The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-01-19

stand assumed full responsibility. for the
rebates. In no way is the president Of
the company, E. P. Ripley, or the former
vice president, Paul Morton, now secre-
tary of the navy, Officially o any9lv vs;1
be directed against the Santa Fe cor
poration, for the collection of heavy
fines. Mr.. Biddle, by his statements
5on the witness stand has rendered him
self immune, for section in the Elkins
law protects him from all harm.
Laws Broken, Court Defed.
According to the testimony before
the interstate commerce commission,
the Santa Fe road has wilfully violated
two statutes and an injunction OF the
federal court. It has violated the
original interstate commerce act, which
prohibits rebates of the character re-
ferred to, as we'll as the Elkins act,
ment of the original act. Two years
ago an injunction was secured against
the Santa Fe road in the beef trust
cases, by which it was forbidden to en-
gage in rebate giving, and that in juno
tion has been violated.
| The prosecution will be under the
Elkins act, because it is the latest statu-
tory expression on the rebate question,
and because, further, its penalties are
more severe than those Of the original
act.
The rebates complained Of were paid
for period of five years, ending last
month, and it will be possible to fine
the Santa Fe company from 81, 1000 to
$4,000 for each separate violation.
The road, therefore, has good deal at
stake, for a strict enforcement Of the
law, applied to all it's rebate payments
to the Colorado Fuel & Iron company
for five years, would make tremen,
dous hole in it's surplus capital.
Moody to Use Best Efforts.
1t is said to be the intention Of the
government to proceed against the COM
pany with all the energy at its com
interest in the case, because it striking.
ly illustrates the argument he is now
making for legislation which will bring
the great carrying companies under bet
ter control. He had an interview q
number of weeks ago with high off
cial of the Caledonian company, which
was being gradually bankrupted by the
Santa Fe's system Of rebates to the
Colorado Fuel & Iron company, anC
under his direction secret-service mer
were sent into the southwest to inquire
carefully into the rebate matter. 1t il
said that these men secured documen
tary evidence of highly importan
character, which will be used by tn,
attorney general in the prosecution o:
the case.
Santa Fe Tried to Buy.
Neill B. Field, one Of the official
of the Caledonian company, is in Wash
ington to look after the case. It i
understood that the Santa Fe compa
company at a high figure, to stop fur
Their Investigations, but Mr.. Field de
clined to consider the offer, preferrin
to do nothing that would cripple tn
arm Of the government in it's propose
prosecution.
Public sentiment is pretty evenly d
vided on the question Of whether Sec
rotary Morton, former vice presiden
Of the Santa Fe, and in that capacity: i
has had any guilty knowledge Of tn
violation Of the law. On the surface Q
the case, he is guiltless, for full RI
sponsibility for all that was done ha
been assumed by Mr.. Biddle, who wa
Mr.. Morton's executive agent.
The rebate transaction, however, wa
large one, involving heavy shipment
freight. That Mr.. Biddle, on his ow
motion, without consulting his chic
would dare proceed to an open and lon.
continued violation Of the law, is que
toned in many quarters; yet there
nothing in the record involving NJ
Morton, and he is not party to tt
present case in any way.
The case was originally heard by Il
Interstate commerce commission in IL
southwest late last fall, and there was 3
adjourned hearing in Chicago: The
hearings brought out the testimony {
the commission is soon to nal
Its report. The testimony and repol
e e, with the documentary proof secured
x the secret service men, will be at Il
= disposal Of the department of Justice.
% The fact that Mr.. Marion is now