The sun., 1906-06-23
OOveInmsal 10 Start CIlRlasl
Gases Against Officers
and employees.
IT SEEKS JAIL SENTENCES.
Course which WllI Bs FOllOwSd
Decided On at q Conference
With the President.

Taking and Giving Of Rebates and Other
UnIawfui Discrininatisns In vieisiiss
"a Of the Interstate Commerce Law WIN
ne Charged Men May Bs
involved - AttOrnsy-GenerM noody
Also Announces Another Investigation
or standard OH Company Anuirs.
Separate From Prosecutions, 10 No
started at This Time-F. ID. Keliogg
or st. Paul and G. ID. Morrison ~ chi.
cago Are Named as Special Counsel.
WAsHINdT ON, June a.. Original prose Gu
tons, involving fine or imprisonment, or
botr., are TO be instituted at once by tho
Attorney General against certain officers
and employees Of the Standard Oil Company
and against persons concerned with them
In the granting or acceptance OF rebates
and 10 other violations Of the interstate
commerce lava. This action, which was
decided upon Al an extraordinary meeting
Of Cabinet officers with the President last
Wednesday evening, was further discussed
at the regular meeting Of the Cabinet to-day.
Late this afternoon Attorney General Moody
gavs out a formal statement Of his plans.
but he refrained from giving particulars
Of the expected prosecutions.
A further investigation Of the Standard
OIL Company will be begun at once by special
counsel employed by the Government.
This will be an entirely separate investiga-
ton and bears no relation to the prosecu-
tons Of individuals under the criminal
.tatutes already decided upon. The object
Of the special inquiry will be to determine
whether any action will lie against the
Standard Oil Comp any for violation of the
ant T. trust laws. The Attorney G"n-'ai'~
statement is as follows:
AFTER full consideration of all the informa-
ton now available, including the report Of
the Commissioner Of Corporations and the
evidence taken by the Interstate Commerce
Commission, have reached the conclusion
that criminal proceedings against the
Standard Oil Company should be begun in
certain cases where there appears to have
been q violation Of the laws regulating inter-
state commerce and prohibiting rebates
and other unlawful determinations 40
oordingly, such proceedings will be begun
at once in the appropriate judicial districts.
These cases are regarded and will be
treated as Of importance, as 1t seems clear
that in so far as the Standard Oil Company
has obtained monopolistic control OF inter-
state trade, that control has been in large
degree made possible by determinations in
transportation rates or facilities, the dis
ordinations being in some cases In violation
of law and In other cases, though injurious
to the public welfare, not in violation OF law,
and, therefore, subject only to such cor
reotion as may be afforded by the railway
rate legislation now pending in Congress.
L shall continue the investigation of tho
affairs of the Standard Oil Company and
OF such complaints as have been orNmay
be brought to the attention Of this Depart
ment, with the view of ascertainng whether
or not there has been any violation of the
anti act or of any other Federal law.
This investigation will require assistance
outside of the Department, and l have
employed as special counsel Frank B.
Kellogg of st. Paul, who was one
of the counsel for the Government In the
Western paper organization, and Charles
B. Morrison of Chicago, now United
States Attorney for the Northern Dis
triot Of Illinois. MIR. Morrison will in the
near future resign his place as District
Attorney.
"The course of action I have stated has
received the approval OF the President
and all the members Of the Cabinet
It is expected that the criminal actions
to be brought by the Attorney General will
vary according to individual causes, but
In general they will have to do with the
acceptance Of freight rebates by the Stand
ard Oil Company and the granting Of the
rebates by railway companies. In q cir
oular letter Of instructions TO United States
Attorneys last December Mr.. Moody used
the following language:
An act entitled ITO further regulate COM
meroe among foreign nations and among
the States," approved February 49, 1908
ts2 6tats.. s47). commonly known as the Elkins
act. is directed against rebates and other
discriminatory practices by common carriers
and provides for their punishment by fines.
II further provides for their prohibition by
the injunotlve process Of the courts. There
is no provision that criminal prosecution
shall be by the special direction of the Attorney
General. but In section 1t Is provided that
proceedings for Injunction shall be bcguS
whenever the Attorney G General shall direct.
You are directed diligently to invcstiga. d,
all complaints which may come to YOU rror
any source OF violations of this law, ant
upon your own initiative to make investiga-
tons II there appears to you To be any rcason-
able ground for suspecting violations of this
law. In every case in which you can secure
sufficient evidence You will submit that owl