New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-12-06
RAILROAD MEN INDICTED.
PRESENTED FOR VIOLATING THE INTER-
STATE COMMERCE. LAW.
PRESIDENT EGAN OF THE CHICAGO, ST. PAUL
AND KANSAS CITY ROAD ONE OF Il
GUILTY MEN-woRK OF A FED
ERAL GRAND JURY.
lBY TELEGRAPH TO THE TRIBUNE.l

lBY TELEGRAPH TO THE TRIBUNEI
Chicago, Dec. BIN the United States 'o"i'
to-day the Federal Grand jury, which mas '''"
Investigating the alleged violations of the lh"i-
state law, returned to Judge bious'',
indictments against John VI. Egan, president ana
general manager of the Chicago, II. I""i ""I
Kansas City Railroad: Thomas Miller. general
freight agent of the Chicago, burIhs''" """
Quincy; j. NJ. johnson, general freight agent Oh
the Chicago. Rock Island and Pacific, and john II.
Long. manager of the freight department OIL the
Illinois Steel Company. The return OF these In
dictments is the result of several weeks mNestl-
cation ON the part of the Grand jury on general
charges that the Interstate Commerc law had
been violated relative to rates on gram ehlppeu
from Northwestern and Western points to Chicago.
H. was in this Investigation that Charles counsel
man the Board Of Trade man, and James {.
Praslev. treasurer of the Burlington road, were
brought before the court, fined and committed Tor
refusing to answer questions pertaining to the
same subect-matter; but these two men were not
indicted.
After hearing the testimony OF dozens of wit
nesses the Grand Jury decided that Mr.. Miller
was guilty of violating the law by allowing grain
70 be hauled 10 the Board of Trade firms of w. ii.
Warren & Co. and Wright q I~Iaughrey fbr less
than the fixed rate, and that O. ID. ). Gallup,
representing W.. IL. Warren < Co. as agent, was
mixed up i'll the transaction.
1t was discovered that the firm of a. c. Davis
& Co, composed of 4. C.. Dayis and Charles Is.
Condor, were receiving grain over the Rock Island
road for q rate less than allowed by law, and the
Grand Jury determined that Mr.. johnson was re-
sponsiblc for it.
According TO the Grand Jury's report the Chi
cago. St. Paul and Kansas City raOd was hauling
grain at a redIced rate for the firm of McFarlln,
Requa, Dowes K Co., and President Egan was adj
judged responsible for allowing the firm to receive
rebates and drawbacks.
BY the action Of Mr.. Long. as manager of the
freight department of the Illinois Steel Company,
IL is said that the company saved ar least 100000
in securing a reduction In rates in the shipment
Of coke for the company from the coke ovens In
Pennsylvania 10 Joliet by reason of a new scheme.
The liked rate on coke from the East TO Chicago
or Joliet is 80 - per carload. In order TO get
a lower rate TO Chicago it is claimed that an ar
rangemcnt WAS made by which the Pan Handle
road was to haul the coke from Pennsylvania TO
Chicago for s? 80 per carload and then transfer
il 10 the Alton road, which was TO receive the
remaining 40 cents. \ large portion of the coke
remained in Chicago, and on all that remained here
the company paid only g 80 per carload, and
thus the saving of 40 cents went to the company;
Mr.. Long appeared before Judge BlOdgett, and
with Henry Il. Porter as surety, gave bonds IN
So, 900 for his appearance when wanted.
No indictments were returned against the
officers Of tho roads, as the testimony did not
implicate them in the plan. There would be
no use in returning indictments against witnesses
in the railroad investigation before the Counsel
man and Peasley cases are settled" sud District
Attorney Milchrist. Il do not think Judge
Gresham will decide the Counselman case til
Monday. because Of his law trials with a jury.
1t may be that when the Pcasley habeas corpus
proceeding is filed the court may hear the addi-
tional point relative TO books and papers, and
then decide the two questions at the same time.
Railway men at the East are pleased with the
progress made West in Furnishing the officers who are
guilty Of cutting rates. There Is only one opinion
among the stronger lines regarding the devices fol
lowed by the weaker ones 10 obtain business. and II the
Federal Commission presses its Investigations far. II
VIA be bound 10 reach the Atlantic soaDOhnt.