New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-11
INDICTED FOR REBATING
Grand Jury Returns Bills against
\. ]. Central and ID. and II.

Utica N V Jan. 1O-The United States
Grand Jury. which has been in session in the
government building for a week, reported
two bills of indictment to-day for alleged viola
lions of the Ekns act against the giving of re-
bates to shippers. Both defendants are corpora
tons One Indictment is against the NewYork
Central and Hudson River Railroad Company
and the other against the Delaware and Hudson
Company. Both corporations charged with
giving rebate of 20 cents ton to the General
Electric Company at Schenectady all ship
ments of freight incoming and outgoing. This
practice, it is asserted, has been in operation
since the establishment of the General Electric
Company at Schenectady. and it is alleged that
it continued after the passage of the Elkins
law The discovery of the violation of the law
was made by the Interstate Commerce Commits
sion in an investigation which was held last
August.
The investigation has not been completed by
the government officials and it is likely that
some of the officials of the two railroads may
be involved.
The Elkns law prescribes penalty of $4,000
for each and every violation of the law The
issues involved will be tried eventually before
a jury.
The Indictment of these two railroads for VIC
lating the Elkins law is the first official action
taken by the federal authorities in this State
against the givers of rebates and dscriminators
in freight shipments
District Attorney Curtiss of Binghamton had
charge Of the procuring OF evidence and the in
dtcrment of the two railroad corporations,
An official of the New-York Central. on having
the above dispatch called to his attention, made
the following statement:
The General Electric Company has paid full
tariff rates its freight the New York
Central and the New-York Central, on its part,
has paid to the General Electric Company on
account of railroad terminal work done by It, an
amount not more than sufficient to reimburse 1t
for that expenditure. The company claims that
what done was in no sense the giving of
a rebate. Before the finding Of the indictment,
and before the matter was called to the atten-
ton Of the federal grand jury, the railroad COM
pdnteS gave the government information as O
what being done and suggested that If
there was any question to whether this was
violation Of the Elkins law, the companies
would be very glad to have that question tested
by a suit IN equity for an injunction. and
feTed to cooperate with the ATTORNEY General
to that end. Earlier still the matter was dis
cussed with the interstate Commerce Commits
sion. and an Informal request made for ruling
on IL, but no action was taken the request
Under the ElkinS law complaint of this M
ture ctn be determined in one Of two wavs:
by an indictment, or by suit in equity for an
injunction The New-York Central is entirely
willing TO have the matter reviewed feel
in view of the course which 1t has taken with
the government, that the matter might better
have been tested in civil action rather than
that the aid of the criminal courts should be in
voked- As II is, the NeW-YOrk Central will s,Ib-
init ali the facts the court on the trial OF the
Indictment. and ruling then be had as 10
whether anything has been done by ii which
violates either the letter the spirit of the law
David Wilcox, president of the Delaware and
Hudson, az the Metropolitan Club last night re-
fused to discuss the indictments