The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-02-23
yV7ITH evidence equally as sensa-
X tional as the confession of
wv Councilman Gates and the

NX/ tional as the confession of
wv Councilman Gates and the
admission that valuable and
much wanted papers belonging to the
Chesapeake and Ohio Railway had been
destroyed. the rebate investigation be-
fore Hon. Franklin *. Lane, of the
Interstate Commerce Commission. was
adjourned yesterday, to be followed
by grand jury indictments in the United
States District Court.
Before leaving the city for Washing
ton Mr.. Lane would give no intlmation
as to the probable outcome Of the in
quiry. further than to say that the
record would be presented within the
next thirty days to the full commits
sion. which will determine, possibly
with the aid of the Department of Jus
tice, whether or not 1t will be sent to
District Attorney Lewis with instruc-
tons to begin prosecutions. Upon con-
viction. railroad officials and shippers
who have violated the law. according
to railroad and shipping records. can
be fined or sent to the penitentiary, or
both
May Prosecute Them.
Leaving out those who are immune
by reason Of the testimony they gave
under oath, the names OF the follow
Ing persons may BIO presented to the
Federal grand jury:
e. ID. Hotchl<iss, general freight
agent of the Chesapeake and Ohio. 80. -
Alex. p. Gilbert, assistant general
freight agent of the Chesapeake ana
Ohio, on the charge of false billing.
l.. #. Sullivan, cOmptroller of the
Chesapeake and Ohio, for permitting
In, al ,o&I N,~
the United States.
w. Il. Johnston, shipper, beneficiary
of rcbntinE system by which the At
lantic Const Line and the Seaboard Air
Line were mulctcd.
w. S. Forbes s. Co., shippers, rebate
beneflciaries by reason of the fact that
through shipments from the West were
opened and changed here, going out
on the through and not the local rate,
the Inter being higher.
There may be others. The commits.
sion plunged straight into the investi-
cation and discovered conditions differ
ent from those revealed In any other
case of the kind brought to its atten-
ton heretofore, inasmuch as connect
Ing roads. that had absolute faith in
the integrity of the, Chesapeake and
Ohio, We're swindled by scheme as
brazen as 1t was unlawful
AT no point was the evidence cir
cumstantial; 1t was plain, based upon
systems. and with every link In the
chain complete.
More Sturtling Developments.
Some new facts came, to the surface
yesterday. Papers brought from the
office of the Chesapeake and Ohio
showed that letters had been writ-
ten by Mr. Gilbert to G. r. Caps, gem
eral freight agent of the Seaboard Air
Line, and j. w. Perrin. general freight
agent of the Atlantic Coast Line. adj
hitting irregularities by which local
shipments went out as through ships
ments, to the financial loss of the con-
Meeting roads. and Offering to settle
the difference upon basis of August
J. 1907.
Tho evidence shows that the false
billing practice has been maintained
for ten years. AS interpreted by Mr..
John Fl. Marble. special counsel for
the commission, this was an admits
sion OF wrong-doing for many years.
months.
Just how much money the chesa-
peake and Ohio would be required TO
nay to the otha. lines in rectifying the
fraud was a matter of big but idle n
speculation.
There was an earnest appeal from
Mr. Capps for thorough inspection or 4
the rccords---an appeal for funds which
rightly belong to the Seaboard. but
which that ROAD did not receive. be- 81
cause OF the clever Gates device III &
the interest OF W. r. Johnston. Com
Lane drew from Mr. chapet
pell, OF the Chesapeake and Ohio, the y
statement that II his company desired
to make honorable amends payment
should cover all the years during which