The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-10-20
in THE LAWS GRIP
RAILWAY OFFICIALS AND SHIPPERS
INDICTED AT CHICAGO.
Joseph w. Reinhart, Nelson Morris
and Others Charged with Paying
and Accepting Rebates.

CHICAGO, Oct. 19.-The federal grand
jury made a final report of the investigation
of the rebates alleged to have been paid
by the Santa Fe railroad in violation OF the
nterstate-commerce law, and returned six
indictments against the officials of the road
and shippers. who. it is claimed, received
rebates. One Of the men indicated was
Joseph w. Reinhart, ex-president of the
company, and until recently one of the re-
ceivers of the road. and one of the shippers
against whom a true bill was returned was
Nelson Morris, the well-known Chicago
packer. Joined in the same indictment
with Mr.. Reinhart was John A. Hanley,
general freight traffic manager of the road,
who resigned from his position about two
weeks ago and is not now connected with
the company. The names of the other persons
included In the indictment were not dis
closed by the federal officials, and will not
be until warrants have been served. 1t is
generally believed, however, that the other
indictments are against Isaac Thompson, a
shipper, Of Kansas City; @. II. Hammond,
of Hammond, Ind, another shipper, and
clerk In the employ Of the Atchison road,
who. 1t is alleged. made out the rebates.
Mr.. Reinhart was the general auditor of
the Santa Fe at the time the offenses al
legged In the indictments were committed.
He subsequently was made president. The
Indictment charges that from April 1 to
Nov. 1. 1892. Reinhart and Hanley, being
agents Of the company, received from Isaac
Thompson. of Kansas City. shipments of
cattle from Kansas City to Chicago,
amounting in the aggregate TO 17s cars.
During this period the regular rate for live
stock between those two points was
rorg
was the rate given In the tariffs filed in
accordance with law with the Interstate
commerce Commission. Thompson was
charged this rate, the indictment al
leges. and the amount was collected from
him by the company, but on Oct. Is he was
paid by the defendants a rebate of S per
car. The second count of the indictment
charges that from Feb. 1 to Oct. i. 1892
the defendants received from CT. III. Ham
mond & Co. 596 carloads of cattle for ship
ment from Kansas City to Hammond. Ind
The legal rate was the same in the case
of Thompson, 231s cents. and the Hammond
company was charged and paid freight at
leges, the defendants paid to w. T.. Jen-
kins an agent of G. w. Hammond & Co.,
rebate Of S per car. or s. $50
The indictment against Nelson Morris is
for receiving rebates in violation of the
amended interstate-commerce law. IL
charges that from March I, 1892, to Dec. /.
the santa Fe 1900 carloads OF cattle. The
legal rate was 23ia cents per hundred
pounds, but 1t is charged that a special
rate was made for Morris. He was charged
$40 per car, which was $3.50 less than the
legal rate would have been. A second count
charges that the packer, on March !. en-
tered into an agreement with Relnhart and
Harley by which he was thereafter TO de-
liver his cattle TO them for shipment. and
in consideration OF the agreement was to
receive the illegal rate OF $40 per car. The
indictment charges that he aided and abet-
ted the agents of the road in discriminate
ing unjustly against other shippers in vio-
lation OF the law. The maximum penalty
imposed on a shipper for negotiating ille-
gal rates is a fine OF 5000 or imprisonment
not 10 exceed two years, or both. in the
discretion of the court No bench warrants
for the indicted officials and shippers were
issued to-day. but they will be issued to-
morrow.
Ex-President Renhart is said to be in
New York, and the warrant in his case
Will probably be sent there to be served by
the marshal of that district A warrant
will be issued for Mr.. Morris tomorrow.