New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1906-07-11
find ROAD GUILTY
OF GIVING rebates
JURY TN FEDERAL COURT AT CHI
CAGO DECIDES AGAINST
ALTON COMPANY.
Two Former officials Also Included in
Verdict, Judge Lands Having
Overruled Molten to Dismiss on
All But Two Counts.

jill oOI l. W. SOunLS.
Chicago, July THE Chicago &
Alton Railroad company and two
former officials Of the road were found
guilty Friday of granting rebates
The verdict was returned before Judge
Lands In the federal court after a jury
had practically been instructed by the
court that there was little reason to
doubt the guilt of the railroad corpor-
alton.
Punishment for the offenses charged
IS fine of not less than $4,000 nor
more than $4,000, according to the
district attorney.
The road is declared guilty on each
of eight counts. Secret concessions
granted by the company to Schwarzs-
child & Sulzberger formed the basis of
the indictments
This IS considered one Of the most
important victories of its kind won
by the government. It means the be-
ginning Of many prosecutions
The attorneys Of the railroad gave
ever, in view of the evidence, decide
to waive further effort to prove the in
nocence of the road of conspiracy.
Judge K. M. Lands overruled mo-
ton made in behalf of John M.
Faithorn and Frederick A. Wann,
former executives of the Chicago &
Alton railway, charged with giving
rebates to Schwarzschild & Sulzberger
that the cases be taken from the jury
and a court order entered in favor Of
the Defendants
Not Guilty ON Two Counts.
The motion was overruked as applied
to eight of the ten counts in the indict-
ment charging rebates.
The basis of the motion made by
the attorneys for the railroad men
was that the refunds, assuming that
they had been made, did not consti-
tute rebates as contemplated by the
law.
The judge says that it appears from
the evidence that prior to 1901 the
Chicago & Alton Railway company
charged the belt road four dollars a
car for hauls from the packing COM
panyS platforms, over the packers
private tracks and the belt line tracks
to the Chicago. & Alton tracks, and
that the belt line paid another dollar to
the packing company for the part of
the haul that was over the tracks of
the company. ..
Payment Made Direct.
This practice is said to have been
known to the Alton company and con-
tfnued until January 1, 1901, when,
for some reason which does not ap-
pear, but at the alleged request of
Schwarzschild E. Sulzberger, the ar
engagements we've changed so that the
Alton company made the payments
direct to the packing company, in
stead Of through. the medium of the
belt company.
Coincident with this change the
belt line flied new schedules show
ing its rates for moving the packing
company's traffic to be three dollars
a car, which amount the Alton abb
sorbed in its tariff collected from
SchMarzschild 8 Su}zberger and paid
over to the belt road.
Court Outlines Case
After quoting the interstate COM
merce law, which requires published
schedules of rates, and the Elkins
law, forbiddfng rebates or cutting Of
tariffs, the courts avs:
1t is argued in behalf of the de-
PENDANTS that If any section of the
law is violated it is that provision
which requires the carriers schedule
to state the terminal charges and
rules which change the aggregate
rates. l am unable to see the force
of this contention. Plainly, the re-
turn by the defendant carrier to the
packing company of part of
the money paid by that shipper to the
carrier for the transportation of the
shippers product is not charge or
rule or regulation within the meaning
of the law.
Definition Of StRate''
~ ,1%h No. \ H.