The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-06-13
PACKERS FOUND
GUILTY BY JURY
Test Case on the Rebate Ques.
tiOn Is Decided at Kan
sas City.
SENTENCE is NOT YET
PASSED BY THE COURT
Armour, Swift, Cudahy and Mel.
son-Morris Companies Af-
fected by Verdict.

KANSAS CITY. June 12-Armour &
Co. Swift & Co, Cudahy & Co and the
Nelson Morris Packing company were
found guilty in the United States dis
trict court here this morning of accept
Ing concessions from the Chicago. Bur
lington & Quincy Railroad company on
export shipments on packing house
products.
Sentence Is Deferred.
Judge Smith Mcpherson of Red Oak
Iowa, presiding Judge. stated that SEN
tence would not be passed until the
case against the Burlington railway
which is charged with granting the con-
Burlngton's trial will begin this after
noon The law In the present case pro-
tence.
Case Goes to Jury.
The cases OF the four meat-packing
companies charged with accepting rebates
vas given TO the jury In the United
States district court here at 1910 a. m
today
: The cases are those of Armour & Co.
swift q Co, Cudahy & Co. and tho
Nelson Morris Packing company. They
Were charged In indictments returned
mere last December with accepting from
the Burlington railway concessions on
shipments from tne Kansas City plants
for New York for export The cases
were consolidated for trial purposes.
Discrimination Charged.
The specific case considered, which Is
practically Identical with the others is
that charging Cudahy & Co. with accept
on shipment of lard TO New York for
export to Germany when the legal tar
IN then on file with the Interstate Com
merce commission was IS cents The trial
began last week. and after lengthy arsu-
ment was continued until this morning
when Judge Mcpherson instructed the
jury.
The present case bears unusual impor
tance from the list OF rebate trials to
come up In this court, for II Is the FIRST
time that any concern has been brought
TO trial before a jury on a charge affect-
Ing export rates as applied to the inter
state com meroc act. Counsel for the de-
iendcnts in this trial contended that the
court lacked Jurisdiction, which was over
ruled by Judge Mcpherson. and then that
when they signed a contract, covering the
B-cent rate; It was legal and that the
cents. Judge McPherson's Instructions 70
the jury covered the points fully.
Purely Question of Law.
Judge Mcpherson said that In the case
on trial there Is no question as TO the
reasonableness OF the rates. nor as to
question is. did the defendants packing
company receive unlawful concessions In
making such shipments7 He recited the
fact that while their contract on the
basis of the 23-cent rate was In effect
they were aware OF the fact that the
Burlington railway and its connecting
lines had filed a 35-cent tariff with the
Interstate Commerce Commission. The
court declared that as a matter OF fact
the question as 10 the validity OF the
packers contract was not practical
question, because and for the reason
that the defendant company had no right
to make a contract that would extend
beyond the time OF fling new schedules
with the commission at Washington, Ak
Ing the rate 10 the general public at a
higher and different rate than that COW
cred by the contract"
He continued:
No Concession Permitted.
"And when the amendatory rates east
of the Mississippi river were filed with
the commission August 8 and the de-
fendant knew OF the same, II could not
knowingly receive less rate or conces-
sion than that paid by the general pub
lie without being guilty OF receiving an
unlawful concession, provided that the
same WAS thus received by any kind OF
device as hereinafter recitcd. This Is so
because the right. privilege and liberty
of contract usually existing between all
persons and corporations Is modified and
controlled by that provision Of tho con-
stitution which gives to Congress the
right to regulate commerce between the
States and foreign nations