The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-09-27
RAILWAY KINGS
CORPORATIONS
FACE CHARGES
Pacific Mali and Southern
Pacific Accused Under
New Rate Law
FACTS KEPT SECRET
Report That the Companies
Have Made Special
Tariffs
OFFICIALS INVOLVED
Shipments From Orient to
Chicago Watched by a
Government Agent
OFFICIALS INVOLVED

The federal grand jury, which
has been holding secret sessions
I'm San Francisco for several
weeks, has been giving considera-
ton to a mass of evidence tending
to show that the Southern Pacific
and the Pacific Mail steamship
company had been violating the
new rate law, and it was reported
about the federal building that
indictments had been returned
against the two Hartman corpo-
rations. It was also stated that
the names of z. H. Hartman, R.
P. Sci1werin. general manager Of
the Pacific Mail steamship COM
pany, and ]. c. Stubbs of the
Southern Pacific were mentioned
in the indictments, and it was
added that criminal prosecutions
would be begun soon in this city.
Members Of the STAFF Of United states
Attorney Devlin refused to discuss the
reports.
officials OF the Southern Pacific pro-
fessed Ignorance in regard to the en-
tire subject.
Tt was said that the specific charge
Z gsinst the Hartman corporation was
that It carried goods for favored
firms from japanese ports through San
francisco TO Chicago at rates lower
than the published schedule. Under
the new rate law this is a crime pun
ishable By = fine. Each separate ship
ment constitutes a distinct orfense and
81 is said that while the indictments do
not exceed six in number they contain
total Of more than 100 counts.
The evidence was gathered for the
government by Special Agent Duncan.
who has been at work on the Pacific
coast and also IN the orient collecting
data TO be used in ths prosecutions. 1t
IS said thso~he learned that it was the
habit OF the Pacific Mail steamship com
psny and the Southern Pacific to
change the rate whenever they felt in
clined without informing the interstate
commerce. commission and thus grant
special rates TO certain Shippers. Dun
can returned from the orient few
weeks ago and but recently completed
his investigation. He went before the
grand jury yesterday, wnere he was in
terrogsted by Assistant United States
Attorney George Clark Duncan placed
al his data before the grand jury and
after studying It the grand jury, it is
said. voted the indictments
The report has been current for some
tine that President Roosevelt has been
bending his energies TO bring Hartman
10 book for his railway methods. Dun
cans commission. IL is declared. was
part of this plan and the government
agent was instructed TO get his evil
dence in such form that there would
be no necessity TO grant any one an
immunity bath in order to secure con-
vlctions.
Duncan traced shipments from jap
snese ports to the docks in San Fran
cisco. thence TO the Southern Pacific
railroad yards and from there to Chi
osgo and other eastern points. It is
claimed that the data obtained are suf-
dcient TO obtain convictions on enough
indictments TO make the consequent
fine OF a size 20 make Hartman sit up
sn6 take notice.
The presence in San Francisco at this
time OF Interstate Commerce Commits
xioner Franklin X. Lane is regarded as
highly significant Lane has made a
special study Of western traffic and is
in 2 position to render vast assistance
10 the federal attorneys in this city
When the interstate commerce COM
mission held its last hearing in San
francisco it called the attention Of the
Southern Pacic and the Pacific Mail to
the violations OF the law in its orien-
tai business. The corporations offered
explanations and promised TO correct
matters. but II is stated that instead OF
improving the system the companies
continued in violation Of the law. The 1
Investigation by the government was
then determined upon, with the results |
ststed.