Omaha daily bee., 1908-03-18
Connecting Line Carr raffic al
Lower Rat d
PROSECUTIONS II

WASHINGTON, March Il. - Criminal
prosecution, Il Is indicated officially, will
be Instituted against certain officials Of
the Chesapeake & Ohio Railway company
and certain favored shippers by that line
on account of what Is asserted to have
been illegal practices relative to interstate
shipments. II appears from the findings Of
the Interstate Commerce commission that
the Chesapeake & Ohio favored certain
shippers "at the expense OF the Seaboard
Ala Line and Atlantic Coast Line" in the
shipment OF grain and packing house pro-
aucts aud that the shippers thus favored
gave to the Chesapeake & Ohio 'all Of the
Inbound business of the shippers so favored
" IT,
A hearing on the matter of these prac-
ices was held in Richmond. Va, in Feb
uary by the Interstate Commerce commits
sion, the evidence being taken by Commis-
sioner Lane. The commissioner has sub
mitted his report to the full commission.
1t has been approved, and Attorney General
BonapaEte has been requested by the com
mission to institute, through the United
States district attorney at Richmond, pro-
ceedings against all parties involved in
the ev ience adduced
Dodging Rebate Law.
Following is the text Of Commissioner
Lanes report OF the practices complained
Of:
For some years fraudulent practice,
participated in by certain dealers in grain
louse products and also by the Chesapeake
Ohio Railroad company, has obtained
at Richmond, by means of which this rail-
way company has favored such shippers at
the expense of the Seaboard Air Line and
the Atlantic Coast Line, its southern con-
nectlons. This practice has resulted In the
obtaining for such shippers of rates less
that local rates over the Seaboard Air Line
and Atlantic Coast Line for shipments of
grain and also for shipments of packing
house products, which local rates such
shipments were legally bound TO pay. This
result has been accomplished by means of
transfer slips issued by the station agent
of the Chesapeake & Ohio Railroad COM
pany ON the written instruction of the as
sistant general freight agent of this rail-
way company, said transfer slips falsely
conveying to the southern lines the state
ment that such shipments 3 had originatsd ln i
titled to move from RieHmond to destina-
tion In the Caroiinas at a division Of a
through rate, such division being less in
amount than the local rates to which these
shipments were legally subject.
Those Who Have Benehted.
The benefits OF this arrangement have
been reaped by the shippers enjoying IT,,
and also by the Chesapeake & Ohio Rail-
way company, which, whether by express
agreement or not, has received all of the
by H.
It also further appears that the assistant
general freight agent of the Chesapeake
& Ohio Railway company. responsible for
the above described abuse, upon discover
ing that the same was under investigation
by special agents OF this commission, un-
dertook 10 make amends for the same to
the Seaboard Air line and the Atlantic
Coast line To this end he ordered that a
list be prepared of all cars which had, by
his orders. been moved at a division OF the
joint Through rate less in amount than the
local rates to which they were legally sub
ject. Being informed by one OF his sub
long one, he then gave orders that the list
should only show the cars moving during
the months OF August. September and Octo-
Der. 1907. Having been furnished with a
list covering these three months he for
warded Il to the southern lines with a
statement which showed "all'' cars mis-
1t also appears that certain records of
the Chesapeake & Ohio Railway company,
have been destroyed, contrary to the pro-
visions OF the act TO regulate commerce.
The testimony showed that the freight
claim department OF this railway is under
the charge Of the assistant general freight
agent he being the official responsible for
the false transfer slips above referred to.
Auditor Closes His Eyes.
The testimony further shows that the
auditor OF disbursements. on receiving from
the freight claim office claims from ship
pers with direction that the be paid, in
quired no further into the merits or legal
ity OF such claims than 70 ascertain from
the auditor OF freight receipts that the
shipments to which the claims relate have
beer moved and that the charges have been
collected. All claims so passing through
the freight claim office and pasted up
on the order of the assistant freight agent
prior 10 January. 1903, We're destroyed dur
ing the latter part OF the year This destruc-
tion appears to have been made under
authorization of the comptroller of the
Chesapeake q Ohio Railway company.
80 far as the matters disclosed are Grim.
inal 10 their nature, they will be referred
70 the United States district attorney AT
Richmond. with the request that prosecu-
tion be instituted agaa1t all parties
therein involved
WASHINGTON STATUE REMOVED