Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-02-10
BOOKS SHOW
RAILROADS
CULPABHITY
IRREGULARITIES PROVED BY
RECORDS
CHECKS FOR REFUND PAYMENTS
ARE FOUND
Prosecution of Hartman for Discrimi-
nation Against Shippers Is
Definitely Decided
Upon

Special to The Herald
SAN FRANCISCO, Feb. 9.--Evidence
of 1000 cases of rebating has been Sc
cured by Assistant Attorney General
Raymond Benjamin from the books of
the Southern Pacific company.
Prosecution of the offending COM
pany under the clause in the state con-
stitution called to the attention of the
attorney general by the Los Angeles
Herald will be begun. Should the rail-
road be convicted on each of the 1000
charges it will be forced to pay a fine
of $50, 100000
These facts were given out today by
Attorney Benjamin in an interview
with representative of the Herald,
AS a result of the demand of the
state board of railroad commissioners
for the books and records of the South
ern Pacific company, that corporation
last week permitted representative Of
the attorney generals Office access to
it's books.
No efforts were made by the railroad
to conceal its alleged illegal transac-
tion and 1t is assumed from this that
the railroad will make no defense
against the charges, but plead that
the constitution is not self-acting, but
must be amplified by legislative enact
ment.
Evidence Conclusive
The evidence found by Assistant At
torney General Benjamin is conclus-
i've, each rebating transaction having
been traced from the initial bill of
lading through the books, and even to
the checks given for the refund
amounts. These checks, endorsed with
the names of the shippers who re-
ceived the rebates, are in the posses
sion of the attorney general.
Attorney General Webb will conduct
the prosecutions, which will be for vio-
lations of sections IL and 81 of article
XII of the state constitution. These
sections read as follows
Punishment Provided
Section q = No discrimination in
charges of facilities for transportation
shall be made by any railroad or other
transportation company between places
or persons, or in the facilities for the
transportation of the same classes of
freight or passengers within this state,
or coming from, or going to, any other
state. Persons and property transports
ed over any railroad, or by any other
transportation company or individual,
shall be delivered at any station, land.
ing or port, at charges not exceeding
the charges for the transportation of
persons and property of the same class,
in the same direction, to any more dis
tant station, port or landing.
Section 25- Said (railroad)
commissioners shall have the power
and it shall be their duty to establish
rates of charges for the transportation
of passengers and freight by railroad
or other transportation companies and
publish the same from time to time,
with such changes as they may make;
to examine the books, records and pa
pers of all railroad and other trans
portation companies, and for this pur-
pose they shall have power to issue
Subpoenas and all other necessary
process; to hear and determine com
plants against railroad and other
transportation companies; to send for
persons and papers; to administer
oaths to take testimony and to pun
ISL lOI COllCtlpl VI hACll OiuCio anu
processes in the same manner and to
the same extent as courts of record,
and enforce their decisions and correct
abuses through the medium of the
courts.
Uniform System of Accounts
"Said commissioners shall prescribe
a uniform system of accounts to be
kept by Ill such corporations and COM
panies. Any railroad corporation or
transportation company which shall
fail or refuse to conform to such rates
as shall be established by such COM
missioners, or shall charge rates in
excess thereof, or shall fail to keep
their accounts in accordance with the
system prescribed by the commission,
shall be fined not exceeding TWEEN
TY THOUSAND DOLLARS ($20.000)
for each offense, and every officer,
agent, or employe of any such corpo-
ration or company who shall demand
or receive rates In excess thereof, or
who shall in any manner violate the
provisions of this section. shall be fined
not exceeding FIVE THOUSAND Doll
LARS $4,000 or be imprisoned in the
county jail not exceeding one year.
Nothing in this section shall pre-
vent individuals from maintaining ac-
tions against any of such companies.
The legislature may, in addition to the
penalties herein prescribed, enforce this
article by FORFEITURE OF CHAR
TER, or otherwise. and may confer
such powers ON the commissioners as
shall be necessary to ENABLE THEM
TO PERFORM THE DUTIES EN-
JOINED ON THEM IN THIS AND
THE FOREGOING SECTION. The
legislature shall have power to
remove any one or more Of said COM
missioners from ONCE for dereliction OF
duty, or corruption, or Incompetence