The Montgomery advertiser., 1908-02-16
Charges Against South-
 ern Pacific Railway.
GOVERNMENT TO PROSECUTE
Franklin Lane Furnishes Informa-
 ton to Commerce Commission.
The Record DiseIeses List Of over Hundred Firms Ana Corpora- tioss Who Essoyed "specIaiv
 Inside Rates.

W W4SutHkNOns IT DU-s At---E 2 NANH<ettA tt" are to be instituted by the government against the Southern Pacific Company and against certain officials of that railway organization. on allegations that they paid rebates to shippers.
 Information which is to be hasfs for these prosecutions. was obtained by Franklin K. Lane, of the Interstate Commefce<Commfss last autumn in the course of an extensive inquiry made by him into the affairs of tho Southern Pacific Company.
 By direction of the Interstate Com merce Commission, Commissioners Lane visited the Pacific coast for several weeks conducted his inquiries into Ina alleged charges of relating which had reached the Commission. cQn1ulissicn- CT LAne's report of his investigatipn, including a transcript of the testimony taken by him in a formal hearing as an Interstate Commerce Commissioners was made public today. The report has been approved by thek Commission and a transcript of the report and or the evidence adduced at the hearing ment of justice for +Such proseeu- tions under the law as may be war; ranted."
 Collateral with this proposed action by the government. the railroad conn mission of California has been surnish- ed at it's own request. with a transcript of the report and evidence and has iu- dicatad to the. Interstate Commercs Commission its purpose to proseenre alleged violations of tue California law that may be shown by the report
 Emtexeatimg newesopmemt.
 One of the particularly interesting features of the transcript of the evi- denee was developed Just at the cone clusion of the formal nearing, when .gm. n 1fHAM on the witness stand c. w. Luce. gen. eral freight agent Of the Southern Pacific Company as . wttnesel under oath. The request that Mr. Luce G1v1 sworn testimony in the ease wRA M1HNp by P. P. punne. cQtnsai for the 6enkhe ern Pacific Company. Comna1AAlonS Lane declined to administer the catn to Mr. Luce because. he frankly sts<ef he did not wleh tD accord te ME h1see by administering an oath tp Ht4U #HH taking his testimony, ifnmuniky tf3&liA prosecution for violations Of tue 3eN He offered to receive statement From Mr. Lnce respecting the rebate practice of the Southern Pacific Company and enter it as a part of the record of thu case. but he made 1t clear that kht4 statement was not 10 be made under
 in the course of this report. Commits sioner Lane says that his inquiry was conducted in San Francisco on the second, third and fourth days of Octo- Der. 1907. and that from the evidences adduded he finds:
 ssThat the existence of an extensive system of preferential rates granted certain shippers of tnterstate DusinesH by the Southern Pacific Company. The record dIscIoses a list of 108 nrrnse cor- porations and individuals who enjoy what are known as special inside ratas' than the rates published to the general publit--on the movement of certain designated traflc between points with In the State of California
 That shippers paid the full pnh~ lished rate in the first instance and were allowed the refund upon claims which went through the auditing de- partment under instructions from the trAfiic department that such special rates should apply upon interstata shipments.
 's.rhat such refunds amounted In vafl@ ous months of the years 1908 and 13o1 to from S3O.00o to $5O,0o0 per month.
 That such refunds given to one Arm amounted to the sum of $2a,994 during the period from April, 1908, tthe date of the San Francisco fire, when all previous records were destroyed) to September 24. 1907, and such refunds % other shippers ranged in amount from Sl3,690 to S22.2S1.
 Covers Long Period.
 '"That such refunds or discount from the regular rates have been conkinued for a lonR period and up to the date Of the hearing in October, 1907.
 That many of such State shippers to whom such refunds were Allowed, were large interstate shippers
 That one of such shippers admitted at the hearing that the granting of such inside rate on the State movement influenced the routing of subsequent in- terstate shipment of such tfafac ovor the rails of the Southern Pacific Com
 'aThat there existed for years an nn- between the Southern pm- cific Company and the Santa Fe Com- pany and certain shippers oe dried fruit, that the traflc which moved Into points of concentration for trang-con- tinental shipment should be entitled at the end of the shipping season to a re- fund of one-half of the local State rata charged at the time of the origtnaI 
 ''That the voucher books contalnfne the so-called refunds on State zifip- ments also contained. records Of rel funds given upon interstate shipmenss
 That some of such refunds upon ins terstate business were paid by tie written directions of freight officials oR the claims had been denied by the au- dlting department.
 It is known that by instruction of Attorney General Bonaparte the Dis trict Attorneys already have taken up the cases to be instituted for the pure pose of beginning the formal proceed