The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-10-17
ALLEGED TO HAVE
GIVEN SUGAR REBATES
New York Central Charged
With Relating to Sugar
Shippers.

NEW YORK, Oct. 16.-When the
hearing was resumed today in the case
against the New York Central and
Hudson River Railroad company and
Frederick POmeroy, its traffic manager,
on charges of granting rebates to the
American Sugar Refining company, U;
S. District Attorney Stimson outlined
the prosecution s case.
He said that the Government Will
show that on April &c, 1904, Lowell NJ.
Palmer, acting for the shippers and
especially for the firm of George II,
Edgar of Detroit, entered into an
agreement with the New York Central
and Mr.. Pomeroy by which sugar could
he hauled to Detroit at the rate of Is
cents a hundred weight instead of the
rate of % cents filed with the inter
state commerce commission.
The agreement, said Mr.. Stimson,
was that the sugar company should pay
the regular rate of % cents and that
later the difference of five cents per
hundred pounds would be returned to
it. Mr.. Stimson charged that 1879
III pounds of sugar had been shipped
on these terms and that rebate pay
ments had been made on this account.
a letter written by Mr.. Palmer to
Mr.. Pomeroy was offered in evidence.
The letter, which is marked "personal
and CONFIDENTIAL bears the date
April H. 1904. The letter says that
Mr.. Edgar,s son had called on Mr.
Palmer and proposed that their sugar
shipments for the season be made
as the Edgars had arrangements with
the Detroit and Buffalo line to take
the sugar at Buffalo for distribution to
Detroit and Edgar's other points in
Michigan.
Had Gained Through Rate.
This arrangement would give them
through rate of about l712 cents. The
letter states that Edgar is in very
trying position in Michigan with the
severe competition of the Michigan
beet sugars and the Arbuckle brothers
and something must be done for him
III the way of rates this season.
The letter continues that If this
were not done Edgar S business would
be put on the canal
The letter continues; eff such a
course is pursued it will simply mean
the disintegration of the present un-
derstanding for the division of the
sugar traffic, for if large shipper
hge Edgar is permitted 10 make his
own rates it will only be a very short
time before every large wholesale
house in the United States will want
the same privilege, y
Mr.. Pomeroy replied on April Goth,
1904; ''This is to advise you that,
taking effect Immediately. we will un-
dertake to handle Edgar 8 shipments
for Detroit and such shipments as arc
TO be forwarded from there to points
on the Michigan Central railroad at the
rate of is cents per 100 pounds, New
York to Detroit. all rail shipments TO
be billed at tariff rates and refund to
be made by voucher"
Drafts In Evidence.
Mr. Stimson produced a number of
drifts which had apparently been en-
dorsed by Palmer. Some of them were
drawn by the National Bank of Buff
falo on the Chemical Bank Of this city.
81 wouldn I Identify any such sigma
lures" said Mr., Palmer.
The drafts are alleged to have been
the payment Of the rebate.
"But that is stamp such as is
used in your Office and by your author
ity?
"There was such a stamp. L pre-