The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-05-26
First Convictions in Kansas City
Rebate Cases.
Victims George L. Thomas, a
Broker, and His Clerk.
CONSPIRACY CHARGE.
Freight Rebates From
the Railroads.
Heavy Penalties Are Provided
by the Law.


Thomas. a New York freight broker
and L. B. Taggart, his clerk. were
found guilty in the United States court
on charge of conspirinG to receive
rebates late yesterday afternoon This
is the first of the government cases to
be tried under a batch of indictments
returned by the December grand jury
The punishment may be a fine of
from 81 ,00o to $4,000. one to two
years in prison, or both fine and i'm
prisonment The punishment is to be
fixed by the court. Judge Mcpherson,
sitting on the bench. deferred pro-
nouncing sentence last night. There
will be a motion made for new trial
this mornings and. so counsel for the
defendants stated, the cases are to be
taken up to the United States supreme
court If necessary.
The case against George II. Crosby,
general traffic manager CT the Burling-
ton railway company, was lost by the
government, Judge Mcpherson dis
charging the defendant. In throwing
out of court the case against the Bur
Hngton's triffic manager. Judge Nc
Phersonf said that the evidence had
shown that the Office of general traffic
manager of the Burlington railway
had been filled by Thomas Miller. who
| died in january 1906 and that Crosby
I
Office had been five stories away from
AIiIler's Office, and that the contracts
for rebates complained of had been
made, If made at ALL during the adj
Tninistra ton of the+late Thomas Miller.
THE evidence is SILENT" the court
summed up, "as to any knowledge o.
AIr- Miller that commissions paid to
Thomas were being used to pay to
shippers, unless the methods of pay
ment and keeping the books evidence
such knowledges and there is no word
/ Of evidence in this case that defendant
I Crosby had such knowledge. It is
even doubtful IS It can be said that he
ought to haveRknown or could have
| known it.
There is no evidence that he had
supervisory power over the auditing of
claims or commissions, or ever saw
any such claims or entries on the
books. or the absence of such entries,
up to the ti1Hs@ef Mr.. Miller's death.
The two Offices we're five stories dis
tant, and no $evtqence is offered that
these matters. or any of them, came
under the eye of defendant Crosby, or
| that he ever heard of them prior to
\ the time Mr.. Miller died. On the con
trary- the evidence. shows he did not
and could not have known, because the
/ showing IS that the Instructions went
direct from Mr. Miller's Office to the
claim department. presided over by
Mr.. Moore &@
Judge Mcpherson Sums Up.
In summing up, Judge Mcpherson
warned the jury that it must get re-
bates out Of its mind, and that it must
not weigh the evidence which went to
show that Burnham, Hanna, Munger.
| the Emery, Bird Thayer Dry Goods
company, and other concerns had re-
eeived rebates. That" the court said,
was introduced merely to esta blish the
| case, and not to convict Thomas and
Taggart The charge is:
. In jackson county, in 1903 Thomas
a nd fr rio
tered into a conspiracy to accept and
receive unlawful rebates
Continuing, Justice Mcpherson said
that congress had said that it would be
unlawful for two or three persons to
conspire, and, in order to incur pun
ishment, one of the conspirators, at
least, must go further and commit an
overt act The act of such a one
would be the act of ali the conspira
| tors. he said.
! Rebates. apprehend.' said the
judge IN effect 8. are paid, if at all, se-
cretly. / do not suppose they are paid
on the street corner. This being SO, in
order to prove that they have been
paid, it must be necessary for circurn-
stantiaI evidence to be introduced and
weighed Contracts for rebates are not
reduced to writing Yet you must if
YOU are to return a verdict OF. guilty
esta blish. beyond all caVil. proof that
there was not only rebate paid but
that there was a conspiracy to pay it.
or receive it. How are you going to
prove it, These merchants. the Bar
tons, and these men, Thomas and Tag
CART, had perfect right to make
contract to work together. Much of
: that business Of tonnage is technical
/ Billing clerks get merchandise in the
wrong classification, and overcharges
are made. It requires the experience
of technical man to know of these
wrongful classifications and over
charges. Many merchants are incapa-
bic of properly managing this end of
their business. and so there is need for
experienced freight adjHsters.
About Those Money Payments
so contracts are made and they are
( perfectly legal. but there must be moth
ing hidden behind them. Behind some
I plausible contracts bucketshops operate
and rebates are paid. There must be no
such devilment in a legal contract.
Because two men commit a crime it
does not follow there was conspiracy.
"It has been said that Thomas could
not work for $500 a year, nor could he,
/ and maintain an Office in New York
and a corps of clerks, If he had but
one client. But there have been TWEEN
~ witnesses on the stand here, show
ing that at $500 a year from each of
them he could we'll afford to handle
their business.
The only claim made here is that
/ rebates were paid by the railway
through Thomas. This is denied. You
! will in reaching your verdict take full
cognizance, though you must esta blish
positive proof and not guess, OF myS-
i FERROUS strangers appearing with pack
| ages Of money, or drafts coming with
out naturalization. Of whether or not
an honest merchant would accept
money reaching him in that way and
/ without question. and YOU may con-
sader Why the merchants covered up
such receipts on their. books. You do
not have to find written agreement,
for it may have been proved that there
was a passive, tacit agreement to re-
md ma "a