The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-12-07
Another Crusade by Government
Against Rebate System.
Missouri Federal Grand Jury
Investigating Freight Rates.
JUDGE EXPLAINS Law.
Says Shippers Are Equally Guilty
When Elkins Act Is Violated.
Gossip and Matters of Interest
in Railroad Circles.
JUDGE EXPLAINS LAW.

Kansas City. No, Dec. Tinted
States District Attorney Van Valken-
burg went before the federal grand
jury yesterday with information which
inaugurated a new crusade by the gov
eminent against the rebate system.
Duncan and Afarchand, the government
agents who have been working in this
field for several weeks, were with Mr..
Van Ealkenburg yesterday morning,
and as a result subpoenas for seven
local railroad men and shippers We're
issued.
During the afternoon o. NJ Spencer
of St. Joseph, accompanied L. F.
Moore and L. f. Beidelman, from the
Burlingtons Chicago offices. to the
grand jury room. but had to leave
them at the door. George A. Gamble
agent Of the Lehigh Valley railroad at
this point, was hurriedly sent for, but
could not be found in time 10 get him
before the grand jury during the after
noon session. He will go on the stand
this morning, and he vii be followed
by J. W. Harvey of the Harvey DuttOn
Dry Goods company, besides the man
ager of q furniture house. This last
witness is to be put on the stand to tell
what he knows about furniture rates
in western Missouri Two other wit
nesses who will be heard today are
millers. and they are reported by Dun
can and Marchand to have been in re-
bate deals.
Judge Philips sent for the grand
jury at 3 o'clock in the afternoon and
made a special charge to i on the re
bate question. He went into the law,
and with a copy of the Elkins bill be-
fore him the judge said:
ut is required that the railroads
should issue schedules. and that they
should agree upon and fix rates. Con-
gress does not undertake to establish
1, o.
equitable division of them. All it COM
mands is that the railroads should
make their own rates and send copy
of their schedule to the interstate
commerce commission, and publish the
rates by posting them at the depots,
or otherwise making them public
Congress demands that those rates be
charged. 1t allows no secret deviation
from the published tariffs 1t does not
permit a rate to be changed excepting
after ten days notice There must be
only one rate schedule made for all the
shippers. The railroads are not per-
mitted to discriminate
Here the court resumed the reading
of the Ell1ins act, afterwards interpolat-
inE:
s'Please observe, gentlemen of the
grand jury, that the statute applies to
the CORPORATION as we'll as to the indi-
vidual. and to the shipper also If the
shipper obtained a rate lower than the
published rate. then the shipper IS as
guilty criminally as the carrier. The
carrier can never violate this law With
out the shipper does. There can be no
rebate allowed unless there is ship
per to accept it. The manner in which
the rebate is made by third party,
for instance, leaves the third party IL
able under the law
At this point Grand Juryman Ogleby
asked the court:
If the rebate is made without the
authority or the asking of the shipper
for it is he guilty OF an offense?
CAS- guilty as the receiver of stolen
goods. who takes them knowingly" re-
piled Judge Philips, for he knows mat
the rebate is made to hold him pat
ron of the railroad. The circumstances
of a rebate being offered voluntarily
does not absolve the beneficiary of 1t.
within week Judge Philips was
cOmpelied to turn a number OF rail-
roads free Of contempt charges Tor the
reason that the court had become con-
WINGED it had not JurisdletI0n me
Santa Fe had been charged with allow
ing rebates to the Hutchinson SAT-
company, and the Burlington had beeh
charged with allowing concessions TO
the International Harvester company,
doing business in Illinois. evidently
bearing IN mind that affair Judge Pnll-
ips said in his charge:
s.To give this court jurisdiction Il
must he found that the violations of
the law were committed within this,
the western district of Missouri, which
embraces a number of counties 1t Will
be your duty to investigate all charges
brought to your notice. 1t Will not do
to indict on mere suspicion, or Tor per-
sonal feeling. You must not disregard
anv deviation from the regular method
Of doing business in freighting- The law
allows no deviation. and where there
lurlzs the suspicion of there having been
a secret understanding and q rebate you
viii act on the substance and not on
the shade, and you viii return true
bill"