New-York tribune., 1906-06-23
CELL FOR NEW WORKERS
cought scith Packers and Railroads
Corporations Fined SIS 900.

c-sih Mcpherson, Of Rec Oak Iowa passed
s.r,ence upon the seven defendants recently
4 ,,yirted Of making concessions and accepting
* - conspirng 10 accept rebates on shipments
y rBsrnents in the nature of fines Were assessed
y 4, Eve cases. as follows:
swift & Co. $4,000 Cudahy Packing Com
.srv. $4,000. Armour Packing Company. SIS
aN Nelson Morris q Co. $4,000: Chicago.
ps-,,ae,cn & Quincy Railroad. $4,000
Georee J.. Thomas. OF New York. was fined
Ssapa and was sentenced 20 four months in the
psni;entiary
:. b. 1aggart, OF New York. was fined $4,000.
,na. was sentenced 10 three months in the peni-
isn,iayy.
The fine II $4,000 assessed against the Bur
ungton covered all four counts the aggregate
s,oun; ~ the snes in the seven cases totaIling
g56oO.
Appeals were fled in each case and a stay of
srecut.on was granted until June %. until they
,ouli be perfected. The bonds in the case OF
Thomas and Taggart were fixed at $4,000 each
they appeared in court personally. and upon
beins sentenced promptly furnished the re-
gsired bonds The bonds in the case OF the
vsesing companies and the Burlington were
txsa al $4,000 each. Motions for new trials for
q, packers. tho Burlington Railroad and
Thomas and Tsggart were overruled.
judge Mcpherson made a statement OF the
cses before passing Judgment. in which ne re-
viewed the various charges and evidence
brought out al the trial In the case Of the four
rackilg companies convicted Of receiving con-
csssioEs, and in the case OF the Burlington Rail-
rad, convicted Of granting these concessions
be said, in part:
state these facts in writing 10 try to correct
the Oft repeated statement that these are rebate
Csses IN Is not SO. il is a case of unlawful con-
n q al q % ref1re less
than shown by the tariff then on file at Wash
ington under a contract Of June IL OF % cents.
ne lawful and duly established rate.
When the Clover Leaf increased the rate, on
August q. 70 - cents. the Lehigh Valley and
other connecting lines in the East fled concur
n-oes that Is 10 say the Eastern lines agreed
10 such Increase
And The contention that Burlington did not
. ale "concurrence'' 10 the new and Increased
arH rate OF the Clover Leaf is OF no Importance
tor apo Their reason-namely. the Burlington, after
August q, did turn the freight prepaid over 10
The clover Leaf, and in the language Of the
EkHs Jaw, participates IN any rates so fled
or published"
s. rhat on and after August all shippers Of
IKE products 0f like classification were compelled
u pay 80 cents, While the four packing houses
g9t tlair goods through ~ 23 cents
II Is nay opinion that the contract Of June Il
vas NJ doubtful validity when made. and after
Angus was device" within the meaning OF
IL Jaw. OF so much Of the case ! am not In
the s,ELtest dOuht-
Whsther tie statute covers export shipments
Is more serious question Like many other
Qaesuons, there is no way Of concluding The
question except by decision Of the highest
court Of the land
Judge MCPHERSON said that he was fully
persuaded that the verdicts in the packing
house cases and the case Of the Burlington are
rglt. and he assessed the fines against all OF
SAID corporations at the same sum. These
parties" DE- said. were all together in this
scheme with like motives and purposes"
IT suesBing Of the Thomas and Taggart cases
a5duced u snow that George A Barton. for the
firm ol Barton Brothers. wholesale shoe and
leather dealers as wei as others. had received
large sums II money from various railways
Through the defendants.
Continuing. he said:
so Than as nearly as can be gathered from
the evidence the defendants, after deductins
20 rler own services from money received
L"l ways paid 10 the concerns named
within -four years = rebates the enormous sum
Of N>-t-. and the evidence fairly shows
ihe,e eaI. other rebates paid 10y them.
assume ali these concerns VIII be proceeded
tea'rst FOR receiving these unlawful rebates,
Wh.f oal he done either by indictment or in
tor0 0a'iur. the last Vestige OF the plea or
Immunity for corporations has been wiped out
by .h- decision OF the Supreme Court Of the
Iut'e. SllIes ~ March J. 1905. in the case or
Hale ast Herlde.
The indictments upon which the various de-
PENDANTS vere tried We're returned in Kansas
The cases have been handled for the government
by A Van Valkenburgh. the District Attor-
ley. and BIS assistant, Leslie Lyons, while the
defendants have been represented by some OF
the ablsst counsel fn the West. In the eleven
cases brought up at this term the government
has obtained seven convictions, one defendant
was acquitted and three cases were dismissed.
George J.. Thomas Of New York City, freight
broker and his chief clerk l. B. Taggart, whose
case was the first 10 be tried, were convicted
of obtaining rebates from railways on shipments
iron Sew york 10 -. Louis and Kansas City
erysoo5s concerns At their trial several proIni-
nent merchants who admitted having signed
contracts with Thomas. testified 10 receiving at
various trnvs sums of money from mysterious
Sources Many thousands Of dollars were thus
reele5 and some of the witnesses admitted
mo lb. hood ~ in having come from Thomas
ce7-r, 81 crosby formerly assistant freight
trafic manager of the Chicago. Burlington q
Quincy Railroad who was charged with con-
sTiriue with Thomas q Taggart 10 pay con-
oessoas. WAS discharged by Judge Mcpherson
fhe colr- sustained a demurrer. presented by
JudFe n N. Spencer. Of St. Joseph general
solicitor ~ the railway. who contended that no
I" "'aeHCe had been presented 10 connect Crosby
N'H the alleged conspiracy.
Tae Armour Packing Company, Swift q Co. |
cucahy q CO. and The Nelson Morris Packing |
Company were tried jointly and convicted on
N charge of accepting concessions from the |
but ngt1n Railroad. in connection with connect |
hR lnas on packing house products for export !
10y way of New York.
The Burlington Railroad Company was con- |
Netea rr four counts Of granting concessions 10 |
The .sine com pauies OF Armour Swift, Cudahy |
sha Nes1n Morris
-te cases OF tile Chicago Milwaukee a. 81. /