The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-01-25
FINES ARE PAID.
Freight Broker Thomas and
Clerk Plead Guilty
To Charge Of Relating and Beg
For Leniency.
PRISON TERN CUT OUT
First Conviction Had Been Re.
versed ON Appeal.
But They Could Not See Way to
Ultimate Escape.

Kansas City. Mo. Jan. 25.-George
L. Thomas. a freight broker Of New
Y ork city, and L. B. Taggart, his clerk,
pleaded guilty in the United States dis
trict court here today to a charge of
conspiring to pay rebates to shippers.
Judge Smith Mcpherson then fined
Thomas $1,000 and Taggart $4,000,
emitting jail sentences previously as
sessed. Both defendants were in court
and after sentence was passed checks
covering the fines were rendered and
accepted by the judge.
This ends the case against these men.
1t was one of the most important re-
bate cases ever tried in the country
and the Jail sentence which was omit
ted today was the first sentence of i'm
pr1sonment ever passed for a similar
offense.
George L. Thomas maintained
brokerage Office in New York city and
represented practically all the prin-
cipIa shippers on the Missouri and
Mississippi river under contract to
route their freight from the east and
to collect overcharges in freight bills.
Thomas with his clerk, L. B. Taggart,
were indicted in December. 1905,
charged with conspiring with Barton
Broth ers. wholesale shoe merchants of
Kansas City, to pay rebates on the lat
ter FIRMS shipments. In the trial of
the case it was brought out that
Thomas had also agreed to secure re-
bates for other merchants. They were
found guilty on June %. 1906.
Thomas, as the principal, was fined
$4,000 and sentenced to serve four
months in jail, and Taggart was fined
months in Jail. This was the first Jail
sentence ever imposed in this country
for rebating. An appeal was taken and
the verdict was reversed on the ground
that the lower court had failed to in
struct the jury on the presump tfon of
the innocence Of the defendants
technical point.
Others Convicted
At the time that Thomas and Tag
CART were found guilty, the following
other verdicts were also returned in
the federal court here on charges of
making. concessions and accepting and
conspfring to accept rebates:
Swift & Co. $4,000.
Cudahy Packing company. $4,000.
Armour Packing company, $4,000.
Nelson Morris & Co., $4,000.
Chicago, Burlington & Quincy Rail-
way company, $85, 900.
The fines assessed against the pack
ing companies were affirmed April 90,
last, by the 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. M. Spencer of ST.
Joseph, Mo-, general counsel of the
Burlington railway, appeared for the
defendants. Judge Spencer entered
plea of guilty upon behalf of Thomas
and Taggart and addressed the court
briefly. reviewing the case.
These defendants,' said he, were
tried, convicted and sentenced moro
than a year ago on a charge of con-
spiracy to pay rebates. The cases were
Jo1 ov,l ola co1 n fI,nt
court of appeals there is little in that
courts opinion to encourage the hope
of a 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 in the light of all
the circumstances surrounding the case
to impose only such punishment as is
commensurate with the offense commit
ted"
Begs for Leniency.
Without any desire to reargue the
case it would seem proper to recall some
of the facts. The agreement on which
the conspiracy was based was in the
form of a written contract renewed an
nual1y, the first Of these contracts be-
ing made in 1902, long prior to the ex-
istence of any law on the subject of
rebates. 1t necessarily follows therefore
that no conspiracy was contemplated
in the beginning. If the agreement ever
rfpened into the crime of conspiracy 1t
was because of the new law making
rebates a crime which was not SO at the
time the agreement was made. Hence
have always felt the injustice of
charging the defendants with the crime
of conspiracy, but in these times 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.
"It is true, your honor imposed a Jail
sentence at the former trial, and If
mere restraint of liberty had been the
only question involved these defend |
ants would have preferred the conf1ne-
ment of few months in Jail to the
mental torture of suspense for nearly
two years. If they in fact were guilty
of conspiracy they necessarily had CO.
conspirators. They have been made to
atone for the sins of the many and
the punishment already borne by them
has indicated the law in that 1t has
caused the universal compliance there
with. The government does not, or
should not, desire to prosecute. The re-
suit having been accomplished the pun
iShment should cease. A plea of guilty
il always followed by the lowest fine
if the crime is not aggravated by the
facts. We ask the leniency of this hon
orable court.
Court Reviews the Case.
Judge Mcpherson. before passing
sentence upon Thomas and Taggart,
reviewed the case. He said that al
though the verdict had been reversed
by the court of appeals 1t was simply
on technical point and that the gov
eminent was successful on every
question in the case of the slightest
importance.
'eThe evidence said Judge Nc
Pherson, showed that Thomas repre-
scented some railways with reference
to claims for over charges and
erroneous classifications. The evil
dence did not show from what source
Thomas obtained his money to make