Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-05-29
GRAIN TRUST IS ENJOINED
Referee Pembsrton Files His Report with
the Supreme Court.
TWO FIRMS EXCEPTED FROM VERDICT
Preliminary In Case of DR.. Mathews
Tends to Contradict CharEes
Made by His, Attorney
Against DR.. Bailey.
TWO FIRMS EXCEPTED FROM VERDICT
CFrom a stan Corespondent)

CFrom a Stan Corespondent)
LINCOLN, May &.-(Speclal. )-Referee L.
NJ. Pemberton this afternoon filed his report
in the Grain trust suit with the supreme
court, in which he recommends that the
state is entitled to a perpetual injunction
against the Nebraska Grain Dealers asso-
citation, except so far as it restraints the
members of the association from soliciting
or receiving rebates from any railway
company. The report says; This excep-
ton is made for the reason that the evil
dence does not show that the defendants
or either of them were soliciting a rebate
from any railroad company or threatening
to do so. Such decree should apply to all
the defendants, except the Holmquist Grain
and Lumber company and William r. Man
ming. who had no notice of the taking of
the dispositions. which were taken on the
question of a combination and conspiracy
in restraint of trade, and are therefore not
bound by the evidence contained in said
dispositions. AS to them this action should
be dismissed without prejudice"
The referee concludes that the state has
elected TO proceed under the Junkin act in
this case, regardless of whether the Como.
I ring act has been repealed as to causes of
action, which occurred while It was in
force. It was found that the association
was in existence at the time of the COM
mencement of the action by Attorney Gen
erals Norris Brown, and that the defend
ants were still members OF it or participants
in its objects and purposes.
In regard to the elevation charges as a
rebate the. referee says that If it is paid
only on nterstates shipments it is a matter
over which the legislature and the courts
Of this state have no control He finds
that 1t is not rebate forbidden under
| the laws OF this state and he does not
| deem II necessary to determine what the
law would be II the facts were different.
| That question can be decided when IL prop
| erly arises. He thinks 1t clear that what
| the railroads of this state are forced to
do by competition. with a concern outside
| Of this state and of the Jurisdiction Of
this court. cannot be a violation of the
Junkin act when they treat all persons
engaged i'm the same business, under the
same circumstances, exactly alike.
In holding that the state elected to stand
| on the Junkin act the referee recommends
perpetual restraining order against the
continuance OF the acts of the association
complained of instead of recommending the
forfeiture Of its franchise. which, he says.
would be necessary II the suit had been
brought under the Gondring act.
| mNtneWs nearing Jp Again.
| In the final hearing of charges against
! DIR. John Mathews Of Omaha before the
State Board of Health today witnesses
for DIR. b. F. Bailey were examined. DR..
Mathews is charged with performing a
criminal operation which resulted in the
death of Miss Edith Short at Omaha in
November 1906 John o. Yeiser. attorney
| for Dr. Mathews, at a former hearing
| asked that the case be quashed for the
reason that it could not be heard without
duplicating Dr. B. F. Bailey a member
Of the board, who was hearing the case.
This insinuation against Dr. Bailey caused
a storm Of protest at the time, and much
! Of the evidence has since been taken to
disprove Mr.. Yeiser's intimation. A let
| ter from Mrs. Short, mother of the girl,
says that the girl told on her deathbed
that the man in the case was a former
sweetheart OF hers who was engaged to
her about six years ago The name has
never come out in the testimony. As to
advice given by DR.. Bailey when the girl,
who was a nurse at his sanitarium in Lin
coin at the time she informed him of her
trouble, all the witnesses present agree
that he told her to go to her mother in
Fremont and that on her future conduct
depended her chance to return to the in
stitution a nurse.
II. F. Rose, attorney for DIR. Bailey and
the board, has in his possession a diary
kept by Miss Short. This is the entry she
made october 9, 1905, just before she went
TO Omaha:
Dead Girls Tribute.
well. I went TO the office this morning
and opered my heart to DR.. Bailey and
Miss Fisher and they were both Oh. SC