The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-15
FIGHT SUGAR REBATE CHARGE
TIE TRUST ANO ". Y. CENTRAL
QUESTION ELKINS Law.
11rOate 10 Argue in the U. 3. Court To-day
Against Its Applicability 20 Transac-
p lions before the Act Was Passed Sec
Ond Case Against the Central All In.

The New York Central Railroad Com
rsnv was brought to the bar in the United
s,,tes Circuit Court, Criminal Branch,
s,r the second time yesterday to stand
rial on a charge of giving rebates to the
American Sugar Refining Company. The
,,-e of the Government was completed
IN remarkably quick time, and was all
readv 70 60 to tho jury, except for summing
m M the close yesterday afternoon.
The most interesting development OF
+he trial came at the close, when announce
menr was made that "a recess in the trial
proper would be taken to-day in order
hat Joseph H. Choate might address the
,ourt on the constitutionality of the Elkins
law. or rather ITS applicability to the charge
on which the railroad is being tried.
This charge sets forth the making OF an
arrangement between Lowell NJ. Palmer,
araAsc msnage Of the American Sugar
Refining Company, and F. l.. Pomeroy,
assistant traffic manager for the ra lroad,
IN July. 1902. prior to the passage OF the
ylkins law, under which the road is being
tried. TO give and take rebates of six cents
a hundred pounds of the schedule rate
NJ u cents on all sugars for Cleveland.
About $4,000 was paid over by the road
in rebates after the passage Of the act.
IL is further alleged.
The railroad company contends that the
Flkins act contemplated no punishment
for illegal shipments in the past even II the
moneys thereon were paid after the law
vas passed. There is n Complementary
Indictment against the American Sugar
Refining Company, which will be brought
10 trial Immediately after the present trial
Is concluded. The indictments stand or
fall together, and Mr.. Choate will argue the
point relating 10 the CT post fdcto character
~ the Elkins law on behalf of the two
corporations.
It is understood that the American Sugar
Refining Company will make a strong fight
on It's own behalf. Alton b. Parker has
been retained in addition to Mr.. Choate
% aid in lighting the case. Mr.. Parker
viii have entire charge of the trial, assisted
Nv John Z. Parsons and other members
of the firm of Parsons, Closson d Mcllvaine,
counsel to the trust.
The railroad was represented yesterday
nv Austen G.-Fox. John Lindsay and Albert
Fl. Harris. United States District Attor-
ney Henry L, Stimson, with his assistants.
Henry A.. Wise. Felix FrankfurteT and
Agent John W. II. Grim, who have pre-
pared the enormous documentary evidence
in the case, were present on behalf Of the
Government.
The defendant has already demurred TO
the Indictment on the ground which Mr..
'hoate will take up to-day in more ex-
tended fashion. Judge Holt, who is sitting
in all the rebate cases, threw this out.
Ney ertheless, the attorneys for the road
pursued tactics which gave the impression
that they expect to win out ultimately
~ Il. e A. - ,~-Ituahthk.r 80 Nhn
ElNlns law to the alleged illegal transactions.
the Government, on the other hand, will
contend in it's summing up to the jury,
II il expected. that such a payment was all
the more illegal in view of the fact that the
railroad might we'll have refused 10 pay
~ or tire rebates on the ground that It was
now illegal, although The arrangements
for the had been made at "A time
v en they were net nlag II.
IL developed early in the trial that Messrs'
Fox and Lindsay for the railroad had con-
ceded the shipment Of the sugars covered by
the indictment. and the existence of all the
documentary evidence gathered by the
Government showing all the TRANSACTIONS
and the payments thereon which are alleged
10 constitute the crime Of Relating. All has
been conceded practically except the fact
that the payments were rebates.
There was a lively tilt between Messrs.
Fox and Stimson over whit certain e'v'-
al tAlulll ~ EiNb" ANA
"a covered by this agreement between
counsel. This was made interesting, however,
cnly by the fact that Mr.. Fox said
There's a good deal of talk in the air just
Tow about a square deal, and | mink We
ought 10 have it,
Mr Stimson rejoined with some heat that
Nr. Fox had no justification whatever in
making such a remark As "A matter oil
fact. he said, what Mr.. Fox calls a stipu-
lation Of fact made by agreement with us
L. 40 stipulation at all, but merely an ad-
miseion of fact on their part, made TO save
the officials Of the defendant railroad COM
larv the business Inconvenience OF coming
Gown here and testifying tn the hundred ana
one transactions involved in these cases.
Mr.. Fox wishes 10 withdraw his admission
10 Is az perfect liberty To do So
Mr.. Fox then stuck 10 the general adj
passion. When Mr.. Stimson proposed to
put into evidence and read 10 the jury
one Of the letters in which Lowell Nj. Palmer
called on Pomeroy for the payment OF
claims alleged to be rebates, Mr.. Fox said
HiriIy, -Oh, VIC admit under the agreement
there IRE no Two Richards in the field here"
IfIhelpnly interesting witness of the trial
,as Lowell NJ. Palmer, traffic manager
q I'd director Of the American Sugar Refining
company in 1902, and the man who made
little arrangements for the alleged rebates.
Mr. Palmer aroused some amusement by
saving with a smile that he had no authority
= adjust claims on behalf OF the trust.
J fILlGDe YOU Cdn INllNcu yOhA h-ilcA
nv a glance al this," said Mr.. Stimson,
handlng him a letter press book Of the trust
,pu+ainiug a copy Of q letter written 10 Mr..
Pllmer by H. d. Havemeyer, head of the
trust, early in 1902, giving him authority
n adjust claims.
Yes, | see that this does give me author
itv 70 adjust claims, but not 10 make rates,
sad Mr.. Palmer. who, probably against his
will. will be the Governments star witness
IN the trial Of the sugar trust:
MIR. Palmer testified that he had "A special
bauk account for the traffic department
N the Market and Fulton National Bank.
into which the moneys received from rail-
roads went and out Of which he paid the
salaries Of T. p. Riley, the big traffic expert
Of the trust, and the other men under him
Did YOU go 70 sec Mr.. Pomeroy at has
Office in the Grand Central Station on July
-, lSO27' asked Mr.. Stlmson.
/ did"
And what did you say 10 him.
told him that our customer in the
Vest and at Cleveland were complaining
nj the high schedule rate of n cents on
sugars, and asking US TO route their sugar
ia the all water route. which cost some