New-York tribune., 1906-08-10
SANTA FE REBATE CASE
PRAISE ADMINISTRATION.
No Criminal Intent on Paul Norton s
Part, Commission iSaus.

Washington, Aug. Sin a statement issued to-
day by the Interstate Commerce Commission
garding the conviction of the AtchisOn. Topeka &
Santa Fe Railroad Company for violating the law
with respect to the giving of rebates the commits
sion says that "the avowed purpose of the practice
tends to support the view that there no
criminal intent the part Of Paul Morton, former
Secretary of the Navy and former head of the
traffic department of the Santa Fe. and the other
railroad officials involved. The statement calls at
tentiOn 70 the fact that with the imposition OF the
fine Of $4,000 the railroad the history Of the
famous Santa Fe rebate case is probably closed"
and praises President Roosevelt and Attorney Cen
eral Moody for carrying out with the ad-
ministration's declared purpose TO enforce the
statute in all such cases. The statement follows:
With the recent conviction of the Atchison
Topeka & Santa Fe Railway Company and the
600 imposed upon each in the Federal Court Of
New Mexico, for violation of the Interstate &C :
company to the fuel and iron company. the history
closed
Too much praise cannot be accorded to Attorney
successful termination and that too after the ad-
verse cIicIs i many youiaIs OF Iie Pentsi o
Paul Morton, then Secretary of the Navy and for
merly head of the traffic department OF the Santa
Fe system. The Attorney General I'm disagreeing
with Messrs Harmon and Judson. who had been
employed by the government TO make preliminary
Investigation, acted plainly with foreknowledge of
attempted prosecution of Mr.. Morton and other
officials in this peculiar case. which really grew out
develop the coal industry in Colorado and New
Mexico, which really did have that effect, and
which only became conspic1ously unlawful after
the passage OF the Elkins law in 1903 and the
courageous investigation and report of the facts
by the Interstate Commerce Commission to the
Attorney General
There was a technical violation Of the law in
voved in the transaction has always been plain,
but that there criminal intent the part OF
Mr. Morton and the other officials involved has
always been denied: and TIE avOwed purpose OF
the practice tends to support that view On the
pOrations themselves and upon an agreed statement
of facts presented to the court, the fines above
mentioned imposed 1t viii be remembered
that the Department of Justice first sought to use
this case and others in the Kansas City federal
court to establish contempt on the part of the
in omnibus form and covering all traffic against that
carrier and other carriers engaged largely in carry
ing grain, grain products, livestock and livestock
products, account of rebates shown 10 have been
granted generally such traffic in former in
vestigation by the Interstate Commerce Commits
ing rebates coal failed, the court holding that
a general injunction could not lawfully issue. Later
on a civil case brought against the Santa Fe by
coal mining companies Disseminated against in
| favor of the Colorado Fuel and Iron Company was
settled by the payment of something like half a
lions as above stated Of the railway company and
| the fuel and iron company
Thus apparently ends famous chapter In the his
tory OF litigation under the Interstate Commerce
| laws. Primarily the Interstate Commerce Com
mission the credit Of initial investigation
due TO Attorney General Moody and. of course
President Roosevelt in again carrying out with sue
cess the declared purpose of the administration 20
enforce this great statute in all practicable ways