The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1905-11-25
SUITS ARE BEGUN
TO TEST REBATES
Action Is Begun Against Ship
pers and Railroads at
Milwaukee.
INVOLVES PRIVATE CAR LINES
Government Officials Contend That
These Concerns are Only Means
Through Which the Carriers Nan
age TO Evade Published Tariff.


Washington dispatch: Action has
been commenced in Milwaukee under
the anti-rebate clause OF the interstate
commerce act against the Pabst Brew
ing company. the Milwaukee Refrig-
orator Transit company, and the fol-
lowing railroads. Pere Marquette;
Missouri. Kansas & Texas; Erie; Chi
cago. Rock Island Il Pacific: st. Louis
a. San Francisco, and the Chicago a.
Alton.
These cases are regarded as OF
great importance by the Attorney Gen
eral and will be pressed TO as speedy
hearing as a just regard for the inter
ests of the defendants will permit.
Other prosecutions are expected to fol.
low between now and the first OF the
year and the program of the admins.
tration to keep the subject of inter.
state commerce law prominently be-
fore the public while the rate legisla-
ton is pending viii be carried out.
Hope to Prove Relating.
The actions begun I'm the Wisconsin
courts grow out OF an investigation
conducted by the commission during
the past year. hearings being held at
Chicago last May and In October No
finding was announced by the commits.
sion, but the facts developed were con.
sidered OF such importance that they
wore submitted directly TO the De-
partment OF Justice for action The
charge has repeatedly been made that
the private car lines were generally
used to cover rebating schemes by the
railroads, and the commission expects
to prove the charge In this case.
In the prosecution Of the case Dis
trict Attorney Buttcrworth ut Milwau-
kee will be assisted by Charles
Quarles, brother of former Senator
Quarles. Mr.. Purdy. assistant 60 the
Attorney General and Assistant At
torney General Pagln have also as
sisted in the preparations OF the Fills
that are TO be filed to-day.
MIR. Moody's Statement.
Attorney General Moody made pub
lie the following statement concern
ing the suits:
This case arises oct of the follow
Ing state of facts, which have been in.
vestigated by the interstate commerce
commission. and by that body and also
by private interests adversely affected
brought TO the attention OF the Attor-
ney General, and by him carefully con.
sidered.
1T appears that the Pabst Brewing
company are large shippers OF beer
over the various railroads running
from Milwaukee. Some OF the prlnci-
pal stockholders OF that corporation
organized and own the Milwaukee Re.
frigerator Transit company. a corpora
ton operating private cars. To tho
latter corporation the control OF the
shipments OF the Pabst Brewing com
pany was given by an agreement en-
tered into between the two corpora.
tons named.
Percentage is Returned.
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 trans.
ported, commission OF about ~ per
cent upon the amount or the freight
money collected. with the effect, or
course. that the net amount received
for transportation by the railroad com
panies is so much less than the pub
lished and open rate.
This petition is designed to test
the legality OF such payment, and Is
brought under the provision OF the
so-called Elkins law. which provides
that failure strictly to observe tho
published rates shall be a misdemean-
or. and further provides that IL shall
be unlawful for any person, persons or
corporations, to offer. grant. or give.
on to solicit, accept, or receive, any
rebate, concession, or discrimination
Ia respect TO the transportation of
eny property In Interstate or foreign
commerce, whereby any
such property shall. by any device
whatever, be transported at less rate
than that named In the tariffs pub
lished and filed by tho carrieA"