St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-10-20
SANTA fE IN The net.
Chicago Federal Grand Jury
Gets After the Principal
officials.
SIX INDICTMENTS MADE
On Charges of Violation of
Interstate Law by
Rebates.
ONE AGAINST REINHART.
Warrants Are to Be Issued
Today--Directors Get the
Dutch Proxies.
ONE AGAINST REINHART.

CHICAGO, Oct. 19.-The federal grand
CATION of the rebates alleged to have
been paid by the Santa Fe railroad in
violation of the interstate commerce
law, and returned six indictments
against officials Of the road and shippers
who, it is claimed, received rebates.
One of the men indicted was Joseph w.
Reinhart, eX-president of the company
and until recently one of the receivers
of the road. and one of the
shippers against whom true
bill was returned was Nelson
Morris, the well-known Chicago packer.
Joined in the same indictment with
MIR. Reinhart was John A. Hanley, gen.
eral freight traffic manager Of the road.
who resigned his position about two
weeks ago, and Is not now connected
with the company. The names of the
other persons included in the indlct.
ments were not disclosed by the federal
officials, and will not be until warrants
have been served. 1t is generally be-
lieved, however. that the other indict-
ments are against Isaac Thompson, a
shipper of Kansas City; G. II. Ham,
mond, Of Hammond, Ind, another
shipper and clerk in the employ of
the Atchlson road, who, it Is alleged,
made out the rebates.
Mir. Reinhart was general auditor of
the Santa Fe at the time the otfenses
alleged in the indictments were COM
mitted. He subsequently was made
president. The Indictment charges
that from April to Nov. l, 1892, Rein
hart and Hanley, being agents of the
company. received from Isaac Thomp-
son, of Kansas City, shipments of cattle
from Kansas City to Chicago. amounting
in the aggregate to IT'S cars. During
this period the regular rate for live
stock between those two points was
2315 cents per 100 pounds. This was the
rate given in the tariffs filed in accord
ance with law with the interstate COM
merce commission. The second
count of the Indictment charges
that from Feb. l, to Oct. l. 1892,
the defendants received from &. II.
Hammond & Co. 500 carloads of cattle
for shipment from Kansas City to Hams
mond, Ind. The legal rate was the
same as in the case of Thompson, 231s
cents, and the Hammond company was
charged and paid freight at this rate,
defendants paid to w. P. jenkins, an
agent of G. w. Hammond q Co., a re-
bate of 50 per car, or $3.50.
The indictment against Nelson Morris
is for receiving rebates in violation of
the amended interstate commerce law.
1t charges that from March l, 1892, to
Dec. for the same year the packer
shipped over the Santa Fe 1,2UO carloads
of cattle. The legal rate was 2315 per
100 pounds. but 1t is charged that a
special rate was made for Morris. He
was charged $40 per car, which was
$l6.60 less than the legal rate would
have been. A second count charges
that the packer on March entered into
an agreement with Reinhart and Hanley
by which he was to thereafter
deliver his cattle to them for
shipment and in consideration
of the agreement was to receive
the illegal rate of $40 per car. The in
dictment charges that he aided anu
abetted the agents of the road In dis
eliminating unjustly against other ship.
pers in violation of the law. The max.
lmum penalty imposed on a shipper for
negotiating illegal rates is a fine OF
$4,000 or Imprisonment not to 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 tomorrow
Ex-President Reinhart is said to be in
New York, and the warrant in his cast
will probably be sent there to be served
by the marshal of that district, A war.
rant will be issued for Mr.. Morris to-
MORROW,