Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1912-02-20
Vanderbilt Roads Accused
Of Paying rs Per Cent
to Get HauIs
OF THEATRE TROUPES
Discount Is Charged Up to Ad-
vertising in Programs
Large Sums Involved.

Chicago, Feb. 20.-Four indict-
ments for alleged rebating were re-
turned today by the federal grand
jury. the defendants being three rail-
road companies, two theatrical con-
Germs and four individuals. Excess
siye payments for advertising in
return for the purchase OF railroad
tickets is declared to be the medium
by which the alleged rebating was
accomplished. The indicted are:
General Passenger Agent Rhein,
Cleveland, Cincinnati, Chicago & st.
Underwood, Michigan Central road.
Rudolph x. Hynicka, Cincinnati.
director of the Columbia Theatrical
Amusement company.
James e. Fennessy, Cincinnati.
director and secretary of the Empire
Circuit company.
NEW YORK CONCERN IN NET.
Columbia Theatrical Amusement
company. New York.
Cleveland. Cincinnati, Chicago &
st. Louis railway.
Lake Shore, Michigan Southern
and Michigan Central roads.
Heucke Opera House company,
Cincinnati.
| GREAT SUMS INVOLVED.
The inquiry into the case has been
in progress more than a year. Large
sums of money are said to have been
involved In the rebating. It Is as
serted during the theatrical season
of 190S-10 HyHcka was paid s9,292
by the roads; during the season Of
191O-11, $9,67T. During 1909-10. It
is alleged by the federal investigat-
ors, Fennessy received $S,664. He
is not accused of being a party to al
legged rebating during the season Of
1901.
HOW 1T WAS WORKED.
The manner in which rebates are
said to have been granted Is set
forth in the indictments as follows:
In the summer of 1909, officials of
the Vanderbilt lines operating west
of Buffalo and east Of the Mississippi
river, sought the business of the Co
lumbia Theatrical Amusement COM
pany and the Empire Circuit COM
pany with headquarters in New
| York.
CONTROL 70 COMPANIES.
These corporations operate a chain
of burlesque theatres in important cit
les east of the Mississippi. and togeth-
er control about 75 theatrical compa-
les, averaging 80 persons each. These
companies, transported each week from
one city to another, aggregate very
large fares. Officials Of the Vanderbilt
|, lines conferred with Hynicka and Fen
, messy with view to getting this pas
, senger business.
3 rs PER CENT REFUND.
= The lawful rate Is cents a mile to
Q theatrical companies. 1t was agreed
- the Vanderbilt lines would refund to
I Hynicka and Fennessy. for their re-
? spective corporations, 25 per cent of
/. the lawful fares of their companies in
r consideration for their influence in
: giving to the named railroads the bus.
4 mess.
CHARGED TO ADVERTISING.
d In view of this agreement 1t became
necessary to devise scheme by which
the railroads could account on the
books for 25 per cent. 1t was decided
i to charge 1t to advertising. Hynicka
IS thereupon organized a Cincinnati rail-
0 road advertising company.
:. USE THEATRE PROGRAMS.
l. This company contracted for adver.
l. tising space in theatre programs in
3 many cities where the companies ap-
peared. In each instance space was
used to advertise the Vanderbilt lines.
He paid for space at the regular price,
ranging from 81 to 81 a week, and re-
ceiyed from the railroads 25 per cent
4 of the fare OF the theatrical company
transported that week to the city
where the advertisement was pub
lished