Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-04-12
No INDICTMENTS
AGAINST PACKERS
HALT CALLED BY ATTORNEY
GENERAL ON GRAND JURY
PROBE OF REBATtNG.
GOVERNMENT IN NEW TACK
in CORPORATION CONTROL
No Cases to Be Pushed Unless Con-
viction Probable-Packers Have Been
Collecting Excess Damages on Ship
ments, Which Is Tantamount to Re-
batting.

batting.
Chicago, April 12.-The federal grand
jury, which has been in session here
for four months chiefly engaged in in
vestigating charges of rebating made
against the packing companies, prob
ably will adjourn when it reconvenes
April 81. AS Attorney General Wicker
sham has chosen to warn the packers
against pursuing their method of COL
lecting damages on shipments, alleged
to be tantamount to accepting rebates,
instead of going into court where the
government would be anything but
sure of success, no indictments will be
returned against the stock yards con-
Germs.
Representatives of the packers de-
clined to discuss the Wickersham let
ter today in advance of official infor-
nation, and it is believed they will
take no action until the interstate COM
merce commission has made new rule
for the railroads in fixing the amount
of money to be refunded on damaged
shipments.
The charge of peonage made some
months ago against the contractor who
is constructing the new plant of the
Corn Products Company at Argo, ILL.,,
has not been sustained, and in this
case also there will be no indictments.
Wickersham Says Charges Are Time.
1t was alleged that the packing firm,
of Morris & Co., had been placing an
inflated value upon the cost price of
dressed beef and charging the rail-
roads correspondingly high price for
the beef when, as was alleged, it was
damaged in transit.
Mr. Wickersham says that the inves-
tigation has convinced him that the
charges are true. WHETHER or not the
| facts constitute a violation of the Jaw
he does not pretend to say. Under the
procedure adopted by President Roose-
welt the government would have taken
the facts secured in the investigation
before the federal grand jury and asked
for indictments Mr.. Wickersham
adopts a milder course. He writes the
accused packing concern a letter set
ting forth the material facts gathered
in the investigation, tells it that the
transaction they reveal "can not be de-
Tended from any point of view" and
demands that the practice '7be aban-
doned at once"
Mr.. Wickersham begins by informing
Morris & Co. that the matter will be
called to the attention of the interstate
commerce commission with the request
that 1t iSsna fbo
burn act prescribing the character of
the investigation that shall be made by
railroads in the matter of all claims for
damage or loss Of property during
transportation.
1T is proper to say that this method
of fixing the cost value of dressed
beef and of presenting claims to the
railroads based upon such comupta-
tion," the letter reads "is one gener-
ally practiced by other large packing
industries at Chicago and the COM
plants are not directed against Morris
& Co. a lone, which has thus far been
fully examined by the government.
| 'tAfter a full considerable of the evl-
dence adduced by the investigation I
have reached the conclusion that, in all
probability, this method used by your
| railroads for damages to dressed beef,
based on an improper and excessive
cost value, was not adopted with the
deliberate intent of obtaining rebates or
| concessions from the lawful rates, in
violation Of the interstate commerce
act. The reasons for this conclusion
are, first, that the practice referred to
has existed for many years, originated
long before the enactment of the inter-
state commerce law, was prevalent
during a time when rebates We're open
ly paid and We're not forbidden by fed
eral statute an dwhen there was no
occasion fo rany secret device; and,
second, that the amounts received by
your company in payment of claims
calculated as above described appear
from an examination of the books to
have been inconsequential in COMPARE
son with the total freight charges an
nually paid to the railroads. There
fore, it does not clearly appear that
your company intended to use this
method Of computing the cost value of
its product as a device to affect the
charges of the carriers transporting
such product and the department does
not believe that any public service
would be rendered by making at this
time test case of past transactions.
Method is Condemned.
This method, however, of present.
ing claims to the railroad and secur-
ing payments thereon, which are based
upon an excessive value Of the prop
erty transported, is one that can not
be defended from any point of view. In
the first place, 1t is unfair to the rail-
roads. unless, as does not convincingly
appear in the present instance. the
railroads themselves are in collusion
with the shipper.
In the next place, 1t may be used as
mere subterfuge to accomplish re-
batting by indirection. Whether or not
1t is forbidden by the express terms
OF the interstate commerce act need
not at present be determined. Ger
tainly the lawfulness Of such prac-
tice is not conceded by this depart
ment. The one important thing Is that
It shall not be continued. The govern
ment. therefore, insists that the prac-
tice OF overvaluing dressed beef trans
kporte dand the use Of such overvalua-