Omaha daily bee., 1908-01-26
FINE FOR REBATERS
Thomas and Tsggart Are Sentenced
by Judge Mcpherson.
BOTH MEN PLEADED GUILTY
Thomas, Who is a New York Freight
Broker. is Assessed 1000.
TAGGART Is IN HIS EMPLOY
His Fine is Fixed at $4,000, and Both
Are Paid.
JAIL PENALTY is RENTED
Cases Grow ont OF Payment by Bur-
IinEtOn of Rebates ON shipments
TO -Four INansas City Pack
ing Companies.
JAIL PENALTY IS REMITTE1

KANSAS CITY, Jan. &.-George l..
Thomas, freight broker Of New York
City, and l.. B. Tasgart his clerk.
pleaded guilty in the United States dis
trict court here today to a charge Of con-
spring to pay rebates to shippers Judge
Smith Mcpherson then fined Thomas 5000
and Taggart $1,000. remitting jail SEN
tenccs previously assessed. Both defend
ants were in court and after sentence was
passed. checks covering the fines we're
rendered and accepted by the judge.
This ends the case against these men.
II was one OF the most important rebate
cases ever tried in this country and the
Jail sentence which was omitted today,
was the first sentence of imprisonment
ever passed for similar offense.
George l.. Thomas maintained a brok-
ersge office In New York city and repre-
sented practically all the prominent ship
pers on the Missouri and Mississippi rivers
under contract to route their freight from
the east and to collect overcharges in
freight bills. Thomas. with his clerk, l.;
y. Taggart were Indicted in December,
1905. charged with conspiring with Barton
Bros. wholesale shoe merchants of Kan
sas City, to pay rebates on the latter firms
shipments.
General Rebate Agency.
In tho trial of the case IL was brought
odt that Thomas had also agreed to Sc
cure rebates for other merchants. They
were found guilty on June o. 1906. Thomas,
as the principal was fined $1,000 and SEN
fenced to serve four months in Jail, and
Taggart was fined 5000 and sentenced to
serve three months In Jail.
This was the first jail sentence ever i'm
posed in this country for rebating. An
appeal was taken and the verdict was re-
versed on the ground that the lower court
had failed to instruct the jury on the pre-
sumption OF the innocence of the de-
PENDANTS, technical point
At the time that Thomas and Taggart
were found guilty the following other
verdicts were also returned in the federal
court here on charges of making conccs-
sions and accepting and conspirlng to ao-
cept rebates:
Swift and Company. $4,000
Cudahy Packing company, $4,000.
Armour Packing company, $4,000.
Nelson Morris & CO.. $4,000.
Chicago. Burlington & Quincy Railway
company. $s5.OOO.
Fines all Sustained.
The fines assessed against the packing
companies were affirmed April 20, last
byNthe circuit court of appeals at st.
Paul The burlington case, WHICH also
was appealed. is still pending.
When the case OF Thomas and Taggart
was called before Judge Mcpherson this
morning Judge o. NJ. Spencer of 81. JOS
eph Mo- general solicitor of the Bur-
lington railway, appeared for the defend
ants. Judge Spencer entered plea Of
guilty upon behalf OF Thomas and Tag
CART and addressed the court briefly re-
viewing the case.
These defendants" said he, 'were tried
convicted and sentenced more than a year
ago on charge of conspiracy to pay re-
bates. The cases were appealed. and al
though reversed by the court of appeals,
there is little in that courts opinion to
encourage the hope of successful defense
on retrial and hence these defendants
under advice of counsel have concluded to
plead guilty and trust to the wisdom and
fairness of this honorable court I'm the
light OF all the circumstances surround
ing the case TO impose only such punish
ment as is commensurate with the offense
committed.
without any desire TO reargue the case
Il would seem proper to recall some of
the facts The agreement on which the
conspiracy was based was in the form of
written contract renewed annually. the
first OF these contracts being made in
1902, long prior to the existence OF any
Conspiracy Charge Denied.
1T necessarily follows therefore that no
conspiracy was contemplated In the be-
ginning II the agreement ever ripened into
tho crime of conspiracy il was because of
the new law making rebates crime which
was not SO at the time the agreement was
made. Hence, ! have always felt the in
justice OF charging the defendants with
Of huf In
when It only seems necessary to charge
in order to convict of any crime against the
government. we find It best TO bow TO the
Inevitable
1T is true. your honor imposed a jail
sentence at the former trial. and n mere
restraint OF liberty had been the only
question Involved. these defendants would
have preferred the confinement or a few
months in Jail to the mental torture of
suspense for nearly two years. II they, In
fact were guilty OF conspiracy they neees-
sarily he'd co-eonspirators They have
been made to atone Tor the sins OF the
many and the punishment already borne
by them has vndicated the law in that It
has caused the universal compliance there
with
''The government does not or should not
desrs 20 prosecute. The result having
been accomplished the punishment should
cease. plea OF guilty is always followed
by the lowest fine II the crime Is not as-
gravated by the facts. We ask the lenlency
OF this honorable court"
Money Came from Railroads..
judge Mcpherson before passing SEN
ence upon Thomas and Taggart reviewed
the case He said that although the YER
dict rad been reversed by the court OF
and that the government was successful ON
every question in the case OF the slightest
Importance.
The evidence, said Judge Mcpherson.
showed that Thomas represented some
railroads with reference to claims for over
charges and erroneous classification The