The Minneapolis journal., 1906-06-29
PROSECUTION FOR
GRAIN MEN, TOO.
Government Will Proceed Against
Any Found Guilty of Violat-
ing Rebate Law.
CASES TO BE LIKE
THE STANDARD OIL
A. 3. sticney Seeks Inquiry
Into the Conditions in
Omaha. cE
journal Special Service.

journal Special Service.
Chicago, June 29.-A Washington
special to the Tribune says: Not only
will the government investigate the al
legged grain elevator trust, as required
by the La Toilette resolution adopted
by the senate the other day. but it
will prosecute any Of those found guilty
Of violating the law, and will proceed
against the combine itself if the facts
warrant such action. y ~.. ".
It was disclosed yesterday that the
administration intends to pursue the
same policy toward the grain elevator
interests that it has followed in the
coal and oil Investigations, which are
being made by the interstate commerce
commission: That is to say, it proposes
to have the interstate commerce COM
mission furnish agents Of the depart
ment Of justice with copy Of all testi-
mony, which will be examined with a
view to legal proceedings. "..-
stickney Takes Hand.
Evidence is pouring in to the inter-
state commerce commission from vari-
ous sources A. B. Stickney, president
of the Chicago Great Western COM
ago and conferred with the commission
with view to securing an investiga-
tion Of the grain elevator service given
by the Peavey company at Omaha, Kan
sas City and Council Bluffs, and by the
Trans Mississippi Grain company at
Council Bluffs and other points.
stickney charged that these corpora
for the elevation, transfer, loading or
unloading of grain transported by rail
roads, and declared that the Union Pa
eifc had entered into a secret contract
with the Peavey company and the Trans
Mississippi company to make them an
allowance Of IL cents hundred
weight on all grain shipped to their ele-
vators and switched free for them only
between Omaha and Council Bluffs.
.e That Elevation Charge.
Stickney further declared that the
contract is unlawful and licenses rob-
berry Of the many for the benefit Of
the few. I other words, the transfer
charge the elevator companies receive,
he asserts, Is a rebate and warrants
the attention Of the government.
In order to meet the rates by the
Union Pacific, the Chicago & North
Western, the. Chicago, Burlington 4
Quincy, the Missouri Pacific, the Atck-
son, Topaka & Santa Fe and the Chi
cago, Rock Island & Pacific, whose
lluoS pdl dllOl buOSO VI tuC ~ AAOu L o.
cifc. made secret agreements with large
shippers of grain on their respective
lines which amounted to III cents a
hundredvveieht
The railroads thought to pay this
concession out Of the rate between the
grain fields and Omaha and Kansas
City-in order to prevent the grain .
It out Of the thru rates from the grain
fields to Chicago, st. Louis and the
gulf ports. Stickney suggested that
the result Of this arrangement was to
handicap all grain stopping at Omaha
and Kansas City to the extent Of ~
cents a hundredweight.
Great Western Counters.
"Under these conditions he said,
in speech delivered at Omaha, a copy
Of which he left with the commission,
''fn order to protect the grain mar.
kets Of Omaha and Kansas City and to
secure. fair share Of the transporta-
tion of grain from Missouri river points
to Chicago, Minneapolis and other
points,, the Chicago Great Western
company, which has no lines west of
the Missouri river, felt, compelled, both
in the interest Of justice to the grain
dealers and the markets at Omaha and
Kansas City and in its own interest,
to make. similar allowance to ship.
ment between these points and more
eastern markets reached by it's lines
on all grain which had not received
such allowances like the Peavey grain
between the grain fields and Omaha
and Kansas City"
.. Says One Firm Lost $4,000.
Mr.. Stickney estimates that one con.
cern last year shipped 10000 carloads
Of grain into Omaha, which cost it
800 900 more than a like quantity of
grain would have cost the Peavey inter.
est and the Trans Mississippi company
These two elevator companies are en-
titled to have grain arriving at Omaha
switched for nothing on six railroad
= lines to their elevators in Council
Bluffs and switched for nothing from
their elevators to any outgoing line
The other nine elevators in Omaha anc
Council Bluffs are compelled to pay
from So to. Sc car in order to get
grain to their tracks, and the same
amounts for getting grain switched tc
outgoing lines, discrimination of from
81 to $12 a car.
The interstate commerce commission
had determined to investigate the re
lations to the Peavey company and the
Trans Mississippi company with the
Union Pacific and other lines before
the La Toilette resolution was passed
II It will not make special inquiry into
i St1ckney 8 charge in this respect, but
Continued on I'd Page, 4th Column.