The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-03-18
A CITING under instructions from
IN the Acknowledgement of the
. United States. and as a direct
~ of a.

A cling under instructions from
IN the Attorney-General of the
~ United States. and as a direct
4 a result of the evidence recent
iy secured in Richmond by
interstate Commerce Commissioner
L Lane, showing a system OF rebating,
subsequent to the enactment of the
Hepburn law, District Attorney Lewis
Will institute criminal proceedings in
the Federal Court here in AnrfI
against certain local officials OF the
Chesapeake and Ohio Railway Com
pany and certain loca; shippers.
The report OF Commissioner Lane,
made public in Washington yesterday
morning, has been approved by the
full commission and by Attorney
General Ronaparte, the latter being
requested by Chairman Knapp to trans
nit the record to District Attorney
Lewis. Following up orders from the
Department of Justice. Judge Lewis
will lay the evidence before Federal
grand jury. In the event that indict-
ments are returned the charges viii
be heard at the April term of the United
States District Court.
Refers to a Few.
Although no names are mentioned in
the reports, the statement that "crim:-
nal prosecutions will be instituted
against certain officials OF the Chesa-
peake and Ohio and certain favored
shippers by that line on account of
what is asserted to have been illegal
practices relative to interstate ship
ments." leaves little doubt as to who
will be included in the case to be pre-
sented to the grand jury. During the
progress of the inquiry here in Feb
ruary, Commissioner Lane indicated
very clearly that the government was
anxious to connect f. d. Hotchktssr
general freight agent of the company,
and W. r. Johnston. a shipper with
H. Ollie Gates, shipping clerk for
Johnston, testified that the latter had
'only a smattering" knowledge of tho
unlawful transactions. There was no
direct evidence to connect Mr.. Hotch-
kiss with the false billing orders Is
sued by Assistant General Freight
Agent Alex. p. Gilbert.
Taking up reports from the street
that Mr.. Gilbert had in his possession
a written order from Mr.. Hotchkiss
to send out local shipments on di-
vision OF the through rate. agents OF
the commission made an investigation,
without securing proof In support OF
that charge. Tho report of the alleged
authority was strongly denied by the
railroad company.
statement From Stevens.
-.
Chesapeake and Ohio. who was In Cin-
cinnati yesterday. gave out state
lnent iii which he declared that the
charge of discrimination was unjust.
and that his road had simply been i'm
posed upon. Other officials of the
company In Richmond maintained thai
same degree OF silence which char
acterized their conduct during the ms
yestigation. Tho statement from Mr..
Stevens. as contained in special dis
patch from Cincinnati to Tho Times
Dispatch. follows:
"The accusation OF discrimination Is
unfair. We were inposed upon. The
expense bills showed that the grain we
had hauled from Virginia south hnd
originated In the West. That entitled
the grain to the lower long haul rates
Now II develops that the expense bills
were fictitious. The grain originated
right In the Valley OF Virginia. We
we're deceived. The charge that tho
rhcsapeake and Ohio Railroad de-
.troyed papers relating to these eases
Is not true. There was IRE IN the
of the road at ittchmona
md some ,ynter-soalSed and ruined pn-
,ers were burned, hut they hau no re-
alton to these cases.
The action of the commission and the
,ttorney- General was depressins
actor on the stock market In New
.ork. Though Chesapeake and ohtd
took did not suffer any material de-
line. the trading was unsteady. M
District Attorney Lewis has not been
fficially advised of the proceedings,
lie will, however be notified to-day or
O. -morrow. a transcript of the record
vii he sent here from Washington for
is guidance.
comn,issioner Lane's Report.
Following is the text of Commission
L Lane's report;
"For some years a fraudulent prass