Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1905-12-20
DEFENDS MR.. MORTON.
President Declares Attorney General
Acted Correctly in Rebate
Case

WASHINGTON, D. c., Dec. 49,
President Roosevelt has again come
to the defense of Attorney General Moo
Paul Morton and other officers of the
Atchlson, 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 IL 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.
Rlpley and Morton, president and vice
president of the Santa Fe at the time,
some evidence ought to precede an accu-
satlon or contempt of court.
Absolutely Right, President Says.
The Presidents letter to the attorney
general says in part:
l have received your letter Of December
10 me facts therein set forth prove in
conclusive fashion that you were absolute
~ rlght In the position you have all along
taken both regards the proceedings pro-
posed against the officers Of the company,
including Mr.. Paul Morton, recently a mem
Der or my cabinet
Garfield Makes Report.
The annual report of James Rudolph
Garheld commissioner of corporations,
points out that apparently the most eff
fectlVe 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.
It adds:
1t Is strongly felt that preventive rather
remedial means must be used in dealing
with the entire problem. The government
must deal beforehand with causes, not
merely afterwards with their effects.
Congress Must Exercise Power.
No fact of industry is more obvious than
Cnat modern business has OutgrOWn and
Whol!y d1sregards state lines, and that the
Jurisdictions Of 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,
ana other devices for afford1ng to one ship
per improper advantages over a 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
ment has compelled some. respect fol, the
law. which, until recently. was wholly
lacking. But SO far as effecting a perma-
nent change of the conditions which the
law denounces, but little has been done.
The imposition Of a penalty upon a COM
hinatton simply drives the men in that com
Dination 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
national Incorporation law. If the prin-
c1ple of federal regulation be agreed upon,
there will be little difficulty in determin-
Ing which method should be adopted.