The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-01-08
TIRED AND SICK.
Railroad Officials HaveCOnstant-
Iy Violated the Law
According to Their Own Con-
fessiOn and Want to Quit.
Testimony Before Interstate
Commerce Commission.
MILLIONS OF DOLLARS
Paid Yearly to Packing Houses
in Way of Rebates.
Paul Morton and j. NJ. Johnson
Among Witnesses.
Commission Will Get After the
Packing House People.
Testimony Before Interstate
Commerce Commission.
MILLIONS OF DOLLARS
Paid Yearly to Packing Houses
in Way of Rebates.
Paul Morton and j. NJ. Johnson
Among Witnesses.
Commission Will Get After the
Packing House People.

Chicago, Jan. s.-Prosecutions against
all the big packing house concerns in
the west for violations OF the provision
OF the interstate commerce law against
receiving preferential rates are con-
templated by the interstate commerce
commission.
This fact developed during an investi-
cation begun by the commission into the
handling of packing house products and
dressed meats. 1t also became apparent
that the commission and the railway
arrangements of the entire country
practically had entered into an alliance
for the purpose Of inducing congress to
pass legislation permitting the railways
to pool under certain regulations by the
interstate commerce commission, and
that it is believed such a law can and
Will be passed
The commission has requested the at
tendance here of all the leading men IN
the advancement of the community OF
interests idea, including J. p. Morgan,
James ]. Hill and E. H. Hartman, and
the announcement is made that / these
men fail to respond to the request
harSher measures will be taken to COM
pei their coming.
Evidences on which to base proseeu-
tions against the packers was obtained
In abundance. Traffic managers and
vice presidents of roads east and west
threw up their hands and admitted free
ly that there was no pretense toward
maintaining tariff rates on packing
house products and dressed meats Tor
export domestic use, except for
very short period of time at the be-
ginning of each year.
Paul Morton, second vice president of
the Santa Fe; A c. Bird, third vice
president of the st. Paul; J. NJ John
son, third vice president of the Rock
Island, and other men of the highest
zfo in he
stand and stated boldly that they are
now and have been continual violators
of the law; that they are sick and tired
of being such; that present conditions
are intolerable; that they are power
less to secure a maintenance of rates.
and that millions of dollars is paid to
the packing house interests yearly by
railroads at the expense of legitimate
revenue.
The packing houses and their repre-
sentatives to whom rebates were paid
during 1901, according to Commissioner
Prouty, will if possible be made amen
able to a maximum fine of $1,000 for
every violation of the law
Regarding this phase of the question
Commissioner Prouty said:
Y am heartily in favor of Furnishing
the packers for violations of the law if
the evidence proves sufficient, and
think it will. Under the law we can not
punish the railroad men who testified.
FOR their testimony absolves themselves
and they do not testify specifically
anyone else. All the punish
ment that we can if any obtain against
the packers is in the way of a fine not to
exceed $1,000 for each violation"
Speaking of the scope of the investi-
cation into the effect of combinations
between railroad interests, Commission
er Prouty said:
I'VE have asked the presidents of all
the roads comprised in the Southern
Pacific combination and the Northern
Pacific combination to attend, and also
J. P. Morgan. If they do not come we
shall take steps to compel them to ap-
pear later. But do not wish to be
understood as presuming that they will
fail to respond to our request"
The men indicated by Mr. Prouty's
statement are ]. P. Morgan, Z. H. Har-
rinan, president of the Southern Pa
cific, Oregon Short Line and Oregon
Railroad & Navigation comp my; James
J. Hill, president of the Great Northern;
C. S. Mellen, president of the Northern
Pacific; @. B. Harris, president of the
Chicago, Burlington & Quincy Railway
company; Horace G. Burt, president of
the Union Pacific; Samuel Morse Fei-
ton, president of the Chicago & Alton;
Stuyesvent Fish. president of the Hi
nois Central; ]. c. Stubbs. traffic direc-
tor of the Hartman lines; Darius Mil
Ter, second vice president of the Bur-
lington and reputed traffic director for
the Northern Pacific trio.
The testimony by both eastern and
western men bore a wearying same
ness. The essential points elected We're:
First-Erom January to April 1901
tariff rates were obtained on packing
house products and dressed meats
From Aptil to July there was a cunces-
sion of three cents from the Missouri
river to Chicago, and of six cents from
Chicago to the Seaboard on both dornes-
tic and export traffic. From July to
January, 1902. there was a concession
Of five cents from the river to Chicaso
and of six cents from Chicago 10 the
seaboard.
Second-During the early months of
the year shipments were billed at tariff
rates and rebates paid either in the
form of vouchers or checks payable to
the packing house firms or their repre-
sentatives and during the latter por-
ton of the year the practice was al
most general of billing fiat' or at act
ua1 rate as being more convenient
Third-Various methods were employ
ed in paying rebates the most general
being for the packing house to send in
d claim to the traffic manager amount-
Ing to the difference between tariff and
actual rate. Statements would be
checked up by the auditing department
and the management would send the
traffic manager lump sum to cover all
claims which would be deposited in
bank Against this the traffic mal1aeer
would draw in favor of the claimant
TOR the amount due.
Fourth-No records were made or
Kept on the company's books concern
ing the transaction of payment of
vouchers.
Eifth-Witnesses were wholly at a