The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-05-22
REBATE CASES up.
Three of Them Are Called in
Kansas City.
Charged With Conspiracy in
Securing FavOrs for Shippers.
40 WITNESSES THERE.
These Have Been Called to Prove
Governments Case.
Special Agent Department of
Justice Also Present.

Kansas City, No, May 22.-The gov
ernment today in the United States dis
trict I Durt announced that it 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.
Taggart, under Indictment for alleged
conspiracy in securing rebates for ship
pers. and that against George H Cros-
by, former assistant freight traffic man
ager of the Burlington railway. charged
with eonspirac- in giving rebates.
These me. were indicted in December
last, with otEer officials of railways
and packing houses whose trials are to
be held later.
H. B. Duncan, a special agent OF
Il department Of justice, arrived here
yesterday to assist in prosecuting the
cases. and will aid A. S. vanvaikenberg.
ted States district attorney, and
Leslie Lyons. assistant district attor-
ney.
The government has 40 witnesses,
among whom is J. A. Roberts, an expert
on rates IN the employ of the interstate
commerce commission.
Burlington Stays In.
Judge Smith Mcpherson. of Iowa. sit
ting in place of Judge John F. Philips,
oVerruled the demurrer of the Burlng-
ton railway to indictments against the
burlington and II must now 90 to trial.
The defendants, in a demurrer fled
several weeks ago cOntended that con
gress was without power to enact leg
islation regulating export rates in the
giving of alleged rebates on which the
Burlington was charged with having
violated the interstate commerce act
Judge Mcpherson said In denying the
demurrer:
THE import case q62 U. S. 1877 was
not of rnnnnrnirey "a fo-
from New Orleans to San Francisco by
rail, and applying the holding of that
case to one bar to which side should
the statute cover exports from Kansas
City to New York city, even though
the purpose is evidenced by contract
by a single and true bill of lading.
and the purpose is to at once place the
product on an ocean vessel destined to
an European country" He continued:
1t is apparent to many and the COM
mission so recognizes that by many il
is believed that to bring all export
shipments under this statute win work
injury 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 eattle-raising indus
try of the west. If it be said that the
right of contract therefore be denied,
the answer 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
( oAdAulC On olAADAllGlilc 10 1NEW OIh anu
then transferring the merchandise to
the vessels, when of course, it passes
from under the statute.
And it seems to me that when this
is done it can be under an stablished
rate, proclaimed by a published and
posted tariff rate"
The case against the Burlington rail-
way in which a demurrer was over
ruled today, is distinct from that
against its former assistant freight
traffic manager. George H Crosby The
Burlington is charged with granting
concessions to Kansas City packers on
products for export through the port Of
New York. The date of trial in the
Burlington case has not yet been set.
Taggart Not Present.
The taking of testimony in the cases
of Thomas, Taggart and Crosby, which
have been combined for convenience,
was delayed by the nonappearance Of
Taggart, who is I'll in New York. A
lengthy argument proceeded as to
whether the trial could continue in the
absence of Taggart.