The Montgomery advertiser., 1902-01-08

 OF PACKERS Evidence in Plenty is Obtained. THE HEARING IN CHICAGO Railway Men Do Not Deny
 Violating Law. They Contend That Legalized Pool ing Will Go a Long Way To- wards Remedying the Evils
 at Present Prevailing.

Chicago, Jan. 7.-Prosecutions against all the big packing house concerns in the West for violations of the provision of the interstate commerce law against pre- ferential rates arc contemplated by the Interstate Commerce Commission. This fact developed to day during an investi- gation begun by the fcommision into the handling of packing house products and dressed meats
 It also became apparent to the Com mission that the railway management of the entire country practically had enter. cd into an alliance for the purpose of in- ducing Congress to pass legislation per hitting the railroads to pool under cer- tain regulations by the Interstate Com- merce Commission and that 1t is believed such law can and will be passed.
 The third development of the day was the announcement that the commission had requested the attendance here to. day of all the leading men in the ad- vancement of the community of interests idea, including J. P. Morgan. James J.. Hill and E. P. Hartman, and that if these men failed to respond to this re- quest, harsher measures would be taken to compel their coming.
 Evidences upon which to base prosecu- tions against the packers was obtained in abundance. Traffic managers and vice. presidents of roads east and west admit ted freely that there was no pretense to- ward maintaining tariff rates on packing house products and dressed meat for ex- port or domestic ues except for very short period of time at the beginning of each year.
 Paul Morton second vice-president of the Santa Fe; A. c. Bird, third vice. president of the St. Paul; J. M. 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 were now and had been continual violaters of the law, that they are sick and tired of being such, that present conditions are intolerable, that they are powerles to secure e main tenance of yates, and that millions of dollars is paid to, the packing house in- teersts yearly by railroads at the ex- pense 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 amend ble to a maximum fine of 5000 for every violation of the law.
 Regarding this phase of the question Commissioner Prouty said:
 T am heartily in favor of punishing the packers for violations of the law If the evidence proves sufficient. and l IuIuk lL VIII. tnc ldWb WC CdunOb punish the railroad men who testified, for their testimony absolves them and they do not testify specifically against any one else. All the punishment we can, if any, obtain against the packers. is in the way of a fine not to eXcede 5000 for each violation"
 Speaking of the scope of the investiga- ton into the effects of combinations be- tween railroad interests, Commissioner Na hay ha dents of all the roads comprised in the Southern Pacific combination and the Northern Pacific combination to attend, and also J. P. Morgan. If they don't come we shall take steps to compel them to appear later But do gRot wish to be understood as presuminE that they. will fall to respond to our request."
 The men indicated by Mir. Prouty's statement are J. P. Morgan, E. H. Harri- man, President of the Southern Pacific Oregon Short Line and Oregon Railway and Navigation Company; J. J. HlH. President of the Great Northern; C. S. Mellen, President of the Northern Pacific; G. B. Harris, President of the Chicago, Burlington and Quincy; H. G. Burt, Pres ident of the Union Pacific; Samuel l.. Felton. President of the Chicago and AL ton; Stuyvesant Fish, President of the Illinois Central; J. c. Stubbs, Traffic Di- TUT tUe t1dTTlIndn lines, DhTluS Miller. Second President of the Bur nngton and reputed Traffic Director of the Northern Pacific trio.
 The testimony of the day by both Eastern and Western men bore a weary ing sameness The essential points elicit ed were:
 l. From January to April 1901, tariff rates were obtained on. packing house products and dressed meats. From April to July there was a concession of cents from the Missouri River to Chicago and of cents from Chicago to the Seaboard on both domestic and export traffic. From July to January, 1902, there was a conces- sion of cents from the river to Chicago and of cents from Chicago to the sea- board.
 ?. 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 representa- | tfves and during the latter portion of the years. the practice was almost general of billing nat or at actual rate as being | more convenient.
 3. Various methods were employed in | paying rebates, the most general being | for the packing house to send in a claim to the traffic manager amounting to the difference between tariff and actual 
 by the auditing department and the management would send the traffic man ager a lump sum to cover all claims | which would be deposited in banks. | Against thls the traffic manager would draw drafts in favor of each claimant for the amount due.
 f. No records were made or kept on the | combany's books concerning the transac- tion of payment of vouchers.
 5 Witnesses were wholly at loss to | explain why a lower than tariff rates | could be maintained when tariff could | not.
 6. There was universal opinion that Iegalized pooling would do much to cor 1 rest the evil.
 [. It developed that the Sante Fe had contract with a p@king house com pany to carry its products from the river | to Chicago for cents or the tariff rate | for one year from June 30. 1901 and that | when the company gave notice of pub | fishing the rate the other roads induced |