The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1908-02-18
WILL PUNISH
THE REBATERS
GOVERNMENT WILL coMMENsE
PROSECUTIONS.
EVIDENCE IS GATHERED
Southern Pacific Company and ORC
iais Of Hartman Line VIII be
Brought into Court for Giving Re
bates to Shippers.

Washington, Feb. 15.-Prosecutions
are to be instituted,by the government
against the Southern Pacific company
and against certain officials Of that
railroad on allegation that they paid
rebates to shippers.
Information which is to be a basis
for these prosecutions was obtained
by Franklin K. Lane Of the interstate
commerce commission last autumn in
the course of an extensive inquiry
made by him into the affairs of the
Southern Pacific company.
BY direction Of the interstate com.
merce commission, Commissioner
Lane visited the Pacific coast and for
several weeks conducted his inquiry
into the alleged charges OF rebating
which had reached the commission.
Commissioner Lanes report OF his in
vestigation, including a transcript OF
the testimony taken by him in a for
NAL hearing as an interstate com.
merce commissioner was made public
today. The report has been approved
by the commission and a. transcript Of
the report and Of the evidence ad-
duced at the hearing has been trans
mitted to the department Of justice
for such proceedings under the law as
may be warranted. Collateral with
the proposed action by the govern
ment, the railroad commission of Cal.
ifornia has been furnished at its own
request with q transcript of the report
and evidence and has indicated to the
interstate commerce commission its
purpose to prosecute alleged viola
tons of the California law that may
be shown by the report.
The testimony taken by Commits
sioner Lane was volumnous and in
the course of the report, extent refer
ence to the verbal testimony, are
made as a basis for the several para
graphs Of the report.
Immunity Trap Avoided.
One of the particularly interesting
features of the transcript Of the evil
dence was developed just at the con-
clusion of the formal hearing when
Commissioner Lane refused to place
on the witness stand G. w. Luce, gen
eral freight agent of the Southern Pa
cific company as a witness under oath.
The request that Mr.. Luce give testi-
mony in the case was made by p. r
Dunno, counsel for the Southern Pa
cific company. Commissioner. Lane
declined to administer the oath to Mr.,
Luce because he frankly stated that
he did not wish to accord Mr.. Luce
by administering. an oath and TAX
ing his testimony, immunity from
prosecution for violation of the law.
He offered to receive a statement
from Mr.. Dunno, respecting the re-
bate practices. of the Southern Pacific
company and enter it as a part of. the
record of the case but he made 1t
clear that this statement was not to
be made under oath.
1t is known that by instruction Of
Attorney General Bonaparte the dis
trict attorneys already have taken up
the cases to be instituted for the pur-
pose Of beginning their formal pro-
ceedings as soon al possible. Names
Of the officials against whom the pros
ecutions will be directed are not known
and probably will not be until indict-
ments by federal grand juries have
been returned. It is indicated as like.
ly that the proceedings Of the depart
ment Of justice will be directed not
only against the Southern Pacific com
pany and. oficials. of that company
but also against shippers who have en-
according to the allegations
made, rebates from the railroad com
pany.