Jasper County Democrat, Volume 14, Number 65, Rensselaer, Jasper County, 18 November 1911 — INDICT SHIPPERS AND RAILWAY MEN [ARTICLE]

INDICT SHIPPERS AND RAILWAY MEN

Officials of B. & 0. and Lehigh Roads involved. REBATING IS CHARGE MADE Chicago Men Accused of Buying Goods in Europe and Accepting Back Payment from Companies Mentioned. New York, Nov. 17. The federal grand jury in that city has filed thirteen indictments accusing officials of the Baltimore and Ohio and Lehigh Valley railroads and seven members of shipping firms of rebating.

The indicted men are Thomas J. Jarvis, vice president, and Blood, freight traffic manager, of the Lehigh, and Robert B. Ways, foreign freight agent of the B. & O. Mr. Jarvis and Mr. Blood went before Judge Martin in the criminal branch of the United States circuit court as soon as they heard of the indictments. They pleaded not guilty and were bailed in $5,000 apiece by the United Fidelity and Guarantee company before Commissioner Shields. Mr. Way’s plea of not guilty, made by his lawyer, also was accepted.

The shipping men indicted are Jules E. Bernard of Bernard, Judae & Co.; Maurice Ascher, of Gallagher & Ascher; Oscar F. Kosch, trading as Chas. D. Stone & Co.; Albert E. eraser, president of the American Shipping company; August Bontoux, president of the International Forwarding company, and George W. Sheldon and Henry W’. Ackhoff, president and vice president of George W. Sheldon & Co. All the indicted shippers live in Chicago. The indictments are said to be unprecedented because all of the merchandise involved in the alleged rebating were shipped from Europe. It is charged that foreign agents of the railroads arranged with foreign agents of the shipping companies to grant a 10 per cent rebate if goods to be sent to American cities were billed over the Baltimore and Ohio or the Lehigh. Some time after the goods reached their destinations in this country the railroads, it is alleged, made the 10 per cent rebate. The stuff on which the alleged rebates were given range from linen to nutmegs. District Attorney Wise said he had no idea of the amount of cash involved.