Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-16
GUILTY OF RELATING
NEW YORK CENTRAL CONVICTED
SUGAR TRUST NEXT.

dispatch from New York says that the
New York Central railroad has again been
convicted of rebating to the sugar trust.
The story continues after The Stars report
yesterday closed. The dispatch says:
Judge Holt set next Tuesday as the day
on which he will hear the argument Of the
attorneys for the railroad on the usual
technical motion for arrest Of judgment.
This motion will. 1t Is expected, be over
ruled and the fine imposed. AS there is but
one count in the indictment on which the
road was tried this time the highest pen
atty which can be imposed is $4,000.
The interest in yesterdays session CEN
tered in the effort Of Joseph H. Choate to
have the Indictment thrown out on the
ground that as only the $4,000 rebates
We're paid over after the passage Of the FL
kins law the agreement to rebate and ship
ment of sugars to Cleveland thereon having
been completed before the passage of the
law, the whole transaction could not le-
gally be treated as a violation of the Ell
kins law.
1t had been shown that Lowell M. Palmer
FOR the sugar trust, and F. L. Pomeroy, as
assistant traffic manager for the road, on
July "a, 1902. made a written agreement to
rebate 6 cents off the schedule rate of p
cents per hundred pounds on all the trust
sugars going over the road from New York
to Cleveland.
On April 8, 1903. after the shipments had
been made and after the passage of the
Elktns act in February, Pomeroy paid the
$Z6,OO0-odd In rebates in single draft sent
to Palmer in roundabout fashion. At the
close Of the session Judge Holt announced
that at the request of the roads lawyers
Mr.. Choate would be allowed to argue the
applicability of the Elkins law to this
transaction on its behalf.
Trust Case Next.
John e. Parsons and Alton B. Parker
MIL
eminent has brought against the trust
This is upon the Complementary indictment
alleging the receiving by the sugar COM
pany Of the rebates which the railroad gave
Mr.. Choate. 1t was understood, thus argued
the point for both corporations. Austen G.
Fox and John D. Lindsay were present for
the railroad. and United States District At
torney H. L. Stimson, his assistants Henry
A. Wise and Felix Frankfurter, and Agent
John w. II. Grim on behalf Of the govern
ment.
Mr.. Fox. In summing up on behalf of the
railroad, admitted that the payments made
to Palmer were rebates, but said that they
had been paid by Pomeroy without any au-
thority from the railroad or any Of it's off,
GERS. I'VE admit that the payments made
were rebates. We admit that Pomeroy
granted rebates and paid them But we do
urge that such rebating has not been
brought home to this corporation now on
trial.
the government, said that the case against
the road was complete in every particular.
| It is just case of this corporation having;
| IN the words of former chief of police,
been caught with the goods on and having
thrown up both hands"
The jury were out about two hours, when
| they came back for Instructions 1t was
considered significant of the influence of
Mr. Choate's speech that, although Judge
Holt said 1t had no foundation, the Jury
asked Judge Holt for enlightenment on
whether the payment Of rebates after the
passage of the law. when the agreement
had been made and the goods shipped be-
fore the passage Of the law, constituted a
violation Of the law. Judge Holt said that
1t did. The jury again retired, and almost
| Immediately brought in a verdict Of guilty
Penalty will not be imposed until Tues
day. The Central has already been fined
$1OS.0O0, and Pomeroy, now its general
traffic manager. $1,000, on a joint indict-
ment of six counts. The first case against
the American Sugar Refining Company for
receiving the rebates begins today, also be-
fore Judge Holt