Omaha daily bee., 1905-07-02

and this is described as a conspiracy in
restraint of trade and commerce.
The eighth count makes out the organ
zation of the National Packing company
to be an attempt to monopolize the same
trade and commerce.
The tenth count relates to similar actions
in connection with meats and by-products.
Taking of Rebates Charged.
Tho indictment against Messrs. We'll,
Cusey, Todd aud Skipworth of the Schwarz-
child & sulzbergeI company charges that
on the Sd day of February, 1903, the four
men conspired with others to the jury
unknown, to commit an offense against the
United States by soliciting and accepting
for the Schwarzchild & Sulzberger COM
pany from the Michigan Central Railroad
company, the Chicago, Rock Island & Pa
cifc, the Grand Trunk, the Lehigh Valley,
the Boston & Maine and the Mobile &
Ohio large sums of money as rebates of the
money paid and to be paid by Schwarzchild
* Sulzberger for the transportation of
goods.
A specific case was mentioned against
Cussey as having occurred on January y,
1904 when it is said that he presented to
the Michigan Central a claim for rebates
in favor of SchwarzsChild & Sulzberger,
which claim was numbered 10,5l9 by the
packing company and p 1928 by the
Michigan Central, amounting to S2,976.S0.
A number of other cases similar in char
acter were mentioned against Cussey and
the other three men. Appended to the in
dictment was copy of a letter alleged
to have been written May 10, 1904, by Gus
sey to Assistant General Freight Agent
Birchett of the Mobile & Ohio, in which
he declared such business Schwarzschild
& Sulzberger had been given the railroad
had been diverted until the company re-
ceived more consideration from the rail-
road.
Explanation of Indictments.
Assistant Attorney General o. II. Pagin
said in explanation of the indictment:
The indictments are based upon the act
known as the Sherman antitrust Jaw. The
hrst ssctfon Of this act makes Ii an Of
sage in any combination in the form of
trusts or conspiracy in restraint of trade
wuh foreign nations. Section 2 makes 1t
an onense to monopolize or attempt to
monopoiize any part of such trade or COM
merce, the penalty under each section in
case OF conviction is a fine not exceeding
5000 or Imprisonment not exceeding one
year, or both, in the discretion Of the court
Or course, a corporation could not be inn
prisoned and in this direction the punish
ment by fine is all that can apply In
all other respects corporations Which are
atancial persons stand in the same at
utHde as individuals under the law.
The question as to what constitutes
trust Is not thoroughly settled. Some au-
thorities include in the definition of a trust
the me idea OF placing stocks Of different cor
porations in the hands Off another cor
poration to be held in trust and managed
without the interference of the separate
corporation, which are thus put In COM
bnhtion. If this Is the current definition
OF trust the indictment in this case does
not charge the defendants with having
hni oil ttg.,,
that the stocks of the large packing COM
panies are held in trust for the purpose of
management 1t Is true that the stock of
ten smaller packing concerns previously
running in opposition to the big packers
was bought up by individuals connected
with the big packing corporations and
placed with another corporation organized
Tor the purpose of holding these stocks
the National Packing, company; but this
indictment makes no direct charge against
the National Packing company or any OF
It's authortties except those which were
officers OF the big packing companies.
1t Is TO be observed that when the stocks
of the smaller companies were purchased
not merely the controlling interests of
quired. but all the stock was bought up
so that the purchasers were In a position
to wipe out of existence the companies SO
purchased On this point the National
Packing company differed from the North.
ern securities company recently decided
States. In the latter case only the con,
trolling interests of the railroads concerned
was brought up and put in the hands of q
thifd corporation for management.
Bonds Fixed at $1,000.
As soon as the indictments had beer
handed into court, District Attorney Nor.
rison suggested that each of the defend
ants be placed under bonds of 5000 anC
when the court asked If bench warrant!
were to be served he was informed by tn,
district attorney that the legal adviser.
for all of the men included in the indict
ments had agreed to produce the men OF
Mondny or as soon as possible after july
T. Some OF the defehdants are not in tn,
city and zeannetra come into court imme
diately. Judge Bethea acquiesced in thi
arrangement
The first one OF the indicted men to offe
bonds was b. s. Cussey, indicted for re
batting with the railroads. He appeared Il
court about one hour after the indictment
had been returned and gave a bond o