Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-11-08
SANTA FE IS FINED
Railroad is Assessed $S3O,O00 for
Paying Rebates.
sIXTY.sIx COUNTS IN BILL
Lowest One Involved Drawback OF
Thirty Five Cents.
STAY OF JUDGMENT GRANTED
Company Allowed Thirty Days to File
Bill Of Exceptions.
DEFENSE OF THE RAILROAD
Its Attorneys Contend that Payments
Are for bona Fide CIains for
Damages, but Court was
Not Convinced.
Allowed Thirty Days to File
Bill Of Exceptions,
DEFENsE OF THE RAmROAD

LOS ANGELES. Cal. Nov. 7.--Judge
Olin Wellborn. in the United States district
court today fined tho Atchisoh, Topeka &
Santa Fe Railroad company $4,000 for
rebating. The fine was what the court
denominated ian intermediate penalty"
the maximum which might have been as
sessed being &i.s2OOOO and the minimum
$66,OOO. The court reviewed the case in a
written opinion OF some length. IN which It
stated that there were snficient doubtful
and extenuating circumstances 20 preclude
the possibility OF maximum sentence and
yet sufficient intention OF wrong-doing
shown to make impossible q minimum
penalty.
The Santa Fe company was convicted on
October II last by a jury In the federal
| court Of granting rebates to the Grand
| Canyon Lime and Cement company OF Ari-
zona. 1t was found guilty Of all of the
| sixty-six counts charged IN the indictment
after but an hours elaboration. The re-
bates which were given on shipments OF
lime and cement from, Nelson, Ariz.. 70
Los Angeles. ranged In amounts from 81
cents to SIS. The company claimed that
these amounts were not rebates on the
regular freight rate. but were in the form
OF damages TO goods which were allowed
after such claims had been regularly pre-
sented and proved in each instance. The
court today did not take that view Of tho
case, however, aud stated that it was not
convinced by any means that these
amounts represented bona nde settlements
OF claims"
ut Is hard to believe" the court con
tinued in It's opinion. that the agents OF
the corporation did not know that they
were violating the law. In any event such
violation of the law is almost equivalent
to criminal knowledge OF IT.
Stay of Thirty Days Granted.
There was no excitement in the room
when the amount OF the fine was an
nounced. w. e. Camp. solicitor for the
company, Immediately moved a stay OF
Judgment, which was required. he said. by
the time necessitated in preparing the de-
fendants bill of exceptions. Counsel indi-
Gated that january would suit them tor a
limit on the stay. United States. District
Attorney Bawler objected to 80 long
time and Judge wellborn fixed the stay at
thirty days with the privilege of an ex-
tension IL 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 today. the company being
represented by Solicitor Camp and Attor-
ney NAnCOtt.
Federal Judge Olin welborn, who today
sentenced the Santa Fe Railroad company
to pay a fine Of nearly one-third OF mill
lion dollars for rebating, is "a years OF age
and southern democrat. He is a native
Of Georgia and a Confederate veteran. He
was a member OF the Sixth Georgia cav
airy and was wounded at the battle OF
Chickamauga. He surrendered with the
command of General Joseph Wheeler. hav-
ing reached the grade of brevet colonel I'm
the service Judge wellborn came to Cali
fornia in 1877 and was appointed TO the
federal bench by President Cleveland in
1895. He served four terms In congress
from the Dallas, Tex. district.
WIN Appeal to supreme Court.
CHICAGO Nov. THE law department
Of the Santa Fe in this city declined to
make any statement about the fine for re-
batting, but one member said an appeal
would undoubtedly be taken.
President Ripley said:
'We do not care to make criticism on a
judicial decision except to say that we do
not think we were guilty OF any violation
OF law and that we shall carry the case TO
the court of last resort"