The Washington herald., 1907-08-04

man Law No Bar to Proceedings.
High Federal officers are wondering If
the Standard OH rebate case at Chicago
does not point the way to the criminal
prosecution Of Z. H. Hartman.
The order of Judge lands, directing
the grand jury TO take up, on August Il,
the rebate practices as related to the
Chicago and Alton Railroad. may mean
the criminal prosecution Of the railroad
officials who granted the rebates to the
Standard Oil. the acceptance Of which re-
suited yesterday in the assessment Of 4
fine of more than S29,0000O0.
The Elzins law under which these
prosecutions are being conducted. is very
broad. It provides a punishment Of $1,000
10 $4,000 fine for each violation, by oms-
sion or commission. 1t further provides
that any person. or any officer or director
OF any corporation or a common carrier,
or any person acting for or employed by
It. convicted Of offering. granting. Civ
ing, soliciting. accepting, or receiving any
rebate or concession" may be imprisoned
for not more than two years, in addition
TO the heavy fine, in the discretion Of the
court
The recent report Of the Interstate
Commerce Commission Of It's invesdga-
ton into the operation of the Hartman
railroads showed that during the period
covered by the Standard OH case Harri-
man was in absolute control Of the Chi
cagO and Alton.
Filed False Rate Sheet.
1t is pointed out here, as Judge Ian
dis explained yesterday, that the Chicago
and Alton filed a false rate sheet with
the Interstate Commerce Commission on
oil shipments from Whiting. Ind, 10 Chi
cagO and other points. There can be no
question under the law as 10 the legality
OF traffic arrangements. for il is specif
cally stated that the rate as FLED with
the commission shall be cOuclUslveIy
deemed 10 be the legal rate in any prose
cution begun under the Elkins act, and
that any departure from such rate shah
be deemed an offense under the act.
By tesufying under oath. in obedience
10 a subpoena, Hartman secured immu-
nifty from criminal prosecution under the
Sherman antitrust law. but he has never
been questioned as to the granting Of re-
bates by the Chicago and Alton.
i was learned last night that Attor-
ney General Bonaparte. now at his sum-
mer home AT LenOX, Mass. who has un-
der personal consideration the Hartman
report of the Interstate Commerce Com
mission, has announced that he viii be
at the Department of Justice August Z.
II is understood that he may send Spe-
cial Assistant Attorney General Road
strum, the tTust-buster, 20 Chicago, 10
advise with District.Attorney Simms rel
alive 10 the Chicago and Alton inquiry.
VIII Delay Hearing.
It is stated that if the counsel Of the
Standard Oil Company is sincere in its
declarations that the monster fine IS. IN
just and unmerited and confscatory. a
ready ruling can be reached in the Su-
pTeme Court of the United States The
case can be carried there at once on the
constitutional ground that the fine is
cruel and unreasonable" Il is believed.
however. that the Standard Oil officials
viii prefer 10 carry the case on appeal
TO the Circuit Court Of Appeals. BY this
method the case could be kept from the
highest tribunal for several years.
Acting Attorney General Russell. how
over, is inclined 10 hold, contrary 10
other good authority at the Department
of Justice, that the case cannot proceed
beyond the Circuit Court OF Appeals, be-
cause there is no right of appeal in
criminal cases to the Supreme Court He
points out the failure Of Congress at the
last session TO pass such a law.
The Circuit Court OF Appeals Of the
Seventh circuit is composed Of Judges
Peter s. Grosscup Francis Z. Baker,
William II Seaman, and Christian c.
kOhlsaat
In the absence of a special report from
District Attorney Simms, it is the i'm
preston that Judge Lands has safe
guarded his position at every point. Much
10 the Federal governments chagrin, he
granted John .. Rockefeller and his al
legged felIOw-conspirators immunity from
personal prosecution IN his desire to
afford them every opportunity 10 explain
why a heavy fine should not be imposed.
Should the Standard Oil carry their
troubles TO the Supreme Court Of the
United States, It viii thus be deprived OF
charging persecution, and viii be forced
10 produce its books before the Supreme
Court could decide the case on its
merits.
II the case ever gets 10 the Supreme
Court the Attorney General Will see that
it is expedited. 1t is recr rgnized that an
early ruling on Judge Lands decision
will have most salutary effect In the
prosecution against other common car
riers and trusts.