New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-12-09
FOLLOWING UP THE FRA UDS.
THE MICHIGAN CENTRAL INVESTIGATING
THE ALLEGED WAY-BILL FORGERlES
HOW THE swINDLEs WERE PERPETRATED-THE
STATEMENT OF THE IMPLICATED
CHICAGO FIRM.
JBr TELEGRAPH TO THE TRrBC.RI

Chicaqo Dec g-Tbe discovery OF the alleged frauds
practised on the Michigan Central Railway In the ship
ping of grain has given rise to a good deal OF as
cuss.on in the Board of Trade and railroad circles
The firm Immediately affected II IS claimed, has been
sbIppinr grain from the Chicago elevators at rates
which are two or three cents lower than the regular
tariff An officer Of the road to-day said:
"This thing has come upon like bombshell
and, while have not got 10 the bottom facts, We
have discovered enough to show us that some OF our
own employees must have boen implicated in IL. II
could not have been carried out without the con-
nivance OF Of them"
"Will you explain how the thing was done'"
"Wel the grain was shipped from the chicago
elevators but the bills OF lading showed that II was
shipped from outside point, say Peoria at
through rate from that point. Now, the proportion
of the through rate that would go TO the Western
road for bringing the grain from Peoria to Chicago
would be, say three cents, which. ii the rate was
twenty cents through leaves seventeen cents for the
Eastern roads and the rate from Chicago is twenty
rents that would be practical cut Of three cents per
100 pounds on all the grain shipped from here
"Is there anything tho face Of your bills OF
adng to show that there IS anything crooked about
them
Il think It has been held that the signature Of a
bill of lading by an agent al less rate than that he is
authorized by the company to give amounts TO a
forgery. but the bills Of ladlng might appear all
straight on their face and yet the transaction be
crooked "
Would II not be necessary TO carry out such con-
spiracy as you have described, that some Of the EN-
ployes of the Western roads which the grain was
represented to have been brought TO Chicago should
I've implicatcdl7 ~
mo. not necessarily. The transfer slips from the
Western roads the Michigan Central may have been
bogus
1T is claimed on behalf of the firm that your road
simply gave them cut rate their trade, as
they large shippers
"Tha could not be- You see our road IS one Of
the oldest coming into Chicago and II has always been
very conservative in the management Of IFS business 1t
has carried the conservative policy far that 1t has
often maintained rates in the face OF cut by other
roads,
be found 10 be implicated in the conspiracy ?"
Our presidcnt. Mr.. IcdyaId. has taken the In,
vpstigatiOn OF this matter into MS own hahus' anu
0ur general freight agent, Mr.. Mckay. IS now IN
Detr6it comforting with him about IL and IN few
f. You may be that everybody found implicated
in this fraud will bo crmlnaly prosecuted no ndtter
who they are .,, 49,, .
How long have you been aware that this thing has
been going on y
For about A week.
How did you discover It
We did not discover IL ourselves. The discovery
was made by the agents OF the Central Traffic Asso-
clatlOn.'
How long has the thing been going onl7
Abont week before discovered it,
II Is asserted by members of the firm Interested that
the freight agent Of the railway volunteered 10 give
them a lower rate than the published tariff. and that
when they objected the apparent irrc gariy OF the
transaction he assured them that II was all right, and
that Il was customary for them 10 bill freight for
large customers I'm that way.