The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-10-07
SENSATIONS |MPEND
IN THE PEAVEY CASE
Admissions Of Witnesses Start
Deep Probe Into Grain
Elevator Business.
Hnaoial to Tho journal.

Special to The journal. d. "
Chicago, ILL.,, Oct 6.-Out of the
partial hearing of the Peavey Elevator
case, which has adjourned, to be re-
sumed the latter part of this month,
there have grown disclosures ana
predicted. to sensational ends. When
the interstate commerce commission
again sits, it is expected to be equip
ped with a mass of evidence showing
illegal relations between railroads and
elevator concerns.
Announcement that the commission
will begin the investigation provided
for by the La Toilette resolution dur
ing October was made following adj
iournment of the hearing of the Pea.
vey case.
But few Of those who attended the
hearing realized that many of the
questions propounded by Attorney
Marble were a part of the investlgai-
tion of the relations between the rail.
roads and the grain companies turnout
the country.
Other Companies in Line.
While admitting that the commits
sion will return to Chicago this month
to open the countrywide investigation,
Attorney Marble would not discuss the
features of the case. He lntlmated,
however, that the commission mas IN
it's possession sufficient evidence to
warrant authorizations of lively hear
ing. 20
It is said that the official heads OF
several elevator companies and the
highest railroad officials will be sum
moned to appear before the commits
sion and tell what they know OF the
alleged illegal relations between rail-
roads and grain men. Among the eie-
vator companies whose methods Will be
investigated are the Armour Elevator
company, Peavey Elevator company,
The Rosenbaum Grain company, South
Chicago Elevator company, Calumet
Elevator company and Keith & Co.
Startling Admissions.
Startling admissions Of practices
amounting to the giving Of rebates in
the grain business have been made this
week in the Peavey inquiry. Devices
galore, according to the testimony,
have been employed to give conces-
sions in way other than direct pay
ment of cash rebates.
In the case of the Peavey and
Union Pacific company it is admitted
that the road paid the grain company
IL cents 100 pounds for elevating
its own grain. H. Cover, freight traf
fc manager Of the Rock Island admit
ted on the witness stand that his road
was giving the J. Rosenbaum Grain
company free use of its elevator at
Kansas City, a practice which, in eff
feet is deemed rebate.
Not a Rebate, He Says.
J. A. Monroe, freight traffic man
the ~ cents allowance was in the ma
ture of a rebate.
1t smells just as sweet under thu
new name, doesn't it?' asked Mr.
Green, counsel for the Burlington.
A. b. Stickney's line, the Chicago
Great Western, one of the roads com
planning about the Union Pacifc's al
1oWance, was also under fire during the
day. 49,, One of its tariffs was producel
which provides for a charge of one
eighth cent for storage for each tel
sas City after expiration of the FIRE,
storage period. The charges may, how
ever, the tariffs provide, be RENTED i
the delay be caused by the failure O
the road to take out grain which ha
been ordered out by the road to tax
out grain which has been ordered GU
by the owner. Frank T. Heffelfnger O
the Peavey Grain company asserted O
the witness stand that under this tart
a. ITelgnI agent HllSnI gram ValuaDl
and unlawful favors to favored shiI
per with whom he acted in collision.
Petit on Stand.
James Petit, president of the Pc;
vey Grain company, who took the stan
to defend his company's contract wit
the Union Pacific at Omaha, we
forced to admit before he retired thu
the Peavey elevators in Chicago e
only Il of cent per 100 pounds #
rendering the same service for whic
the Peavey elevators in Omaha get II
cents.
1t was also admitted that the w
bash railroad allows a certain graz
man in tho elevator business at Toled
Ohio, Il of a cent a bushel for ha
ding grain from the Wabash road, b,
that no similar allowance is granite
grain dealers in St. Louis.