The Calumet news., 1912-02-20
This is Charge Against Wander
bilt Lines in Indictments
Returned Today
OTHERS ALSO ARE INVOLVED
theatrical Concerns and Individ-
uals are Included
Excessive Payment For Advertising in
Return For Purchase Of Tick
cts is Alleged.

Chicago. ILL.,, Feb. 2O.--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.
Excessive payment for "advertis-
ing in return for the purchase OF rail-
road tickets. is declared to be the me-
dunn by which the alleged rebating
was accomplished.
The Indicted are: General Passenger
Agent Rhein OF the Cleveland. Cincin-
natl. Chicago q St. Louis railway: As
sistant Passenger Agent Underwood OF
the Michigan Central road: Rudolph X.
Hynicka of Cincinnati, director of the
Columbia Theatrical Amusement Co:
James r. Fennessy, Of Cincinnati. di-
rector and secretary OF the Empire Cir
cult Co.; Columbia Theatrical Ainuse-
ment Co., New York: Cleveland, Gin
cinnati, Chicago and St Louis rail-
way; Lake Shore. Michigan & South
ern; Michigan Central. and Heucl<
Opera House Co, Cincinnati.
Inquiry into the case has been pro-
crossing for more than a year. Large
sums OF money are said to be involved
in the alleged rebating 1t is assert
ed that during the theatrical season of
lsO9-1O Hynicka was paid $s,292 by the
roads; and during the season Of 1910
II. 1857. During 19c9-1O it is alleged
Fennessy received $500. He is not
accused of being a party to the alleged
rebating during the season of 1910.
----Tha- lnaRnsE-- f..,lae -resates said TO
have been granted is set forth in the
indictments as follows:
In the summer of 1908 ,he officials
Of the Vanderbilt lines, operating west
OF Buffalo and east OF the Mississippi
river sought the business of the COL
umbia Theatrical Amusement Co. and
the Empire Circuit Co, with head
quarters in New York. The corpora
tions operate a chain Of burlesque the
aters in important cities east Of the
Mississippi, and together control about
seventy-five theatrical companies av-
eraging thirty persons each. These
companies We're transported each week
from one city TO another and the ag-
gregate fares We're very large. The
officials OF the Vanderbilt lines con-
ferred with Hynicka and Fennessy
with view to getting this passenger
business. The lawful rate is two cents
per mile for theatrical companies. 1t
was agreed the Vanderbilt lines would
refund to Hynicka and Fennessy. for
their respective corporations. 25 per
cent OF the lawful fares for their COM
panies in consideration Of their iniu-
ence in giving to the named railroads
the business.
In view of this agreement it became
necessary to devise scheme by which
the railroads could account on their
books for the % per cent. 1t decided
to charge Il to advertising. Hynicka
thereupon organized the Cincinnati
Railroad Program Advertising Co. This
company contracted for advertising
space in theater programs in many cit
les whore the companies appeared. In
each instance the space was used to
advertise one Of the Vanderbilt lines.
Ne paid for the space the regular
price, ranging from 81 TO 81 per week.
and received from the railroad 25 per
cent Of the fare of the theatrical COM
pany transported that week TO the city
where the advertisement was pub
lished