The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-05-04
RE y { R 5 { D
DEC IS|0N
OF COUR 7
United States Circuit Court
of Appeals Hold Trial Court
Was in Error

5rSan Francisco, Nav 3.-Holding that
the trial court was in error in having
stricken from the record certain teS-
timony tending to show the intent of
the railroad company i'll accepting a
lower rate than that fixed by its freight
tariff on file with the interstate COM
merce commission, the United States
circuit court Of appeals reversed today
the decision of the district court at
Los Angeles in the case of the United
States against the Santa Fe Railroad
company, wherein the company was
found guilty on siXty-six counts of re-
batting on shipments of lime between
Nelson, Ariz. and Los Angeles, Cal,
and fined S3@O,O00. The case was re-
manded for new trial.
The appeal was heard by Judges
Gilbert, Ross and Morrow.
,qiFollowing an analysis of the argu
ment of the appellant as TO the sufi-
cheney of the indictment under which
trial was had, the opinion handed down
today expresses the decision of the
appellate justices that the trial court
properly rejected the demurrer, al
though slight divergence from the
wording of the statutes is noted.
The testimony of F. P. Gragson,
freight agent OF the Santa Fe. who was
put on the stand by the defense, but
whose evidence was stricken out on
motion of the prosecution, is recounted.
Grcgson testified that he had been sat
istied by the shippers that the full
forty thousand pounds constituting a
carload lot under the company's tariff
he hpap r1oco6 i'm fbn rares bpt that
the railroad scales at the point of de-
livery had shown u considerable loss
in transit in each of the siXty.siX
cases noted in the Indictment, On
this showing, he said, the company had
agreed to accept payment from the
shipper. the Grand Canyon Line and
Cement company Of Arizona, for the
amount actually delivered at the legal
carload rate of $3.50 per 100 pounds.
The evidence was stricken out of
the record and In his instructions.
Trial Judge Wellborn withdrew it from
the attention Of the jurors.
The appellate court holds that mas
much as the freight tariff provides that
shipper shall pay for all over 10000
pounds contained in a car, and that
since the full amount necessary to OBJ
tain a carload rate was shipped in
each instance. the trial court erred in
not allowing this testimony TO so be-
fore the jury.
Los Angeles. May 3.-The Santa Fe
Railroad company was fined $330,000
on November Z. 1907. for violating the
Elkins law, by Judge Olin Wellborn,
of the United States district court,
The railroad company was indicted
for giving rebates to the Grand Can
yon Lime & Cement company of Arl-
zona, on shipmenst of lime from Mel
son, Ariz., to this city. The alleged
rebates occurred between May, 1905,
and July. 1906, and ranged in amounts
from 35 cents TO S1405. The total of
the alleged rebates was less than $500.
The jury in Judge Wellborn's court
found the company guilty on siXty-six
counts. upon which a fine might have
been imposed OF from $1,000 to 100000
on each count. The company appeal
ed
District Attorney I,awlor. now as
sistant attorney general in the interior
department at Washington, fought the
case for the government, Thomas j
Norton, now of the Santa Fe's Chicago
Offices, defended the company.