The Topeka state journal., 1905-10-05
RAILROAD NEWS.
Government Is Hot on the Trail
of Railway Officials.
Next Federal Grand Jury in
Chicago May Indict Some.
ARE IN REBATE NET.
Testimony BefOre.Judge Bethea
Responsible for Latest Move.
Gossip and Matters OF Interest
in Railroad Circles.


Chicago, Oct 5.-Granting of rebates
and discrimination in freight rates, which
the interstate commerce commission and
agents of the United States government
charge against railroads, win be the
subject Of investigation by the next
federal grand jury with a view of Sc
curing indictments against railroad
officials.
Officials of the government are COM
Dleting plans for this new line of at
tack upon the railroads, which they de-
clare viii be even more sweeping and
extensive than the packing industries
inquiry, which resulted in the antitrust
conspiracy indictments.
| Much Of the testimony given before
Judge fBethea in the present hearing
Of the interstate commerce commission
complaint against seventeen western
railroads in connection with the rates
on live stock and live stock products
viii be valuable in the grand jury in
vestigatiOn.
In anticipation of the great value of
the testimony now being heard before
Judge Bethea for the grand jury in
| quiry, and acting upon instructions
/ from Attorney General Moody on his
visit here, District Attorney Charles B.
Morrison has made arrangements to get
a, complete transcript
1t was during the presence of Attorney
General Moody in Chicago that arrange
ments for a plea of guilty by the four
traffic officials OF the SwaTzschild &
Sulzberger company to the Indictment
charging them with conspiracy in viola
I ton OF interstate commerce laws in
soliciting and accepting railroad rebates
were made. At that time general di-
reetions were given to District Attorney
Morrison and federal agents to take
up the work of prosecuting the rail-
/ nd fo L a
preparations so that the next federal
grand jury would take up the work
The plea of guilty by Swarzschild
& Sulzberger company traffic managers
and their punishment by fines of $4,000
encouraged the government to proceed
against the railroads charged with CIV
ing rebates. both in the cases of the
packing firms and others.
Special Agent Duncan, who was for
merly in the employ of Swarzschild &
Sulzberger company and is familiar
| with the question of rebates, is relied
upon to furnish much of the testimony
in the railroad investigation before the
next federal grand jury.
A list of the witnesses has been pre-
pared and is being enlarged as the
work of the government officials pro-
crosses. It was reported that Attor-
ney General Moody considered the
grand jury investigation OF the rail-
road freight rate situation with the
important and that if the exigencies
of the situation should require it a
special grand jury may be called.
While the litigation of the inter
state commerce commission before
Judge Bethea has been directed
| against western roads, the grand jury
| inquiry is to take in the eastern roads
as we'll 1t is now stated that every
step in the suit before Judge Bethea
taken by the interstate commerce
commission has been carefully con-
sidered in its effect upon the grand
jury investigation of the railroads
and also upon the prosecution of the
packers under indictments charging
conspiracy in violation of antitrust
| laws.
The government, in issuing sub
poenas for witnesses before Judge
Bethea has called many railroad men
to testify ordering them to furnish
data concerning the claims of pack
ers and other shippers of dressed
meats to the effect that their goods
have been damaged. Some of the
damage claims are admitted to be or
/ binary damage claims caused by de-
lay of traffic and other good reasons.
other damage claims, on the other
hand. are said to be rebates pure and
simple.