Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1906-05-18
RAIL-OlL SUIT
WILL BEGIN NOW.
White House Conference Decides to Be-
gin Garfield Prosecutions
at Once.

WASHINGTON, D. c., May 10. -
After an important conference at the
white house last night, in which the
President, Attorney General Moody and
Commissioner of Corporations Garfield
participated the announcement now Is
authorized that the department Of JUS
tice will proceed without further delay 70
prosecute the Standard Oil company and
a number of railroad companies on
charges of violating the anti-rebate law.
Immunity Plea Averted.
Such was the intention of President
Roosevelt when Commissioner Garfield
submitted to him two weeks ago his re
port. Unfortunately, Mr.. Garfield had
submitted the information TO the Stand
ard Oil company, which it was feared
might enable that corporation to set up
plea of immunity.
The administration also had to con-
slider the effect of the action of the
Standard Oil company and railroads in
disseminating to a considerable extent
the practice of rebates which followed
the initiation of the Garfield investiga-
ton. 1t was decided also not to be too
preclpltate, but to give the interstate
commerce commission an opportunity to
make some progress in the investigation
it was ordered to make by Congress.
Moody's Opinion Lift.
Finally, it was necessary for the Presi-
dent to receive from the attorney general
report as to the chances of government
success. But the preliminary eXamina-
ton which Mr.. Moody has completed es
tabisheS that it will be possible to con-
Wet not only the Standard Oil but some
of the railroads. OF course those rail
roads which have granted rebates within
the states cannot be reached. The fed
eral government has no authority over
this practice.
The railroads especially under consid-
GRAFTON with q view to prosecution are
the Chicago, Burlington Il Quincy, Hi
nOis Central, Chicago & Eastern Illinois,
Chicago Il Alton and Southern railway.
Hopes to Land High Officials.
But while the President wants the
railroads punished for violating the Ell
klns anti-re5ate law, he is anxious par
ticularly that the Standard Oil company
shall be brought to justice. He has in
dlcated to the attorney general the high
er up the officials reached the more
pleased he will be. But he recognizes
the difficulties in the way of successful
prosecution of men like Rockefeller and
Rogers, for instance. AS the President
said in his message transmitting the Gar
field report to Congress. a lawsuit is
often necessary method: but by itself
it is an utterly inadequate method
Nevertheless, the lawsuits are to be i'll
stituted
Less Drastic Than Elkins Act.
1t has been suggested to the admins
tratiOn that it delay the prosecutions I'M
til after the enactment of the pending
railroad bill. The bill has been amend
ed so as to require the imposition of a
penalty equivalent to three times the
amount Of the rebate granted or re-
ceived.
AS a matter Of fact, the amendment is
less drastic than the Elkins law itself
The latter law authorizes the imposition
of a fine of $4,000 for each offense In
order to attain proportions Of Il fine au-
thorized to be imposed by the EIkins
law, q shipment would have to be im-
mense. The Standard makes compare
lively small shipments, according to the
understanding here. The effect will be
to require the government to institute an
interminablc number of lawsuits and to
so to heavy expense.
The browning reason why the admins
tratiOn must proceed under that law.
however, is the fact that the Standard
and railroads promptly would claim it
was unconstitutional to make new legis-
latlOn retroactive.