New-York tribune., 1906-11-16
CENTRAL FOUND GUILTY
GAZE $4,000 IN REBATES.
Railroad Nay Hare to Pay $4,000
IN Fines.

The New York Central Railroad was convicted
yesterday on the charge of issuing rebates TO
tbe American Sugar Refining Company to the
amount Of $4,000. the jury returning verdict
of guilty. after being out two hours.
The highest penalty that be inflicted is
6ne Of $4,000 The company received until
November 20 10 make a motion for an arrest
of Judgment This is the second time that the
road has been convicted Of giving rebates. The
trial of the American Sugar Refining Company
for accepting rebates will begin to-day.
The case was tried before Judge Holt, in the
Criminal Branch Of the United States Circuit
Court There was only one count in this indict-
ment IN the previous indictment there were
several counts. and the New York Central was
fined Sl0s,ooo.
The courtroom was crowded yesterday morn
ing when the case was called, as it was known
that Joseph H. Choate would argue the rela-
lion of the Elkins law 10 the case. Both Mr..
Choate and Austen q. Eox, counsel for the
-siiroad. centred their arguments on the ground
that the rebate agreement with the sugar COM
psny was made prior to the enactment of the
Ekins law. and when made, did not constitute
q criminal offence If this law applied to
the case in question they argued that it would
be retroactive Mr. Choate moved that the case
te dismissed on the ground that the Elkins law
could not legally be applied to it. The argument
was overruled. The court held that there was
sufficient evidence to send it to the jury Mr.
Fox then began his argument for the defence.
As Judge Holt making his ruling he was
Interrupted by Mr.. Choate, who said: Then
your honor divorces the words Immediately be-
fore and after the word transportation in the
euT
Yes" responded Judge Holt
Well If ] have not made II clear TO your
honor ! can't do it, added Mr. Choate. IF
shall be is has been then 1 wrong and
my English is bad. This is the era Of new
spelling. and u your honor still holds shall be-
has been shall have to have new
grammars and new dictionaries. We shall all
have 10 90 20 school again.
The court held that the acts as described in
the indictment if proven, were purely misde-
meanors; that It was question for the jury TO
decide whether Mr.. Clifford and Mr.. Pomeroy in
granting the rebates, had not committed mis-
demeanoT: that the corporation was clearly re-
sponsibie for the acts OF its agents. The court
held that the Elkins law was really an amenda-
tory act.
After NJ. Fox had finished. United States At
torney Stimson who made the closing argument
for the government. said that Mr.. Pomeroy and
Sir. Clifford had given the Sugar Trust the unfair
rebate to get its business and, he asserted. the
check for the $4,000 rebate had not been paid
10 the company until after the passing Of the
Elkins act Concluding. he asked IL there was
al the secrecy in carrying 81 out?
The court told the jury in its charge that 1t
must decide whether the $4,000 had been paid
Tor rebates or for a legitimate overcharge; that
the burden Of proof upon the government.
not the oompany. It must show. Judge Holt
said, that the money had been paid as a rebate
with Wilful intent TO violate the Elkins law.
After considering the case for an hour and fifty
minutes. the jury came into court for instruc-
uons Judge Holt said he understood that the
jury wished to be enlightened upon the ques-
rebates whether
payment subsequent TO the enactment of the
law made the corporation, the New York Cen
cal. liable and guilty. Il will say" replied Judge
Holt. that the payment OF such rebates after
the passage Of the law does. providing the pay
rnent was made with criminal intent TO avoid
the law
The jury retired, and returned within ten min
utes with the verdict Of guilty
John D. Lindsay made the usual motions to
set aside the verdict Judge Holt formally de-
MED the motions.
Alton 3. Parker, john F. Parsons and Joseph
- Choate will be the counsel for the American
sugar Refining Company in the trial beginning
tJ-Ga7