The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-11-17
SUGAR TRUST IS
NOW ON CR|D|RON
Alton B. Parker is Counsel for
The Defendant
MANY CASES ARE PENDING
WaybiIs Are Introduced and a Check
for $4,000 Which Was Used to
Pay Rebates Was Pro.
duced In Court.
MANY CASES ARE PENDING

duced In Court.
New York November 16.-The trial of
the American Sugar Refining company.
charged by indictment with having vio-
lated the Elkins act In the acceptance
OF rebates from the New York Central
railroad in the spring of 1903, amounting
TO s260VO, was begun today before Judge
Holt in the United States circuit court.
For the granting and giving of tho
rebates the New York Central and Hud-
son River Railroad company was yes
terday convicted in the same court. Al
though the Central railroad has now
been twice convicted of rebating. and
fined in the first instance sloS.0OO. and
a number of indictments for violations
of the same act have been returned
against both the American Sugar Re-
! filming company of New Jersey, this is the
| first trial of the so-calied sugar trust"
/ The present indictment against the
sugar company is believed to be the
least important of several 1t charged
that the defendant accepted $4,000 in
rebates a few months subsequent to the
passage of the Ell<ins act, the shipments
having been made, however several
/ months prior to the enactment of that
/ law.
Parker Represents Trusts.
The sugar company was represented by
Joseph Fl Choate. Alton b. Parker, John
/ E. Parsons and Tompsins X. McIvaine,
the government by United States Dis
trict Attorney Stimson and his assistant,
! Henry A. Wise. Fred e. Hearst, who was
employed In the sales department of the
sugar company in 1902 and 1908. said that
/ the rating of all sugar shipments was
under the direction of Lowell X Pal
mer, head OF the sugar company's traf-
fic department.
All sugars were so billed that the con-
signees paid the freight. upon receipt of
the goods. When Assistant Auditor
George r. Roberts. of the sugar company
was called to show what the scheduled
rates for sugar from New York to Cleve-
land were In 1902. there came a storm of
objection from Messrs. Parker and Nc
Ilvaine. The objections were overruled,
however and the witness testified that
the rate in the years referred TO were
| u cents per 100 pounds The defense took
! exception to Judge Hollis ruling on all
! the objections.
During the examination of witnesses,
! 1t came out that the agreed statement
! of facts conceded by the defense was
! the same the stpulations made be-
| tween the government and the New York
| Central in yesterday trial. Lowell NJ.
| Palmer who for many years the
| head of the sugar companys traffic de-
partment, was the next government wit
| ness. He told first that all matters per-
tanning to routing claims. rates short
ages etc, were adjusted through his de-
| partment.
Interrupted BY Objections.
lie said that he had been connected
| with the Brooklyn Cooperage company.
| which made the barrels for the sugar
! company, and the Brooklyn Transports
| tion company. which did the trucking
of the sugar company. In 1901 during the
| absence OF II. O. Havemeyer in Europe.
| he had acted as the chief executive OF
| the defendant corporation, Mr.. Palmer
said The examination OF Mr.. Palmer was
| frequently interrupted by the objections
of Judge Parker and Mr.. Mcllvane. Mr..
| Palmer testified that he kept a separate
| bank account for the traffic department,
but he was not permitted 10 explain how
the checks of his department were paid.
| the court sustaining Judge Parkers OBJ
| lection on that point.
| Mr.. Palmer said he had consulted with
General Traffic Manager Pomeroy OF The
New York Central and Vice-President
| Nathan Guilford of the same road, con-
corning rates for sugar shipments to
| the west The agreement made by the
| witness and General Traffic Manager
| Pomeroy of the New York Central, In
| troduced in yesterdays trial against 'he
| Central was put in evidence. Under IL
| the rate between Brooklyn and Cleveland
| was reduced to cents from the published
TO A q
| written by Mr.. Palmer to Nathan r. Gull
ford, the traffic manager of the Central.
showed that the reductions or rebates
were allowed with the knowledge of Vice.
President Guilford, then traffic manager
of the Central.
WaybiIl Is introduced.
A waybll was introduced to show ina
shipments of sugar had been shipped to
Cleveland. claim showing a rebate of
6 cents was allowed on all goods con-
signed to the points west of Cleveland.
and cents per hundred on all goods con-
signed TO Cleveland proper and not re-
shipped was placed in evidence Follow
ing this letter from G. r. Heicke. then
secretary of American Sugar Refining
company, was read. This was in reply
to one asking where and how the Ger IS
to be returned as an overcharge was 10
be collected. Mr.. Heicke's letter said
lildl the money Wohlu ne pdlu lillp lie
defendant company's account and finally
TO the credit of the Brooklyn Tranapor-
tation company.
Check Is Also Produced.
The check for $4,000. drawn on a bank
in Buffalo and paid to Mr.. Palmer, rep
resenting alleged rebates, was introduced
In evidence despite Mr.. Mclvaine's IT
tempt to prevent its reading by admitting
its Existence. on discrimination MI.
Palmer said he has been engaged in the
lighteraee business IN Brooklyn at Pal
mer's docks. Independently of the sugar
trusts business since 1874. He handled
all manner of business then. he said, IN
addition to sugar.
What did YOU understand by the law
asked defense's lawyer.
II did not understand any restrictions
were placed upon the shipper b. the
interstate commerce act and also under
certain recent decisions. | understood that
railway had the right to make a
through ia te in competition with we.er
route"
Two other witnesses were examined anl
court adjourned until Tuesday.