The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1906-06-30
TO SUE IN REBATE CASES
CRIMINAL ACTION AGAINST OIL
AND RAIL MEN ORDERED.
Admissions of Concessions TO Stand
ard Is cause-Millions In
Fines Faced.

Cleveland. - Instructions have been
given at Washington TO begin criminal
proceedings against the Lake Shore
railroad, George j. Grammer, vice pres
ident OF the New York Central lines
west OF Buffalo. the Standard OH com
pany, and whatever other officers may
DO shown TO have been implicated in
tne payment and receipt OF rebates
Whicn were disclosed in the interstate
commerce commission hearing here
Thursday.
The contemplated proceedings may
include Edgar Bogardus, traffic man
ager 81 the Standard oil company at
chicago, and other officers OF the Lake
shore az Chicago and Cleveland.
lhis' together with the complete
back-down OF the Standard oil COM
pany. when II was given the eagerly
sought opportunity 70 make defense
oeiore the commission, was the de-
nouement OF the commissions session
Acting under instructions from the
commission, Attorney j. Marchand
started for Chicago with view 10
preparing the cases for presentation
- tae federal grand jury there. Ills
instructions are positive with respect
% Capt Grammer, aud he has been
lhrthe' ordered TO ascertain whether II
VIII pc possible TO proceed also AGAINST
we ohicials q the Lake Shore for
violation Of the injunctions Issued
more Than three years ago and re-
stralalng the railroads from paying re-
nates OF any kind of traffic. Ii is the |
purpose 70 proceed under both the in I
functions AMI the EllSins amendment I
20 me interstate commerce act
ms decision Is the result OF testi- /
mony given before the commission that
from 1903 to January. 1906. the Lake
shore paid rebates 10 the Standard OH
company. in the form OF RENTED
charges for storage OF oil. The eyi-
dence showed that this was done d.
rectly by the authority OF G.. ]. Gram
mer' and was discontinued by his ex-
press authority.
Auditor Marcus C. Tully. OF the
Lake Shore. reluctantly told the com.
mission that II had been the practice
Of Edgar Bogardus to give his bills
Tor storage 70 the general agent at
chicago, who would forward the ac. {
counts 10 the auditor az Cleveland I
VINO IN turn would give the Chicago !
'nice credit for the amount without
'eeeiving the money from the stand.
ira on company. The sum thus re. {
'ated amounted 10 about $500 a month ]
md is said 20 have been sufficient TO !
rive other oil dealers out OF bust. s
less.
The federal grand jury VIII be asked c
o indict Vice President Grammcr and e
ne Lake shore for paying these re-. {
ates. Under the law both the rail
Dad company and the official can be :
ned not less than $1,000 nor more
ban $4,000 for each oifense. and
imilar treatment can be given the
tandard Oh company and the officials
{ that corporation who may ne
lown to have been guilty OF solicit.
'e the payment OF the rebates.
Inc maximum fines that could be =
'sessed under the law would argre. D
ate S120,000 against the railroad n ~
he sum againts each Of rs officers al
no IS guilty and a like sum against g
ie Standard on company and against u
'ch OF It's officials found guilty. II y
possible, therefore. for the Stand.
a OH company and the railroad OF
'mpany and their officials 10 be as g
ssed several millions OF dollars for DC
fractions OF the law
In addition 10 this. II the commits ~
on's attorney finds that he can pro. GO
ed under the injunctions OF the
urts, and he is now certain that Al
Is Is possible. a charge OF contempt ~
court might be pressed and in.
I've punishment by both fine and "a
The testimony IN the case was so
sitive and clear that the commits.
'ners felt that they could not ignore
After communication with Wash. XII
gton IL was determined 10 institute ioi
the criminal proceedings possible I'M
ainst the accused and 10 prosecute On
IN vigorously. The instructions
! 10 leave no stone unturned I'm the nv
empt TO bring the suspects TO the pm
lest justice. or
--- wh
Report on Cananea Trouble gio