The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-08-10
VICTORY OVER
SANTAFE SWEET
Commerce Commission - 5
Moody and RgS?Ps.
CASES ARE {. SETTLED
No Criminal Intent Was Found On the
Part of Paul Morton and Viola
tions of the Law Were
Really Technical.

Washington, August 9--In a statement
today by the interstate commerce com
mission regarding tire conviction of the
Atchison, Topeka and Santa Fe Railroad
company for violating the law with re-
spect to the giving, Of rebates the COM
mission says the aNpFed purpose of the
practice tends to stifnport the view that
there was no criminal intent on the part
Of Paul Morton. foi-uikAhead of the traf-
nee department of the santa Fe and other
railroad officials involved. The statement
calls attention to tho 4act that with the
imposition of the sI50oo fine on the road
"the history of the famous Santa Fe re-
bate care is practically closed, and
praises the President and Attorney Cen
eral Moody for carrying out with success
the administration declared purpose to
enforce the statute In all such cases.
The statement follows:
Case Is Probably Closed.
with the recent conviction of the
Atchison. Topeka and Santa re Railway
company and the Colorado Fuel and Iron
company and a fine of $4,000 imposed upon
each in the federal court of New Mexico,
for violation of the interstate commerce
law through giving rebates by the rail-
way company to the Fuel and Iron com
pany. the famous Santa re rebate case
is probably closed.
Too much praise cannot be accorded
Attorney General Moody IN carrying this
case through to successful termination
and that, too, after the adverse criticism
In many journals Of the refusal of the
administration to undertake the prosecu-
ton of Paul Morton. then Secretary of
the Navy. and formerly head of the traf-
fc department Of the Santa Fe. The at
torney general in dsagreeng with
Messrs. Harmon and hudson. who had
lbeen employed by the government 10 make
an inquiry acted plainly with forelSnowl-
edge of the legal difficulties that attend
ed every step in. the attempted prosecution
of Mr.. Morton and other officials in this
peculiar case. which really grew out of
a long-standing practice intended primar-
lily to develop the coal industry in Colo
rado and New Mexico. which really did
have that effect and which only became
conspecuousiy unlawful after the passage
of the ElSns law in 1903, and the cour-
ageous investigation and report of the
facts by the interstate commerce commits
sion to the attorney general
Technical Violation Plain.
There was technical violation of the
law involved In the transaction which
has always been plain but without Grim
inal intent. On the other hand 1t is not
difficult to prosecute the corporations
themselves and upon an agreed statement
of facts presented to the court the fines
! remembered that the department of jus
tice first sought to use this case and
others in the Kansas City federal court
to establish contempt on the part of the
Santa F'e, which was then under injunc-
ton issued in omnibus form and cover
ing all traffic against that carrier and
numerous other carriers engaged largely
In carrying grain products and live STOCK
products on account of rebates shown to
have been granted generally on such
traffic in a former investigation by the
Interstate commerce commission. This at
tempt to establish contempt by showing
rebates in coal failed, the court holding
that a general injunction could not law
fully issue. Later on civil case brought
against the Santa Fe by coal mining conf
panies Disseminated against in favor OF
the colorado and Iron company was set
tied by the payment of something like
half million dollars and now has fol-
lowed the convictions as above stated on
the railway company and the fuel and
! Iron company.
THUS apparently ends a famous chap
ter in the history Of litigation under the
Interstate commerce laws.
"rhe interstate commerce commission
deserves the credit of initial investigation
and public report. but yet the great
praise is due to Attorney General Moody
and of course OF President Roosevelt