The Owosso Times Jan. 12, 1906
The Ann Arbor Railroad's freight depot at Alma was destroyed by fire Wednesday, a spark from a pipe setting fire to a can of gasoline.
The Owosso Times Jan. 12 , 1906
New Train on Ann Arbor
The lack of an early morning train north on Ann Arbor railroad has always been a great inconvenience to business men of the village north of Owosso and to traveling men and others who wished a few hours in some point north. As a result of a petition of 300 traveling men secured by W. S. Lamb, of Ashley, General Passenger Agent Kirby announces that about March 1st a train will be run north early in the morning and return late in the evening, going as far north as Frankfort. It is a good move and will probably prove of value off the railroad as well as the public.
The Toledo News-Bee Jan. 23, 1906
TRAIN BACKED OVER SIDEWALK
A passenger train at the Ann Arbor station backed through a bumper post and went half way across the side walk Tuesday morning. No one was injured. The engineer failed to stop soon enough because of a fog.
The Owosso Times Jan. 26, 11906
The is no excuse for any one in Owosso oversleeping after 6:30 in the morning, since the new Ann Arbor shop whistle has been installed. It sounds like those used on the large lake boats and plenty of steam is used.
The Owosso Times Feb. 9, 1906
he Ann Arbor railroad shops have just complete several cabooses and they have been equipped with the best of everything and will be much appreciated by the men.
The Owosso Times Feb. 9, 1906
Because of the severe cold weather and the inability to run the car ferries, the Ann Arbor freight traffic has been considerably delayed during the last week.
The Owosso Times Feb. 9, 1906
Thousands of cars of ice have been shipped south during the week and train loads are seen every day on the Michigan Central and Ann Arbor.
The Owosso Times Feb. 23, 1906
The signal, bridge and section men of the Ann Arbor railroad were busy Sunday removing an unnecessary span from a bridge at Dundee, traffic being suspended.
The Toledo News-Bee Feb. 24, 1906
LAY OUT WORK FOR ENGINEERS
Improvements Contemplated by D., T. & I. Road Will Be Made During the Summer
“As soon as the engineers complete their work in Ironton they will come to Toledo and commence the work on the improvements that are to be made here this summer in the way of providing dockage below the Casino and other improvements.
“I am now preparing my estimates for the year's improvements to the road.”
So declared Eugene Zimmerman Saturday morning after a trip over the lines and to Cincinnati, from which he returned Friday night.
“We have let the contract for one new car ferry for the Ann Arbor, and will order another one in a short time.”
The Owosso Times March 9, 1906
Ann Arbor R. R. Orders New Car Ferry.
The Ann Arbor Railroad has closed a contract with the American Shipbuilding Company, to build a new steel car ferry to be known as “Ann Arbor No. 4”. It will, in a general way, be a counterpart of No. 3, the only difference's being that it will have more accommodations for passengers, and will be supplied with a triple expansion engine, while No. 3 has a compound engine. This will give the the new boat much stronger motive power that any now in use by the railroad company. Ann Arbor No. 4 will be launched about the middle of August, and will be ready for delivery by Nov. 1. The new boat will operate between Frankfort and Menominee, with No. 3 will take care of the business between those two ports and between Frankfort and Manistique. At present No. 3 make alternate trips trips between Frankfort and Menominee and Frankfort and Manistique, but if the present increase in the cross-lake business of the is maintained there will eventually be a daily boat between Frankfort and Menominee.
The Owosso Times March 23, 1906
Two more of the big Detroit, Toledo and Ironton R. R. engines have been transferred to the A. A. R. R. and were in use this week.
The Owosso Times March 23, 1906
The Ann Arbor railroad passenger train due in Owosso Wednesday evening ran into and extra freight train at temple and was three hours late in arriving here. The engineer, Jacob Watters, and one lady passenger were slightly injured. The blinding snow storm made it impossible for the engineer to see a signal.
Benzie Banner April 5, 1906
Beginning Monday morning next, the trains on the Ann Arbor Ry will leave Beulah as follows: Going south, 10:30 a. m. and 4:30 p. m. Going north, 12:40 noon, and 5:40 P. m. Mails will close at Benzonia post office 20 minutes before train time.
The Owosso Times April 6, 1906
They Will Start Earlier.
Sunday, April 8th, the Ann Arbor R. R. will put into effect follow schedule:
Going south No. 2 leaves at 9:16 A. M.
Going south No. 4 leaves at 5:14 P. M.
Going south No. 8 arrives at 10:50 p. M.
No. 2 and No. 3 will draw modern chair car in charge of porter.
No. 4 will connect with fast G. T. train at Durand.
Going north No. 7 (new train) will leave at 6:22 A. M.
Going north No. 1 leave at 11:21 A. M.
Going north No. 3 leave at 6:57 A. M.
Trains daily except Sunday.
Call No 110, let us give you rate, connection, etc.
Parlor Cars on the Ann Arbor
Commencing with the new schedule in effect Monday April 9th Ann Arbor railroad trains 2 and 3 will carry parlor cars between Toledo and Cadillac, the seat fare in which will be 25 cents for distances 100 miles or less and 50 cents for distances over 100 miles.
The Toledo News-Bee April 27, 1906
Patrick Hirsch Company Again in Courts
STARTING CHARGE MADE
Fidelity Construction Company Alleges in Petition That Conspiracy Exists to Defraud It of Money Due.
The Fidelity Construction, a Michigan concern broke into the Patrick Hirsch muddle in common pleas court Friday with a petition overflowing with sensational charges as to the Patrick Hirsch methods of doing business.
The plaintiff company says that it was the intended victim of a conspiracy between the Patrick Hirsch company and the Toledo, Ann Arbor & Detroit Railway company, defendant, and that the railroad company now seeks through the insolvency of the Patrick Hirsch company to cheat the plaintiff out of a vast amount of labor and material expended by it in the construction of the half completed T. A. A. & D. road.
Promoters and Officers
The plaintiff alleges that the promoters of the railroad were the managers of the Patrick Hirsch company, that the president president of the railroad and the president of the railroad and the secretary and treasurer of the Hirsch company were at one time the same person, namely John H. Clauss, that the railroad company in order to make possible the issuance of bonds to twice the actual value of the road turned over a vast quantity of such bonds to the Patrick Hirsch company, ostensibly in payment for the construction of the road.
The alleged scheme was for the Patrick Hirsch company to sublet the contract to the plaintiff, and by making the Hirsch company responsible for such contract, beat the plaintiff out of his work under the sub-contract.
The Fidelity company wants a receiver appointed to take charge of the T. A. A. & D. railway, an accounting and a detailed statement of all transactions as to bonds or money between the railroad company and the Patrick Hirsch company.
Claims Fictitious Value
The plaintiff further relates that the Patrick Hirsch collection of T. A. A. & D. Railway company bonds were sold in New York at high prices for which sale a brokerage firm there received a big rake-off. He states that the value of those bonds were fictitious and that the purchasers thereof have been badly beaten.
The plaintiff wants a first lien upon the railroad and wants it sold to pay the alleged indebtedness.
The Toledo News-Bee May 3, 1906
TOLEDO INDICTMENTS BLOCKED NORVELL'S SCHEME
Ice Trust Man Is Shown in a Dual Role
W. H. Bennett, Now Interested in the Local Combine, Figures in H. G. Beach's Latest Article on the Toledo-Michigan Ice Business
Northern Ohio would have been in the grip of an interstate ice combine this summer but for the indictments against the ice trust returned by the Lucas county grand jury through the efforts of County Prosecutor Wachenhelmer.
The plans had been laid covering parts of Ohio, Michigan and Indiana. The result would have appeared in the spring schedule, practically identical in all the cities of the state. It is said that the Toledo Ice & Coal company was to be one of the Toledo representatives. Prices would literally have been at the mercy of the members of the trust.
Both artifical and the bigger natural ice companies are included in the arrangement. Small dealers were to be frozen out.
Just in time to break the combination, Prosecutor Wachenheimer took up the notice of advanced prices served by the News-Bee. Fourteen dealers were indicated for alleged conspiracy to prevent free competition and the interstate trust went glimmering.
Some of these dealers feared they would be crushed by the proposed interstate combine.
Even the local combine was badly shattered, and several of the dealers have hastened to announce that there will be no further increase in prices.
The interstate combination was the project of H. D. Norvell, of Cleveland, moving spirt of the Cleveland Ice company, and also interested in the Hygeia Artificial company of Toledo. He made his first visit in connection with project last fall and made several subsequent trips.
A meeting of the local ice dealers were held at the Boody house at that time and the plans were so far advanced that the the trust was ready for operation this spring.
The fourth article by Mr. H. G. Beach, whom The News-Bee engaged to investigate the alleged ice famine in Southern Michigan, is published today. It deals with the business practice in 1898, of the Toledo Ice company as managed by W. H. Bennett, who was at the same time general freight and passenger and passenger agent of the Ann Arbor railroad.
HOW THE ANN ARBOR RAILROAD COMPANY JUGGLED THE WEIGHTS OF ICE FOR THE TOLEDO ICE COMPANY'S BENEFIT – BY H. G. BEACH
It is one thing to make an assertion and another thing to be able to prove it with documentary evidence.
In the fall of 1898 I had a contract with the Independent Ice company of Cincinnati, O., to supply them with 2,000 tons of ice; also one with the Toledo Ice company of Toledo to deliver the 1,500 tons, all from the Silver Lake Ice company's plant at Hamburg, Mich.
In the wholesaling of ice, coal, etc., in car lots, contract settlements are invariably based upon the railroad weights as shown by the bill of ladings; the railroad companies having to weight each car in order to get at the amount of freight to charge for the transportation of the merchandise.
It has been the custom to consider these weights as a fair and equitable basis of settlement between the wholesale buyer and seller of merchandise on the supposition that the railroad companies are disinterested parities in the buying and selling feature of the transaction, and as scales for weighting whole carloads of merchandise or what is known as truck scales are not usually owned or operated by any except the railroad companies it seems to be the only feasible plan. Theoretically it looks to be all right, but it does not always work out so in actual practice.
The contracts mentioned above contained a proviso that settlements were to be governed by scale weights at Toledo.
After shipping about 30 cars to each of the concerns I noticed that THERE WAS AN AVERAGE OF TWO TONS LESS WEIGHT TO THE CARS SHIPPED TO THE TOLEDO ICE COMPANY THAN THERE WAS TO THE CARS SHIPPED TO THE INDEPENDENT ICE COMPANY OF CINCINNATI, ALTHOUGH WE LOADED CARS FOR BOTH CONCERNS AT THE SAME TIME, AND PUT IN THE SAME AMOUNT OF ICE AS NEARLY AS POSSIBLE IN EACH OF THE CARS, BOTH LOTS OF CARS BEING WEIGHTED AT TOLEDO AND THERE BEING NO APPARENT REASON FOR THE DIFFERENCE IN SHRINKAGE.
I commenced an investigation immediately by coming to Toledo each night from Hamburg after the day's work of loading the cars was over, and upon my arrival here went to Manhattan yards and personally saw the cars weighted and took record of the car numbers and weights.
This meant an expense of $3 each trip, the loss of nearly all my night's rest, but I was determined at all hazards to verify my suspicions that I was being deceived in my weights or be able to dismiss the subject from mind altogether.
I kept my notes from day to day until I received the periodical statements of weights from the general freight and passenger agent of the Ann Arbor Railroad,,,,,, and at the same time a check from the secretary and treasurer of the Toledo Ice company: ALL FROM THE SAME MAN ACTING IN THE DUAL CAPACITY OF FILLING BOTH OFFICES.
I immediately discovered upom checking this statement with my records that practically all of the the car weights varied from the actual scale weights and in the Toledo Ice company's favor.
I knew at once that the terms of our contract and been ignored and ruthlessly violated, but the question was how could that fact be proven? I did not want to involve the scale man, whose job depended upon his standing up the railroad company, right or wrong! I wanted the confession of the man who was responsible for the manipulation of those weights.
I also knew that if I exposed my hand, and successed in getting temporary adjustment in getting temporary adjustment of these few car weights, eventually I would be no better off, if that was his game, and I would have to remain in ignorance in regard to the actual weights for the balance of the shipments due on the contract, as I would be prevented from getting any further information from the same source and from securing the evidence I desired.
Day of Reckoning Came
I therefore gracefully accepted the checks and settlements as they were rendered from time to time until the final wind-up of the contract, unable to see any better course to purse.
About time I wrote this ingenious combination of general freight and passenger agent and secretary and treasurer, OPENLY CHARGE! THAT THE WEIGHTS OF MY SHIPMENTS TO THE TOLEDO ICE COMPANY HAD BEEN MANIPULATED, AND DEMAND A CORRECTION. I was curious to know how the man of many resources would be able to explain the situation.
From my experience in the business it was evident to me that instead of being settled with on a basis of railroad weights, according to our contract, he had based his statements of weight entirely upon reports of his men of the ice taken from the car, a wagon load at a time, and weight over the wagon scale used for weighting out ice retailed by their wagons, thus making me stand for all the shrinkage that occurred after the the cars were delivered to the Toledo Ice company, and they had unloaded the cars, including all the shrinkage due to their mistakes or careless of methods in handling this ice in the meantime.
The weather is subject to frequent changes to colder, and a man who exercise the best of judgment finds himself overstocked with ice, and subject to loss on this account, or the teamster of other firms get into your cars by mistake and use some of the ice. This is liable to happen, especially if the weather is extremely hot and the happen to be short of ice.
In any event, the ice is constantly shrinking, and the aggregate amount of these contingencies is equivalent to the amount of the wholesale profit on ice.
This general freight and passenger agent and secretary and treasurer replied to my letter, and requested me to mail him the car numbers and weights of the ice, according to my claims, and said that he would investigate the matter and advise me.
He evidently wanted to satisfy himself as to how much knowledge I really possessed in regard to the actual railroad weights before attempting to square himself, for he certainly had a record of the same weights himself, otherwise he would not be able to verify my statements, and, this being the case, he could have adjusted the matter as well before receiving my statement as afterwards.
I mailed him a statement, however, and received, a short time afterward, his confession, a copy of which appears with this article.
Toward the wind-up of this contract with the Toledo Ice company I did not go down to Toledo to see the last few cars weighted, which, of course, was apparent on the face of my statement, and, although the shipments had been settled for, according to the official’s own version of the weights, yet it was made to appear that he had overpaid me by mistake on the last few cars, enough to offset within 48 cents all of the amount that he conceded I was entitled to on my claims,and just enough, as he may have supposed, to insure the return of this document to him.
There could be but, on correct weight of the cars. They are weighted but once, and at the time made my claim the ice had passed out of existence, had been consumed; it could not be reweighted, an hence there was only one way of establishing or verifying the correctness of car weights, and that was by the record of the original weights.
It is customary for the railroad companies and the shipper of ice, when ice is weighted at point of shipment, to allow 2,000 pounds off the railroad weights for shrinkage in transit, but this is not done by either party when the ice is weighted at destination.
In our contract with the Toledo Ice company we did the unusual thing of giving them one ton off the railroad weights at destination (Toledo), because Mr. Bennett advised it, and we thought it would issure us fair treatment at least.
Therefore it seemed to us like cruel and unmerciful treatment after donating them 2,000 pounds of ice with each car shipped them, which, in the aggregate, amounted to 100 tons, and then have to lose the difference on car weights in the sum of $50 additional, or engage in expensive litigation, which we did not consider it wise to do under the circumstances. (continued)
The Toledo News-Bee May 5, 1906
SO H. G. BEACH LEARNED FROM EMPLOYES OF THE PERE MARQUETTE RAILWAY – HIS SIXTH ARTICLE WRITTEN FOR THE NEWS-BEE, TREATS OF THAT ROADS'S CONNECTION WITH THE ICE BUSINESS.
Even in Michigan Mr. H. G. Beach struck the trail of the Toledo ice combine. His sixth article, which is published today, deals with the relations of the Pere Marquette railroad to the Toledo ice trade, Mr. Beach writes:
The ice business on the Pere Marquette railroad is conducted very much on the same plan as it is on the Ann Arbor railroad. It is monopolized by concern very largely in respect to Toledo and southern shipments.
This concern was formerly known as the firm of Halstead & Hubbell. Mr. Halstead was the Pere Marquette Railroad company's agent here at Toledo a few years ago, and had charge of their local business. At present F. S. Hubbell of Milford, Mich., is the only active representative of the ice business on this line in its relation to Toledo.
While it is very apparent to experienced ice dealers and to employes of the railroad that the Pere Marquette Railroad company is back of the ice business, yet the officials of the Pere Marquette have been more discreet, or less bold, about their participation in the business than the Ann Arbor officials.
Ice houses of a commercial character on this line, like the Ann Arbor, are conspicuous by their absence. There is no competition in this (Toledo) territory, and no ice operations on the line except in co-operation with Hubbell.
I have been informed by those who are considered good authority that the same methods of furnishing free transportation for men and implements to the above-named party, when engaged in ice-cutting operations, prevail here as they do on the “Ann Arbor line, except that instead of passes being furnished, cash fares are paid, receipts are taken, and afterwardsthe amounts are secretly refunded.
After the published report in Toledo paper that no ice had been harvested at the Clyde and Rose Center houses of the Pere Marquette Railroad company, I boarded a train for those points to investigate the situation. On the way there I discussed the ice conditions along the line with various employes of the railroad, and represented that I was seeking some ice that could be bought, and to locate the parties that had it to sell.
I WAS POLITELY INFORMED BYEACH ONE THAT I INTERVIEWED THAT MORE ICE HAD BEEN PUT THIS YEAR ON THE PERE MARQUETTE RAILROAD THAN FOR MANY YEARS PREVIOUSLY THAT THE ROAD OPERATED THE ICE BUSINESS THROUGH A MR. HUBBELL WHO CONTROLLED THAT FEATURE OF THE BUSINESS ALONG THE LINE, AND THAT THERE WAS A COMBINATION THAT THERE WAS A COMBINATION THAT WOULD NECESSITATE MY PAYING A HIGH PRICE FOR ICE ALTHOUGH THERE WAS NO SCARCITY OF THE ARTICLE.
At the suggestion that I might find someone outside of the combination from who to buy, I was told that possibly I could, but the question would be: Could I get service suitable for moving the ice to market if it conflicted with the plans of the combination?
In my investigation I found that the above-named plants were filled, as was shown on my chart; also plant at other points well stocked that had not been filled for many years previously, which confirmed the statements made to me by the railroad employes.
The Evening Argus May 5, 1906
ANN ARBOR NOTES
Chris. Wilber, brakeman, resumed his work today after lay off of several days.
Conductors Charles Mead, George McLaughlin and George Bradley are laying off temporarily.
Conductor Hugh Manahan and family are moving to Dundee.
Switchman Charles Moore is laying off. He has been succeeded in the local yards by Switchman Burns.
The Evening Argus May 5, 1906
LIGHTNING CHANGE ARTIST
Trainmaster M. D. Fohey, of the Ann Arbor Road, Certainly is One.
It has been noticeable to people standing on the platform at the Ann Arbor depot, that occasionally the southbound trains come almost to a stop at Michigan avenue, then creep slowly to the station. Some one inquired on day; “What's the matter up there, some one hurt?”
“Oh, no: Mike Fohey is changing his clothes!”
The speaker went on to tell for the holy truth that when Mr. Fohey who is the trainmaster of the Ann Arbor road, has been north for several days and wants to go to the south end of the road, he telegraphs Mrs. Fohey to lay out an outfit for him. The when the train comes along to Michigan avenue it is slowed up enough to that he easily gets off and makes a quick run to his home a block away, make a change and taken an other run, this time over three blocks, catches the train before the six minute stop for change of engines has expired. It is quick work but it is claimed Mr. Fohey has done it several times.
“I guess Fohey has his suit strung up like a fire team's harness and he just has to get up on a table and jump into it,” is the explanation of a railroad man.
The Toledo News-Bee May 24, 1906
Stand Ready to Admit Guilt in Forming Trust
Wachenhelmer Approached By Person Authorized to Speak for Ice Men, Who Sought to Make terms for Light Punishment
Intimations have reached Prosecutor Wachenhelmer that if suitable arrangements could be made perhaps some of the ice men indicated would enter a plea of guilty to the indictments returned against them.
Wednesday the prosecutor was approached upon this subject and engaged in quite an extensive discussion of the situation with a person very close to one of the ice concerns under indictment and its officers.
To these overtures the prosecutor made one reply, which was to the effect that to attempt such despicable tactics as the ice companies under indictment had inaugurated was in itself sufficient for the most rigorous punishment that could be melted out under the very mild law which provides for trusts.
When asked about this Thursday morning, Mr. Wachenheimer declined to discuss the matter, but did not deny that he had talked over a plea of guilty with one of the interested parties.
It was indicated to the prosecutor that perhaps a restoration of prices almost as low as last year would follow a plea of guilty if there was any probability of a light sentence. But the prosecutor is determined that the indicted members of the ice trust shall feel keenly the position they are in, and it is highly improbable that the cases will be disposed of short of the usual trial.
The prosecuting attorney has been working constantly at the ice cases since the last indictments were returned. He is getting in touch with many ice consumers in the city, and by such a canvas is finding out every detail of the combine and its operation.
This canvass has revealed the fact that the break in ice prices exclusively announced in The News-Bee is becoming general and that within the last few days either a real or a fictitious competition has been in existence.
Consumers of ice are also comparing notes and find that they are not treated the same. For those who hold tickets brought at trust prices there is no hope, but those who are not tied up in that way expect to get better figures on their ice.
The trust has brought into being several so-called independent ice dealers, who got their start in business by the fact that consumers of ice could not purchase ice as needed of the trust, but were obliged to buy quantities. These men brought ice of the companies and sold it to anybody who wanted it by the chunk, at figures slightly less than trust prices.
It is a significant fact that Alexander Smith, who is prominent in the array of legal talent lined up for the defense, is general counsel for the Ann Arbor Railroad company. Mr. Smith represents the Toledo Ice & Coal company in the criminal matter now involving that concern.
The alleged relation of the Ann Arbor to the local ice trust will be amply aired during trial and Mr. Smith may find it convenient to represent both parties, though no charges have as yet been preferred against the railroad company.
The Owosso Times May 25, 1906
The Ann Arbor Wrecking train ran off the track at Rosebush, Monday,while on the way to a wreck at Boone. No one was injured.
The Owosso Times May 25, 1906
A fire alarm box will be place in a central location at the Ann Arbor Shops.
Benzie Banner June 7, 1906
M. E. Zimmerman, President of the A. A. and D. T. & I. R. Rs., Smith General General Manager, and, and W. F. Bradley, Supt. Were entertained by the Sec'y of the Promoter's Committee, Thursday. A number of improvement were promised in the station grounds, providing people meet them half way. Moral: Clean up.
The Owosso Times June 22, 1906
The Ann Arbor will put on its night train service beginning with Monday next. The train north will leave Owosso about 11:20 p. m. and goes south about 3:00 a. m. This will make the train service on the road better than ever before.
The Toledo New-Bee June 29, 1906
ICE MEN TO BE RELEASED ON BOND
CIRCUIT COURT JUDGE HAYNES, DELIVERING THE OPINION OF CIRCUIT COURT SATURDAY AFTERNOON, SUSPENDED THE SENTENCES IMPOSED BY JUDGE KINKADE ON R. A.BEARD AND RUBEN COMPTON LEMMON UNTIL SUCH TIME AS THE CIRCUIT COURT COULD INQUIRE INTO THE CASES.
A BOND OF $5,000 WAS ATTACHED AND THE PRISONERS WILL BE RELEASED FROM JAIL PENDING FURTHER ACTION BY THE COURT.
THE APPLICATION FOR A WRIT OF MANDAMUS TO COMPEL JUDGE KINKADE TO SIGN A BILL OF EXCEPTIONS WILL BE HEARD LATER.
THE ORDER of the CIRCUIT COURT DOES NOT AFFECT THE CASES OF MILLER, BRFINING AND WATTERS.
The resuscitation of at least two of the local ice trust who have once died a legal death and who were buried under a workhouse sentence, was commenced in the local circuit court promptly at 9 o'clock Saturday.
The proceedings in circuit court, by which several of the most widely known conjurors of the law in Toledo sought to open the door of a prison voluntarily entered by Reuben C. Lemmon and Roland A. Beard of the Hygeia Ice company, were termed first an application for a suspension of the execution of the sentence passed upon the defendants and second a petition in mandamus, on application and a petition being filed in the case of each defendant.
Alleged Promise of Court
The application for a suspension of sentence was based upon a showing which the counsel for the prioners made, and the purpose of which was to show that the defendants had pleaded guilty under advise of the court and under advise of the court and under a promise of leniency when in fact they should have had a trial and an opportunity to demonstrate their innocence which they would have demanded but for the promises of the court.
The petition for a writ of mandamus sets forth that certain motions were offered to Judge Kinkade, which said judge refused to entertain and ordered stricken from the records of the court. It recited further that the judge refuses to sign a bill of particulars by which the matter can be brought up on record.
Array of Talent
The defendants had a formidable array of legal counsel in court when the hearing opened. Massed behind one of the trial tables were these attorneys who have been identified with some of the biggest projects ever exploited in the courts of the state:
Thomas H. Tracy, recently retained to pull the defense out of a bad rut.
Clarence Brown, whose labors on behalf of big corporations are written all over court records.
Alexander Smith, heretofore counsel for Joseph A. Miller, but now retained to assist in the Beard and Lemmon cases, and who general counsel for the Ann Arbor Railway company.
Frank H. Geer, E. M. Beard and several others those interest in the case prompted them to sit at the table and watch its development.
Prosecutor Wachenhelmer and his assistant, Ralph Emery, opposed to the counsel retained for the two officers of the Hygeia company, appeared to be pitted against heavy odds. The court room was crowed.
“As Mr. Tracy suggests,” was the burden of the argument made by Clarence Brown on behalf of a suspension. Tracy “suggested” about every other sentence, but together they got the case before the court.
Fear the Prison
The purpose of the hearing was revealed by Tracy when in answer to a question by Wachenhelmer, who asked if a lenient sentence was not really in effect, Tracy stated that THE COURT HAD PROMISED THAT NO IMPRISONMENT WOULD BE IMPOSED.
“These men are of high standing,” urged Mr. Brown.
“The suggestion of counsel as to the standing of these defendants is not appropriate,: said Mr. Wachenheimer. “The personnel of the defendants is a mere incident and they are entitled to no more consideration than if they sprang from the most degraded and obscure parentage.”
Counsel took some time in finding out just what was to be presented to the court and how to do it. The case did not come into the court in the regular way, for Judge Kinkade refused to sign the bill of particulars and had stricken the pleading from the record. So the attorneys argued at length on things in and out of the case, but endeavored to show good cause for a suspension of sentence, to which the law entitles them if good cause is shown.
Prosecutor Wachenleimer insisted that no good cause existed to show why the execution of the sentence should not be commenced forthwith.
The Evening Argus June 12, 1906
H. Parker an Ann Arbor Conductor, was home over Sunday from Summit.
Frank Kerwin, operator at Summit for the Ann Arbor, Will soon take a similar position at Clare.
The Owosso Times July 1, 1906
The Ann Arbor Shops were closed Monday for inventory and on Wednesday to celebrate the fourth.
The Evening Argus July 21, 1906
ANN ARBOR GOSSIP
LATE NOTES OF INTEREST FROM THE CAR SHOPS
Road Is Doing Its Share of Business and Men Are Very Busy
Beteen 230 and 240 men are now employed in the car shops. This force is kept constantly busy in the various departments, and the amount of work that is being done would indicate that the Ann Arbor road is getting its full share of the fruits of the present era of prosperity.
The new combination mail and passenger coaches are being made in the shops here and the first, which is nearly completed, will be put into commission probably next week. The interior is finished in hardwood, and all deck lights and upper windows will be of chipped glass, making a handsome effect.
Engine No. 8, after extensive repairs, made its first run yesterday since the wreck at Mesick, in which it was badly damaged. It drew passenger train No. 4 to Frankfort.
Fireman Floyd Jewell is laying off on account of illness.
Engine 47 is out of the shops again after having a broken frame repaired.
Harry Thorne has resigned his position as fireman and will go to Grand Rapids to take a position as motorman on the street car line.
Benjamin Cross and Richard Woodman, of the machine shop, are laying off account of illness.
Repairs for one of the three care ferries at Frankfort are being made in the shops here.
Engines 33, 37and 27are undergoing a through overhauling.
Harry Noble will go to Beulah Monday to spend a two weeks' vacation.
Machinist W. T. Fillmore has nearly completed a new modern residence at 909 Corunna avenue.
D. A. Richards and E. M. Monroe, employed in the piece work department, are taking a vacation and will will leave today with their families to spend a week berrying near Cadillac.
The wrecking crew was called to Chilson Wednesday on account of a derailed locomotive and Thursday to Summit where a refrigerator car jumped the track.
Fireman John Walton, of the piece work department has been sick for several days and unable to attend to his duties at the shop.
Lee Cook is working in the shops.
The men are receiving their monthly pay today.
The Toledo News-Bee July 24, 1906
Where All Your Dreams Come True
We quote as follows from the pamphlet, embellished with interior views of the car “Columbia,” issued by the passenger department of the Ann Arbor Railroad company, and entitled “Where all Your Dreams Come True”:
There will be one additional delight for the travelers on the Ann Arbor this summer, that is absolutely new and wholly pleasurable. This road will be equipped among the very first in this country – with the latest word in palace cars. And that does not mean Pullmans. Have you heard of the new better sort of palace car? You would say at the first step within its doors that a mistake had been made, that you had been assigned to a luxuriously appointed parlor car instead of a sleeper. But there has been no mistake. Even though you see on either hand nothing but easy arm chairs of the portable type. It is when night comes that you witness the most revolutionary invention that has been placed at the disposition of the traveler in more than a generation. You ask for your berth, and the polite attendant moves back your chairs and performs a modern miracle.
The floor at your feet yawns and from a steel chamber that is dust-proof yet thoroughly ventilated a complete double bed gently arises. In less than two minutes and a half the two berths are ready. But it's not fair to call them berths. These are beds; the real thing and daintily equipped with bed-like comforts. No longer the plank like blankets and elusive pillowlet, but instead you have the same sort of service – or a little better – that you would find in a really first-class hotel. The big, comfortable chairs go out of sight in the chamber from which the bed was evolved, and as section section after section rises the coach is quickly transformed into a complete sleeping car, plus many improvements that we have long sought for in vain in the old style Pullman.
Here are two instances in point. There is eight inches more head room between the upper and lower berths than there is on any Pullman, and the ladies lavatory is large enough to allow four women to dress at the same time. “Does not it seem too good to be true?”
The Columbia was built by the American Palace Car company of New York and London. An interesting booklet will be mailed to anyone addressing D. B. Carro., 305 Valentine Bldg., Toledo, O.
The Toledo News-Bee Aug. 15, 1906
SERECT RATE MADE ON ICE
Ann Arbor Agent at Whitmore Lake Testifies That Toledo Ice and Coal Company Hand Benefit of Low Rate
H. C. Perry, Ann Arbor railroad agent at Whitmore Lake, told the commission on Tuesday afternoon that about 50 cars of ice a season were shipped to Toledo at the 25 cent rate. The ice was sent to The Toledo Ice & Coal company's houses.
Perry tore off the charity mask and exposed the secret of the railroad-ice company's successful competition. Perry backed up his statements by saying he would produce records showing free ice shipments to The Toledo Ice & Coal company.
He admitted receiving $5 per month from Miller for labor. As a climax to his story he said Ann Arbor employes were used as strike breakers for the Toledo Ice company. When Miller was questioned on this point during his evidence he denied it.
E. M. Grossman and Thomas F. Butler of the Ann Arbor freight offices and Elmer E. Martin, baggage master, gave corroborative evidence that employes, horses and supplies of the Toledo Ice company were carried free of charge by the Ann Arbor. Instructions to do these things, the witness said, came from W. H. Bennett, former general freight agent.
The most interesting witness of the afternoon session was Wellington R. Burt, of Saginaw. He said he suggested the organization of the Toledo Ice & Coal company and even coaxed most of his subordinate officials to take stock. His purpose, he told the commission, was to increase the freight business of the road.
“Is it common practice for railroad officers to invest private fortunes in business located on the line to help the road?” Commissioner Clements asked Burt.
“I don't know that it is,” replied the ex-president. Freight business was low he explained and it had o been encouraged and nursed along.
Burt denied all knowledge of free transportation being given to The Toledo Ice & Coal company or of a rebate of 50 cents per car being paid to Miller. He unhesitatingly stated that if he had been asked for transportation for the ice company he would have given it as such things were common practice among railroads.
“I knew the ice company was using railroad company property as a basis for operation,” said Burt.
“Isn't that an advantage to the men who are compelled to buy or pay rent?”
“WELL, YES. I SUPPOSE IT WAS, BUT ANYBODY COULD GET IT. IT'S A GENERAL PRACTICE OF RAILROADS TO ALLOW THEIR PROPERTY TO BE OCCUPIED BY PERSONS WHO GIVE THEM FREIGHT.”
After denying knowledge of any track leading to ice houses being taken up his memory was refreshed and he said:
“Yes, I recollect we took up steel leading to Charley Ashley's ice house house on the lake. Where the ice houses were empty we took up steel, as it was scarce, but put it down again when they wanted it.”
The testimony of Walter McNamee, Ann Arbor agent at Lakeland, did not furnish anything important except his admission that there had been free shipments for The Toledo Ice & Coal company, the office records of which he promised to furnish.
A. J. Elliott, manger of car service for the Toledo Car Service association to furnish the demurrage reports on ice for the last six months.
H. E. Myers, local agent of the Pere Marquette, testified that the road has no ice companies, and handles ice only for the Michigan Lake Ice company, through F. S. Hubbell.
The investigation adjourned until 10 o'clock, Wednesday morning.
The Toledo News-Bee Aug. 16, 1906
Former General Manager H. W. Ashley, of the Ann Arbor railroad, dropped a bomb into the ice investigation, conducted by the interstate commerce commission, late on Wednesday afternoon when he virtually charged theft on the part of the Toledo Ice and Coal company if that company secured ice shipments from Whitmore Lake on the hospital rate of 25 cents per ton, one-half the regular ice tariff.
Ashley voluntary made a statement to the commission at the close of the examination of witnesses. He had issued orders to favor the Toledo Ice and Coal company wherever possible, as long as it cost the railroad nothing. He expressed amazement at the apparent abuse of his instructions.
The climax came when, in discussing the unusally large shipment of cars under the hospital rate to the Toledo Ice and Coal company, Ashley exclaimed:
“IF THERE HAVE BEEN EXCESSIVE SHIPMENTS OF ICE AT HOSPITAL RATES AND THEY HAVE BEEN DIVEERTED TO THE TOLEDO ICE AND COAL COMPANY THEN THIS COMPANY STOLE THE
MONEY WITHOUT MY KNOWLEDGE.”
the federal courtroom was filled with railroad officials, ice men and spectators when this bomb exploded. The government officials were amazed but made no comment.
Ashley's admissions, embodied in a statement that was to serve the dual purpose of an explanation of certain points and a defense of the road, strengthened the evidence brought out against the Ann Arbor.
Ashley's statement were not made under oath. HIS REQUEST TO BE SWORN WAS NOT LOOKED UPON WITH FAVOR BY COMMISSIONER CLEMENTS, FOLLOWING THE INSTRUCTIONS OF THE PRESIDENT THAT NONE OF THE “BIG GAME” BE GIVEN IMMUNITY BATHS.
Ashley's contribution to the testimony, obtained after two days' session, marked the close of the inquiry so far as the present session is concerned, and the commission adjourned immediately after he had closed with the dramatic assertion:
“I want to refer to two things that have surprised me. One is the number of persons carried free, the other the amount of carloads of freight shipped free. While it was done at my general order, I had no idea of its extent.”
At Wednesday afternoon's session the Ann Arbor officials who had been interested listeners began to show signs of uneasiness, which found expression in repeated whispered conferences.
The evidence brought out had evidently caused them to sit up and take notice and Mr. Ashley came to the defense of the company asking permission to make his statement.
After recruiting the organization of the ice of the ice company to increase the freight business of the Ann Arbor he said” “While we are practically the only ice shippers I instructed Bennett that any accommodations to the Toledo Ice company costing the road nothing, should be offered. From these instruction originated free shipment of tools and supplies and men.
“It has never cost the Ann Arbor anything to give the Toledo Ice company the accommodations they received. There have been abuses. I grant it.
He disclaimed any purpose of discrimination against Mr. Beach of Mr. Schuber.
RECORD OF FREE SHIPMENTS
The Wednesday afternoon session brought out a detailed record of the free shipments of horses for the Toledo Ice & Coal company, the number of cars of ice shipped at the hosiptal rate and short icing weights practiced on the Pere Marquette.
The records of the Ann Arbor were used to substantiate the charges made by Schuller and other competitions of discrimination.
E. M. Grossman, from records of shipments from 1900 to 1903 inclusive showed that 355 cars of ice had been shipped at the hospital rate. The hospital capacity was not over 12 cars a season.
Grossman also showed by freight bills that in January, 1901, two cars of fine horses were shipped free by the Toledo Ice & Coal company; in 1903, three cars of six horses; in 1904, one car of eight horses.
Discrimination against Schullers was shown by the same record. Schuller's shipment in the same period, for which he paid from $5 to $10 per car, were: January, 1902, two cars, 12 head horses, $5 per car; January, 1903, two cars, $10 per car, supplies; January, 1904, 2 cars, 410 per car; January, 1905, 1 car, $10 per car.
Grossman said the 13 cents per 100 tariff on live stock was never charged and that the Ann Arbor had no $5 or $10 tariff per car on live stock.
F. M. Kiley, former bill clerk of the Pere Marquette, told how 5,000 pounds of ice was usually charged for in icing while not near that amount was never put in. Kiley said the short icing weights got to be a joke among the men.
The Michigan Lake Ice company, he saaid, was organized by Superintendant Trump and Agent Halstead, of the Pere Marquette and enjoyed exclusive icing privileges.
Thomas Coffey, bookkeeper of the Toledo Ice & Coal company, explained that the alleged 50 cent rebate given the company on box cars by the railroad was really an adjustment of claims for shrinkage.
H. G. Beach of Hamburg, told of the discriminations that had been practiced against him by having the passenger tourist rate withdrawn from his resort, after he exposed the ice men in The New-Bee.
Beach claimed that he was put out of the ice business by means that were virtually a blacklist.
George Schuller was an important witness. He said he had always paid freight rates and had no free transportation for men and horses. Shortage of cars he claimed was his greatest trouble on the Ann Arbor.
“had I known of the 25 cent rate I could take advantage of business that I couldn't under the 50 cent rate. I could have loaded 50 to 100 cars a week, where I couldn't do it under the 50 cent. Free transportation to a competitor makes it harder for me to compete.”
Ashley, he said, had arranged to have passenger trains stop at his ice house to pull ice cars out loaded in the afternoon. “When I wouldn't change back to Ann Arbor Ashley had this accommodation withdrawn.”
H. W. Ashley at this point got up and characterized Schuller's statement as a vindictive statement of the vilest sort. Ashley asked that Schuller be made to produce proof.
The Toledo News-Bee Aug. 16, 1906
Rate Discrimination Show By Expert Testimony
RAILROADSS REAL POWER BEHIND THE CORPORATION
At Least Two of the Roads Tapping Ice Fields Organized Companies Which Thrived Under Railway Patronage
The investigation by the interstate commerce commission, held Tuesday and Wednesday in this city, of ice trade conditions and of the relations between railroad and ice companies, has opened the yes of the public to conditions which, when understood, cause little surprise that the public should be completely at the mercy of ice companies.
An analysis of the evidence brought before the commission shows:
First – That at least two railroads, the Ann Arbor and Pere Marquette, which tap the ice fields of southern Michigan, have organized ice companies. The Ann Arbor was behind the Toledo Ice and Coal company, and Pere Marquette officials were behind the Michigan Lake Ice company.
Second – Discrimination in freight rates in favor of the Toledo Ice and Coal company. Full rates charged to competing ice companies. Free transportation furnished the Toledo Ice and Coal company for men, horses and supplies from Toledo to Whitmore Lake and return. One year a rebate of 50 cents per car was given to the the Toledo Ice and Coal company.
Third – Michigan Lake Ice company enjoyed exclusive privilege of icing were made on a basis of 50,000 pounds and not near that amount of ice used.
Fourth – Ice companies occupy railroad property, either free of charge or at nominal rental.
Fifth – Demurrage charges against ice and coal were canceled by the Car Service association.
Sixth – Discrimination in freight rates between Bay City, Mich., and Toledo, via Grand Trunk, Shore Line and Cover Leaf.
Seventh – Illegal tariff on ice charged on shipments from Whitmore Lake to Charleston, W. Va., via the Ann Arbor.
REAL POWER OF TRUST
Eight – The real power behind the Inter State Ice Company, of Sandusky, the selling corporation of the ice trust, are the Toledo Ice & Coal company; F. S. Hubbell, ice man for Pere Marquette, who furnished the Michigan Lake Ice company with ice; Harry Norvel of Cleveland, and Ed. Kerber and George Seitz, ice wholesalers of Sandusky.
The relations between the Ann Arbor railroad and the Toledo Ice and Coal company were the subject of voluminous evidence. The points brought out in this connection were;
The plant of the ice and coal company is on property owned by the Ann Arbor. Prior to 1904 the Ann Arbor annually furnished free transportation for from 100 to 125 employes of the ice company to the Michigan ice fields. Horses and supplies were shipped free. Orders for free transportation were issued by General Freight Agent W. H. Bennett, of the Ann Arbor.
MANIPULATION OF RATES
Discrimination in freight rates were shown in this; A rate of 25 cents per ton was made for ice consigned to hospitals in Toledo. The regular tariff rate to ice companies from Whitmore Lake to Toledo was 50 cents. Ice shipped at hospital rates was turned over to the Toledo Ice & Coal company. In four years 355 cars were shipped at this rate, meaning a saving in freight rates of $5 per car, if paid for at the minimum of 40,000 pounds to the car .
Other discrimination charged was poor car service furnished George Schuller, only competitor of Toledo Ice and Coal company on Ann Arbor. Also additional charges to Schuller on freight after Toledo Ice and Coal company went into business.
The result of this discrimination, Schuller testified, was to compel him to practically relinquish his wholesale business, part of which was picked up by the Toledo Ice and Coal company.
Organization of Toledo Ice and Coal company originated with Wellington R. Burt, former president of the road. These Ann Arbor officials were stockholders in the ice company. President Wellington R. Burt, General Manager H. W. Ashley, W. H. Bennett, general freight agent; J. A. Miller, purchasing agent; W. F. Bradley, superintendent; O. B. Richards, chief engineer, and M. D. Fohey, trainmaster.
USED STRIKE BREAKERS
Plans for the ice house were fixed up in the railroad engineer's offices.
During a strike affecting the Toledo Ice and Coal company railroad men were used as strikebreakers.
Superintendent Trump and Agent Halstead of the Pere Marquette organized the Michigan Lake Ice company. F. S. Hubbell of Milford, Mich. Represented them in the sale of ice.
This company has had exclusive privilege of icing refrigerator cars, and short weights were given.
Discrimination in freight rate against P. H. Breining was alleged on ice shipped from Bay City to Toledo via Grand Trunk. Shore Line and Clover Leaf roads.
Breining was charged $1.10 per ton, Goldberg, local ice dealer, paid $0 cents per ton between the same points.
H. W. Ashley, formerly general manager of the Ann Arbor railway, admitted giving orders to favor the Toledo Ice and Coal company where I wouldn't cost the company anything – that is, in actual expenditure of money.
Ashley testified that the shipment of ice supposedly for the Toledo hospitals, but, in reality, to the Toledo Ice and Coal company, practically amounted to theft.
The Evening Argus Aug. 22, 1906
GOES INTO UNION DEPOT
Ann Arbor Making Preparations to Use Grand Trunk Station at Durand
After months of parleying a contract has been signed and the Ann Arbor railroad will use part of the Grand Trunk Union depot. Preparations are being made for the change. In the future the Grand Trunk will handle the passenger and freight service of the Ann Arbor at this point.
In making the change the Grand Trunk is relaying a number of tracks southeast of the depot to be used by the Ann Arbor passenger trains. The crossing of the Ann Arbor over the main line of the D. & M. is being removed a half mile to the east. The old Ann Arbor depot will be removed and a private railroad park will take its place.
Without any doubt the foregoing move is only a forerunner of several changes for the betterment of Durand. Grand Trunk officials insist that Durand is to be the greatest railroad town in Michigan. – Durand Express
The Evening Argus Sept. 7, 1906
NEW SLEEPERS FOR ANN ARBOR
They're Now Being Built; Are to be Called Beulah and Frontenac
Toledo, Sept. 7 – Two new sleeping cars being built for the Ann Arbor railroad by the American Palace Car Co. will be the name respectively of Beulah and Frontenac, the first being named in honor of the quaint little village at the eastern end of Crystal Lake, and the latter in honor of the Royal Frontenac, the Ann Arbor;s palatial hotel in Frankfort. The cars will be completed some time this month,but too late for use in this season's tourist business. It is probable that they will be used elsewhere during the winter and turned over to the Ann Arbor early next spring.
The American Palace Car Co., it is said, will in a short time begin looking up a location for a factory. At present its cars are being built on contract. The first cost of the proposed new plant will be in the neighborhood of $1,000,000.
The Evening Argus Sept. 12, 1906
Sturtevant & Blood are building a coal shed alongside the Ann Arbor tracks, 20x100, and 12 feet high, of cement blocks.
The Evening Argus Sept. 18, 1906
Supt. W. F. Bradley, of the Ann Arbor, was in Toledo over night on official business.
The Ann Arbor will furnish the engines for the beet shipments this fall to the sugar factories in Owosso and Alma.
The Toledo News-Bee Oct, 1, 1906
ANN ARBOR OFFICIALS INSPECT ROAD
Eugene Zimmerman, president of the Detroit, Toledo & Ironton and Ann Arbor railroads, and a party of eastern capitalists arrived in Toledo early Tuesday morning from an inspection trip over the Detroit, Toledo & Ironton road.
They left immediately for an inspection trip over the Ann Arbor.
The Toledo News-Bee Oct. 9, 1906
UNCLE SAM IN ICE CASE
District Attorney Sullivan May Call Special Session of Federal Grand Jury to Investigate Ann Arbor Railway and Toledo Ice Company.
Cleveland, Oct. 9 – (Special) – Through United States Attorney Sullivan the government is now preparing to take a vigorous hand in the prosecution of the officers of the so-called Toledo ice trust.
The action contemplated immediately by the government involves one railway, the Ann Arbor Railway Co., and probably others.
Starting in Toledo the government investigation of the ice situation may end in Cleveland.
The action of the government will based on the investigation of the interstate commerce commission in Toledo within the past month.
In papers already prepared, the Ann Arbor Railway company and officers of the Toledo Ice & Coal Co. are accused of combining to violate to violate the interstate commerce laws.
Asked directly whether he would call a special session of the grand jury, Sullivan said:
“That is a matter which I am not at liberty to discuss.”
Sullivan also refused to talk about the probability of a general investigation of the ice trade over the entire district, or whether Cleveland ice concerns have been receiving assistance from railways in in restraint of trade.
Sullivan will be co-operated with the investigation by the district attorney for the southern district of Michigan.
Ludington Daily News Oct. 17, 1906
Wooden Ferry Will Run This Winter Between Peshtigo and South Chicago Ports
On Monday of this week Supt W. L. Mercereau of the Pere Marquette Railroad Co. chartered carferry Pere Marquette 16 to the Lake Michigan Carferry Transportation Co. For the past six weeks No. 16 has been under charter to the Ann Arbor line running between Green Bay and Frankfort. She concluded her services with that line last week, going to Milwaukee for a slight overhauling before taking up her new run between Peshtigo and South Chicago on Monday.
No. 16 will probably remain all winter on her new run which is in connection with the Wisconsin and Michigan railway system. This line has heretofore operated a fleet of scow ferries which have been towed by tugs. It will be remembered that two weeks ago on of these ferries turn turtle just inside the Chicago breakwater, and it is to replace the sunken craft that No. 16 has been chartered. It is likely that Capt. Thompson and the entire crew will be retained through the winter, although the new managers may engage their own crew if they so desire.
The Evening Argus Oct. 22, 1906
Matter Of Interest To Those In Ann Arbor Shops.
The carpenters employed at the Ann Arbor shops arranged a conference to be held today to consider the matter of having the timber they use in repairing cars milled before it comes into their hands for use. By milling is meant the planning and boring of the lumber they use. The company agrees to do the milling but this will mean a reduction in prices of piece work.
Many of the carpenters believe, however, that more money can be made by having their timber come to them in readiness for use with the exception of the chiseling and shaping.
The Toledo New-Bee Oct. 29, 1906
SULLIVAN IN TOLEDO TO PROBE ICE TRUST
Federal District Attorney Said to be In Possession of New Evidence Affecting the Railroads
Criminal connection in restraint of trade between the Ann Arbor and Pere Marquette railroads and the ice trust magnates of Toledo may be shown as the result of the visit to Toledo of John J. Sullivan, United States district attorney.
Based upon testimony given at the interstate commence commission hearing held here in August the two great ice hauling roads may be forced into the federal court to show if they are not guilty of violating the Sherman anti-trust law. It can be said with certainly that the federal grand jury, to be called in December, will investigate the alleged violations of the Sherman anti-trust act.
At the hearing here in August it was shown that the Ann Arbor railroad had discriminated in favor of the Toledo Ice & Coal company; the Ann Arbor officials organized the Toledo Ice & Coal company and that men and supplies were shipped to and from the ice fields for this company free of charge.
It was also shown that ice was shipped to Toledo at hospital rates, which is considerably below the ordinary rates, and then transferred to the Toledo Ice & Coal company.
The Pere Marquette railroad and the Toledo car Service association may also dragged into the limelight of publicity on the question of discrimination and demurage rebates.
These prosecutions, steps toward which are now being taken by United States District Attorney Sullivan, will be among the few big railroad prosecutions in the central west.
Mr. Sullivan reached the city on Monday night and is now conferring with federal authorities here relative to these cases.
A transcript of the evidence in the ice trust cases here was furnished him, upon request, some time ago and he is also in possession of new evidence.
This evidence, together with that before the interstate commerce commission, will be brought before the next federal grand jury preliminary to prosecution under the interstate commerce law. The Toledo
The Owosso Times Nov. 9, 1906
New General Manager of the Ann Arbor
George K. Lowell has resigned as general superintendent of the Chicago, Indianapolis & Louisville to accept the position of general manager of the Detroit, Toledo and Ironton and the Ann Arbor, with headquarters at Toledo, O. Mr. Lowell was born at Dover, N. H., on March 19, 1858, and began his railway career in 1876, from which date date to June, 1889, he was connected with the Boston & Maine, The Gulf, Colorado & Santa Fe, the Chicago, Rock Island & Pacific and the Louisville, Evansville & St Louis as Locomotive, fireman, roundhouse man, freight and passenger brakeman, train baggageman, station baggage master and freight and passenger conductor. In July, 1889, he was appointed master of transportation of the Louisville, Evansville & St Louis and his title was charged to superintendent of transportation in July 1890. He left the service of that road in September, 1891, to become assistant superintendent of the second division of the Louisville, New Albany & Chicago, no the Chicago, Indianapolia & Louisville, and on January 20, 1893, was made superintendent of the first division of that road. He held the the latter position until December 11, 1893, when he was promoted to office of general superintendent.
News-Bee Dec. 4, 1906
FEDERAL GRAND JURORS SWORN
Will Begin Investigation of Complaints Against the Ice Carrying Railroads at Once.
The following grand jurors were sworn in the United States circuit court, which convened on Tuesday morning, and will have charge of the investigation into the alleged violation of the interstate commerce law on the part of the railroads carrying ice into Toledo, the Pere Marquette, Ann Arbor, and the the Toledo, St. Louis & Western, together with the Toledo Ice and Coal company:
Joh T. Mack, foreman, Sandusky; Oliver Wissell, Westminster; John E. Waddell, Marion; James Clark, Pettisville; S. B. Ridenour, Lima; William W. Sockman, Milton Center; George Ernst, Tiffin; Perry C. Miller, Rockford; J. L. Carson, Wapakoneta; William Roberts, Gomer; Dennis F. Derr, Tiffin; Frank C. Pore, New Stark; Edward C. Showman, Van Buren, Frank A. Akins, Sandusky; John Felker, Toledo; Dan Clary, Monroeville; W. S. Vaille, Castalia.
The Toledo News-Bee Dec. 18, 1906
Startling Form of Secret System Used by Toledo Railroad
UNEARTHED BY SPECIAL AGENTS OF GOVERNMENT
Discovery Was Made When Certain Ann Arbor Ways Bills Were Taken Before the Federal Grand Jury.
A startling form of secret rebating by railroads, hidden for years, has been unearthed by federal agent in Toledo.
The discovery is said by federal officials to be the most important the government has yet brought to light in its numerous investigations of the rebate question. It was made during the federal hrand jury's inquiry into the practices of the ice carrying railroads entering Toledo.
The new form is known as a double rebate system. It was practiced by the Ann Arbor railroad in connection with ice shipments. The double rebate, it is claimed, was authorized by W. H. Bennett, former general freight and passenger agent of the Ann Arbor.
Minimum car weights and discrimination in freight rates are the two main features of this system.
Coup of Federal Agents
A sensational feature in this expose is documentary evidence secured from the Ann Arbor through a bold coup by federal agents. This evidence shows how the double rebate system was worked.
The Toledo Ice & Coal company apparently is the only ice company which was a direct beneficiary.
The Toledo Ice & Coal company was organized by these Ann Arbor officials: Wellington R. Burt, president; H. W. Ashley, general manager; W. H. Bennett, general freight and passenger agent; J. A. Miller, purchasing agent; W. F. Bradley, superintendent; O. B. Richards, chief engineer and M. D. Fohey, trainmaster.
The methods by which competitors of this company were discriminated against through collusion with the railroad is simple when the documentary proof is considered. To illustrate:
How It Worked
From Whitmore Lake to Toledo a rate of 30 cents per ton on ice, was made to the Toledo Ice & Coal company.
George Schuller, Toledo ice dealer paid 60 cent ton.
This is a discrimination of 20 cents per ton. Shipments were billed at minimum load, 40,000 pounds. On this billing Toledo Ice & Coal would pay $6 freight charges and Schuller $10.
LATER THE BILLING WERE CORRECTED BY SCALE WEIGHT AND CHARGES MADE ON THE BASIS OF THE CORRECTED WEIGHT.
Say the corrected weight was 56,000 pounds, Schuller paid on the corrected weight at the rate of 50 cents per ton, amounting to $12.
Here is where the double discrimination, it is alleged, took place. The correct scale weight on the Toledo Ice & Coal company billing it is claimed, was charged to the original minimum weight billing, making a discrimination in weights in favor of that company of 16,000 pounds or eight tons, which at 30 cents freight per ton, would mean a difference of $2.40. Freight was paid by the Toledo Ice & Coal company on the basis of minimum weight and not corrected scale weight. This added to the rate discrimination of 20 cents would mean a discrimination in favor of the Toledo Ice & Coal on weights and rates of $6.40 on the car.
Government agents were successful in securing freight bills which exposed in a startling manner this double rebate system. These bills WILL SHOW THE ORIGINAL BILLING AT MINIMUM WEIGHT, THE CANCELLATION OF THIS BILLING, THE CORRECTED SCALE WEIGHT WRITTEN IN AND THE FURTHER CANCELLATION OF THE SCALE WEIGHTS IN FAVOR OF THE TOLEDO ICE & COAL COMPANY.
The most important evidence secured in this connection is believed to be a memorandum attached to a billing which, it is claimed, fixes the responsibility for the cancellation of scale weights on W. H. Bennett.
The memorandum, it is said, ordered the change made in Toledo Ice & Coal company billing from scale weights to minimum weights.
Government agents who have learned of this form of rebating, say it is one of the cleverest that has ever been brought to light. By changing the billings as described, it is alleged that competing shippers were deceived. There would be no record of money returned shippers in the form of cash rebates. THE RECORDS WOULD SHOW FREIGHT CHARGES ONLY ON MINIMUM WEIGHTS.
The difference was that the favored shipper under the Ann Arbor plan received his “bit” before payment of freight through discrimination weights and rates, while under the old plan of rebating full freight rates were paid and cash returned.
Opens New Line
This plan of double discrimination opens a new line of evidence on the rebate question – one of which the government intends taking advantage.
Private advice received here from Washington say that this is the first time the government has been able to discover this form of rebate and the letter says it is regarded as an extremely important piece of information, as the same practices may be followed by railroads in other parts of the country.
The documentary evidence which produced these exposures was secured by S. H. Smith, of Washington, D. C., special agent of the interstate commence commission.
Special Agent Here
Mr. Smith arrived in Toledo when the grand jury convened, to gather evidence to present to the jury through District Attorney John J. Sullivan. Smith was aided by Attorney Harry B. Kirtland, who as a friend of President Roosevelt made a preliminary investigation following The News-Bee exposure, which led to the present grand jury inquiry.
It was only by a bold stroke on the part of Special Agent Smith that the evidence was secured. The Ann Arbor railroad was forced to give up the evidence which was to be used to incriminate it.
Discovered the Mine
A duces tecum subpoena was issued for an Ann Arbor freight clerk to bring old freight bills before the grand jury. Before the Ann Arbor officials knew what was coming a deputy marshal had the subpoena served and the clerk on the way to the jury rooms with the documents.
Their examination proved a veritable mine of information. The bills covered a number of years prior to the time the Ann Arbor changed hands. A great number of the bills it is said showed the discrimination referred to.
When the Ann Arbor clerk was called before the grand jury to testify, it is said his memory was bad as to to who ordered the changes in weights favorable to the Toledo Ice & Coal company.
IT WAS NOT, IT IS SAID, UNTIL DISTRICT ATTORNEY SULLIVAN SPRUNG THE ORDER PINNED TO ONE OF THE BILLS THAT THE CLERK RELUCTANTLY ADMITTED THE BENNETT AUTHORSHIP.
The Toledo News-Bee Dec. 22, 1906
SEEK LOOPHOLE OF STANDARD OILD IN REBATE SUITS
Federal District Attorney Preparing for Hard Fought Battle
Judge Taylor May Be Compelled to Decide the Original Suit of the Government
It may be that the pioneer decision involving all the suits of the government against the railroads and the Standard Oil company for rebating will be made by Judge Robert W. Taylor of the United States court at Toledo.
There are now sitting but two courts of jurisdiction that can decide whether the 155 counts returned against both the Ann Arbor and the Toledo Ice and Coal company and the 5,200 counts pending against the Standard Oil company in Chicago are proper and can be made to stand.
Just Two Courts
These courts are Judge Landis of the United States district court of Chicago, and Judge R. W. Tayler of this federal judicial district.
That the Ann Arbor railroad and the Toledo Ice & Coal company will seek the same loophole pointed out in Chicago by Standard oil attorneys and thus escape punishment under the Elkins and Hepburn laws against rebating there is little doubt.
The point made by the Chicago attorneys of the Standard is that the suits are invalid, claiming that the Hepburn law passed on June 27, 1906, repeals all previous laws on the subject of rebating, and that section 10 of that law so stipulates, EXCEPT IN CASES THEN PENDING.
Grace Was Allowed
In its original form the Hepburn bill was to go into effect at once, but by a joint resolution of the national house and senate 60 days grace was given. During the 60 days' interim the Chicago suits were filed. The oil attorneys went into court claiming that the Standard Oil cases can not be classed as impending cases, and that therefore the government has no case.
The Toledo ice cases were brought later, but for violations of the the old law. It was expected that Judge Landis would have rendered a decision before the trail of the Ann Arbor and The Toledo Ice & Coal company came on, but he has not yet made a decision and his court has recessed, so that Judge R. W. Tayler may render the pioneer decision on the point.
That United States District Attorney Sullivan expects that some similar point be raised here by the attorneys of the indicted railroad and the ice company was evidenced on Saturday by his tactical moves when the indicted companies came into court at 10 o'clock to plead.
Attorneys Beckwith & Smith appeared for the Ann Arbor and for the Toledo Ice & Coal company, but said they represented the coal company “only in this part of the hearing.”
They asked for a continuance until Jan. 28 when the criminal docket will be taken up. District Attorney Sullivan demanded that the indicated companies file their plea or motion by Jan. 21. Judge Tayler decided that was sufficient time. Bond was fixed at $10,000.
This move on the part of the district attorney was evidently for the purpose, should the Ann Arbor railroad and the ice company attempt to escape by the same loophole sought by the Standard attorneys in Chicago, of giving him a week in which to strengthen the government's side of it.