The Washington herald., 1908-02-16
GUILT IS INDICATED
Prosecution of Hartman
Line Ordered.
SOUTHERN PACIFIC INVOLVED
Interstate Commerce Commission
Places Information in Hands OF
United States Attorneys Through
out COuntry-Orders to start Ac-
tion Have Been Issued.


announced yesterday that information
had been placed in the hands Of United
States attorneys throughout the country
tending TO show that the Southern Pacific
Company, which is controlled by t. H
Hartman, had been guilty - violating
the act TO regulate commerce.
Orders have been issued to institute
such prosecutions under the law as may
be warranted The Southern Pacific is
charged, among other things, with paying
rebates and granting preferential rates to
fayorite shippers. The offenses alleged
are punishable by both fine and imprison-
ment.
1t is understood that in prosecuting
these cases the Federal government will
work In conjunction with the State au-
thorities Of California. The State officials
have announced they have under con-
slderation 400 alleged illegal transactions
on the part OF the Southern Pacific, and
that if convictions are secured iE each
case. fines may be levied approXimating
100000 These transactions cover intra-
state business.
Refunds Were Authorized.
The Federal government. through IN
qulry by the Interstate Commerce Com
mission, has disclosed Jos cases where
refunds Of rates were apparently author
lied by the Hartman road on shipments
between the States.
Adding the amount that may be col
lected through prosecution by the Fed
eTaI government 10 the $So0g000 that
the State authorities OF California declare
may be imposed as result OF the pro-
ceedings 10 be instituted by them, new
record for big fines may DE established
The big fine" at present the high-water
mark in amounts assessed by any court,
State or Federal was imposed on the
Standard OH Company by Federal Judge
KenesaW Mountain lands This fine was
in excess Of so 009G00
The Interstate Commerce Commission
took ND the rebate cases against the
Southern Pacific Company az d public
hearing held at san Francisco in October.
1907. The hearing was held by Commis-
sioner Franklin x Lane. and the report
in the matter made public yesterday was
written by him. From the evidence ad-
duced. the commission found
The existence Of an extensive system
of preferential rates granted 10 certain
shippers on State business by the South
ern Pacific Company
That shippers paid the FUN published
rate in the first instance. and We're al
lowed the refund upon claims which went
through tie auditing department under
Instructions from the traffic department
that such special rates should apply upon
ntrastate shipments without tariff au-
thority.
That such refunds amounted In the va
rious months of the years 1905 and 1867 to
from $50 900 to sj0000 a month
Records Were Destroyed.
That such refunds given to one firm
amounted to the sum Of 500 99l during the
period from April. 1895 dhe date of the
San Francisco fire, when all previous
records were destroyed. 20 September a.
1901, and such refunds TO other shippers
ranged in amount from tiS690 to 81. .25f
That one OF such shippers admitted at
the hearing that the granting OF such in
side rate on the State movement in
fuenccd the routing Of subsequent inter
Eldtt siLiifliIilL WI SA'it Il ann bhtA tlit
rails Of the Southern Pacific Company.
That in one instance the general freight
agent Of the Southern Pacific Company
provided. by voucher. dated July 81. 1905.
for the payment TO an interstate shipper
OF one-half of the local rate which such
shipper had paid to another railroad for
the movement from one point Of origin to
a Southern Pacific terminal where the
the Southern Pacific lines.
That there existed for years an under
standing between the Southern Pacific
Company and the Santa F'e Company and
certain shippers OF dried fruit. that the
traffic which moved into points Of con
eentration for transeontinental shipment
should be entitled. AT the end of the ship
ping season, TO a refund Of one-half Of the
local State rate charged at the time Of
the original movement.
Justification offered.
The report of Commissioner Lane con-
cludes with these words: ''The justifica-
ton offered by the officials and represen-
tatives Of the Southern Pacific Company
for the practices revealed was that in gem
eral they were made necessary TO secure
"a dAiAt Win IL GAtHHfAc NbuAu lAtbNG bllftt
wise were such rebates not granted"
The inside rates. alleged to have been
granted by the Southern Pacific to favor
ed shippers have got that great system I'm
trouble not only with the Federal gov
ernment and the State government of
California but with shippers who did not
enjoy these preferential advantages. The
SINNERS who Were cOulDelIed IN nav the
published rates have organized to re-
cover i'm the courts the difference be-
tween the published or legal rate and the
inside rate. upon which is based the re-
bate cases to be brought against the HaF-
riman road. Taken altogether the pro-
ceedings instituted, or about to be in
stituted, against the Southern Pacific. are
the most. comprehensive ever undertaken
against a railroad in this country.
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