Omaha daily bee., 1912-02-21
THREE RAILROADS ON LIST
Vanderbilt Lines Charged with Cut
ting Rates to Theatrical Parties.
TAKE SPACE IN PROGRAMS
Allegation that it is Paid for at
High Rates.
REBATE TWENTY-FIVE PER CENT
Nearly Thirty Thousand Dollars
to II. N. Hynicka and j. e.
Fennessey.

CHICAGO, Feb. s-Four indictments
for alleged rebstiug were returned today
by the federal grand jury. the defendant
being three railroad companies, two
theatrical concerns and four individuals.
Excessive payments for advertising In
return for the purchase Of railroad tickets
is declared to be the medium by which
the alleged rebating was accomplished.
Those indicted are:
Harry J. Rheim. general passenger
agents OF the Cleveland, Cincinnati Il
II. Louis railroad.
William Underwood, assistant general
passenger agent Of the Michigan Central
railroad.
Rudolph n Hynicka of Cincinnati di-
rector Of the Columbia Theatrical Amuse-
ment company.
James Il. Fennessy Of Cincinnati, di-
rector and secretary of the Empire Stock
company.
The Columbia Theatrical Amusement
company OF New York.
The Cleveland, Cincinnati, Chicago and
st. Louis Railroad company.
The Lakeshore & Michigan Southern
railway.
The Michigan Central Railroad COM
pany.
The Heuck Opera House company of
Cincinnati.
Penalty IL Heavy.
The federal act which is alleged to
have been violated provides a penalty Of
a fine OF not more than 5000 for a cor
poration and fine OF not more than
5000 'or an Imprisonment of not more
than two years. or both, for person said
10 have been involved In the alleged re-
batting. II is asserted that during the
theatrical season Of lgO9-l0 Hynicka was
paid ss.es3 by the roads and during the
season OF 1glO-lI, 1857. During the sea-
son Of 1s9-1o, allege federal investigators.
Fennsssy received ss.eA. He is not ac-
cused of being a party to the alleged re-
batting during the season Of 1s1O-iL
1t is charged that the representatives
OF the railroads. all OF which are Van
derbilt lines" as ma inducement TO se-
cure tho business Of the theatrical com
panies offered and gave them advertls-
ing for theater programs.
The Columbia Theatrical Amusement
company and Empire Circuit company.
the headquarters OF both Of which were
in New York city, operate chain of
burlesque theaters and control about
seventy-fiyo companies averaging thirty
people each. These companies are trans
ported each week from one city TO an
other and the aggregate Of their passen-
ger fares Is very large.
Rebates Charged to AdvertisinE.
The lawful rate was . cents q mile
for theatrical companies, but according
10 the government it was agreed by rail-
road officials that the Vanderbilt lines
would refund to Hyneka and Fennessy,
. for their respective corporations, 25 per
rent OF the lawful fares Of their various
ompanles in consideration for their in
puence in giving to the named railroads
the business.
In order that the railroads could &C.
count on their books for the IS per cent,
the government says, 1t was decided 10
charge it to advertising. Hynicka there
upon organized the Cincinnati Railroad
Program Advertising company. This COM
pany contracted for advertising space in
, theater programs In Cleveland, Toledo,
cincinnati. indianapolis, st. Louis and
other cities. and this space was used by
lIynicka TO display an advertisement Of
one Of the Vanderbilt lines.
Grand Jury Busy in Cincinnati.
CINCINNATI, o., Feb. 2o.-Rumors that
the special United States grand jury in
session here this week is considering the
affairs Of the National Cash Register
company TO ascertain IL it has violated
the Sherman antitrust law, gained
ground here today.
The visits Of attorneys who represented
the company at the time of the civil suits
Continued on Second Page.)