US vs Milwaukee Elkins Act was passed rendering rebates given by railway companies to some of its clients illegal and

d punishable by heavy fines, it was allegedly discriminatory Beer company, a business of large volume and a business of wide distribution, now having lost the privilege of obtaining rebates from its carriers, formed another corporation, a refrigerator car/transi1t company, which is to serve as its exclusive distributor of its beer products to evade the statutes This transit company has the same stock holders and officers as the beer company Exclusive contract Having exclusive contracts with the beer company, now a middleman, it now offered to railway companies distribution contracts Consequently, railway companies who accept would in turn put a premium on the transit companys delivery of the products equivalent up to 1/8 to 1/10 of the sum paid; solicitation In effect beer company pays railway company and railway company pays transit company resulting in a form of rebate even if the parties termed it as commission Amounts involved were thousands of dollars with the brewing company as the ultimate beneficiary WON persons behind the corporation can be held liable Yes. Corp sep entity. Fiction resorted to for working out lawful transactions. Never resorted to promote injustice or circumvent the law. Intention to evade