Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-05-24
New York Broker Receives Commissions
from Shippers and Railroads.
THOMAS PAID TO LOOK AFTER CLAIMS
One Contract Calls for Return Of 25 Per
Cent Of All Freight Bills.
F, P, NRKENDALL EMPLOYS THOMAS
Omaha wholesaler Says He Re-
ceived Money from Broker,
but Kent No Record
of IL.

! OF unusual interest was brOuRht out tnis
I afternoon in the United States court in
the trial of George II. Crosby, traffc man
sger OF the Burlington railway George L.
Thomas Of New York freight broker, and
l.. B. Tsggart his clerk, on a charge Of
conspiracy in rebating railroad rates.
| The principal witnesses today were George
| A. Barton of Barton Brothers Shoe COM
pany George w Taylor Of Robert Keith
| Furniture and Carpet company. e. W
Freyschlag Of the Freyschlag Mercantile
company, all of this city. and Walter q.
| Kelby OF New York. clerk In 1904 and 1905
| for Thomas.
The testimony shows that the firms mem
toned received large sums of money from
mysterious sources after freight bills had
| been paid: sometimes I'm express packages,
| always from New York. but none knew
| who sent II. On the stand Freyschlag
| frankly referred to an agreement with
Thomas whereby his firm was to receive
25 per cent rebates on freight bills ana
told how the money was deposited in New
! York TO the FIRMS credit by one Jackson"
a person whom he did not know. He could
not remember whether he or Thomas had
suggested the use of the name. Al irst
he said that the idea his, but con-
sideration he said he could not remember.
He said that the name was used to hide
this business" a term all the witnesses
today employed.
NTvventy-Five Per Cent Rebate.
Thomas was to look after our freight
business and take care OF our claims" said
Mr.. Freyschag In his testimony, ''and we
were to receive rebates on all freight des-
tined to points west of the Mississippi
river. This was 25 per cent
did you receive those rebates?' was
asked.
Yes. The total amount In three years
of our contracts with Thomas was about
$500 We did not receive the rebates for
1906 shipments. We got about A,7o0 In
1905 in rebates for goods shipped in 1904.
The money came in currency mostly. Some
one, Thomas TaggRrt OF w. B. Kelby,
Thomas clerk, sent 1t, suppose, don't
know"
Freyschlag said that the rebates for 1905
shipments were still due. He did not know
who owed 1t to him. Taggart had told
him. he said that the railroads had not
paid up. Freyschlag said his freight bills
amounted to about $4,000 year.
The cross-examination by The govern
ment of Mr. Freyschlag was somewhat
startling. Counsel kept at the witness un-
, til ne made him admit that he had agreed
to use the name Jackson because he
Thought there might be something criminal
in this business"
Practice of Many Years.
IAN the shippers here are in the same
box with me-" F'reyschlag exclaimed de-
family. Instead of four years this thing
has been going on for twenty-five years
mot at 25 per cent rebates, but at 40 per
cent"
! witness admitted he had sent his son to
, New York to see Thomas.
> "Why?" attorney for the government
asked.
We'll" replied Mr.. Fresychlas, II had
paid Thomas $500 salary for the year 1905
. and I had received nothing. ! thought
II the railroads had paid Thomas I wanted
h it."
w b. Kelby. former clerk for ThorI's.
said that he had sent express packages
of envelopes" to firms in Kansas city.
He did not know what they contained.
Once brought money to Kansas City him
self for Robert Keith Furniture company,
but did not know why.
"AttendInE TO Claims"
George Barton of Barton Bros. Shoe COM
T. pany told Of contracts with Thomas TO
70 route freight and attend 10 claims" His
3 firm, he said, never received money from
, Thomas, but did receive some from w. 3.
Y Kelby. Thomas clerk and more through
'' the mails and by express. The witness
= said that after paying his freight bills
n in Kansas City he sent them to Thomas In
New York City. The firm pale Thomas 2h
cents per 100 pounds commission on all
OF its shipments, about 81 800 I'm two years
in addition to $500 yearly salary.
{ George w Taylor OF Robert Keith Fur
niture and Carpet company told OF condi-
tions and transactions between his hrm
and Thomas. He said that George H.
Crosby had admitted TO him that the Bur
y lington paid Thomas salary because "ot
D. the tonnage he contributed"
= Omaha wholesaler TestIner.
F. p. Kirkendall a wholesale shoe dealer
Of Omaha paid Thomas 800 a year to
= look after his freight shipments" He
" said that he had received money two or
three times from Thomas. but kept no
record Of IT,
Edward p. LEWIS St. Louis dry goods
merchant stated that he had a routing
contract with Thomas in 1902 and 1909
II The hearing in the cases will be re-
sumed tomorrow morning
The question of jurisdiction was raised
and led to a lengthy argument that
. stopped the introduction OF testimony.
= Counsel for the defendants declared that
a ! n a crime had been committed II was not
, committed I'm. Missouri. but IN New York,
. and so was not In the jurisdiction OF the
"A court.
,n Judge Mcpherson ruled that the question
~ Of jurisdiction had not yet come properly
before the court The court decided also
that the government would be allowed 10
n ofrer evidence 20 show conspiracy without
v reference 20 where the svert acte. II any,
were committed All these matters, the
=" court said would be left for future con-
sideration. The trial then proceeded.
The first witness George A. Barton. a
partner IN Barton Bros. Shoe company
A. produced two contracts entered into be-
Is tween his firm and Thomas. BY the terms
~ OF these contrScts the company agreed e
ns pay Thomas 21a vents a hundred pounds foI
OF all merchandise lhat he might route he
A tween New York ana Kansas City. guaTan
taad ThoEnAS nos less than 80 Esef anc