The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-03-17
CRIMINAL ACTION.
Prosecution Of the Chesapeake
& Ohio Is Ordered
Following a Report by Commerce
Commissioner Lane.
DEALERS IN GRAIN
Participate in Fraudulent Prac-
tices, 1t Is Charged.
Resulted in Rates Below Those
Legally Established.

Washington, March 17.-Criminal
will be Instituted against certain Of
fcials of the Chesapeake & Ohio Rail-
way company and certain favored
spheres by that line on account of
what is asserted to be illegal practices
relative to interstate shipments. 1t
from the findings of the in
terstate commerce commission that
the Chesapeake & Ohio favored GER
tain shippers "at the expense of the
Seaboard Air line and Atlantic Coast
line" in the shipment of grain and
packing house products and that the
shippers thus favored gave to the
Chesapeake & Ohio, "all of the in
bound business of the shippers so ia
vored by it,
hearing on the matter of these
practices was held in Richmond, Va,
In February by the interstate COM
merce commission, the evidence being
taken by Commissioner Lane. The
commissioner has submitted his re-
port to the full commission. 1t has
been approved and Attorney General
Bonaparte has been requested by the
commission, to institute through the
United States district attorney at
Richmond, proceedings against all
parties involved by the evidence ad-
duced.
Following is the text of Commits
sioner Lanes report of the practices
complained of:
For some years a fraudulent prac-
tice participated in by certain dealers
in grain and also by certain dealers
in packing house products and also by
the Chesapeake & Ohio railroad COM
pany has obtained at Richmond by
means of which this railway company
has favored such shippers at the ex-
pense of the Seaboard Air Line and
the Atlantic Coast line, it's southern
connections. This practice has result
ed in the obtaining for such shippers
of rates less than local rates over the
Seaboard Air line and Atlantic Coast
line for shipments of grain and also
for shipments of packing house pro-
ducts. which local rates such ship
ments were legally bound to pay This
result has been accomplished by
means Of transfer. slips issued by the
station agent of the Chesapeake &
Ohio Railway company on the written
instructions of the assistant general
freight agent of this railway company,
said transfer slips falsely conveying to
the Southern lines the statement that
shipments had originated at points
beyond Richmond and were entitled
to be moved from Richmond to des-
tination in the Carolinas at a division
of through rate, such division being
less In amount IndH the local rates TO
which these shipments were legally
subject.
1.-The benefits of this arrangement
have been reaped by the shipments
enjoying it and also by the Chesa-
peake & Ohio Railway company
which whether by express agreement
or not has received all of the in
bound business of the shippers so
favored by it.
'It also further appears that the
assistant general freight agent of the
Chesapeake & Ohio Railway company
responsible for the above abuse, on
discovering that the same was under
investigation by special agents of this
commission, undertook to make
amends for the same to the Seaboard
Air line and the Atlantic Coast line
To this end he ordered that a list be
his orders, been moved at a division
of the joint through rate less in
amount than the local rates to which
they were legally subject.
Being informed by one of his
subordinates that this list would be
| that the list should only show the
| cars moving during the months OF
| August, September and October, 1907
| Having been furnished with a. list
covering these three months, he for
warded it with a statement that
| showed all cars misflled which he
| had been able to discover.
"It also appears that certain record.
| of the Chesapeake & Ohio Railwa!
| company have been destroyed contrar,
| to the provisions of the act to record
| commerce. The testimony showed tha
| the freight claim department of thii
! railway is under the charge of the as
sistant general freight agent, he beins
| the official responsible for the falls
transfer slips above referred to.
| 1.-THE testimony further shows tina
| the auditor of disbursements on re.
ceiving from the freight claim office
claims from shippers with direction
that they be paid inquiries no further
| into the merits or legality of such
| claims than to ascertain from the au.
| shipments to which the claims relate
have moved and that the charge.
have been collected. All claims SC
| passing through the freight claim of
| flee and pasted upon the order of the
assistant freight agent prior to Jan.
uary 1, 1906. were destroyed during
| the latter part of that year This de,
struction appears to have been made
! by the auditor of disbursements un
| der authorization of the comptrollel
] of the Chesapeake & Ohio Railway
company
| $50 far as the matters disclosed arr
criminal in their nature they will bs
referred to the United States distric
attorney at Richmond with the re
quest that prosecution be instituted
| against all parties therein involved"
TO BRING IT HOME.