The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-01-08
Millions OF Dollars Are Paid Annually
TO Chicago Packers. the on
cials Declare.
LOSS OF REVENUE is GREAT
COMMISSIONER PRoUTY SAYS THE
PACKERS WILL BE PUNISHED.
Hill, Hartman and Others to BE Ex-
Interest" Plan i'm the Northwest.

CHICAGO, Jan. 7.-Prosecutions against
all the big packing house concerns in the
West for violation OF the provision Of the
interstate-commerce law against receiving
preferential rates are contemplated by the
Interstate-commerce Commission. This
fact developed to-day during an investiga-
tion begun by the commission into the
handling OF packing house products and
dressed meats. IL also became apparent
that the commission and the railway man
agements of the entire country practically
had entered into an alliance for the pur-
pose of inducing Congress TO pass legisla-
tion permitting the railroads TO pool under
certain regulations by the Interstate-com-
merce Commission and that IL is believed
such a 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 advancement Of the
community of interests idea, including j.
p. Morgan. James ]. Hill and z. II. Harri-
man, and that If these men failed to re-
spond TO the request 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 threw
up their hands and admitted freely that
there will be no pretense toward main-
tanning tariff rates on packing house prod
ucts and dressed meats for export or do
nestle use except for a very short perIoyl
of time at the beginning ot each year.
Paul Morton, second vice president OF
the Santa Fe; A. C Bird. third vice pres
ident of the St. Paul; ]. 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
continual violators of the law, that they
are sick and tired OF being such, that pres
ent conditions are intolerable that they are
powerless 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
PACKERS MAY BE FINED.
The packing houses and their represen-
tatives 10 whom rebates were paid during
1901, according 10 Commissioner Prouty.
will, If possible. be made amenable to a
maximum fine of 5000 for every violation
Of the law.
Regarding this phase os the question
Commissioner Prouty said: 81 am heartily
in favor OF furnishing the packers for vio-
lations OF the law if the evidence proves
sufficient and / think IL will Undel the
law we can not punish the railroad men
who testified. for their testimony absolves
themselves and they do not testify specih-
cally against any one else. All the punish
ment that We can, If any. obtain against
the packers is in the way OF fine not TO
exceed 5000 for each violation"
Speaking of the scope OF the investigation
into the effects of the combination between
railroad interests, Commissioner Prouty
said: I'VE have asked the presidents OF
all the roads comprised I'm the Southern
Pacific combination and the Northern Pa
cihc combination 10 attend and also J.
T. Morgan. If they don't come we shall
take steps TO compel them TO appear later
But | don't wish 10 be understood as pre-
suming that they viii fail 10 respond to
our request
The men indicated by Mr. Prouty's state
are j. PierpOnt Morgan: r.. II. Hartman,
president of the Southern Pacific Oregon
Short Line and oregon Railway and Nav
igatiOn Company; James j. Hill. president
OF the Great Northern; c. S. Melen. pres
ident of the Northern Pacific; Geo. b. Har-
ris president OF the Chicago. Burlington &
Quincy Railway Company: Horace G.. Burt
president of the Union Pacific: Samuel
Morse FELTON,, president of the Chicago 4.
Alton: Stuyvesant Fish, president OF the
Illinois Central; ]. G. Stubbs traffic df-
rector for the Hartman lines: Darius Mil
ton and reputed traffic director for the
Northern Pacific trio.
POINTS FROM THE TESTIMONY.
The testimony of the day by both Eastern
and Western men bore a wearying same
ness. The essential points ELECTED were:
First-From January 10 April. 1901. tariff
rates were obtained on packing house prod
uCts and dressed meats. From April To
July there was "A concession OF , cents from
the Missouri river 10 Chicago and OF s cents
from Chicago to the aboard on both do
mestic and export traffic. From July to
January. 1902. there was a concession Of 5
cents from the river 10 Chicago and OF
cents from Chicago TO the seaboard.
Second-During the early months OF the
year shipments were billed AZ tariff rates and
rebates paid either I'm the form OF vouchers
or cheeks payable 10 the packing house
firms or their representatives. and during
the latter portion OF the year the practice
was almost general or billing fat" or az
actual rate. being more convenient
Third-Narious methods were employed in
paying rebates, the most general being for
the packing house 20 send I'm a claim 10 the
traffic maraRer amounting 10 the difference
between tariff and actual rates. Statements
would be checked up by the auditing de-
partment and the management would send
the traffic manager lump sum 10 cover
all claims which would be deposited in
banks. Against this the traffic manager
would draw drafts in favor OF each claim
ant for the amount due.
FOurth-No records were made or kept
on the cOmpanys books concerning the
transaction OF payment Of vouchers.
Fifth-Wftnesses were wholly az a loss 10
explain why lower than tarif' rate could
be maintained when tariff could not
SiNth-There was a universal opinion that
legalized pooling would do much 10 correct
the evil
seventh-It developed that the Santa Re
had a contract with a packing cOmnany 10
carry its product from the river 10 Chicago
FOR cents OF the tariff rate for one year
from June 30. 1901. and that when the COM
pany gave notice OF publishing the rate the
other roads induced II 20 withdraw the
notice.
Those who testified were: c. d. Whitney.