Omaha daily bee., 1902-09-07
BDICT TRAFFIC OFFICIALS
Interstate Commerce Commission Resorts to
the Criminal Courts.
RUMOR THAT THIS is ONLY BEGINNING
Agent Of Commission said 90 Have
information which Inculpatea
Prominent Men In the
Northwest.

MINNEAPOLIS. Sept. 6.-The four rail-
road ~oficials indicted by the grand jury
for manipulation OF rates are w. p. Burt,
f. w. Bennett, general freight agent Of
the Toledo. Ann Arbor 4 North Michigan
railroad, and II. r.. whitcomb, president,
and Burton Johnson, general freight agent
of the Wisconsin Central railroad. The
two roads connect at Monitowoc, Wis, by
car ferry. No attempt has yet been made
to cause their arrest, nor Is II thought
there will be any for the present.
CHICAGO, Sept. 6.-J. p, Marchand, spe-
cial attorney for the Interstate Commerce
commission, stated tonight that caplases
had been issued for the arrest Of the In
dicted men and will be served uDon Mr..
Burt at Saginaw, upon Mr.. Bennett at To-
ledo and upon Messrs. Whitcomb and John
son at Milwaukee. Judge Munger. at Min
neapolis, fixed the bail OF each defendant
at $500. 10,
The act under which the bills were voted
fixes penalties Of a fine. not exceeding 81, 1000,
or Imprisonment in the penitentiary for a
term not exceeding two years, or both, 1t
discretion OF the court. 1t is understood
that the documents charge the .~oficials with
unlawful manipulation of rates with re-
spect TO flour and feed transported to east
ern, destinations. Evidence is said to have
been adduced to show that secret rates
were given to certain big millers. and that
domestic -four was handled on the export
rate. The bills are also said to contain a
clause charging false billing as a means
whereby trsflc was procured for the two
roads involved. Pc. ...,
IS: May Go After Others.
There were a. witnesses before
the grand jury thirty prominent railroad
~ofAclals and millers Of the northwest. but
only three witnesses were heard. These
are said to have been a Lake Shore agent
at North Amherst, o., q flour and feed dealer
at the same place and Auditor Smith Of
the Interstate Commerce commission. The
dismissal Of so large a number OF important
witnesses leads to the belief that q special
grand jury will be summoned to take up
the. matter, of cut rates and preferences
given TO shippers with a view of Furnishing
not only all the railroad ohacials involved,
but also those who accepted the preferences.
1t is understood that the agent OF the
Interstate Commerce commission secured a
great deal more evidence than he expected
inculpating many prominent men In the
northwest, and that the four pending bills
are but the beginning Of the prosecutions.
Reports are current that other railroads
will be involved.
The present case is the nrst in the his
tory Of the commission where the attention
Of that body was directed to. attractions Of
the law by railroad men. Heretofore and
prior to the issuance of the injuuctionB by
the United States court prohibiting secret
rates and preferences, any cut rate by any
line has always been met by reprisals by
competing lines made in similar manner,
and governmental Investigation has been
Stunned. The restraining orders issued
against twelve Of the strongest lines east
and westbound from Chicago had made such
action impossible, .al,.. u ..
Agents of the various railroads interested
are said to have made a quiet Investigation
which resulted in evidence being placed be-
fore the Interstate Commerce commission.
and upon this the federal grand jury acted.
SAGINAW, Mich, Sept. e.-President w.
R. Burt OF the Ann Arbor railroad, stated
this afternoon that he had received no no
ti1cation OF the action Of the federal grand
jury at Minneapolis in indicting him, in
connection with other railway officials for
alleged manipulation Of rates. He said his
road had some differences with the North
western regarding division OF freight rates,
but It was a matter which the trafic depart
ment q in charge and he knew nothing
Of 1t nor did he understand hat the In
~terstate act had been In any way contra
Vened. He retires from all connection with
the Ann Arbor road September 16.