The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-06-01
VIOLATION OF
THE ELKNS LAW
Milwaukee Refrigerator Com
pany and Six Railroads
Guilty of Relating.
OPINION OF THE COURT
STRONG GROUND TAKEN BY The
COURT.

Milwaukee. May 31.-The United
States circuit court for the eastern dis
tTict Of Wisconsin today handed down
its decision in the rebate case Of the
government against the Milwaukee Re
frigerator company, six railroads and
the Pabst Brewing company. on charges
of alleged violation Of the Elkins act
End1ng against the defendants with the
exception Of the Pabst Brewing COM
pany, the suit against which is dis
missed. The complaint reCited that the
refrigerator company had received com
missions Of from 10 to I21z per cent on
all shipments of beer from the Pabst
Brewing company routed by it. The
railroad companies admitted having
made such concessions. but claimed
that these had been paid the same as
commissions 10 other freight solicitors
Four Judges Conourred.
Judge Baker delivered the opinion.
which was cOncUrred i'm by Judges
GTossCup. Seaman and KohIsaat.
The defendants in the case were the
Milwaukee Refrigerator Transit com
pany. the PeTe Marquette Railroad
company the Erie Railroad company.
the Chicago. Rock Island & Pacific
Railroad company. the St Louis & san
Francisco Railroad company, the Wis
consin Central Railroad company and
the Chicago & Alton Railroad company.
and the Pabst Brewing company.
Opinion of the Court.
The decision, stripped Of legal YER
biage. is i'm part as follows:
The charges IN the petition are suo-
staHtiaIly these.
That the brewing company organ
lied the refrigerator company is the
beneficial owner or the refrigerator
company stock. and thereby indirectly
receives the moneys paid by the rail-
road companies to the refrigerator COM
pany on account of beer shipments
That the refrigerator company (apart
from the charge that il was a dummy
Of the brewing company was organ
lied as a device for the purpose of ex-
acting from the railroad companies a /
large proportion of the freight moneys /
for interstate and foreign shipments
controlled by 1t, that il holds contracts /
from the brewing company and other
owners of goods whereby it is given ex- +
ecutive control Of shipments to COmpe- /
titive points; that it withhOIds such /.
traffic troIu- railroad companies which 3
refused 10 return TO il from One-tenth 4
70 cne-eighth Of the freight moneys. /
That the railroad companies have paid B
TO the refrigerator company from one
tenth to One-eighth of the freight mon /
eYs- on all traffic controlled by the re- /
frigeratOT company.
Brewing Company Exonerated.
The majority of the brewing COM I
pauy stock is owned by persons who 4
have no interest in the refrigerator
company. The stock Of the refrigerator
company was bought by the holders /
with their own money and in their own
interest The majority Of il is owned I
nv oil
pany stock. But the brewing company /
pays its freight in fun. receives no re /
hate, and Is not party to the contract !
between the refrigerator and the rail- /
road companies. Under the evidence the
most that can fairly be said of the re-
latiOHs between the brewing company
and the refrigerator company is that
the former gave the control of the
shipments to the latter as favor and
10 enable il TO profit thereby if il could
For failure Of proof the charges against
the brewing company are dismissed.
Court Has Jurisdiction.
contention is made that equity iurfz-
nlctIon does not Inherently extend and
cannot by congress be extended to re-
sTaining the commission Of crimes and
mISuv-neaDOTS-
THAT the infraction OF the COMPLAIN
ants rights may also constitute a crime
Is no reason for denying relief. If a COM
pianants rights cannot be adequately
protected elsewhere. and II decree in
writ TO be enforceable can be framed no !
court or equity should acknowledge itself
wanting in the. primary power of devils
ing DEGREES and WrltS 10 meet the needs [
of the situation.
Congress Has the Power
IF d person whose business was being
undermined and ruined through advan-
tsges unlawfully given TO a competitor. /
should seek relief IN equity, the objection