The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-06-22
NoProsecutiOns Against Individ-
UaI Officers Of the Road.
Says There Is No Evidence
Warranting Such Prosecutions.
ACTION TO BE TAKEN.
President Orders Contempt Pro-
ceedings Against All Roads.
If Sufficient Evidence Is Secured
Prosecutions viii Follow.

Washington. June %. - President
Roosevelt has taken occasion to ex-
press himself in most positive terms
complimentary of the integrity and
ability of Paul Morton, former vice
president of the Atchison. Topeka &
Santa Fe Railroad company. and now
concluding his duties as secretary OF
the navy that he may assume the
Craftsmanship of the board of directors
Of the Equitable Life Assurance So
ciety of New York. These expressions
are contained in two letters. one ad-
dressed to the attorney general and
the other to Mr.. Morton The letters
were made public by the administra-
ton together with number of others
which, taken together, show the pre-
else point of difference between the
department of justice and Messrs. Har-
mon and Judson, who recently re-
signed as special counsel for the gov
/ ernment in the rebate case involving
1 the Santa Fe road and the Colorado
Fuel & Iron company.
Ihe special counsel wished to bring
contempt proceedings against the Of
! hcers of the road, which would have in
! cluded Mr.. Morton. Their position
was that the testimony adduced be-
fore the interstate commerce commits
! sion establish ed a violation of the
| court order of March %, 1902, re-
/ straining the company from executing
any agreement to transport interstate
traffic at rates lower than the publish
/ ed tariff of the road
This testimony, they coRtended, con-
| stituted a prina facie case against the
officers Of the road and the only way
to ascertain their guilt or innocence
was through contempt proceedings.
administration Objected.
/ Attorney General Moody opposed
| bringing the contempt proceedings on
the ground that, while the evidence
before the commission might show a
violation of the injunction by the road,
/ it contained nothing connecting any
] officer of the company with such V1o-
latiOn. President Roosevelt took the
same view Both the president and
the attorney general agreed that con-.
tempt proceedings should be instituted
impersonally against the corporation
in both the Colorado Fuel and the In
ternational Harvester case. The lat
ter case, the president says, stands on
the same footing and involves practl-
cally all Of the western roads.
The correspondence began with
letter from Messrs Harmon and judi
4 son. to the attorney general dated Feb
/ ruary %, last, in which was given
review Of the testimony in the Colo
rado Fuel case before the interstate
1 commerce commission with the con-
clusion that violation of the injunc-
ton has been shown. In part the let
ter said:
Prom August, 1902, until Deem
ber 1904, the railway company Gre
ferring to the Santa Fe) continuously
transported coal for the Colorado
Fuel & Iron company at less than the
published rates then in force, from va
rious points in Colorado and else
where, to FL PasO, Tex; Deming, n.
NJ, and other places to which such
merce. This was done by secret ar
rangement 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. THE railroad company
collected the amount shown by the
billing and paid over part OF It to the
| fuel company As the price OF the coal,
making the real charge for transpor-
tatfon less than the published rate by
Just that amount At the same time
the rates given ana cnaEgeq other
SINNERS were the published tariff
rates. without any deduction. This
| plan and the way it was carried out,
| nIainIv indicated intention to deceive
, the government and the public and to
enable the fuel company to gain mo
nopoly of the coal supply at the points
involved by giving them a strong ad-
vantage over competitors IN the ac-
tual cost of transportation. The mo-
tive for thus favoring the fuel com
pany does not appear in the evidence
thus far taken, but the fact is clear"
Wanted to Take Testimony
In replying to this letter on March
Is. Attorney General Moody expressed
satisfaction with the progress made in
the investigation and concluded with
the statement that upon its compile
ton he would confer with the cOun-
) sci regarding the action to be taken.
Il Three days later, the special counsel,
replying to the letter of the attorney
i general, said.
I'VE both understood our report to
i recommend proceedings in contempt in
the suit of the United States against
the Atchison, Topeka and Santa Fe
4 railway company at Kansas City.
without waiting the result of future
investigations with reference to other
faction against it or the Colorado Fuel
land Iron company. its officers ard
agents If however, we understand
from your letter, you think it best not
ito take these proceedings in contempt
until we shaIF have reported on the
ladyisability of such further proceed
iines. we shall, of course, make our
Investigations and report as early as
we can"
The letter concluded with a sugges-
: ton that an order issue for the taking
of further testimony before an exam
iner in Kansas City. On March 90. the
attorney general again was addressed
by Messrs. Harmon and Judson, who
said.