The Mena weekly star., 1906-07-12

pany We're Repaid One Dollar Per Car
 on Freight Shipments From Kansas
 City-Motion for New Trial Win be
 Passed Upon Next Week.
 Chicago, July S.-The Chicago & Alton railroad and John N. FairthornI and Fred A. Wann, formerly officials of the road. were Friday convicted lnI the United States district court of Ill legally granting rebates 10 the schwarzschild < Sulzberger Packingl company. It was claimed by the gov- ernment that the officials of the rail- foad company had allowed the em- pioyes of the Dae company to trav- el free of eNpsnse 0y refunding to them all money e gadsa for tran portation. was declaied U the court that this| did not comp 4ie, and he in structed the drg ] verdict of notI guilty should arned as to twol counts of the ind nant which charged the giving of reea4s in connecticut with this passenger transportation.
 In the other eight counts of the in- dictment, on all Of which the defend- ants were found guilty, two offenses against the Elkins law were proved tt was shown by the government that the railroad company had charged $4 per car for handling the products of Schwarzschild X Sulzberger at Kan sas City and had then repaid the pack ing company $1 on each car The government claimed and the court held that the failure of the railroad to publish in it's tariff sheet the fact that the S1 was repaid made it in fact secret rebate It was claimed by the attorneys for the defendants that the refund of $1 per car was necessary because the packing company owned the railroad track near its plant and compelled the railroad company tol pay that amount for trackage when 1t hauled the cars away.
 Under the law the maximum sen- tence of the court may be fine of $120,000 for each of the three defend ants. No imprisonment provision ap- pears in the law. There are two spe- ciflc allegations of relating alleged in the eight counts of the indictment up- held by the court.
 The conclusion of the case was att tended by interesting denouementsl The court i'll overruling a motion to take the case away from the jury ani find for the defendants said:
 'The Alton company gave the pack ing company rebate by means of which device the packing company's $ than that named in the published tariff"
 The judge followed this by instruc- tions which clearly told the jury that under his construction of the law the defendants had paid rebate. Attor- ney K. NJ. Shaw and John Barton Payne, representing the defendants, agreed that the court should issue a peremptory instruction for a verdict of guilty. but Attorney Morrison for the government thought there was ques- tion regarding the courts right to do so Accordingly, the court told the jurors what their duty was, but did not order a verdict of guilty.
 After an hours wrangling, the jurors sent for the courts remarks in over ruling the motion to take the case from the jury. Later, they returned and asked for the instructions to be read them. and. finally, after three hours deliberation. they returned q verdict.
 Judge Landis Saturday In the United States district court deferred action on the motion for a new trial in the Chicago & Alton rebate case until next Wednesday, to allow the attorneys for the defense to show to the court that the arrangement be- tween the packing company and the railroad was well known among shippers and not secret rebate. No sentence will be passed until after the motion for new trial is disposed of.