The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-05-24
Mysteries of the System Laid Bare
at Kansas City
. Trial.
NONE KNEW WHERE
MONEY CAME FROM
It Was in Unmarked Packages,
Sometimes Borne by I'm
known Messengers.

known Messengers.
Kansas City, May 24-More sensa-
tional testimony was brought out to-
day In the trial in the United States
district court here of George H. Crosby,
traffic manager Of the Burlington rail-
way, George L. Thomas of New York,
freight broker, and L. B. Taggart, his
clerk, on a charge of conspiracy.
T. H. McKittrick, president. of the
Hargadine- McKittrick dry goods COM
pany of st. Louis, the first witness, who
had testified that he had employed
Thomas at salary of $500 year to
look after the interests of his firm in
ing from the east, admitted that he had
received. various sums of money from
unknown sources,' and in one in
stance Mr.. McKittrick testified, per-
son whom he did not know entered his
(McKittrick 's) office in New York one
day and handed him a package of
money containing between $500 and
$500.
T.. Didn't Know Messenger.
Mr.. McKittrick declared that he did
not know the man who had given him
this money; that he had not since seen
him, that he did not believe he would
be able to identify the man, and fur
Their, that he did not know for what
purpose the money was given him nor
from what source it came. Es
At this point District ATTORNEY Van
valkenburgh requested W. P. Kelby,
Thomas clerk, to stand up and, point
ing to Kelby, asked of the witness:
els this the man who handed the
money money to you in your New York Of
ct don It know; I do not believe
could identify the man, replied Mr..
McKittrick
Mr.. McKittrick, continuing his testi-
mony, said that he had employed
Thomas whle he was in New York on
May 1, 1902. signing contract which
was renewed again in 1903. Thomas
,, claiming that he would be able to ship
goods to McKittrick' S house from the
east in the most economical way and
by the railway giving the best service
Thomas duties, which were to include
the settlement Of all cases of losses
in shipment and overcharges and to OBJ
tain from Lowell, Mass. and other mill
centers the usual mill allowances offered
buyers who accepted freight on basis
of shipment from New York. Thomas
had been employed later on the same
condition, but with no new contract.
Much Mystery In It.
In reply to direct question, Mr.. Nc
Kittriek said that he had at various
times received money from unknown
sources.'' Witness then detailed the
receipt Of the money in his New York
office from an unknown man. Contin-
uing. he said that some of the money
had been received by express. In this
manner be said his firm had, within
900, during which time they had paid
out $4s0,0O0 in freight charges. In
one instance he said he had received
some money personally and this he had
deposited in his brothers bank.
On cross-examination Mr.. McKittrick
said that in seeking employment
Thomas had said he would get any
legitimate commissions that MeKit-
railways and from any waterlines not
subject to the interstate commerce act.
Witness said he and Thomas had
talked over the matter of rebates, and
it was agreed that no rebates were to
be sought. He did not know that
money received in his New York office
or by express had come from Thomas.
George A. Barton of Barton Brothers
Shoe company; George w. Taylor of
the Robert Keith Furniture & Carpet
company, E.. W. Freyschlag of the
Freyschlag Mercantile company, all Of
this city, and Walter B. Kelby Of New
York, clerk in 1904 and 1905 for
Thomas. ts
Used Fake Name.
On the stand Freyschlag frankly re-
ferred to an agreement with Thomas
whereby his firm YVES to receive 25 per
cent rebates on freight bills and told
how the money was deposited in New
York to the firm s credit by one "Jack-
son. a person whom he did not know.
He could not remember whether he or
Thomas had suggested the use Of the
name. At first he said that the idea
was his, but on crossexamination he
changed and said that he could not re-
member. He admitted that the name
was used to hide "this business
term all the witnesses today employed.
"Thomas was to look after our
freight business and take care of our
Claims" said Mr.. Freyschlag in his
testimony, "and we were to receive
rebates on all freight destined to points
west of the Mississippi river. This was
25 per cent
Admits Taking Rebates.
"Did you receive those rebatesi"
was asked.
Eyes. The total with Thomas was
about 81 500. We did not receive the
rebates for 1905 shipments. We got
about $1,700 in 1905 in rebates for
goods shipped in 1904. The money came
in currency mostly. Some one, Thomas,
Taggart or w. B. Kelby, Thomas clerk,
sent it. I suppose; | don t know"
Freyschlag said that the rebates for
shipments were still due. He did not
know who owed it to him. Taggart
had told him, he said, that the railroads
had not paid up. Freyschlag said his
freight bills amounted to about $4,000
q year.
s'All in the Same Box"
All the shippers are in the same
box with me, Freyschlag exclaimed
defiantly. Instead of four years, this
thing has been going on for twenty
Eve years-not at 25 per cent rebates.
but at 40 per cent