Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-08
SANTA FE ROAD
IS FINED FOR
REBAT|NG
S330,000 PENALTY IN
GRAND CANYON LIME CASE
Convicted of Sixty-Six Viola
tons of EikinS Law in Ship
mentS From ArizOna-C0m-
pany viii Appeal


Olin Wellborn. in the United states
district court today fined the Atehi-
son, Topeka and santa Fc Railroad
company $330.O0O for rebating The
fine was what the court donominated
IAN intermediate penalty" the maxi
mum which might have been assessed
being S1,320.00O and the minimum
100000. The court reviewed the case
in writted opinion of some length IN
which 1t stated that there were sufh-
cient doubtful and extenuating cir
cumstances to preclude the possibility
OF a maximum sentence and yet suffi-
cient intention Of wrong doing shown
TO make impossible minimum PEN
atty The Santa Fe company was con-
victed on October IL last by a jury
In the federal court OF granting re-
bates to the Grand Canyon Lime and
Cement company of Arizona IL was
found guilty on all of the sc counts
charged In the Indictment after but
an hours deliberation. The rebates
which were given on shipments Of
lime and cement from Nelson, Ariz.,
TO Los Angeles, ranged In amouns
from 80 cents 10 SIS. The company
rebates on the regular freight rate.
but were in the form OF damages To
goods shipped, which We're allowed
after such claims had been regularly
presented and proved In each instance.
The court today did not take that
view OF the case. however, and stated
that II was not convinced by any
means that these amounts represented
bona fide settlements of claims" So
t..sN A..
Immediately moved stay Of judg-
ment which was required, he said. by
the time necesstated in preparing the
defendants bill of exceptions Coun-
sci indicated that January / would
suit them for a limit on the stay.
United States Attorney Lawlor OBJ
jected 10 so long time and Judge
Wellborn fixed the stay at 80 days
with the privilege OF an extension, "
a 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
hv solicitor Camp and Attorney Van
Cott.
Judge wellborn's decision Is In part
as follows:
"The Elkins law. under which the
defendant has been convicted pre-
scribes as the punishment for It's Vio-
lation a flne Of not less than $1,000
nor more than 100000.
"For quarter of century con-
gress has sought 10 So regulate com
merce between the states and terri
tories so that the agencies of trans
portation engaged In such commerce
shall be open 10 all parsons and local
tiles upon terms Of equality, and to
this end the statutes uniformly and
stornly forbid all sorts Of disCrimina-
tion and favoritism.
"Tho evil practices thus sought TO
be suppressed have been 50 wide
spread and malignant and are so fully
within tho common knowledge that
they rcquire no comment at this
time. ahd Il need only be said that the
Elkins law and all other acts upon tho
same subject should be 80 construed
and enforced by the courts as 10 pro-
mote their policies and cXterminate
the evils against which they are di-
rectcd.
Had there been no mention by de-
fendant's counsel in the matter !
should not, of course. be mindful OF
the salient fact that tho unlawful con-
cessions made by the defendant we're
small In amount. ranging from 30 cents
to SI426, averaging $500 la aud az
not more than one per cent ot the
total traffic Of the same sort contrib
uted by the shipper 10 whom the con
cession was made While the circum-
stances do not In any way affect the
abstract question or innocenc" or
guilt. they are manifestly important
factors in determining the punishment
to De inflicted and together with
other matters of less consequence Hp-
pearlng in the record. which ! do not
take time 20 cnumerate. forbid the
mHNimum penalty.
Il am inclined to think that the
underlying purpose In the
transaction complained OF was 20 fos-
ter on It's own lines any industry
which would permanently contribute
10 its tariff against competitors ia
other localities depending on other
lines OF transportation Tor access 10
market
what the defendants motives and
purposes were. however. cannot he
from anything IN the rec
ord. nor Is u necessary that u should
be done
II am satisfied that the evidence
shows. as was distinctly end forcibly
stated by Mr. Lawlor. tho district at
torney. that the concessions were IN
and systematically made
and 10 Is hard 10 believe that the de-
fcndant did not know that they were
unlawful departures from Us estab-
lished tariff At all eevents, ignor-
aurs Of the law under the circum-
stances in this case would imply
degree Of negligence well nigh equiv
aient to guilty knowledge. These lat
trr considerations will not permit me
- classify tho present case az one
which calls for the lowest penalty the
law al'aWs.
Rejecting then. as unsuiied 20 the
present case. both the maximum ana
the minimum nenaltie~. J must ma
-orrav-hare between the two. such "A
medium. - under all Circumstances
of the case seems 10 meet lts Just re-
and thereupon pronounce
the sentence. which. while not unduly
severe wiz vet effectively serve as
r-arpetuaI warning 20 an persons
against like omenses in the future.
The Judgment OF the court b. that
the defendant he sentenced 90 pay