New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-10-21
THE ILLEGAL REBATES.
SEVEN INDICTMENTS AGAINST WELL
KNOWN MEN
THE ACTION OF THE FEDERAL GRAND JURY IN
CHICAGO IN THE SANTA FEE CASE GRE


THE ACTION OF THE FEDERAL GRAND JURY IN
CHICAGO IN THE SANTA FE CASE GRE
ATEs UNEAsINEss.
Chicago Oct. 20-The Government investga-
ton intosthe alleged violation Of the Interstate
Commerce law by the Santa Fe Railroad in the
payment Of rebates to shippers resulted yester-
day in the voting of indictments. These ndict-
ments following close upon those OF Baltimore
and Ohio officials at Pittsburg, have created
decidedly uneasy feeling among the officials OF
the various roads in the city. Inasmuch as Mr.
Little's examination Of the Santa Fe books
showed shortage of s7,0OO,00O. a large part OF
which Is supposed to nave gone into rebates.
It is supposed that the Government has still
abundant room fo- investigation. Seven indict-
ments were found against the following five men:
John A. Hanley freight traffic manager OF the
Santa Fe who resigned two weeks ago. his resig-
nation to take effect November /.
W. p Jenkins, general manager of G. II. Ham,
mond & Co., packers. Hammond, Ind.
Nelson Morris, the Chicago packer, said to be
the largest shipper of cattle in the world
Joseph w. Reinhart, ex-president of the Santa
Fe and until recently Of its receivers.
Isaac Thompson. large cattle shipper OF
Kansas City.
Mr. Reinhart was the general auditor Of the
Santa Fe at the time the offences alleged in the
indictments We're committed. He subsequently
was made president The indictment charges
Reinhart and Hanley. who are agents or the
company, with paying Isaac Thompson. OF Kan
City. rebate Of s. car on us cars OF cattle
shipped from Kansas City to Chicago between
the months of April and November. 1882 The
second count Of the Indictment charges that the
defendants paid TO w. F. Jenkins, an agent OF
c. H. Hammond & Co, a rebate OF - car on
$50 carloads Of cattle shipped from Kansas City
TO Hammond Ind, between February ana Octo-
Der, 1892.
The Indictment against Nelson Morris is for
receiving rebates in violation Of the amended
Interstate Commerce Law.
No bench warrants for the indicted officials
and shippers were issued yesterday, but they
will be issued Ex-President Renhart Is
said to be in NewYOrk. and the warrant IN MS
case will probably be sent there to be served by
the marshal of that district. The indictments
are the result OF Investigations the Interstate
Commerce Commission has been prosecuting for
some time.
Some OF the members Of the Atchison Protective
Committee admitted yesterday that the Amsterdam
stock proxies would be given to the directors This
will assure victory for the present managers OF the
company It Is charged by people opposed to the
election Of a Board OF Directors which represents
the management under wAch the company was
made BANKRUPT That money has been freely used
TO secure proxies which will be voted against the
Protective Committees ticket. II is a fact that
many arbrage stock houses hold proxies "hlch
will go TO the directors In that the stock Is
| OF the stock. Every share held by the Protective
Committee will be voted by actual holders Inc fro
ective Committee hopes to win some Of the directors
| on the new board by the cumulative voting plah
In regard to cumulative voting at the election the
| facts are these The laws OF Kansas authorize
cumulative voting. The old charter OF Nchisoh
was issued under the Territorial Government, out
A large proportion OF the stock Of the company mas
been issued under the general laws OF the state
and in other respects Atchison has come under the
present law. 4 legal point is admitted The resu-
lar board will undoubtedly assert that cumulative
| voting is Illegal in this counsel or the FRO
tective Committee will hold that the STATE iaM
| applies The practical effect OF cumulative Notlhs
| II allowed will be that either party can cohce!i-
| trate votes upon two three directors 50 as 70
| remainder The whole vote OF either party could
| II II were worth while. he cast for one director.
| The proxy holdings OF the Protective Colnmlttee
are considered sufficient even without ne ahlslsi
| dam proxy to elect fair minority or dne ooarl.
| considerable satisfaction Is felt in wan street
over the indictment OF some OF me Atcnson OH
| Gals and ex President Renhart. The acton OF tne
| Interstate Commerce Commission IN lnFestisdtl iis
the frauds practised in the Atchison company mas
| been watched with considerable interest Dy eHeiy
| one who wants some reform nethous ny ~
duced into railway and other corporations anu II
| is honed that examples will BE- made OF tns inSh
| who were responsible for Atchisons downt1l re
Indictment against Mr. Reinhart Is in regard 10 tne
rebates The penalty Is TWO years ''rp''so"'"e'' "
| knfh