may, without impropriety refer to
some things in your letter.
IL is tree that the report of the Interstate
Commerce Commission merely stated the facts
~hleh SHOW that the law had been violated
without attempting to fix responsibility on
any Objects OF the railroad company The
reason Tor this was that the commission limit
ed us inquiry TO the mere fact OF such viola
ton anc so stated (see testimony page ls41l
The violation by a corporation OF an injunc-
ton directed against it and its officers al
ways calls for rule against such of them
why they should not be held personally re-
sponsible They are prima facie guilty of
disobedience. II was their duty to see that
not to do them.
The necessity of this rule is apparent as
We'll as its justice. The facts are peculiarly
within the knowledge of such officers and
under their control Except in
cases SO rare that they may be called acct
there nj fha
facts except by such proceeding as we have
This well esta blished rule which is sufficient
TO justify the action proposed in any case
seemed ard still seems to US peculiarly to
trolling officers of the railroad company to
show cause is simply the recognition by the
court of the responsibility. incident to their
PLANTATION and not. properly speaking. an "ac-
cusation:.' The action of the corporation is
presumptive evidence against It's
principal officers who had charge Of the de-
partfnent in question.
We fully concur that no proceedings should
be commenced without evidence but facts pre-
sumed or Judicially noticed are evidence The
We recommend is not unusual or
exceptional. but, the contrary, is the nat
ural and ordinary one in such cases
What have said Is peculiarly true of
the great corporations of our day They can
not only INADEQUATE. but reaches the real cul-
prits only lightly IL at all. The evils with
in name. but indfviduai in fact Guilt is
always personal. So long as officials can hide
behind their corporations no remedy can be
effective. When the Government searches out
the guilty men and makes corporate wrong
doing mean personal punishment and dishonor.
the laws will be enforced.
Your opinion always merits great respect
which is by no means due to your office alone
and we appreciate the deep sense OF official
responsibility which you express. But the ma
ture and circumstances of your appointment
impose certain independent responsibility on
US which we feel would not be met by pro-
ceeding against the corporation alone
We therefore consider that have now
discharged tha duty which you did us the
honor TO intrust to and thanking you
most sincerely for your constant courtesy and
consideration, remain, very respectfully
JUDSON HARMON
FREDERICK JUDSON.
ACCEPTED BY MR.. MOODY.
The designations were accepted by
the Attorney General in n letter dated
June i3. In this letter Mr.. Moody says:
I regret your conclusion, but not doubtrne
that you have arrived at 1t after great con-
sideration. inspired by sense OF your duty,
must accept IT.