New-York tribune., 1905-11-13
UNDER THE ELKIN.o Law
attorney General Moody Makes a
Statement 4b0ut Test Suit.

Washington. Nov. 12-Attorney General
Moody to-day made statement with regard
TO the petition which will be filed by his di-
rection tomorrow in the Circuit Court of the
United States for the Eastern District OF Wis
consin. brought under the Elkins Law to test
the legality of certain commissions paid by
railroads (after the -eceipt of the published
rates.. to a private car transit company con-
troled by stockholders Of the corporation ship
ping freight in these over the railroad
lines. The statement follows:
The petition is against the Milwaukee Re-
frgerator Transit Company. Pere Marquette
Railway Company; Missouri Kansas and Texas
Railroad Company; Erie Railroad Company
the Chicago, Rock Island and Pacific Railroad
Company: st. Louis and San Francisco Rail-
road Company; the Wisconsin Central Railroad
Company the Chicago and Alton Railroad
Company. and the Pabst Brewing Company.
This case arises out of the following state
Of facts which have been investigated by the
Interstate Commerce Commission and by that
body, and also. by private interests adversely
anected, brought TO the attention of the At
torney General and by him carefully consid-
cred. Conferences have been held between the
Attorney General and District Attorney Butter
field, of the Eastern District of Wisconsin in
Chicago and Washington and on Friday last
at conference between the Attorney General.
the assistant to the Attorney General Mr.
Purdy; Special Assistant District Attorney
Pag1n, the District Attorney and special coun-
sci, Charles Quarles, of the Milwaukee bar, the
form of the petition determined upon.
1t appears that the Pabst Brewing Company
is large shipper of beer the various rail-
roads running from Milwaukee. Some of the
principal stockholders of that corporation or
ganized and own the Milwaukee Refrigerator
Transit Company, corporation operating pri-
vate cars. To the latter corporation, the control
of the shipments of the Pabst Brewing Company
was given by agreement entered into between
the two corporations named The various rail-
roads mentioned defendants while receiving
as freight money the open and published rates
for the transports tion of commodities, have paid
to the transit company, in whose private cars
the beer was transported, commission of about
u per cent upon the amount of the freight
money collected, with the effect, of course that
the net amount received for transportation by
the railroad companies is much less than the
published and open rate
This petition is designed to test the legality Of
such payments and is brought under the pro-
vision of the so-called Elkins law which pro-
vides that a failure strictly to observe the pub
lished rates shall be a misdemeanor and further
provides that 'ft shall be unlawful for any per-
son, persons. or corporations, to offer. grant or
give to solicit, accept receive any rebate
concession. or discrimination in respect to the
of any property. In interstate
foreign commerce, whereby any such
shall, by any device whatever be
at less rate than that named in
the tariffs published and filed by the carriers"
The case is regarded of great general i'm
portance by the Attorney General and will be
pressed to as speedy hearing as a just regard
for the interests of the defendants will permit
With District Attorney Butterfield Charles
Quarles. of the Milwaukee bar, has been asso-
ciated.