Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-12-16
Charges Are Paying Rebates and Con-
spring to scure Them,
BURLINGTON ROAD HEADS LIST
1t is Accused Of Cutting Rate on Dressed
Meats Twelve Gents
CHARGES AeNNsr FOUR BEEF FIRMS
Cudaby, Armour, Swift. Morris Are
Accused of Conspiracy to Obtain
Illegal Concessions from
Railways.

KANSAS CITY, Dec. 15-Fourteen ind.ct-
ments were returned by the federal grand
jury here today against common carriers,
railway officials. shippers and freight
agents, charging the giving OF rebates and
conspiracy to gain rebates
The indictments we're returned as follows:
George II. Crosby OF Chicago, general
traftlc manager of the Chicago, Burlington
a. Quincy railroad.
George l.. Thomas, broker of 800 Broad
way, New York, a merchandise broker.
L., Il. Taegart. New York, Crosby's chief
The Chicago e. Alton Railroad company
and John N. Faithorn and II. A. Wann,
formerly vice pre siaent ana general treisnt
agent respectively of the railroad company.
The Cudahy Packing company.
swift and Company.
The Thhe Armour paekng company p.,,
road company.
Nelson and Edward Morris and Ira n.
Morris. comprising the partnership OF Nell
d; II. kresky. Kansas City, freight
broker.
The charges against the Chicago & Alton
and Messrs. Faithorn and Wann are iden-
tical with those made IN the indictments
returned by the federal grand jury at Chi
cago on December 49,
As to Packers.
The indictments against the packing COM
PoihCo Chdibt lHdl lney euttTcu lilNO a
contract with the Burlington railway to.
accept concessions on shipments of their
products from East St. Louis to New York
for export. The grand jury charges that
the agreement thus entered into provided
for q rate Of % cents a hundred pounds on
these products. This was In July, 1895. The
agreement was TO continue in force until
January I. 1906 The local rates applied on
these shipments between Kansas City and
ST. Louis, In August, 1905, the Joint rate
on packing house products was raised by
the Joint Traffic association to IS cents
between East st. Louis and New York.
The Burlington nevertheless, It is de-
clared, lived up to Its 23-cent agreement
toward the packers in Kansas City, and
under which agreement 1t practically re-
ceiyed ail the packing house products from
this city, except those of the Schwarzschild
4 SulzDerser fackins company.
The trouble came when the rate was di.
vided pro rata between the Burlington and
It's competitions, whose officers the Burling-
ton is said not to have consulted.
when the money was apportioned among
the roads east OF the Missouri river tit
had to be done on a basis of So icents.cnd
the connecting lines refused to stand for
the 92-cent rate.
When the distribution was made there
was not enough to pay the Lehigh Valley
railway, and its officers complained to the
Interstate Commerce commission. The
facts thus related are the same in all bills
found by the grand jury against the pack
ers and the Burlington.
rwo indictments were returned against
George L. Thomas of New York, who Is
alleged to have had a contract with the
Burlington by the terms of which he was
to receive a certain percentage OF the
freight rates paid on all shipments more
than specified tonnage from New York to
Kansas City and vice versa The investi.
cation made by the grand jury revealed
the fact that Thomas had agencies a;
Kansas City Omaha, Chicago. ST. Louis
Milwaukee and other cities.
Charges Against 81. Paul.
The specific charge against the Chicago
Milwaukee & ST. Paul railway is that OF
granting a rebate of Z cents per 100 pounds
Kan, on a shipment OF -four from Kansas
city to New York.
After the indictments had been formally
handed to the court Judge Pollock an
nounced that the bonds In each case woulc
be 5000. No warrants were issued foi
those indicted.
c. W. Armour OF the Armour Packins
company said today of tho indictments re
turned today:
The indictments are not for receiving re
bates, but grow out OF the old trouble abou
export rates. The railroads have alwayi
denied the authority Of the Interstate Com
merce commission to require that their ex
port rates be filed with the commission.
II was a question of jurisdiction, fhes,
cases are test cases TO determine the ques
ion Of authority OF the commission TO re
quire the fling of these rates. The expor
rates differ from the rates not for export
No money was brought hack 10 us. wher
the domestic rate was sS1s cents. the expor
The assertion that any Of the indict
ments against the packers or any one els
are test cases. or that they will b
brought here for effect is ridiculous." sal,
A ] NanVslkcnburg. United States distric
attorney in discussing a statement mad
by @, w Armour and Samuel McRoberts
When We began our work here neithe
We nor the grand jury knew which packing
company il any. would be indicted Tn
testin' ny which resulted as indicated b.
tho returns, simply cropped out. in th
hearings. We know nothing about ties
cases. The indictments will be prosecute
faithfully and impartially and against al
alike
hr Crosby formerly was general freigh
agent Of the r. & NJ, in Omaha. Abou
tATee years ago he was promoted 20 hi
Chicago position and was succeeded here b
~ q. Ives Ives went back TO st. Louis 4
ssneral traffic man for the Wabash an
* h. Spens was sent out from Chicago I
take the place Tuesday Mr.. Crosby an
Mr.. spens went 10 Denver together on
brief business trip.
George L. Thomas was at one time rou
ing agent AT New York for the NJ /
smith Dry Goods company.
ARMoIR TALKS on INDICTMENT
says Right 10 Make Special Rate o
Foreign shipments is Involved.