The Minneapolis journal., 1902-08-29
TO INVESTIGATE
RATE CUTTING
The Federal Grand Jury Is About to
Look Into Charges Against
Roads and Shippers.
Interstate Commerce Commissions
Special Attorney Is Here Wis.
Cent. to Be Looked Into. 4
Numerous Subpoenas Are Out and
!. the Government Evidently In
tends to Go Into Matters.

Investigation into charges of unjust
freight rate discrimina amounting to g s
serious violation Of the interstate COM
merce law-that is the big work mapped
out for the federal grand jury, which be-sz
gins it's sessions in this city next Tues
day morning. This investigation will be
one of the most important held In the
country since the government began to
apply the interstate commerce law to ex-f
listing rate evils so vigorously. If the in
evestigation furnishes enough evidence in
dictments of officials, shippers and all
concerned will folliw and an injunction
will probably be placed on the offending
roads. ~ .-,. E-.s--.-. .+& s
J.. T. Marchand, attorney for the inter-
state commerce commission and also an
assistant United States attorney, arrived
from Washington this morning to conduct
the investigation for government. Beyond
admitting that he was here to represent
the department Of justice in the investiga-8
ton he refused to give any information.
A special to T h Jour al from
Washington says that although repre-
sentatives Of other roads have been SUBJ
poenaed to appear before the grand jury,
it is thought the Wisconsin Central is the
road at which the action is aimed at.
While So oline officials will propably ap-s
pear before the jury and testify it is not
believed that the real purpose of the ac-
ton now includes that line. The Mime
apOliS & st. Louis is not included. So far
none of its officials has been subpoenaed
and as far as can be learned complaints
have been made to the department of JUS
| tice or the interstate commerce commits
sion of violations of the interstate COM
| merce law by that road. s
| All of the roads running east and south
out Of Minneapolis were served with in
functions several months ago restraining
them from violating the interstate COM
merce law either by secret rate cutting or
other discrimination. Although the Min
neapolis & st. Louis yas not enjoined, all
| of its Chicago and Missouri river connec-
tfons-which amounts to the same thing
on through traffic, as an injunction served
directly on the Minneapolis &z st. Louis
Since the fnjunctions were placed on these
roads the Wisconsin Central, which was
not enjoined, has been making good
gains in tonnage. Complaint was lodged
with the department of justice that roads
not under injunction were taking adYan-
| tage of those which had their hands tied
| and to this som of the Wisconsin Gem
trails big gains in traffic were attributed.
| Officials of that road have been sub
1.poehaed to appear before the grand jury
/ and to bring freight records including
billing for the period between May 10
and June Is of this year in connection
l with the business east of Manitowoc, Wis.
| This would bring into the investigation
| the routine of handling of freight on the
| Wisconsin CentraFs eastern connections
| and the supposition is that the manipuIa-.
| tion of billing is the particular act to be
| investigated. The Wisconsin Central
| officials say that they welcome the inves-s
4 tigation., Washington advices of T h 9
J ournal say that in addition to the
| subpoenaas served on Minneapolis ship
pers and railway, men a large number OF
| witnesses covering a wide range of terri
/ tory will be present, come of them COM
ing from the eastern sta ties.
\ Section two of the Interstate commerce
|act makes unjust discrimination between
shippers by railroad illegal and broadly
! defines it. = &. ....>z
Section six provides for the publication
i of tariffs with the interstate commerce.
i commission which cannot be withdrawn
without due notice land any deviation
from them Is declared illegal.
! Section ten makes any violation of the
/ act misdemeanor and provides a fine and
Imprisonment penalty, the fine not to ex-
ceed $4,000 and the imprisonment not to
exceed two years in the penitentiary.
How the penalty shall be applied is left
| to the discretion Of the court. The same
penalty is also provided for shippers or
any other persons who induce common
carriers to discriminate unjustly. It also
makes the shipper liable Jointly with the
\ railroad for damages -
1t Is understood that the government
will dispose OF most of the other matters
to be brought before the grand jury be-
fore taking up the rate Investigation.