The Norfolk weekly news-journal., 1905-06-23
SIdlDS BY PAUl MORTON
PRESIDENT APPROVES MOopV'S
COURSE IN SANTA FE CASE.
WANTS CONTEMPT PROCEEDINGS
Willing to Proceed Against Rajlroai
but Not Against Officers Personally
Nothing to Connect Them lndivldul-
ly with Violation OF Law.

Washington, June President
Roosevelt has tahcn occasion to uN.
press himself I'm most positive terms
complimentary OF the integrity aud
ability Of Paul Morton, former vice
president OF the Atchisun, Topeka aud
Santa Fee Railroad company, and now
including his duties as secretary ot
the navy, that he may assume the
Chairmanship of the board of direct
ors of the Equitable Life Assurance
society of New York. These express.
sions are contained in two letters one
addressed to the attorney general ana
the other to Mr. Morton. The letters
were made public by the admnislra-
ton, together with a number of 9th.
ers, which, taken together, show the
precise point Of difference between the
department of justice and Messrs.
Harmon and Judson, who recently re-
signed as special counsel for the gov.
ernment in the rebate case involving
the Santa Fc road and the Colorado
Fuel and Iron company. The special
counsel wished to bring contempt pro-
ceedings against the officers of the
road, which would have included Mr..
Morton. Their position was that the
testimony adduced before the inter
state commerce Comr ssion estab.
| lished q violation of the court order
of March 25, 1902, restraining the com
pany from executing any agreement
| to transport interstate trafflc at rates
lower than the published tariff OF the
| road This testimony, they contend
| ed, constituted prima facie case
| against the officers of the road and
| the only way to ascertain their guilt
or innocence was through contempt
proceedings.
Attorney General Moody Opposed to It.
Attorney General Moody opposed
| bringing the contempt proceedings on
the grounds that while the evidence
before the commission might show a
violation of the injunction by the road,
1t contained nothing connecting any
officer of the company with such viola
| ton. President Roosevelt took the
same view. Both the president ana
|
tempt proceedings should he .Isti-
tuted impersonally against the corpor-
| ations, in both the Colorado Fuel and
the International Harvester cases. The
latter case, the president says, stands
exactly on the same footing and in
wolves practically all western roads.
The correspondence began with a
| -
son to the attorney general, dated
| Feb. 2S, last, in which was given a
| review of the testimony in the Colo
RADIO Fuel case before the interstate
| commerce commission, with the con-
cluson that a violation of the injunc.
tion has been shown. In a letter dated
| May II the attorney general disap-
| proved of contempt proceedings. as
| suggested by special counsel and
says; There Is not a syllable of testi-
mony that Mr.. Ripley, the president OF
the read or Mr.. Morton, then one of its
vice presidents, had any connection
whatever with the departure from the
published rates in favor of the Colorado
Fuel and Iron company. or that they
knew or suspected that transportation
was furnished in any manner differ
ent from that prescribed by the open
and published rate"
Harmon and Judson Resign.
The letter in reply TO this con
tains the resignation of Messrs. Har
mon and Judson. 1t says, in part:
THE violation by a corporation OF ar
injunction directed against 1t and its
officers always calls for rule against
such of them as had control of its con
duct to show cause why they shoult
not be held personally responsible
1t was their duty to see that the acts
forbidden were not done as well a:
not to do them. What we have said Il
peculiarly true OF the great corpora
tions of our day. They cannot be i'm
prisoned and punishment by fine II
not only inadequate. but reaches thu
real culprits only lightly, II at all. TIL,
evils with which we are now confront
ed are corporate in name. but indi
vidual in fact. Guilt is always per
sonal. So long as officials can hid
behind their corporations, no remed,
can be effective. When the govern
ment searches out the guilty men ant
makes corporate wrongdoing meal
personal punishment and dishonor, tn
laws will be obeyed."
In letter TO the president, unde
date of June 8, the case is reviews
by the attorney general, in which 1
reiterated his views that proceeding
for contempt should be begun agains
the railroad company, but not agains
1s officers.
: President Roosevelt upholds thi
! view in reply under date of June /:
as follows: 81 entirely agree wit
your conclusions. In my opinion yo
/ would be wholly without justificatio
In proceeding Individually against tn
officers of the Atchison, Topeka an
} Santa Fe railway for contempt whe