The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-23
HEAVY FINES FOR REBATgUS.
JlH USO IOR InO NfW pORR.
IRSU M IFI IONIERNFU
du'Iar Hrrhrtsun iinss the Burlington
s,strh Hnd IUpr Part,Ina toa. atA UtB
tach a. H. thUmas aud d. y, tRaaari
ttrtirrrd IN ~ iWprisuHr,t nnh finrt,

kNNsIs Ctty. June ~ Judge Mcpherpon
w ihe Federal Court this morning Incl thu
Burlington railroad, tho Armour Packing
Company, Swift \ Co.. Nelson Morris 4 Co
and tho Cuiahy Packing Company sl5.Oro
each for conspiracy 10 give and receive
rebates. They wore convicted two weeks
ago. George l., Thomas ~ New York, u
freight broker, was fined t0.Oo0 aud srn.
fenced to four months In Jail and L. y. Tag.
CART, also ~ New York, was fined 5000
and sentenced 10 three months In jail.
Appeals were filed In each casa.
Because Of the appeals filed In tho
cases OF Thomas n Taggart execution Of
sentence was stayed until June %. Their
bonds were fixed at $4,000 each, which they
furnished at once. Bond was fixed in each
Of the other cases at Sl5, 600. Each defendant
made IA motion for a new trial, but all were
denied.
In passing sentence Judge Mcpherson
said be wished to correct the impression
that these were rebate cases. He said
instead, they were cases of unlawful con-
cPssionE. The charge was made that the
Burlington railroad and the packers en-
tered into an agreement by which the
packers were to route export shipments
over the Burlington road at a tariff Of 20
cents, II cents less than the established
rate.
The excuse or pretext or device for that
was a contract in form but utterly invalid
after August 8. 1908, said the Court. The
shippers and the railways are in this to-
gether. They nave been convicted on
evidence differing in form but of the same
meaning. | am fully persuaded that the
verdiCts are right aside from minor rulings
which | do not recall. | am still satisfied
that my rulings on the two important ques-
tons were correctly made
The Judges remarks were in reference
to the objection that the Burlin gton did not
file d concurrence with the other roads
over which the shipments We're routed and
on the point that the Ellins law did not
cover the offence alleged. Continuing, the
Court said:
Both shippers and the railroads must
understand that, however artful the scheme,
there is equal intelligence which will
uncover and expose its nakedness, and II
railroads and shippers doubt thist they will
do well to remember that they are playing
against stakes of large fines and judgments
OF Imprisonment and in playing the game
they take all the chances.
"As to the cases Of Thomas and Taggart,
it is the same crime to receive rebates as to
pay them. Some people affect to believe
that everything received from a railway
is proper enough, while all honest people
believe it to be as much of a crime to unlaw-
fully obtain from a railway as from others
In conclusion Judge MCPHERSON said:
Determinations and concessions and
rebates will never be brought to an end
until carriers and shippers alike are made
to understand that all are guilty, Of a crime.
BY receiving Unlawful rebates the concerns
in question are allowed to do business
in competition with OF hers which get no
such rebates, and no doubt some of them
are driven from business
To-day's proceedings marked the end
OF the rebate cases to be tried at this term
of court. The case of the Chicago and Alton
and two of its officers will not be heard until
September.
Out of eleven cases brought UP at this
term the Government has secured seven
convictions. Three ca SEES were dismissed
and one defendant was acquitted.