The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1907-11-08
JUDGE WELL1oRN ASSESSES PEN.
Atty or ssso,ooo AGAINST
RAILROAD COMPANY.
GRANTED REBATES
Convicted BY Jury in Federal Court
on e6 counts-Judae Declares That
Agents Of the Company Must Have
Known It was Violating the LaN-
Fine an intermediate one.

Fine an Intermediate One.
Los Angeles, Nov. Judge Well
born, in the United States district
court, today fined the Atchison, Tope-
ka & Santa Fe Railroad company
100000 for rebating.
The fne was what the court denom-
mated "an intermediate penalty" the
maximum which might have been as
sessed being $1,32O,OOO and the mini
mum $4,000. The court reviewed the
case in written opinion Of some
length in which it stated that there
| We're sufficient doubtful and extenuat-
ing circumstances to preclude the pos
sibility of a maximum sentence and
vet sufficient intention of wrong do
ing shown to make impossible min
imum penalty.
The Santa F'e company was CON
victed on October IL last by a jury in
the federal court Of granting rebates
to the Grand Canyon Lime & Cement
company Of Arizona. It was found
guilty Of all Of the Sc counts, charged
in the Indictment, after but an hours
deliberation.
rxray fpfyr ~
ments of lime and cement from Mel
son, Arizona, to Los Angeles, ranging
in amounts from 35 cents to SIS. The
company claims that these amounts
were not rebates on the regular
freight rate, but were in the form Of
danaaga eds shipp ed I, which Were.
allowed after such claims had been
regularly presented and proved in
each instance. The court today did
not take that view OF the case, how
ever, and stated that it was mot CON
vinced by any means that these
amounts represented bona fide settle
ments of claims"
Knew Law Was Violated.
1T is hard to believe" the court
continued in it's opinion, that the
agents of the corporation did not
know that they were violating the
law. In any event such ignorance OF
the law is almost equivalent to
criminal knowledge of it,
About rs persons were present in
the court room when the fine was i'm
posed. Judge Wellborn entered with
his written opinion in his hand. After
stating that he had carefully consid-
cred the case, the judge began slowly
the reading of his judgment. He read
in strong clear voice, slowly and
with repeated emphasis, the crowd
waiting to catch the first intimation
of the amount of the fine. The court
now and then paused during the read
ing to make interlineations in the
document he was reading, which he
did with pen and ink, pausing each
time carefully to blot the paper. There
was no excitement in the room when
the fine was announced.
Asks Stay OF Judgment.
Solicitor 3. w. Camp, for the com
pany, Immediately moved for a stay
of Judgment, which was required, he
said, by the time necessitated In pre-
pairing the defendants bill Of excep-
tions. Counsel indicated that Jan
uary l would suit them for limit on
the stay. United States District At,
torney LaWler objected to SO long a.
time and Judge Wellborn fixed the
stay at 80 days, with the privilege OF
an extension if sufficient showing
should be, made to the court at that
time.
The court then peremptorily called
the next case on the docket. None Of
the Santa Fe officials were present to-
day, the company being represented
by Solicitor Camp and Attorney Van
Colt.
The Santa Fe remains to be tried
upon another indictment in connection
with the present trial. The Grand
Canyon Lime & Cement company and
President schierm Of the latter com
pany, were also indicted and remain
to be tried. Attorneys for the Santa
Fe today declined to discuss the fine.