The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1908-06-27
HARTMAN LINE
FACES BIG FINE
FOR R[BAT|NG
Southern Pacific Indicted on
Nineteen Counts by Fed
eral Grand Jury
Beneficiary of Freight Refund
Must Also Suffer for
Law Breaking
True Bill Based on Rebates
Paid on Loyalton Lumber
shipments


Nineteen counts charging the South
ern Pacific company with rebating
were contained in an Indictment re-
turned in the United States district
court yesterday by the federal grand
jury. The allegations refer to refunds
paid to the California pine box and
lumber company for shipments of
shocks from Loyalton, Cal, via Boca,
CAL, to Verdi, New, and from Verdi,
New, to Vacaville, San Jose, Rich
mond and Glendora, Cal. The pen
atty provided for each offense is
fine of from $1,000 to $4,000, or IN the
aggregate from $4,000 to s3s0.ooo.
Another Indictment, filed at the same
time, charges the California pine box
rebate of s5.43 from the Southern Pacific
company on shipment of shocks made
on June 10, 1906, at q freight charge of
$67.96.
The true bills filed yesterday are the
outcome of the investigation instituted
by the department. of justice of the
United States against the Southern Pa
cific company after the knowledge of
the rebating practices OF the Hartman
line was secured by Interstate
Commerce Commissioner Franklin
Lane at an investigation held in
this city last fall. 1t was
thought that the indictments might
also be returned against G. w. Luce,
general freight agent of the Southern
Pacific, the corporation of Miller &;
Lux. which is said ~ have profited by
special rates, and other favored ship
pers.s The relations between the rail-
road and the lumber concern were the
only ones proceeded against yesterday.
Beorge Clark and H. L. Duncan,
the special representative of the
interstate commerce commission and
the department of justice, who con-
Quoted the case, say that the jury is
not through with the matter yet.
COMPANY HAS DEFENSE
When the indictments were returned
before Judge ]. ]. de Haven the court
ordered that a summons be issued in
each case and the defendant corpora
tions be brought to the bar to plead
on the Indictment. One phase of the
defense will be that Verdi, New, is so
near the California line that the ship
ments in question were not, properly
speaking, interstate freight.
In most instances the shipments were
handled by the Boca and Loyalton rail-
road as well as by the Southern Pa
cific. The shipment to Glendora was
made via the Atchison. Topeka and
Santa Fe. The first 13 counts were for
shipments made from Loyalton to
Verdi.
The summary of the counts returned
follows:
/. March 2s, 1sOs-s7.s2o pounds
shook; $37.s2 freight; $3.50 rebate.
2. March 2S, 1906-50,5 500 pounds of
shook; 5000 charge; 1892 rebate.
8. April 1, 1e06-49,310 pounds shook;
s4931 charge; $7.15 rebate.
4. April 13, 1906--51.100 pounds
shook; $51.10 charge; $40 rebate.
5. April IA, 19O6-56.460 pounds
shook; $500 charge; $500 rebate.
6. April II, 1sos-4s,s2o pounds
Z. April 16. 1s06-50.470 pounds
shook; s5o.47 charge; $3.50 rebate.
s. June ~ 1s06-52,5S5 pounds
shook; $3.50 charge; 1882 rebate
8. June 20. 1s0s-4S,525 pounds
shook; 1853 charge; $s.76 rebate.
10. June 23, i9o6-45.o 900 pounds
shook; $45 charge; 1858 rebate.
II. June as. 1sos-47.435 pounds
shook; s47.44 charge; $6.s8 rebate.
q.
shook; $4s75 charge; s7.07 rebate.
Is. October 22-42,s70 pounds shook;
$42.s7 charge: 1922 rebate.
IA. Verdi to Vacaville, May 2, 1906
10000 pounds shook; $3.50 charge;
$3.50 rebate.
is. Verdi to vacaville. May II, 1906
$500 pounds shook; $7s.Ss charge;
$5.33 rebate.
Is. Verdi to vacaville, June II, 1906
$4,000 pounds shook; $74.70 charge;
s4.s8 rebate
II. Verdi to San Jose. June 10. 1906
36,250 pounds shook; $67.96 charge;
$5.43 rebate.
is. Verdi to Richmond, September IT,
1s06-37.450 pounds shook; $7490
charge; $11.24 rebate.
10. Verdi to Glendora, March IL. 1906
81 900 pounds shook; 1852 charge;
$11.77 rebate.
The witnesses examined were c. b.
Seger, ]. M. Brewer, John J. Dillon, A.
H. Rising. ]. D. Fish. e. K. Hummell
and j. w. Southern.
HnODA INDIAN INnICTEn