New-York tribune., 1907-11-08
SANTA FE FINED $3.50. 600
Federal Judge WeUborn Finds Road
Guilty of Rebating

Los Angeles Nov. Judge Olin WeIlbor7 IN
the Onlted states District Court, to-day fined the
Atchison, Topeka & Santa Fe Railroad Companv
$4,000 for rebating. The fine was what tbe court
denominated IAN intermediate penalty. +he r,axt
mum which might have been assessed beine 81 .2o =
90 and the minimum Se6.ooO. The court reviewed
the case IN written opinion, in which 1t was
stated there were sufficient doubtful and extenuat
ing circumstances TO preclude the possibility of q
maximum sentence, and vet sufficient intention of
Vrongdoing shown TO make impossible minimum
penalty.
The Santa Fe company was convicted on Octo-
her Il last by jury in the federal court of grant
ing rebates TO the Grand Canyon Lime and Cement
Company, OF Arizona. 1t was found guilty on all
the sixty-six counts charged in the Indictment
after only hours deliberation. The rebates
which were given on shipments of lime and cement
from Nelson AriZ-, to Los Angeles ranged in
amount from 81 cents to SIS. The company claimed
that these amounts were not rebates on the regu-
lar freight rate, but were in the form of damages
30 goods which were allowed after such claims
had been regularly presented and proved IN each
instance. The court to-day did not take that view
OF the case, however, and stated that il was not
convinced by any means that these amounts repre-
Fented bona fde settlements of claims"
TT IS hard TO believe the court continued
that the agents OF the corporation did not know
that they violating the law. In any event
such ignorance of the law is almost equivalent
criminal knowledge of IT
Judge Welborn's decision is, in part. as follows:
The Elkins law, under which the defendant has
been convicted prescribes the punishment for its
Hiolaton q fine of not less than S1,v0 nor more
For quarter Of a century Congress has sought
10 regulate commerce between the states and ter
gagged in such commerce shall be open 10 compet-
tors and localities upon terms Of EQUALITY and to
sil sorts of discrimination and favoritism
beer, so widespread and malignant and fully
within the common knowledge that they require no
comment at this time and It need only De SAID that
the Elkins law and all other acts upon the same
courts as to promote their policies and extirpate
evils against which they are directed
Had there been mention by the defendants in
facts that the concessions made by the defendant
were small in amount ranging from s. cents TO
S5 averaging $ 2o2, and aggregatng s4 o. which
traffic of the sort contributed by the shipper
While the circumstances do not in any way affect
the abstract question of innocence or guilt. they
punshment to be indicted and together With other
which will not take time TO enuTnerate, providing
aTn inclined to think that the defendants un-
DERIVING purpose in the transaction compIalned OF
vas to foster on It's own lines OF roaa any !noQs
tariff against competitors in other localities de-
eees5 Paa TO o8n e Sthe what nT the motives
and purposes were however cannot be deterIGIned
now cow that this should be done
distinctly and forcibly stated by Mr.. Lawlor the
District Attorney. that the concessions we're h
hard to believe that the defendant did not know
f a5ssed fs tsT ali eSents Of he
under the circumstances in this case Woulo
imply degree Of negligence Wellnigh equivalent
10 guilty knowledge - -
10 classify the present one which calls for
the lowest penalty the law allows
Rejecting then, as unsuited to the present case.
both the maximum and the minimum penalties l
must flud somewhere between the two such a
medium as under all circumstances or the case
seems 20 meet the requirements. and thereupQ9h
pronounce the sentence, which, while not uIuuIy
severe will vet effectively serve as a perpetual
warning TO all persons against Ike onence IN liie
The Judgment Of the court is that the defendant
sentenced to pay hne or s0'vV' On eoCh Gum
the indictments.
Immediately after the fine was announced. w r.
f-annp solicitor for the company, moved stay or
Judgment needed TO prepare bill Of exceptions
Judge weIlborn hxed the stay at thirty days with
the privilege of an extension # sufficient show
ing should be made at that time
Judge Nellborn IS sixty-four years OLD ana a
Southern Democrat. He native Of Georgia and
? Confederate veteran. He was a member OF the
stt Georgia Cavalry, and was wounded at the
battle Of ChickamaUga. He surrendered with the
command OF General Joseph Wheeler having
reached the grade Of brevet colonel Judge Wen
born came TO California in 1887, and appointed
70 the federal bench by President Cleveland In
1895 He served in Congress from the Dallas (Tex)
district in the 46th 9Th 18th and 49th congresses
Chicago Nov. 5.-President Ripley Of the Santa
Fe Railroad said to-day: I'VE do not to make
criticism on judicial decision. except TO that
we do not think We guilty Of any violation of
law, and that shall carry the case to the court