The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-08-26
REFUSES TO QUASH
/. IN EXPRESS CASES
Judge Hazel Holds That Adams
and American Companies
Can Be Prosecuted.

Washington. August 25.-The Adams
and American Express Companies must
defend themselves in the Federal Court
at Buffalo in indictments charging
them with having charged in some in
stances more and in some instances
less than the published rate The In
terstatc Commerce Commission was
yesterday advised that Federal Judge
iiael had denied the motion to quash
the indictments the commission pro-
cured against them two or three
months ago.
The information is exceptionally
gratifying to tho commission because
Judge HolIister. OF the Federal District
Court at Cincinnati. on the same facts
Quashed similar indictments. .oldinE
them TO be defective In that the Adams
and American Companies are not cor
porations within the meaning OF the
law because they are voluntary stock
associations. He held that indictments
would have to be procured against
every holder Of tho stock. an obviously
impossible task
finSrant Disrcgard uf Law.
The Indictments in Cincinnati and
Buffalo were procured as an aid 10 the
commissions determination To regulats
the express companies. which have
been subject TO the Interstate com
| Hi't'G atl SINCE 4tuo. OUT Wllcu lE
norcd that statute until Commissioned
Lane began conducting an investiga-
/ tion just year ago Mr.. Lane found
that the most fragrant disregard OF
/ thc law other than the extort'onate
rates. was the absolute Indifference OF
the agents OF the companies to tho
section Of the law which says the
shipper. lie found that in thousands
O. cases. every day. shippers were
overcharsed or undercharged. and that
| the express companies made only
fackadaisical efforts TO charge the
right amount The overcharges totaled
more than the undercharges.
When Mr. Lane began public hear
inEs on the subject. attorneys for the
express companies laid out u program
for the examination OF Their own WI
| nesses and the cross-cXanlnation %
witnesses brought forward By tne
commission, witch II allowed 10 90
through. would have caused the hear
ings 10 drag alons Tor TWO OF three
years.
! You can explain that TO the grand
/ jury. remarked Mr. Lane one day last
/ February. That language shocked tho
4 attorneys The commissioned explain
90 TO them that more tAan 5000 cases
OF over or under charges had been
/ made UP by the division OF criminal
. prosecutions OF the commissions and that
! II was not necessary for them 20 ask
long line OF questions b. means
Of which their witnesses could cN-
, plain how IL came to be impossible
for the express companies to charge
the published rate In SO many IN
stances.
when the hearings we're resumed
after that explosion. the express COM
! panies expressed a desire TO cooperate
! with tne commission IL drawing Up
rules and regulations and agreeing
y upon rates which the regulating body
: could approve and enbody in an or
der The threat OF criminal proceed
iuss brought them 20 realization OF
the fact tina; the commission. while ap-
parent!y giving them only cursory at
tenuon. was prepared 10 put on them
the lurden Of obeyiag the law or OF
taking punishment for their Gisobe-
dieuce, Whether wiltul or merely the
result OF negligence bonn OF contempt
for the commission.
The Adams and the American showed
less willingness TO he good than the
others In addition they are not regu-
LARRY Incorporated companies. so the
/ commission had them indicted so as 10
make possible a test OF the question
whether they can be punished under
/ the sections which prescribe 10000 az
the maximum hnc for any departure
from the published rate. either On the
form OF rebate or an ovcrcharge
Judge Hazel held that for the pur-
( pose OF punishment the two concerns
are entities OF legal form. subject to
the statutes declaring penalties
aSains, corporations violating the act
des. sued 1or their government and
regulation.
The commission will press the Buff
faio cases because they present the IS
sue in better form than the ones In
t Cincinnati. IN which Judge Holister
| cuashed the indictments