Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-06-12
Charge that Terminal Railroad Com
panies Fail to Post Tariffs.
BULK OF TRAFFIC INTERSTATE
Relation of Junction Company to the
Big Trunk Lines.
REBAT1NG IS ALSO ALLEGED
is Charged with Paying
Fifty Thousand Dollars Annu-
ally to One Firm TO stim-
ulate Business.

WASHINGTON, June 11.-Under instruc-
tlons from Attorney General Wickersham,
William s. Kenyon. assistant to the at
torney general, Is expected to file today in
the United States circuit court at Chicago
a bill in equity against certain Chicago
stock yards companies for alleged rebating
on freight charges.
The bill of the attorney general was pre-
pared at the request of the Interstate Com
merce commission, which is the complain
ant In the proceedings. 1t Is directed
against the Union Stock Yards and Transit
company, the Chicago Junction Railway
company, the Chicago junction Railway
and Union Stock Yards company and Louis
Pfaelzer &c Sons.
1t Is alleged in the bill that the tracks
Of the Chicago Junction Railway company
are controlled by corporations subsidiary
to the Union Stock Yards company. The
railway company handles all incoming and
outgoing stock for the Union stock yards
at Chicago. 1t is alleged that the live
stock freight is delivered to the Chicago
Junction from all the trunk lines entering
Chicago and by It delivered TO the Unicn
stock yards, that specific sums per car
are paid by the trunk line carriers for this
service, including the loading and unload
inB Ol SluCh cars yet Hu ldIllL 10 LllSu Wy
the junction company, nor is the charge in
cluded in any tariff filled by the trunk line
carriers with the Interstate Commerce
commission. 1t further Is alleged that the
Junction Railroad company serves approx
imately $50 industries in and about the
stock yards district of Chicago, and that
all of the tracks operated by the Junction
company are owned solely by the stock
yards company.
No Charges Published.
The complaint alleges that none of the
charges made by the Junction railway on
freight, either incoming outgoing, Is
published or filed through the Interstate
Commerce commission, although the bulk
of traffic is Interstate commerce The stock
yards company advances TO the trunk lines
all charges, and twice each week collects
from the consignees the money it has ad-
vanced to the railroads for the transporta-
tlon OF stock from points outside the state
Of Illinois to the stock yards.
1t is declared in the bill that two-thirds
of >the net earnings and revenue received
by the Junction company inure to the bene-
fit of the stock yards company. Louis
Pfaelzer & Sons are engaged in general
packing business near the site of the Union
stock Yards company. The firm purchases
live stock at the stock yards and 1t also
purchases live stock at points outside the
state of illinois, which 1t ships from points
Of origin to the Union stock yards on
through bills of ladlng over the lines of the
Junction company in connection with the
original trunk line carriers.
Rebate Payment Alleged.
1t is alleged that Louis Pfaelzer g. Sons
have entered into a contract with the Stock
Yards company from which the Stock
Yards company will pay to that firm $50, 900,
fully guaranteed, "ostensibly for the pur-
pose of encouraging, developing and retain
ing at or near the stock yards in Chicago
the business of said Louis Pfaelzer & Sons"
and also increase the earnings of the juno
ton company by announcing the amount of
property transported by the Junction COM
pany in interstate commerce.
The government further alleges that the
payment of the $4,000 to the Louis Pfalfezer
& Sons will constitute in effect rebate
and an unlawful discrimination, and will
amount to the charging of a less freight
tariff for the freight of Louis Pfalfezer &
Sons, which 1t Is the duty of the Junction
company to file with the Interstate Com
merce commission; thus constituting a vlo-
lation of what is commonly known as the
Elkins law.
The government therefore asks that the
defendants be required to appear before
the circuit court to answer the charges In
the bill OF complaint and that meantime
the defendants be restrained by the court
from carrying into effect any agreement
alleged to be in violation of law, and that
the Chicago Junction company be required
to file with the Interstate Commerce COM
mission tariffs for the transportation of
freight which it handles in interstate COM
merce.
Bill VIII as Filed Monday.
CHICAGO, June 1.-THE bill charging re-
batting against the Union Stock Yards and
| Transit company, etc, probably will be
filed here on Monday. W. S. Kenyon, the
government lawyer, who is expected TO
file the document, declared that It was at
present In the hands Of Examiner Lamb of
the Interstate Commerce commission.