The Minneapolis journal., 1905-11-13
PABST COMP ANY
IN REBATE SUIT
Moody Starts a Private Car Ac-
tion Against Big Wisconsin
l. Brewers.
journal Special Service.

journal Special Service.
Washington, Nov. 13.-Attorney Gen
eral Moody has begun action against |
seven railroads, the Pabst Brewing COM
pany and the Milwaukee Refrigerator
Transit company, to break up monop-
oily in private cars controlled by the
Milwaukee Refrigerator Transit COM
pany. The petition against the com
panies was fled in circuit court of the
United States for the eastern district
of Wisconsin. The attorney general
when seen in regard to the petition
said:
''It appears that the Pabst Brewing
company is large shipper OF peer oyer
the various railroads running from Mil
waukee. Some Of the principal stock
holders of that corporation own the
Milwaukee Refrigerator Transit com
pany, corporation operating private
cars. To the latter corporation the
control Of the shipments Of the, Pabst
enfPTaG into heWeen tbs two
corporations named.
''The various railroads mentioned as
defendants, while receiving as freight
money the open and published rates
for the transportation of commodities,
have paid to the Transit company, in
whose private cars the beer was trans
ported, commission of about II per
cent, upon the amount of the freight
money collected, with the effect OF
course, that the net amount received
for the transportation by the railroad
companies is so much less than the pub
lished and open rate.
Test the Legality.
1IThis petition is designed to test
che legality Of such payments, and IS
brought under the provision OF the
Elkins law, which provides that fall,
ure strictly to observe the published
rates shall be a misdemeanor and fur
ther provides that it shall be unlawful
for any person, persons, or corporation
to offer, grant, or give, or to solicit,
accept, or receive, any rebate, conces-
sion or discrimination in respect to the
atePes' state or foreign fore On A eommeree. whereby
any such party, shall be by any device
whatever be transported at any but the
rates published and fled by the car.
rier
The case is regarded by the attor.
ney general of the greatest Importance
and will be pressed. 1t has been thoro-
ly investigated, not only by the. inter
state commerce commission, but by the
depaFtmePt R of nsce Of and by PFvatSf
versely affected by the discrimination
in rates.
The petition is directed against the
Pere Marquette, the Missouri, Kansas
& Texas, the Erie, the Chicago, Rock
Island & Pacific, the St. Louis & Sar
Francisco, the Wisconsin Central anc
Pabst Brewing company and the Mil
waukee Refrigerator Transit company
Known in Advance.
Milwaukee, Nov. 13.-That tn,
Pabst Brewing company found in ad
vance that the government expected tt
prosecute them for rebating thru prl
vate car line contracts, and that thi
Officers oH o is ' Stated By Charles QuaTlez
attorney, brother of Judge and ex-Sen
ator Quarles, who will assist the gov
ernment. He says:
"The preparation of this case ha
been going on for many months, testi
mony has been carefully collected an
the interstate commerce commission ha
assisted in the work. Last March tn
commission summoned before it Traffi
Manager Howe, representing the Pabs
interests, and obtained from him test
mony that will be of value in the sui
The Pabst people saw the weakness 0
their position and began fortifyin
themselves. Gustav Pabst retired 6
an officer Of the refrigerator compan
officer of the Pabst company soon afte
but we contend that the same interest
still control both companies.'
The Pabst Interests.
Gustav Pabst and his brother Ere
Pabst, Jr., are president and vice pre-
ident Of the Milwaukee Refrigerat'
company, the majority Of the stot
being held by them together with the
mother and their sisters. After tt
passage of the Elkins law, rebates al
concessions could not be paid or MAJ
directly, so in May, 1903, the Milwa
kee Refrigerator Transit company ";
organized with capital stock of $15(
600 and a bonded debt Of like amour
That company bought and leased s
refrigerator cars, the entire stock, wi
the Exception Of blocks of twent ty-f
shares held by three or four differe
parties, being owned by the parti
named.