The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1909-02-05
Books Showing Shady
Operations Now in Laws Hands
Fake Damages Collected
From Railroads as Rebates
Hot Trial Coming i'm Chicago.
BY Gibson Gardner.

WASHINGTON, D. c., Feb. s.
Jail sentences and fines for some
high-up members of the beef trust
are what will result from the
activities of U. s.. Dist. Atty.
Simms in Chicago. Evidence is
now being presented to the grand
jury there which, when made pub
lie. will be found quite startling.
The Chicago cases are the re-
suit of Investigations made by the
interstate commerce commission.
Agents of the commission have
been gathering 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 before the
court, throwing light on the man
ner in which the beef packers con-
spire to regulate and manipulate
prices of livestock.
The most startling disclosures in
Chicago is the revelation that the
packers have been keeping dupli-
cate books. 1t is now learned that
the books which Mr.. Garfield ex-
amined when commissioner of cor
porations, and on which he based
his famous report on the beef
packing industry, were the public
and what might be called virtuous
set of books kept by the packers.
Another set, keeping track of their
shady operations, entirely escaped
him. This set has been captured
by the agents of the interstate
commerce commission, and it's
entries are now being explained
to the Chicago grand jury.
1t was not an easy matter for
the government to secure posses
sion of these secret books, and
after they had been located and
the district attorneys office had
been informed as to what account
ants kept them, a number of SUBJ
penas were issued, together with
orders requiring that these books
be delivered to the district attor-
ney. These subpenas and orders
were prepared with great secrecy,
and were served simultaneously,
the packers entirely by|
Detectives at the same
time were stationed at the pack
ers' offices to prevent any destruc-
ton or hiding of the books and
papers desired. The packers re-
fused for several hours to give up
the books, and only did so after
Mr.. Simms had informed the Off
Gals of the Nelson Morris Co. that
they would be jailed for contempt
forthwith unless they obeyed the
order of the court. This brought
up an express wagon loaded with
books from the stock yards to the
district attorneys office on the
north side. 1t is understood that
part of the books escaped the raid,
but enough has been 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 en-
ployed was the use of false claims
against the railroad companies.
Com bined with this was the over
valuation of shipments. Having
sent consignment over a certain
road at the legal rate of freight,
the packer would fix up a false
claim for damages and present 1t
to the railway. Accompanying
the claim, or following it speedily,
would be a letter demanding that
the claim be settled Immediately
on penalty of diversion of the
packers business to some other
line of railway.
1t is strongly suspected here
though there is no official confirm
alton of this fact-that the rail-
roads are backing the prosecution
of the packing officers. While
railroads are moved by their de-
sire to get business to compete
with one another and in their COM
petition are tempted to cut rates,
they do not as general thing
like to cut rates or give back
money in rebates which they have
received for shipments. 1t has
always been the claim of railway
traffic officials that they were
forced by big shippers to give re-
bates. 1t appears that the beef