Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-01-21
Packers Attack on Rebate Law
Would Invalidate Elkins
Law if Sustained
CONTENTION OF SHIPPERS
Argue That They Can Not Be Pun
ished Unless Low Rate is Secretly
Used = Case Now Before United
States Supreme Court = Arguments
in Progress.


were begun in the supreme court yes
terday on an appeal by the big pack
ers against the decision of the lower
court sustaining the government IN lts
prosecution for rebates under the Elk
ms law. Vital issues are involved
which. if decided adversely to the gov
eminent. might break down the whole
rebate law, so far as it refers to the
shippers at least
The case before the supreme court IS
that of the United States against the
Armour Packing Company, Swift q
Co, Nelson Marris & Co., and the Cud-
ably Packing Company. 1t comes up on
an appeal from a conviction under the
Elkins law and argument was begun
yesterday on behalf of the packers by
Frank Hagerman of st. Louis. 1t Will
be continued on the part OF the gov
eminent by Attorney General Bona
parte, assisted by Milton d. Purdy and
A. S. Van Valkenburgh.
Altho this is an export case de-
OH LII idttS iioIiA ANetAA''eAH'
City to Europe points raised by the
packers attack the integrity of the
Elkins law itself, and unusual interest
is manifested in the decision which
the supreme court will reach later on.
Not a Crime if Openly Done.
The attorneys for the packers have
raised the novel plea that the shipper
cannot be punished for receiving or
soliciting a rebate so long as he does
it openly and does not resort to any
trick or device to deceive either the
railroad or the government This point
of view seems to be the beginning OF a
great split between the shipping and
railroad intere SITS.
If the government is sustained it
means that the packers or any other
rate. and if he accepts lower one
than that published and charged to the
public. he becomes guilty and may be
punished under the Elkins law.
The packers on the other hand, are
attempting to lay down the principle
that the railroads are responsible for
the rebates and can alone be punished,
while the shipper in obtaining his
transportation as we'll as conducting
any other business operation must be
permitted without punishment to make
the best terms he can in his individual
case without regard to what may be
charged to other persons.
This case against the big packers
grows out Of shipments which contin-
ued for considerable length OF time
fv Missouri tn
New York and Hoboken, New Jersey,
as ports of tlansshipment, and thence
to various foreign ports.
In the Armour case, which Is typi-
cal one of the group, the packing COM
pany made a contract for an ocean
rate of approximately 20 cents a hun
dred pounds. The Burlington company
was notified and added the ocean rate
to it's thru tariff, which was in round
numbers SO cents a hundred pounds
from Kansas City, Kas., to Christiania,
Norway
Deducting the ocean rate the charge
for transportation from Kansas City.
Kas., to New York and Hoboken was
80 cents. OF This the rate from the Mis-
to the seaboard was % cents.
This left 10 cents as division of the
thru rate belonging to the Burlington
from Kansas City, kas., to
the Mississippi river. This rate was in
accordance with the published tariff in
June. 1905, when the contract with the
com pany was entered into.
In August, of the same year. the rail-
roads put out a new tariff, by which
the rate from the Mississippi to New
York was increased from % cents to
35 cents. This would have increased
the thru rate from Kansas City, Kas.,
to Christiania. Norway, from SO cents
to 65 cents. The new tariff, therefore.
advanced the rate to the public -
cents hundred pounds.
The packing company. however,
continued to ship their freight under
their original contract with the rail-
road, at SO cents, and thus received a
of - cents a hundred
pounds as against the general public.
These facts are admitted by both
sides On their face they constitute an
illegal rebate which is punishable by
the Elkins law. and under the decision
of Judge Lands in the Standard Oil
case each separate shipment may