Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-08-11
'SsYLyANA RAILROAD ALSO, ON LIST
Charge iS Making Shipments at Less Than
Rates Published.
TWENTY-FIVE COUNTS IN THE BILLS
Maximum Penalty Under the Blkins Law
is 81 100000
NEW EVIDENCE FOUND IN CHICAGO
Manipulated Rate by which Rocke-
feIIer Combine Has Advantage
in Entire Southeastern
Market.

JAMESTOWN, N. Y, Aug. lo.-The fed |
sral grand jury for the western district
OF New York today reported 'tments
against the Standard OIL con- w., New
York. the Pennsylvania rail- 81 -, ne
Vacuum OIL company, which !. "a Tn
ies at Olean and Rochester, N. Y. y
One indictment is found against G,
the defendants and in all there are TIVE.
two counts. The Indictment against II.
Pennsylvania railroad charges that it,
granted rebates on oil shipments TO the
Standard Oil company and the indictment
against the Standard charges that II ac-
cepted rebates from the Pennsylvania.
The evidence showed that the Vacuum
OIL company made shipments over the
Pennsylvania and that the Standard OIL
paid the freight bills. The indictment against
the Vacuum Oil company charges specific
ally that Il shipped oil from Olean to Rut-
lard, Va, at tariff rate lower than any
published by the Pennsylvania railroad or
on file with the Interstate Commerce COM
mission.
One Of the counts in the indictments
charges that the Pennsylvania railroad did
not file with the Interstate Commerce COM
mission a tariff showing It's rates and
charges for the transportation of oil.
direction Of Special United States District
Attorney o. z. Pagin Each of the twenty
two counts constitutes separate ofrense
and the penalties, II the defendants were
convicted on all counts, would amount to
t14OO.oOo.
The indictments specify that the, ship
ments were made under a common ar
rangement between the Pennsylvania the
New York Central and the Rutland Rail-
road companies.
Important Evidence Discovered.
-. CHICAGO, Aug 10.-Evidence of direct re-
bate arrangements alleged to exist between
the Standard OIL company and certain rail-
roads was presented TO the federal grand
jury today by a witness who in the eyes
of tho governments attorneys is believed
to be one OF the most important witnesses
on this subject. Horace Tucker, chairman
OF the Chicago g. St Louis Traffic as
sociation, was the man who gave this In
formation. Other, witnesses heard were c.
A. Kennedy OF the Chicago Junction Rail
way company and j. H. Howard. clerk in
the auditing department of the Chicago g.
Alton railroad.
II developed during today's hearing that
there is in existence on the Chicago &
Eastern Illinois railroad, a tariff on ship
ments Of oil from Dolton, H., to points
6OuIn winch 10 very low. Ine standard
OIL company has its refinery at Whiting.
Ind, short distance from Dolton, and
could easily avail itself of this low rate
while other shippers wishing to reach Dol
ton to participate in the low rate south
must pay the switching charges in the
Chicago district of S a car which makes
the total rate prohibitive far as COM
petition Is concerned. According TO the
testimony. the Standard Oh shipped its oil
from Whiting, Ind, to Dolton. ILL.,, over
the Chicago Terminal Railway company
for about 81 car In switching charges
Although the shipment was between two
states II was not interstate because It was
within one shipping district The same
consignment was then shipped south on the
Chicago & Eastern Illinois from Dolton on
the low rate from that point This latter
road carried the shipment 70 otter Creek
Junction, where II was transferred TO the
Evansville Terre Haute road, which took
It TO Evansville, Ind. 1t was then taken
to Grand Junction Tenn, over the Illinois
Central road connecting with the Southern
railroad at that point and distributed
through the south by the latter road II
IL declared that by this combination the
Standard OH company was able to reach
Grand Junction. Tenn, with its oil on a
through rate OF 13 cents for hundred
pounds whereas no other shipper was able
20 take advantage Of the same privilege.
The city Of Grand Junction is thus desaR-
mated as the gateway, to the southeast
for the Standard OH company. giving, II
T. charged, monopoly on the oil business
tn that part OF the country
The witnesses questioned concerning this
matter were ]. p. Brook an agent for the
Southern railway, and l. B. Butts. in the
auditing department OF the Illinois Central
railway.
At the conclusion OF today's testimony the
Jury adjourned until August O. at which
time II will probably make its report
A new grand jury will convene next
Tuesday and take up the case subsequent
10 March 3, 1895.
ToledO Ice Trust in LimeIi.ht
TOLEDO. o.. Aug lO-The local Ice
trust and the railroads alleged to be back
OF u will be investigated by the federal
authorities. Interstate Commerce Commis-
sioner Clements and possibly Commissioner
Cookreli viii be here next Tuesday for that
purpOse II is known here that President
Roosevelt has watched the Ice trust pro-
eeedings In Toledo since Prosecutor wach-
enheimer hrst began his investigation, and
he took a lively interest when Judge Kin
caid gave the convicted ice men a prison
sentence, Three weeks ago Special Agent
Walter Of the commission appeared ir
Toledo and began looking up evidence con,
cerning the Organization OF the Ice trust
by ofncials connected with the Ann ATbol
ana Psre Marquette railways. The hearing,
10 be held Tuesday is the result
suEar Rebates Alleged
NEW YORK, Aug. iO-As a result o.
investigation OF cases OF alleged rebatinl
by railroads the United States grand JuiS
today returned six indictments. They ar,
Aaid 20 be based on rebatng sugar.
The federal authorities declined to CIV,
out the name OF those indicted but il wal
reported that they include both Individual
aud corporations. United States Distric
Attorney stimson said that the grand jur,
viii resume It's examinations OF the re
bate matter about September l.