Heppner gazette. [volume] (Heppner, Morrow County, Or.) 1892-1912, 1905-09-28
FINE Is IMPOSED.
Packers Plead Guilty to Accepting
Rebates From Railroads.

the Schwarzschild & Sulzberger Pack
ing Company, of Chicago, were fined al
aggregate of $25,CoO by Judge Hum
phrey in the United States Dlstric
Court here today. The fines followed &
plea of guilty to indictments charging
conspiracy to accept railroad rebates
The defendants were Samuel We'll, o.
New Yo:k, vice.president of the com.
pany; B. S. Cusey, traffic manager
Vance D. Skipworth and Chess E
Todd, assistant traffic managers.
We'll was fined $4,000, the other
three $5C 20 each.
With the entering of pleas the de.
claration was made that unless at least
one of the cases is Immediately settled
the ! fe of Samuel We'll, vice president
of the company and one of the defend
ants, is in jeopardy. He is said to be a
nervous wreck, and fears were enter
tanned for his life if he had been allow
ed to continue under the stigma of an
Indictment
The plea vas entered. it is declared,
after complete understanding had
been reached between counsel for the
defendants and Attorney General Will
liam H. Moody.
While in Chicago the Attorney-Gen-
eral was apprieed of the condition of
Vice-President We'll. and, it is said,
agreed to the entry of plea of guilty
with the understanding that the iail
provision of the law under which the
Indictment was retu ned should be
waived and merely fine imposed.
The same concession was made in the
case of the other three defendants.
Charges were made that the defend
ants CO spired with each other 10 pre-
senting supposed claims for damages,
which were in reality claims for rebates.
The plea made today does not in any
way affect the charge of interference
with Government witnesses made in
previous indictment returned against
Cusey and other Schwa zechld & Su!z
berger men. The four defendants were
in this Federal Court building and all
appeared before Judge Humphrey, &C.
companied by their attorneys.
The fines carried with them a pro-
vision that the defendants be confined
in Jail until the fines were paid. The
fines, however, we're paid Immediately,
Max Sulzberger giving his check for the
total amount, $25, ,OOO The check. after
being duly certified, was accepted az
pay ment for the fines. and the defend
ants then LETT the courtroom.
District Attorney Morrison, discussing
the case after adjournment of court,
said:
am perfectly satisfied with the mat.
ter as it stands. The defendants came
into court, pleaded guilty, and the court |
showed lenieucy in his sentence. The
fine is heavy, but the imprisonment
provision is there. the most important
part of the law. 1t was proved conclu-
'ively by the Government that, after
he issuance OF the injunction by Judge
irosscup, the Schwarzschild & Sulz-
berger Company withdrew from the
combination. They were independent,
'ut in order to carry on their business
n 80 strenuous competition against the
ther pack ers it seems it was necessary
or them II accept rebates. The results
odsy only go to show that the Govern.
1ent has now lodged an open wedge
1to the question of rebates. We have |
'und way to proceed, and it seems {
he proper one. Il seems to me that {
le Government lie in q fair way OF {
up the entire rebate evil in '
lis country. II