The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1906-01-13
CHARGES ROAD
GAVE REBATES
Federal Grand Jury Returns
Indictments Against
%" Officials
COVERS DRAWBACKS ON STEEL
Subsidiary Shipping Company OF Big
Corporation Furnishes Evidence
Through officer In Hope Of Securing
Immunity for Itself.

work by the federal grand jury cul-
minated in the return OF indictments
against the Chicago. Burlington and
Quincy railroad, Darius Miller, first
yice-presldent, and Claude G.. Burn
ham, foreign traffic manager, on the
charge OF granting rebates 10 the Unit
ed States Steel Products Export com
pany. one OF the subsidiary shipping
companies OF the United States Steel
corporation. The rebates are said to
have amounted To 30 per cent.
Twenty-six counts are alleged In the
indictment. each covering specific
violation OF the Elkins law since
March. 1905. For each OF the alleged
offenses the Elkins act provides. in
case OF conviction. a fine OF from 81
900 TO $4,000. There is no provision
for imprisonment.
The bonds OF the three defendants
were fixed by Judge Bethea at $4,000
each. The grand jury then was dis
charged from further service.
The indictments charge that the re-
bates were granted on shipments OF
tinplate 10 Vancouver, British Colnm-
bia from mills of the United States
Steel corporation. located at Pitts
burg, Cleveland. Joliet, Newcastle.
Pa. Martins Ferry, o.. and Elwood.
Ind These shipments were handled
by the Burlington from Chicago 70
ST Paul, where the Northern Pacific
also implicated In the indictments,
completed the haul TO the coast
Full freight was paid to the Bur
lington for the entire haul, but the
railroad. according 10 the Indictment,
afterwards repaid 80 per cent OF II
and charged the Northern Pacific with
It's share OF the refund.
The latter road Is not In this Judi
cial district, and therefore was not in
dicted. though there Is said 10 be
every likelihood that the department
OF justice will request the St Paul
authorities to take action.
This is the second attack which the
federal authorities have directed
against the methods OF the Burling-
ton similar indictments having been
returned in Kansas City for rebates
said TO have been granted a local dry
goods house.
Combine Gives Evidence.
Most Of the evidence I'm this case
was furnished by the steel combine
Itself prompted by the desire TO Sc
cure Immunity r. Alder. presl-
dent OF the United States Steel Prod.
ucts Export company OF New York,
being the chief witness. The grand
Jury had chance 10 hear both sides,
however. as II subpoenaed l.. f..
Moore, freight claim agent OF the Bur.
lington, and q. w Perry, foreign traf.
hc agent OF the Northern Pacific rail.
road.
II don't care 10 discuss the indict.
mont." said Vice.Presidont Miller. III
seems To accord with the policy Of the
administration, square deal and all.
don't know anything about the facts
alleged. but | know enough about the
workings OF the traffic department Of
this road 70 know that the case should
be fought and fought hard"
Mr.. Miller has gone through James
]. Hills school" as second yice-presi.
dent OF the Great Northern railroad
where he was regarded for five years
as Hills most trusted lieutenant lie
left the latter's service in 1903 to
assume charge OF the traffic depart
ment OF the Burlington.
Claude G.. Burnham. foreign traffic
agent. was as noncommittal as Mr.
Miller, while l.. +. Moore. the freight
claim agent who spent three days be
fore the federal grand jury, declined
to discuss the indictments in any way
This Is the second indictment re
turned in this judicial district against
railroads for granting rebates. The
Chicago and Alton railroad and two OF
its former officials were indicted some
weeks ago.