Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-09
NEUTRALITY-SUSPICIOUS.
CONVICTION AND FINE OF THE
SANTA FE COMPANY.

With the recent conviction Of the Atchf-
son. Topeka and Santa Fee Railway Conn
pany and the Colorado Fuel and Iron Com
pany. and fine Of $4,000 imposed upon
each. In the federal court Of New Mexico.
for violation Of the interstate commerce
laws through giving rebates by the. rail-
way company to the fuel and iron COM
pany. the history of the famous Santa Fe
rebate case Is probably closed.
Much praise is accorded by the admins
tration to Attorney General Moody In carry
Ing the case through to successful
termination. The outcome, 1t is claimed. Is
a complete answer to the adverse criticism
in many papers Of the refusal Of the adj
OF Paul Morton. then Secretary of the Navy
and formerly head Of the traffic department
OF the Santa Fe system.
The Attorney General. In disagreeing with
Messrs. Harmon ana Judson, who had been
employed by the government to make a
preliminary investigation. acted with FORE
knowledge of the legal difficulties that at
tend every step tn an attempted prosecu-
ton Of Mr. Morton and other officials in
this peculiar case, which really grew out
of q long-standing practice intended pri-
marily to develop the coal industry In Colo
RADIO and New Mexico. which really did
have that effect. and which became con-
spicuOusly unlawful only after the passage
Of the Elkins law In 1903. and the investi-
cation and report of the facts by the inter-
state commerce commission to the Attor-
ney General.
Prosecution Of Corporations.
That there was violation of the law
involved in the transaction has always been
plain. but that there was criminal intent on
the part of Mr.. Morton and the other Of
ficials involved has always been denied;
and the avowed purpose Of the practice
tends to support that view. On the other
hand 1t was not difficult to prosecute the
corporations themselves, and upon an
agreed statement Of facts presented to the
court, the fines above mentioned were i'm
: It will be. remembered that the Depart
ment of Justice first sought to use this
case and others In the Kansas City fed
era1 court to establish contempt on the
part of the Santa Fe. which was then under
injunction issued in omnibus form and
covering all traffic against that carrier and
numerous other carriers engaged largely in
carrying grain. grain products. livestock
and livestock products, on account of re-
bates shown to have been granted generally
on such traffic In former investigation by
the interstate commerce commission. This
attempt to establish contempt by showing
rebates in coal failed, the court holding
that general injunction could not law
fully issue.
Civil Case Settled.
Later on, civil case brought against the
Santa Fee by coal mining companies dis
eliminated against in favor Of the Colorado
Fuel & Iron Company was settled by the
payment of something like half million
dollars. and now has followed the convic-
ton as above stated Of the railway COM
pany and the fuel and iron company.
Thus apparently ends famous chapter
In the history Of litigations under the inter-
state commerce laws. Primarily the inter-
or a ha
credit Of initial investigation and public
report.