Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-11-18
REBATE HEARING OPENS
Railroads Cited for Contsmpt Of Court
Appear in Kansas city.
ASSERT COURT LACKS JURISDICTION
Position of santa Re is Judge HAD
No Right 20 Issue order on
which Proceedings
Are Based.

KANSAS CITY, Nov. IA hearing OF
the railroad rebate cases brought by the
federal government in March, 1912. upon
behalf OF the federal government against
the Atchison, Topeka & Santa Fe railway,
the Chicago, Burlington & Quincy, the
Missouri Pacific and the Chicago, Rock
Island q Pacific was begun here today
in the United States district court before
Judge John +. Phillips The arguments
upon behalf of the government were pre-
sented by Milton ID. Purdy, assistant
United States attorney. and Ivan Valken-
berg, United States district attorney of the
western district of Missouri Gardiner
Lathrop of Chicago, chief counsel for the
Santa Fe, and Judge o. NJ. Spencer OF st.
Joseph, chief counsel of the Burlington,
represented the railway companies.
The railways named were originally en-
joined by Judge Philips from granting al
legged rebates on meat products, salt and
coal, and later contempt proceedings we're
! filed in the district court here by Assistant
Attorney General Purdy, who, alleging that
the railroad companies had violated the
| courts enJoining order, asked the court TO
cite the companies for contempt, which
was done. To this citation the railroads
filed demurrers, which were argued today.
Arguing on behalf Of the Santa Fe rail-
road today, Gardiner Lathrop took the
stand that the district court lacked juris-
diction in the case. The proceedings
against the Santa Fe, the Missouri Pacific
and the Rock Island alleged that these
| companies gave rebates to the Hutchinson
| (Kanl Salt company in collision with
the Hutchnsont& Arkansas River railroad.
which latter company, II was shown, was
controlled and operated by the salt COM
In If ua
| alleged in addition that rebates had been
granted on coal to the Colorado Fuel and
Iron company.
The hearing was upon two motions, one
to quash the information In regard to the
alleged rebates charged to have been paid
to the Hutchinson (Kan.) Salt company
and the other to the Colorado Fuel and
| Iron company.
Technical Points Raised.
! The Atchison. Topeka & Santa Fe Rail-
road company contended that the original
bill had been improperly filed at the in
stance and upon the mere request Of the
| Interstate Commerce commission, that IL
was filed before the passage OF the Ellxins
act and that prior to the passage of the
| Elkins act the court had no Jurisdiction to
entertain such BILL that this point was
|
preme court in the case of the government
| against the Missouri Pacific Railway COM
pany This decision was after the filing OF
! the bill in this case; that having no jur-
isdiction the restraining order issued was
void, and could not be made the foundation
for "a contempt proceedings; that since thC
| passage of the Elkins act there had beer
| no amendment made to the bill of com
plant SO that there was no charge BIS
the bill of any violation of law since the
passage of the Elkins law, which alone
gave an authority for proceeding of THU
| kind.
The railroad company further commended
that, even after the passage Of the ElSlns
law, the court In Missouri had no jurisdc.
tion because of article xvi OF the interstate
commerce act the suit could be brought
and maintained only in the judicial district
where it had its principal office. and tina
| would be in Kansas, where the compan!
alleged it was incorporated; also that thu
bill upon its face did not allege that an,
Of the acts complained of were committed
In this judicial district, but elsewhere anC
beyond it's limits.