The Montgomery advertiser., 1906-05-23
MUST STAND TRIAL
OFFICIALS DEMUR-
 RERs ARE OvERRULED.
Conspiracy In Securing Rebates for Shippers Is AIIeged---Judge Mc- PheraOn, Sitting for Judge
 Phillips, Announces
 Deeamiau.

Kansas City. May 22.--The govern ment today in the United States dis trict court here announced that 1t was ready for trial in three of the rebate cases. The cases called were those of George L. Thomas. a freight broker of New York city, and his chief | clerk L. B. TagEart. under indict- | ment for alleged conspiracy In securing rebates for shippers and that against George H. Crosby. former assistant freight traffic manager of the Burling- ton Railway, charged with conspiracy in giving rebates.
 These men were indicted in Decem- Der last with other railway and packing house officials. whose trials have been set for later date. H. R. Duncan, a special agent of the department of justice, arrived here yesterday to aR- sist in prosecuting the eases, and will aid A. s. vanValkenburRh. United State district attorney and Leslie Lyons, assistant district attorney. The government has forty witnesses. among whom Is J. A. Roberts. an expert on rates In the employ of the Interstate Commerce Commission.
 Judge Smith McPherson, of Iowa, sitting in place of Judge John F. Phillips, overruled the demurrer of the Burlington railway to indictments against that company and it must now go to trial. The defendants in a demurrer filed several weeks ago con- tended that Congress was without power to enact legislation regulating export rates in the giving of alleged rebates on which the Burlington was charged with having violated the in- terstate commerce act.
 Judge McPherson said. in denying the demurrer;
 The import case (1s2 U. & ie7) was not of or concerning the ocean rates from New Orleans t5 San Francisco by rail and applying the holding of that case to the one at bar, why should the statute not covSr exports from Kansas City to New York City, even though the purpose Is evidenced by contract by a slggle and true bill of lading and the purpose Is to at once place the product on an ocean vessel destined to an European coun- try?"
 He continued:
 'Tt is apparent to many and the com mission so recognizes that by many 1t is believed that to bring all export ship ments under this statute will work in- jury to the Pacific coast and to the South in exports of cotton, and that the same Is true as to the grain grow Ing and cattle raising industry of the west If 1t be said that the right of contract therefore be denied. the an- swer Is that no one provision of the constitution must be subordinated to another and full force and effect can be given to both, by enforcing the statute on shipments to New York and then transferring the merchandise to the vessels when, of course, it passes from under the statute.
 And 1t seems to me that when this is done it can be under established rate, proclaimed by a published and posted tariff rate"
 The case against the Burlington railway in which a demurrer was over ruled today, is distinct from that against its former assistant freight traffic manager. George Ii. Crosby The puylington is charged with granting concessions to Kansas City based on nroducts for export through the port of New York The date of trial in the Burlington case has not yet been