New-York tribune., 1906-10-18
CENTRAL FOUND GUILTY
REB4TE CHARGES PROTED
Traffic Manager Also Con
uicted-No Defence Made.

The jury in the rebate against the New
York Central Railroad brought in verdict of
guilty against both the railroad company and
Frederick L. Pomeroy. its general traffic man.
senr. yesterday. on six of the counts
ramed in the indictment. On motion of Austen
e. Fox and John D Lindsay. representing the
defendants. the pronouncing of sentence was
postponed 10 Friday morning by Judge Holt, to
give counsel for the defence time TO appeal for
en- amelioration Of sentence.
According 10 the provisions of the Elkins act.
under which the convictions We're secured. the
maximum penalty for rebating is a fine of 500.
Geo Each OF the defendants. being convicted
on six counts. may therefore be fined $4,000.
The frst count, which charged the defendants
with offering rebates withdrawn by Dis
trfct Attorney Stnlsonl.
The first witness called yesterday afternoon
was Alan McMichael. chief clerk to Frederick L.
Pomeroy. Through the witness Mr.. Stimson put
in evidence correspondence between Lowell NJ.
Palmer. in charge Of The American Sugar Refn
ing Companys traffic arrangements; w. H. Will
son. general manager Of the New York Central
Fast freight lines, and Mr. Pomeroy, regarding
claims amounting 10 about $1,000, made by Mr..
Palmer. All of the claims dealt with the ques-
ton Of overcharge in shipments of sugar to the
firm of w H Edgar & Son. of Detroit
Letters from Mr. Palmer to Mr. Pomeroy,
knowledging the receipt of drafts amounting to
thousands OF dollars admitted These
drafts. it was charged. represented the payment
Of the Scent rebate every hundredweight
Of sugar shipped by the Sugar Trust to the Ed
gar concern in Detroit.
One of the letters from Mr.. Pomeroy to Mr.
Palmer called attention to the fact that Mr..
Palmer's claim for a rebate of almost 81 900
had been reached basis of a tariff of %
cents hundredweight, with rebate of fve
cents. whereas the tariff during June. 1904 was
21 cents, with a rebate of three cents for the
Sugar Trust Mr. Palmer was asked TO readJust
his claim
Mr.. Fox and MIR. Lindsay, uniting announced
that they would offer defence Mr. Lindsay
said that he believed the agreed statement of
Facts read TO the jury by District Attorney Stim-
Son gave the position of both defendants.
Mr.. Fox then addressed the jury follows
II we are going 10 have a square deal in this
land it's got be square deal for corpora
tions as well as for individuals. / believe that
men under oath at least will agree to the con-
tention make that there has been crimi-
nal intention the part of the corporation
If you find verdict OF guilty in this case you
are taking money out of the pockets of the
stockholders
Characterizing Mr.. Palmer as a clever ma
nipulator Of the vast traffic business of great
corporation. Mr.. Fox pleaded that his client re-
ceive fair show"
District Attorney Stimson in addressing the
eury, said:
Two features OF this case are impressive The
first is the completeness OF the documentary evi-
dence When you consider that the purpose of
rebating is deceit. you ought to appreciate how
surprising II is that the government is able TO
present TO you complete documentary proof
Few people begin TO do wrong in writing but
these people have II was silly deception The
draft remained in the bank after il had been
paid, and the government could subpoena it
Palmer gets the draft and sends a receipt for it
As TO the cuIpablity of Pomeroy there is no
ED1ef lie h, To.-T 1,a.
the draft Mr.. Palmer.
AS to the joint guilt of the New York Central
tne act Of Porneroy or Guilford was ipso facto
tle ACT OF the corporation BY stipulation il had
been agreed by counsel for the company that
Mr Guilford and Mr. Pomeroy were authorized
- make lawful rates for the railroad If vou
want 70 decide that a man authorized TO make
legal rates is not TO be punished when he makes
illegal rates. you've got down TO the point where
you cannot convict a corporation. / feel that
you have one Of the best elements in evidence
when you consider the unctuous testimony Of
MT Palmer as 10 the conditions in his office He
said that 80 per cent of the business in that
Office was perfectly lawful.
In charging the jury Judge Holt specified each
sum alleged in the indictment to have been re-
funded TO the American Sugar Refining Com
pany oE the railway company The jury could
lIno, ne SAID that both or or neither of tha
defendants was guilty, as alleged or that they
had paid one or all of the sums specified as re-
bates. He said that the Jury would have 70 da
cloe whether the letters headed private and
confidential or the method of making payroan,
sndirectly through Buffalo bank disclosed in
tent He pointed out that the 1ury might 6rav,
tnferenoes If 1t pleased. from the secrecy, e1Ir
rounding the business methods of the defend
Bnts.
Mr. stimson said he had expected the YER
DICT ~ 'ef
Mr.. Fox said
We'll. you can't defend reha-a o.ear - -.
present state of public opinion" ~
Mr.. Poneroy had nothing TO saw
Nathan Guilford, vice president in cbarga of
traffic for the New York Central who was aIso
named in the Indictment was unable 70 annear
"a C4uft at the trlaI on account of illness, and
will be tried on the same indictment later