The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-03-14
Railroad Men Indicted by Grand Jury
and May be Fined and jailed
in Case of Con-
viction
L ACCUSED OF REBATINGt /
We're to be Arraisned Today in Court
at New York on Charge of
Violating the EIkins
Law.

NEW YORK, March 14.--Five men
of national prominence in the railroad
freight business will be arraigned this
morning in the criminal branch of the
United States district court to plead
to indictments charging them with
gross violations of the Elkins rebate
law. A sixth man, the general agent
in the United States of one of the
largest steamship companies in the
world, indicted last November, will
be placed on trial week from today
III the same court
The indicted men are:
I David O. Ives, president of the Bos-
4 ton Merchants association board of
transportation, formerly general traf-
/ fic manager OF the Wabash railroad
Robert Burnap, formerly general
4 traffic manager of the Central yer-
mont railroad
William G.. Maxwell, now general
traffic manager of the Wabash rail-
road
i William p. Schmidt. formerly for
eign freight agent of the Wabash, now
western representative OF the Missouri
Pacific and Iron Mountain system 1T
San Francisco.
f. G, Frieser, now foreign freight
agent of the Wabash railroad.
Adrian Clips, the general agent for
the United States OF the Holland
American Steamship company. with
: headquarters at SO Broadway.
Fifty or more counts are contained
in the indictments OF the freight
/ agents, and under the terms of the
Elkins anti-rebate law as amended on
June 80, 1906, fine of $4,000 may
be imposed for each separate offense.
In addition every defendant found gull
e ty is liable to two years Imprisonment
. for each offense.
r The indictments charge that in 1906,
q 1907, 1908 and 1909 the defendants
I gave or accepted rebates on goods
0 brought from Europe and elsewhere
by the Holland-American line and
trans-shipped by the railroads to
points in the west and middle west
: and Canada Though the main offices
: of the Wabash are at st. Louis and
q of the other corporations in cities
e equally remote from New York, the
q terms of the federal statutes involved
0 make it possible to indict and prose-
/ cute for the crime in any jurisdiction
u through which the money or rebates
o passed. AS all the transactions were
eventually completed in New York
e city, where the Holland-America line
e has it's main American office, the
n grand jury for this federal judicial
district had power to indict.
The indictment against Robert Bur-
nap, formerly general freight manager
for the Central Vermont railroad
o. deals with rebating transactions n
.e 1906 Those against the Wabas1
freight agents have to do with similar
l.: transactions in the three following
h years In all the indictments, it IS
charged that the defendants approved
or granted a 20 per cent rebate to the
Holland-America Steamship company
10 or it's agent, Adrian Clips.
N This rebate, it is charged applied
N. to all sorts of goods brought to this
ic country by the steamship company
re- herring, hides. pepper, cocoa, rap;
IN seed. caulfowers etc.
AS far as can be ascertained Tia
a. Holland-America line made verbal con
Id tracts every year with the representa-
,a tives OF certain railroads by which th'
~ latter undertook to refund to th'
49, steamship company 20 per cent of al
freight charges collected on GOOD
j.. consigned by the Holland-Americ
81 over the railroad lines. These rate
: we're collected periodically, under tn
name of "oyercharges.'