The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-11-29
Total of Seventy-TwO Counts in
Bill Found by the Federal
Grand Jury.
IF CONVICTED ON ALL
FINE MAY REACH MILLION
Acceptance of Rebates From
Missouri Pacific and South
ern Pacific Charged.

ST. LOUIS. Nov. 2s.-The Federal
grand jury today returned two lndlct-
ments. with a total of y counts,
against the Waters Pierce Oil company,
charging the company with having ac-
cepted rebates and disseminated IN
legal freight rates on shipments of oil
in violation of the Interstate Commerce
law and the Elkins act
The indictments charge the Waters
Pierce Oil company with accepting low
er rates on shipments of OIL over the
Missouri Pacific and Southern Pacific
lines from St, Louis to Alexandra, La,
and to eleven specified points beyond.
If convicted on all counts IN the in
dictments the aggregate maximum pen
alties that may be collected is 81 ,52O,-
600.
1t is charged in the indictments that
the Waters Pierce Oil company is n
subsidiary corporation Of the Standard
Oil company of New jersey.
Credit to Garfield
In statement prepared by Herbert
Knox Smith, Deputy Commissioner OF
Corporations at Washington, and made
public today by United States District
Attorney Dyer IT is asserted that the
indictments are returned upon facts dis
covered by James Il. Garfield. Commits
sioner Of Corporations, and published
K
1906. Commissioner Garfield s report
was submitted TO Congress by President
Roosevelt and IN turn was referred TO
the Department of Justice for action
One Of the indictments, taking up 81
counts, each of which alleges n separate
and distinct violation of the law,
charges that the Waters. Pierce company
at stated times shipped carloads of oil
from st, Louis 10 Alexandria, La. Mt
less than the lawful rate, using the lines
of the Missouri Pacific railroad
III is charged 10 the Indictment that
the Missouri Pacific formerly had in
effect a rate of 25 cents per hundred
pounds on shipments of oil from ST.
Louis to Alexandria, and that subse-
quent TO the establishment of the 90
cent rate, put in effect a 30-cent rate.
which should have Cancelled the old
rate.
Discrimination Alleged.
1t is charged that up to July |, 1906,
the Missouri Pacific continued to carry
the shipments of the Waters Pierce com
pany at the rate of % cents per hun
dred ponds, while its competitors were
compelled TO pay the 30-cent rate. Some
of the shipments of the Waters Pierce
company were carried, it is alleged, at
2312 cents. as against the 30-cent rate
charged competitors.
Hc SccOHu lNulCtmcnt contains =
counts. Each count alleges that car
load of oil was shipped by Waters
Pierce over the Missouri Pacific lines
to Alexandria, La, thence over the
Southern Pacific to eleven different
towns In Louisiana at less than the
rates filed by the roads with the Inter
state Commerce commission.
These shipments, 1t is alleged. COW
cred period of three years. during
which time the Missouri Pacific and
Southern Pacific had in effect Joint
rate to the points specified, which had
been duly filed with the Interstate Com
merce commission. These rates, it is
charged, were conspicuous and well
known, and no shipper competing with
the WatcrsPierce company had any
reason to expect that there was
lower rate than the Joint tariff that had
| been hled with the commission.
During this time the Missouri Pacific
road had In effect a l5-cent rate to
Alexandria, La, for "beyond ship
ments," which was applicable only for
shipments beyond that point The
Southern Pacific rates from Alexandria
to the beyond points were not filed
with the Interstate Commerce commits
sion, it is alleged, and not made public
under the Federal law, but by means
OF this l5-ccnt rate 10 Alexandria, plus
the local rates of the Southern Pacific
it was possible for the Waters Pierce
company, in using the combined rates
to ship oil from st. Louis to the Lou,
isiana towns at lower rate than the
aforementioned through rate These
rates were made. 1t is alleged, prior
and continued up to July ]. 1906.
Under the provisions of the Federal
law each shipment Of carload of oil
at less than the legal rate is a sepa-
rate offense and punishable under the
Elkins act by fine of not less than
$1,000 nor more than 100000.