Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-05-26
Argument for Notion for New Trial win b
Heard Today.
GEORGE u. CROSBY IS RELEASED
Judge McPhsrSon sustains Demurrer Il
Evidence in Rebate Trial.
HOLDS GOVERNMENT FAILS TO MAKE CASE
In Opinion of Judge sumcient Evil
dence was Not Introduced TO
Convfct Former Burlington
Tramc Manager.
JURY is OUT BUT HALF AN HOUR

KANSAS CITY, May A.-George L.
Thomas, a freight broker and l. b. Tag
gart. clerk working for Thomas. In the
Unite1 states district court here late to-
day we're found guilty of the charge of
conspiracy to illegally give rebates to ship
pers The jury considered the case only
thirty minutes before arriving at a YER
dict. Attorneys for the defendants will file
a motion for a new trial and the motion
will be argued tomorrow The court will
nos pronounce sentence against Thomas
ard Taggart until the motion for new
L. Al Is disposed Of.
D .t-Aomas and Taggart live in New York,
md TagRart, who has been in court only
in the person of his counsel. is said to
be very Ill In that city. He and Thomas
have been under bonds of 5000 each. and
the court allowed the bonds to continue
ir. force until sentence is imposed.
rhe section Of the revised statutes un-
der which Thomas and Taggart are con-
victed provides that their punishment shall
be a fine of not less than $1,000 or more
than $4,000. or Imprisonment in the peni-
tentiary for not more than two years. OF
both fine and imprisonment at the as
cretion Of the court.
Crosby is Released.
George II. Crosby general freight traffic
manager IOE NAo
discharged by Judge Mcpherson today in
the United States district court. The court
sustained the demurrer of Crosby's coun-
sci holding that no evidence had been
presented TO connect Crosby with con-
spiracy as charged in the indictment re-
turned last December by the grand jury
.,,rhis indictment charged that Crosby had
conspired with George l.. Thomas, freight
broker and L. B. Tasgart. his clerk, to
pay rebates to certain persons.
Then the two cases against Thomas and
TaRRart were considered In the first case,
in which the defendants were charged with
conspirinR with Crosby to pay rebates,
the demurrer OF the defense was granted.
In this case Judge Mcpherson said. in
effect. that the evidence showed that II
; a crime had been committed II was COM
Initted IN New York or Chicago. outside
the iurisdiction OF this court. The con-
tracts made by shippers with Thomas
could not be considered overt acts. the
court said. because on their face they were
legitimate contracts.
In the second case against Thomas and
TaKgart in which they are charged with
conspiring with shippers to obtain and
nav rebates, Judge Mcpherson overruled
the demurrer In this case. the court said,
the government contended there was an
addenda to the contracts, and that addenda
contemplated a crime by conspiracy. The
court would not say that there was not
v suflclent evidence: that II was not done
in Missouri and in this jurisdiction. The
case. therefore, must 60 to the jury The
defense offered no evidence and the argu-
ments were Immediately begun, continuing
for three hours. the case going to the jury
late in the day.
ha apafnat (troqhV. Mr.. Crosby
name has seldom been heard In the pro
ceedings. which were begun here on Tues
day last The first testimony offered by
the government to show Crosby's alleged
part in the conspiracy was that OF Frani
Barry OF Washington, d. c., former agen
OF the Interstate Commerce commission
Barry said that Crosby told him in 100
that the Burlington railway was payinI
George L. Thomas a generous salary
because Of the tonnage he controlled.
Judge MCPHERSON said:
Such evidence cannot be used TO depriv
any man. high or low. OF his liberty. No
Mean such evidence be used TO create clou'
upon any mans name by reason OF
friminsl prosecution In any court. state o
FEDERAL.
Rebates Paid by Dead Man.
Judge Mcpherson aaid there was nothing
Na evidence 70 indicate that Crosby eve
I'd the payment Of commissions o
TO Thomas, or that he had an,
hdge OF the Transactions. but that
fe contrary. n had been testified tina
bmas Miller. now dead had Away
hed such orders 20 the claim depart
ient Mr.. Miller died a year ago.
In sustaining the demurrer as to Crosby
Judge Mcpherson said. to illustrate th
conspiracy with which II was sought I
connect the defendant; Suppose 500
month, or 5 per cent on the business OF
tained. is deemed a fair remuneration.
the partiea are agreed, IL is no concern
others. But suppose that, knowing this
500 a month, or per cent commissions,
flair compensation, the company pretend
ITO give. or the agents pretend to receiy
t400 a month, or 6 per cent commission
with the secret understanding that th
agent shall pay over to consignees of sue
freight he may contract the one-half
which Is paid to him under the guise {
compensation. What Is and what can tbs
be but the payment Of rebates9 And ho
can Il be said that such merchants VIII
receive money in that way aud the con
panies paying II IN that way. are not a
guilty Of crime against the United States