Omaha daily bee., 1905-11-13

hSlINGTON, Nov lA--Attorney Cen
eral Moody today made a statement with
regard TO the petition which will be filed
by his direction in the circuit court for
the eastern district OF Wisconsin. brought
under the ElIins law to test the legality
of certain commissions paid by railroads
tafter the receipt OF the published rates.
20 a private car transit company con-
trolled by stockholders Of the corporation
shipping freight in those over the
railroad lines.
Mr.. MoOdy's Statement.
The statement follows:
Tho petition is against the Milwaukee,
Refrigerator transit company, Pere Mar
uuetts Railroad company, missouri, han
q Texas railroad company, Erie Rail
road company, the Chicago, Rock Island &
Pacific Railroad company, ST. Louis & San
Francisco Railroad company, the Wisconsin
Central Railroad company, the Chicago ~
Alton Railroad company and Pabst Brew
This case arises out Of the following
state OF facts, which have been nvesti-
gated by the Interstate Commerce commiS-
sion and by private interests adversely ef-
fected, brought to the attention OF the
attorney general and by him carefully con
Conferences have been held between the
attorney general and District Attorney
Buttertield of the eastern district of Wis
consin at Chicago and Washington and
on Friday last 81 a conference between
tho attorney general, tho assistant to the
attorney general Mr. Purdy. special assist
ant: Attorney General Pagan the district
attorney and Special Counsel Charles
Quarles of the Milwaukee bar the form of
the petition was determined upon.
Pabst's own Refrigerator Line.
II appears that the Pabst Brewing COM
pany are large shippers of beer over the
Some Of the principal stockholders OF that
corporation organized and own the Mil
waukee Refrigerator Transit company, a
corporation operating private cars. To the
latter corporation the control of the ship
nlents of the Pabst Brewing company was
given by an agreement entered into be-
tween the 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 transported, a commission of about
IL per cent upon the amount of the freight
money collected, with the effect, of course.
that the net amount received for trans
much less less ihsas an the published and open
WIN Test EIkins Law.
This petition is designed to test the
legality OF such payments and is brought
under tho provision OF the so-called Elklns
law, which provides that a failure strictly
TO observe the published rates shall be a
misdemeanor and further provides that "it
or corporations to offer, grant or give or
SO solicit accept or receive any rebate,
concession or discrimination in respect to
the transportation OF any property in in
terstate or foreign commerce
whereby any such property shall, by any
rate than that named IN the tariffs pub
lshed and filed by the carrier"
The case is regarded as of great general
Importance by the attorney general and will
be pressed TO as speedy a hearing as a
Just regard for the interests Of the defend
Butterneld Mr.. Charles Quarles of the Mil
waukee bar has been associated.
. ouarIeu Explains suit.
MILWAUKEE,, Nov. l2-Charles Quarles
who returned Saturday from consultation
with Attorney General Moody at Washing
ton. at which time the proposed rebate case
against the Pabst Brewing company and a
railroad was considered. in discussing the
proposed action in which he is TO assist the
government said:
THE purpose of this suit, which is insti.
tuted by the government. is to determine
- whether the private car lines, refrigerator
line oompansAS the companies owned and
controlled by the packers, like the Armour
\ lines. have a right under the Elkins act tC
hold up the railway from three-quarters OF
a cent TO / cent mile for the use of car.
In addition TO service. a devise through
which determinations are practiced anC
concessions given.
Take the case OF the Milwaukee Re
frigerator Transit company as an illustra
lion, this company being one of the de
Fred Pabst. ,jr., are president and vic,
president of the company, the majority o
the stock being held by them.
Under the passage OF the Elzins law re
bates and concessions could not be paid o
made directly, in May. 1903. the Milwau
kee Refrigerator Transit company was or
ganized with a capital of $4,000 and
bonded debt OF like amount The com
pany bought and leased $40 refrigerato
III
OF blocks Of twenty-five shares, is held b.
three or four parties, being owned by tn
parties named, and this was done TO max
up the board Of directors.
"As officers OF the Pabst Brewing com
pany Gustav and Fred Pabst with tibet
mothers and sisters, control the Pabs
brewing company. and as such made con
tracts whereby the shipment, routing an
all matters pertaining TO the railroad tran.
portation OF their product passed to th
Milwaukee Refrigerator Transit company.
"In actual operation Of the plan they g
to the vNrious railroad liRes as manager
Of the Transit company with a prOpositlo
70 divert the traflc of the brewing con
pRny unless the roads accept their terms
In fact, they go TO the railroads an
say that II they are to get the bushes
OF the Milwaukee Refrigerator compan
they must pay them from q of cent
/ cent per mile for each car going an
returning and in addition they demand
commisson OF from 10 10 ~ per cent c
the business turned over on the basis
a charge for soliciting the business
''This action is the opening wedge OF Il
litigation instituted in behalf of the Inte
Y state Commerce commission 10 secure
strict enforcement OF the Elkins act again
rebadng and determinations. What v
propose 10 ascertain Is whether the EIkiI
act can be enforced SO as to prevent di
orlminati0n in any form or whether il
possible TO evade the purposes for which
= Is Intended by the organization OF what
" known as private car line company. n
~ preparation OF this case has been going
FOR many months. The testimony has be