Belding banner. (Belding, Mich.) 1889-1918, 1906-06-21
TO SUE IN REBATE CASES
CRIMINAL ACTION AGAINST OIL
AND RAIL MEN ORDERED.
Admissions of Concessions to Stand
ard Is Cause-Millions in
Fines Faced.

tineS raced.
Cleveland. IL instructions have been
1 given at Washington 10 begin criminal
proceedings against the Lake Shore
railroad, George j. Grammer, vice pres
ident of the New York Central lines
west or Buffalo, the Standard Oil com
pany, and whatever other officers may
be shown TO have been implicated in
the payment and receipt OF rebates
when were disclosed in the interstate
commerce commission hearing here
Thursday.
The contemplated proceedings may
include Edgar Bogardus. traffic man
ager Il the standard Oil company at
Chicago and other officers of the Lake
Shore al Chicago and Cleveland.
This. together with the complete
back-down OF the Standard Oil COM
pany, when il was given the eagerly
sough, opportunity 10 make defense
before the commission, was the de-
movement OF the commissions session
Acting under instructions from the
commission, Attorney j. Marchand
started for Chicago with a view TO
preparing the cases for presentation
TO the federal grand jury there. His
instructions are positive with respect
TO Capt Grammer. and he has been
iurthef ordered to ascertain whether it
Will be possible TO proceed also against
the officials of the Lake Shore for a
violation of the injunctions issued
more than three years ago and re-
straiAing the railroads from paying re-
bates OF any kind of traffic. 1t Is the
purpose to proceed under both the in
functions and the Elkins amendment
TO the interstate commerce act.
This decision is the result of testi-
mony given before the commission that
from 1903 TO January, 1906, the Lake
Shore paid rebates to the Standard Oil
company. in the form of RENTED
charges for storage of oil The evil
dence showed that this was done di-
rectly by the authority of G. j. Gram
mer, and was discontinued by his ex-
press authority.
Auditor Marcus c. Tully, of the
Lake Shore. reluctantly told the com
mission that II had been the practice
OF Edgar Bogardus to give his bills
for storage to the general agent at
Chicago, who would forward the ac-
counts To the auditor at Cleveland,
who In turn would give the Chicago
office credit for the amount without
receiving the money from the Stand
hA
bated amounted to about $500 month
and is said TO have been sufficient to
drive other oil dealers out OF bust
ness.
The federal grand jury will be asked
to indict' Vice President Grammer and
the Lake Shore for paying these re-
bates. Under the law both the rail
road company and the official can be
fined not less than $1,000 nor more
than $4,000 for each offense, and
similar treatment can be given the
Standard Oil company and the officials
of that corporation who may be
shown TO have been guilty of solicit
ing the payment of the rebates.
The maximum fines that could be
dSStSStN hUNtT the law WOuIu aESTG-
gate $4,000 against the railroad.
like sum againts each of it's officers
who is guilty and like sum against
the Standard OF company and against
each of its officials found guilty 1t
is possible, therefore. for the Stand
ard Oil company and the railroad
company and their officials TO be as
sessed several millions of dollars for
infractions OF the law.
In addition 10 this il the commits
sion's attorney finds that he can pro-
ceed under the injunctions Of the
courts, and he is now certain that
this is possible. a charge Of contempt
of court might be pressed and in
volve punishment by both fine and
imprisonment.
The testimony in the case was SO
positive and clear that the commits
sioners felt that they could not ignore
it. After communication with Wash
ington it was determined 10 institute
all the criminal proceedings possible
against the accused and To prosecute
them vigorously. The instructions
are 10 leave no stone unturned in the
attempt to bring the suspects TO the
fullest justice.