The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-09-27
.INDlCT HARTMAN
A Report Sent Out From the
Pacific Coast
That the Federal Grand Jury
Has Found Six Bills.
VIOLATING RATE LAW
Indictments Are Said to Con-
tain 14O Counts.
j. C. Stubs and Other Officials
Are Included.

San Francisco, Sept. 27.-It is re-
ported that the federal grand jury has
found six indictments in this city
against officials of the Southern Pa
ciffc and Pacific Mail Steamship COM
pany for violations of the rate law
Indictments are said to contain one
hundred and forty counts and it is un-
derstood that E. H. Hartman and J.
c. Stubbs are included among the off,
cials named
The indictments are said to be based
on the charge that the companies have
brought shipments from the Orient
through this city to Chicago at a rate
lower than the one published.
special agent of the interstate COM
merce ommisSion, Duncan, has been
on the Pacific coast for several months
ana also in Japan investigating these
shipments and how the Pacific Mail
and Southern Pacific have been making
rates lower than the published tariff
on them at various times. 1t is the
making of a lower rate than the pub
lished tariff on which the indictments
have been based.
The particular instances in which
the law is said to have been violated
relate to shipments of mating from
Kobe to Chicago, these shipments be-
ing very heavy and numerous during
Il number of months of the year.
Southern Pacific officials are said to
have admitted that prior to the en-
forcement of the new rate law they
had not been strictly living up to the
three day notice provision of the old
law, because of the impossibility of
doing so and retaining their share of
Oriental shipments to this country in
competition with foreign lines. They
insisted, however. that since the new
law has gone into effect they have not
made any lower rate than the pub
lished one and have not violated the
law for two reasons One is that the
rates have been very steady in the
Orient, and there has been no neces-
sity for making rates other than those
in the published tariff. The second
reason is that as the commission now
has the power to dispense with the
thirty days notice, where an emer-
frency rate is necessary, all the carrier
has to do now is to lay the matter be-
fore the commission and get it to au-
thorize a lower rate because of its
dispensing power.
Tt is expected that the indictments
viii be filed in open court when the
federal grand jury meets. This, 1t is
claimed. is the first time in the history
of a trans-Pacific traffic through this
port that a federal grand jury has ever
made indictments for violations of the
interstate law.
The Plea Not Guilty.
New York, Sept. 27.-Local Off
cials OF Southern Pacific railroad and
the Pacific Mail Steamship company
said today that they had no informa-
ton concerning the reported finding
of indictments against Mr.. Hartman
and other officers of corporations for
alleged rate violations.
One of the legal representatives of
the Southern Pacific company ex-
pressed the opinion that the recent
trouble is possibly a revival of an old
controversy with the Interstate Com
r1erce commission regarding foreign
or import rates. The law governing
the publication of such rates was
amended August 26. 1905 subject to
notifications by the commission.
There have been no violations of the
law according to the Southern Pacific
officials since the amendment became
effective.
Federal Attorney Won't Say.
San Francisco, Sept. Pho infor-
nation could be obtained today at the
United States district attorneys office
confirmatory of the report that E. H.
Hartman and other Southern Pacific
officials had been indicted for violations
of the interstate commerce act The
grand jury will make its report at
0'c1ocx and it is expected that the
news will then be given out.