The Barre daily times. (Barre, Vt.) 1897-1959, 1908-02-17
BY Federal Government and
by California
ACTION To BE INSTITUTED
On Allegations Of Relating Made in
Commerce Commissioner Lanes Re-
port--State's to Be for ANY vi
olation Of Its Laws.

Washington, y. G., Feb. IL, Prosecu-
tions are ia BE instituted BY the gov
eminent against the Southern Pacific
company and against certain officials Of
that railway organization on allegations
that they paid rebates to shippers.
The state Of California has also indi.
Gated its intention Of prosecuting the
road for all violations of state law
Both parties to the alleged Illegal re-
batting viii. IT, is blieved, be made to
pay the penalty, as It is understood that
for the first time, the shippers who ben.
Gifted by the rebates will also be made
defendants in the suits Of the govern
ment.
Information which il TO be used as a
basis for these prosecutions was obtained
by franklin X. Lane, OF the interstate
commerce commission, last autumn in
the course Of an inquiry made by him
into the methods Of the Southern Pacific
company.
BY direction Of the interstate com
nerce commission, Commissioner Lane
visited the Pacific coast and for several
weeks conducted his inquiries into the
alleged charges OF rebating which had
reached the commission.
Commissioners Lanes report Of his in
vestigation, including a transcript Of the
Testimony taken BY him in formal
hearing as an interstate commerce com
missioner, was made public Saturday
The report has been approved by the
commission and transcript of the
report and OF the evidence adduced at
The hearing has been transmitted to the
department OF Justice for such prose-
cutions under the law as may be war
rantedp
Collateral with this proposed action
by the government, the railroad com
mission Of California has been furnished
at its own request with O transcript OF
the report and evidence, and has indi
Gated to the interstate commerce com.
mission, its purpose to prosecute alleged
violations OF the California law that
may be shown by the report
The testimony taken by Commissioner
Lane was voluminous and in the course
Of the report, extensive references TO
the verbatim testimony are made as
basis for the several paragraphs Of the
report.
One Of the particularly interesting
features Of the transcript Of the evil
dence was developed just at the conclu-
sion Of the formal hearing, when Com
missioner Lane refused to place on the |
witness stand G. w LsIce, general freight /
agent of the Southern Pacific company !
is witness under oath. The request /
that Mr.. Luce give sworn testimony in |
the case was made by p. r Dunno, as
....-..1 So A. Ca,t<kn~r, uoaska n,v,
pany.
Commissioner Lane declined to admin
lister the oath to Mr.. Luce because, he
frankly stated, he did not wish TO accord
to Mr.. Luce by administering an oath
to him and taking his testimony inn
munity from prosecution for violations
Of the law.
He offcrad to receive a statement from
Mr.. Luce respecting the rebate practices
Of the Southern Pacific company and
enter 1t as a part Of the record of the
rase, hnt he made it clear that this
statement was not to be made under
oath.
In the course Of his report Commits
sioner Lane says that his inquiry was
CONDUCTED in San Francisco on the Sec
Dnd, third and fourth days Of October,
1907, and that from the evidence ad.
iuced he finds:
THE existence OF an extensive sys-
.em Of preferential rates gpanted to GER
-aiu shippers on state business by the
Southern Pacific company. The record
lisnloses list Of los firms, corporations
and individuals who enjoy what are
SHOWN as special inside rates'-less than
he rates published to the general public
ION the movement Of certain desig
gated traffic between points within the
aate Of California"