The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-08
REBATES ON RATES
Interstate Commerce Commission
Will Prosecute.
PACKING HOUSE MEN ACCUSED

PACKING HOUSE MEN ACCUSED
"Jim" Hill Not Present and the Inr-
vestigation IL Postponed
TIL January 27.
Msw York Sun 6pooIaI Service
Chicago, Jan. Son evidence sub
mitted yesterday by traffic officials OF
eastern and western railways, the inter-
state commerce. commission intends to
prosecute the traffic managers OF various
western packing houses on the charge OF
accepting reductions and rebates on
prosecute the following traffic managers OF
various western packing houses on the
charge of accepting reductions and rebates
on freight rates:
]. A. McNaughton, Cudahys Packing COM
pany, Omaha; c., K, Urquahart. Omaha Pack
ing company, Omaha; W. P. Jenkins, G. II.
Hammond Packing company, Chicago; D. Il.
Matchette, Swazchild & Sulzberger, Kansas
City; F. w. Ellis and George Frsbee, Armour
& Co.. Chicago; John G. Taylor, Nelson Nor
ris & Co., Chicago; A. r. Fay, Swift & Co.,
Chicago.
Commissioner Prouty said: ~
By their sworn testimony that they cut
rates and paid rebates the railway officials
have exculpated themselves and will not be
prosecuted. We will prosecute, the packing
companies, or their representatives, who &C
cepted the cut rates, and feel that the max
imum penalty should be imposed. That would
be fine of $4,000. II it should be proved
that one firm secured lower rates than any
other, such discrimination would render the
representatives of the company securing such
rates liable to Imprisonment as we'll fine.
\ "a - =
elimination. 49,
1t also became apparent that the COM
mission and the railway arrangements OF
the entire country practically had en-
tered into an alliance for the purpose of
inducing congress to pass legislation per-
hitting the railroads to pool under GER
tain regulations by the interstate COM
merce commission, and that it is believed
such a law can and will be passed.
.-. Violations Admitted
For the first time in the history of the
interstate commerce commission it heard
leading railway officials acknowledge
without reservation that they had violated
the "act to regulate commerce" by giving
secret rates, less than the published rates
filed shipping dressed beef and packing
house with the commission, and by paying
rebates to representatives of all tile firms
they promptly destroyed all records OF
their traffic departments to prevent such
records from being used to convict them
or their patrons of violating the law.
Commissioner Clements exacted from the
representative of each railroad sworn
promise that he would furnish the com
mission as complete statement as pos
sible of the total amount of traffic handled
by his line during 1901, with details on
oh oh INN to- ha ~,
rate at the time Of shipment, the secret
rate at which it was carried, the amount
of rebate paid on each shipment and the
name OF the person to whom the rebate
was paid, and also specific information
as to the extent in which connecting lines
joined in the rate-cutting and payment
of rebates. ~
Evidence upon which to base prose-
cutions against the packers was obtained
IN abundance. Traffic managers and vice
presidents Of roads east and west threw
up their hands and admitted freely that
there was no pretense toward maintain
ing tariff rates on packing house products
and dressed meats, for export or domes-
tic use except for a very short period OF
time at the beginning of each year.
Paul Morton. second vice president OF
the Santa Fe; S. c. Bird, third vice presi-
dent of the St.. Paul; j. NJ johnson, third
vice president of the Rock Island, and
other men of the highest standing in the
railroad world, took the stand and stated
boldly that they. are now and had been
continually violating the law; that they
are sick and tired of this, that present
conditions are intolerable, that thew are
poWerless to secure a maintenance of
rates and that millions of dollars are
paid to the packing house interests yearly
by railroads at the expense of legitimate
revenue. =, ..- ~.
The Witnesses.
The testimony of the day by both east
ern and western men bore a Wearyinp
sameness. All told of giving rebates on
packing house products and dressed
meats. Those who testified were:
Z. d. Whitney, traffic manager of the
Glover Leaf; D. T. McCabe freight traffic
manager of the Pennsylvania lines west of
Pittsburg: f. +. Cost, traffic manager of the
Big Four; B. B. MITCHELL general freight
agent Of fhe Michigan Central; ]. M. John
son, third vice president Of the Rock Island
Thomas Miller, general freight agent of the
Burlington; F. A. Wann general freight
agent of the Alton; A. c. Bird, third vice
president Of the st. Paul; Paul Morton, sec
ond vice president of the Santa Fe; Captain
G. j. Grammar, general freight agent of the
Lake Shore.
Regarding the hearing to-day on combi-
nations between railroad interests. Com
missioner Prouty said:
We have asked the presidents of all the
roads comprised iE the Southern Pacific COM
bination and the Northern Pacific combina-
ton to attend, and also j.. p. Morgan. If
they do not ccme we shall take steps to
compel them to appear later.
The men indicated by Mr.. Prouty' s
statement are:
J. Pierpont Morgan, E. H. Hartman, presi-
dent of the Southern Pacific, Oregon Short
Line and. Oregon Railway and Navigation
company: James ]. Hill, president Of the
Great Northern; c. S. Mellen, president of
the Northern Pacific; George B.. Harris, presi-
dent of the Chicago Burlington & Quincy
Railway company; Horace G. Burt, president
of the Union Pacific; Samuel Morse FELTON,.
president of the Chicago & Alton; Stuyvesant
Fish. president o. the Illinois Central J. C.
Stubbs, traffic director for the Harriman
lines; Darius Miller, second vice president
of the Burlington and reputed, traffic director
for the Northern Pacific.