Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-11-17

Under Guise of Commissions.
WASHINGTON, d. c., Nov 16.--
The indictments returned by the fed
eral grand jury in New York today
were the result of an investigation
made by the interstate commerce COM
mission during tho past several
months. The alleged rebates We're
paid under the guise of commissions.
The indictments, according to the
interstate commerce commission are
upon the doctrine that refunds from
rates paid to persons controlling rout-
| ing of shipments are unlawful rebates.
even though the persons receiving the
refunds are not the owners of the
shipments.
Comes Up With Steamer Line.
This principal was established In
the recent proceedings against Ad-
rain Gipps, of the Holland-American
Steamship line, dn which case the
right to route shipments had been
given to the steamship lines by the
traffic, in consideration of the guar
antee of through rate to point Of
ultimate destination. Through Its
agent, the Holland-American Steam
ship line thereafter collected from
various railroads an amount equal to
10 per cent of the regular rate.
"As a matter of fact" as stated by
the commission in referring to todays
indictments. "all Of the recipients OF
these payments, instead Of being
agents for the carrier for the solici-
tation of traffice, are in reality for
warders with their principal office in
the United States or elsewhere, and
employ agents or brokers n New York
who act as agents Of the consignee at
interior points"
How the Thing Works.
In the indictments against Thomas
S. Jarvis, vice-president, and Clarence
A. Blood, freight traffic manager of
the Lehigh Valley, It was alleged the
railroad appointed George w. Sheldon
& Co, a large forwarder and import
er with offices in New York and Chi
cago, as its import agent. In addl-
ton to a salary Of $4,000 year paid
Sheldon e Co.
For Instance, Sheldon & Co. is said
to have an annual contract with sew
eral companies whereby the former
agree to transport for the latter all
Of It's importations from points in Eu-
rope 10 Chicago, at specified through
rates When the goods arrived in
New York, Sheldon & Co. shipped
them over the Lehigh Valley to Chi
cago on bills Of lading showing Shell
don & Co., as conslgnee.
Payments Held Unlawful.
IL is the contention of the govern
ment that the payments. to Sheldon
g. Co. are to a shipper. and as such
are unlawful. because in the discharge
Of the obligations Of its contract with
Carson. Pierre, Scott & Co. II Is an
agent Of the latter and therefore can
the railroad company.
1t further developed through the
inquiry of the interstate commerce
commission that the tonnage owned
by Sheldon & Co. was very large. In
order to obtain the commission on
shipments actually owned by the con-
Germ, II ls alleged, such shipments
we're billed from New York showing
Sheldon & Co. conslgnor. with Henry
w. Aokhoff, vice-president of Shet-
don q Co.. as consignee.
Indictment of individuals.
Under this subterfuge," the COM
mission says, commissions are paid
by the Lehigh Valley railroad COM
pany on traffic actually owned by the
shippers"
Tentative pleas Of not guilty were
entered to the indictments by Vice
President Jarvis and Freight Traf-
flc Manager Blood, OF the Lehigh VAL
ley railroad. Judge Martin gave them
until December 4th to withdraw their
pleas or make any motion for their
defense that they may deem neces-
sary. Bail in 5000 each was fur
nished by each defendant