The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1905-07-14
REBATES RECEIVED
FROM At LEAST ONE
''PAPER" RAILROAD
Bill Filed In Federal Court at Chicago
Against Company and Several
Railroads.
BILL MAKES AN EXPOSE
OF THE REBATE EVILS

Chicago, July 11.-Rodney B. Swift,
former official of the International
Harvester Co., filed bill in the Fed
eral court late this afternoon against
that company and number of railroad
corporations to bring about an exam
ipation of the books of the Harvester
company.
The bill makes an expose of the re-
bate evils alleged to have been fostered
by the International Harvester Co. in
connection with the railroads. Eleven
railroad companies are made defend
ants to the suit besides the Interna-
tional company.
1t Is stated that a grand jury probe
the affairs of the so-called Harvester
trust, similar to that which resulted
in the indictment of 22 heads of the
beef combine, is being planned by the
federal authorities, who have for sew
eral weeks been secretly collecting in
formation against the $50,000,000 cor
poration.
The decision of the Federal authori.
ties is said 10 have been reached as a
result of the charges made by Mrs.
Rodney b. Swift, wife of the complain
ant in the suit filed this afternoon. and
also the revelations concerning rebates
made before the interstate commerce
commission by officers of the Illinois
G. Northern railroad
Mrs. Swift's charges that the Inter-
national Harvester Co. had bribed the
legislatures of Illinois. Kansas and
South Dakota. and her allegations of
the wholesale bribery of tax adjusters
and other corruption is declared to
have been a revelation to the federal
officials, and 1t Is believed that she will
be one of the most important witnesses
should the grand jury be called.
Assistant Attorney General Purdy
this evening admitted that the federal
authorities are considering grand
jury prosecution.
''It seems to be the only way to
reach them" said Mr.. Purdy. "The In
ternational Harvester Co. and its
shield, the Illinois & Northern railway,
were not included IN tile Grosscup or
Phillips restraining orders.
I'VE have evidence that the Har-
gester company used this railroad line
10 secure rebates from the Wisconsin
Central, the Burlington and half a
dozen other roads in absolute defiance
Of law. The rebating was done through
4 trick, joint traffic agreement"
The sensational charges OF Mrs. Rod
ney B. Swift in the Cook county cir
cult court, IL they can be proved, are
regarded as more damaging than any
evidence against the beef trust.
Mrs. Swifts suit followed the filing
Of suits against her husband by the
Harvester company. In the suits Mr..
Swift was charged with illegally pur-
chasing patents in his own name with
The money of the Harvester company.
. The federal authorities have received
Information that the International
Harvester Co. secured from six western
railroads such large rebate concessions
that II is enabled to ship farm ma
chinery to the Missouri river for 81 per
100 pounds.
The system is said to have been
cloaked by "joint traffic agreements"
between the railroads and the Illinois
G. Northern railroad, paper line,
owned by the trust.
The Illinois & Northern railway is
sued stock to the amount of $500, 900.
This stock was bought up by John G.
Fetzer, G. Ramey and r. B. Swift the
ousted official of the Harvester trust,
whose wife made the bribery and graft
charges, and e. A. Allen.
The men, according to the evidence
of f. B. Montgomery. vice president
and general manager, were furnished
the money by the Mccormick Harvest
or Co., now a part of the trust.
Instead Of paying rebate to the
Harvester company, which they were
enjoined from doing, the railroads are
said to have made a Joint traffic" pay
ment to the Illinois G. Northern rail-
way, the trusts paper line.