The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-05-07
SHIPPERS ARE VERY UNEASY
They are Very Much Concerned Over Fed
erai Court Investigation.

They are Very Much Concerned Over Fed
erai Court Investigation.
Kansas City, Mo, May 6.-Never in
the history Of Kansas City have ship
ping circles been so disturbed as al
present, and never have so many ship
pers and freight men been suffering
with insomnia. The trouble comes
over the investigation Of the tactics OF
shippers and corporations by the federal
grand jury, under the directions Of the
interstate commerce commission. Al
though the work of collecting evidence
has been going steadily on since last
summer, no one seemed to know of II
until recently, and few were prepared
to go on the witness stand and tell all
Of their business dealings.
Last week the federal grand jury
went to work on the documents put
before it and returned at last two in
| dictments. One was against John B.
| Watkins, vice president of the Indian
! Rice Milling company. He was arrest
ed Sunday afternoon and is now here
awaiting trial. The other indictment
was against the president of the COM
| pany, Homer A. Judd. Since the failure
of the milling company Judd has been
away from the city, but he was arrest
1
morning and will be brought to this
be complied with.
| There are others. Whether or not
other arrests are TO be made now can
not be ascerta1ped, but it is believed
TO more are coming at once. There
are several firms in the city under in
| spection, however, and the November
| term of court may be full of interest
for others who are now full OF glee. 1t
requires lengthy examinations and
much red tape to secure a chain Of
evidence against the shippers, and the
| fact that indictments were not secured
now is no indication that the affair IS
over with. The investigation of the In
| dian Rice Milling company has been
going on for over a year.
Mr.. Watkins has arranged bond and
| VIII give it IN federal court today. He
has retained Attorney John Stems and
HAIRLESS & OGrady to defend him
and intends TO make a fight. He de-
MES any guilt whatsoever.
While the prosecution Of the men is
under the interstate commerce law, it
was irstigated by the railroads. The
real facts were laid before the jury by
| the officers of the Wesern Weighing
| association, which does the carload lot
weighing for all lines out of tbs city.
The history of the case is a. follows:
The Indian Rice Milling company, OF
Kansas City, of which Homer A. Judd
was president and John B. Watkins
vice president, entered into an agree
ment> with George L. Carman, superin-
tendent of the Western Weighing asso-
citation and Inspector Bureau, on jan
uary l, 1895. The purpose of the agree
ment was that the Western Railway
Weighing association and Inspection
Bureau agreed to arrange so that all
carload shipments made by the Indian
Rice Milling company, over roads mem.
hers Of the association, would be trans
ported under cover of a special agree
ment stamp, which would be placed on
waybills, as made by the road carry
.ng the property, and the car would be
passed TO destination without being
weighed in transit.
The object of the agreement was to
do away with errors in weights AMI
overcharges that might occur by sea-
son of weighing cars on track scales
On the part of the Indian Rice Milling
company it was agreed that they would
open up their books TO the Western
Railway association and Inspection
Bureau for a check of the actual coz
tents Of cars. to verify the weights that
had been furnished by the shippers on
their bills OF lading. II IS claimed sim
liar agreements are in effect with a
large number of industries throughout
the country.
II is said that about a month or six
weeks after the Indian Rice Milling
company had entered into the agree
ment, il was discovered that they were
underbilling their shipments. and efforts
were made to discover where the crook
edness came in. The associa ton off,
GERS checked their books a number OF
times and all with the same result.
showing that by their records and the
weights furnished 10 the railroads, there
was no undertaking.
After having some cars weighed and
checked in transit, the association had
n its possession evidence to demon
strate that there mad been undertaking.
and on a demand for rechecking OF the
books and the showing OF the evidence
ia the possession of Superintendent
Carman. il is alleged that fictitious
invoice book was discovered that hal
been made by President Homer y Judd
for the purpose OF deceiving and de-
fraudlag the railroad companies of their
legitimate revenue.
Collections for underchsrses were
made on a large number OF the cars.
which averaged about 10000 pounds PEI
ear, amounting from SIS 10 SIS per car.
Complaint WAS filed by Superinten-
dent Carman with the interstate COM
nlerce commission for violation Of seS-
ton 10 Of the interstate commerce law.
which provides q penalty OF fine and
imp lsonment. a. the discretion OF TIA
couIt.
The interstate commerce commission
referred the matter 20 Attorney General
Harmon, who ordered an investigation
il the Western district OF the state Of
Missouri. which court had Jurisdiction.
II Is learned on good authority that |
other complaints have been flied by |
superintendent Carman against Other |
parties, there being indictments now |
against FIVE persons Of the firm Of Buer- |
ger Rsln.g company, CT Fond du Lac.
WIS. which case i set Tor hearing n /
October. 1886. parties having been N /
der indictmens since Nay, 1885.
1t Is claimed by persons VINO are N !
a position 70 know that superintendent /
Carman is working up cases against two /
other large shippers in Kansas City. ana !
parties n Chicago. and that as soaa 1
as the evidence IS completed the case /
VIII be presented 20 tle interstate COM