The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1909-02-04
Especial Cor. to The Morning News)

States government Is going to ask
for Jail sentences and fines for some
high-up members of the beef trust.
AS a result of the activity of u. s.
District Atty. Simms in Chicago be-
fore the federal grand jury indict-
ments may be expected any day now.
The Chicago cases are the result
of Investigations made by the inter
state commerce commission. Agents
of the commission have been gath
ering evidence for some time and it
is now known that the principal case
against the Chicago packers will be
for violations of the rate law in the
giving and taking of secret rebates.
Evidence will also be brought be-
fore the court, throwing light on the
manner in which the beef packers
conspire to regulate and manipulate
prices of live stock.
The most startling disclosures in
Chicago is the revelation that the
packers have been keeping duplicate
books. 1t is now learned that the
books which Mr.. Garfield examined
when commissioner of corporations,
and on which he based his famous
report on the beef packing industry,
were merely the public" or what
might be called virtuous set of books
kept by the packers. Another set,
keeping track of their shady opera
tions, entirely escaped Mr.. Garfield.
This set has been captured by the
agents of the interstate commerce
commission, and it's entries have
been explained to the Chicago grand
jury.
1t was not an easy manner for the
10 pf
these secret books, and after they
had been located and the district at
torney's office had been informed as
to what accountants kept them, a
number of subpoenaes were issued
together with orders requiring that
these books be delivered to the dis
tTict attorney.
The subpoenas and orders were is
sued with great secrecy and were
served simultaneously, taking the
packers entirely by surprise. Detec-
tives at the same time were station
ed at the packers offices, TO prevent
any destruction or hiding of the
books and papers desired. The pack
ers refused for several hours to give
up the books, and only did so after
Mr.. Simms had informed the officials
of the Nelson Morris Co. that they
would be jailed for contempt forth
with unless they obeyed the order of
the court. This brought up an ex-
press wagon loaded with books, from
the stock yards to the district at
tOrney's Office. 1t is understood that
part of the books were missing, but
enough were secured for the purposes
of prosecution.
The governments evidence will
disclose a number Of ingenious de-
vices employed by the packers for
securing rebates in evasion OF the
law. One scheme which is under
stood to have been largely employed
was the use of false claims against
the railroad companies. Combined
with this was the generalization of
shipments. Having sent a consign-
ment over a certain road at the legal
rate of freight the packer would fix
up a false claim for damages and
present it to the railway. Accom-
panying the claim or following ii
speedily, would be a letter, demand
ing that the claim be settled imme-
diately upon penalty of a diversion
of the packers business to some 9TH
er line of railway.
1t is strongly suspected here
though there is no official confirma-
tiOn of this fact-that the railroads
are backing the prosecution of the
packing company officers. While
railroads sire moved by their desire
to get business to compete with one
another and in their competition are
tempted to cut rates, they do not as
a general thing like to cut rates or
give back money in rebates which
they have received for shipments.
II has always been the claim of
railroad traffic officials that they
were forced by big shippers to give
rebates, 1t appears that the beef
trust magnates playing into each
others hands have together been
working the railroads and have COM
PEELED them each year, a little more
than previously, to make concessions
under one pretext or another until
they have been systematically and on
very large scale violating the law
by giving secret rebates by ingen-
Gus devices.
On the discovery of these condi-
tons by the interstate commerce
commission, it is understood that the
railway officials sought immunity by
offering to peach" on the packers.
Philander c. Knox, the next Secre-
taTy OF State, is being discussed in
many quarters in the National Capitol
because Of the somewhat peculiar
position he occupies in his home town
of Pittsburg.
A man of marked ability in civic
affairs, 1t Is pointed out that Mr..
Knox lived in graft-ridden PittsbuTg
q generation without having ever
given out so far as can be learned an
interview, written an article made a
speech or otherwise contributed to
public opinion against the corrupt ad-
ministration of his home town
When the city councils of Pittsburg
were granting perpetual franchises to
alien street railway corporations with
no compensation to the city, II is
RVerTed Mr. Knox was concentrating
his efforts to advancing his political
interests. His energy was likewise
monOpolized when Pittsburg's corrupt
city council was giving to alien cor
porations perpetual franchises for a
monopoly of the sale of gas II is
being declared that although Pitts
burg had great need for the service
of Mr.. Knox in it's city council, he
felt he could not take his time from
personal political enterprises.
With the exception of very brief
time which Mr.. Knox served, as a
very young man, as assistant to the
United States prosecuting attorney,
he did little that can be recalled To-