The Birmingham age-herald., 1906-10-17
STong Case is Made Against
 New York Central
DEFENSE IS LONG STANDING
Letters Written By Railroad Officials Are Read, Which Disclose the
 Whole Plan of Giving Re-
 bates on Sugar Shipments

New York, October 16.-When the hear ing was resumed today in the case against the New York Central and Hudson River Railroad companies and Frederick Pom eroy, it's traffic manager, on charges of granting rebates to the American Sugar Refining company, United States District Attorney Stimson outlined the prosecu- tion's case.
 He said that the government will show that on April 26, 1904 Lowell M. Palmer, acting for the shippers and especially for the firm of George H. Edgar of Detroit, entered into an agreement with the New York Central and MT. Pomeroy, whereby sugar could be hauled to Detroit at the rate of IS cents a hundred weight, in- stead of the rate of g cents, filed with the interstate commerce commission.
 Difference to Be Refunded. | The agreement, said MT. Stimson, was that the sugar company should pay the regular rate of 23 cents and that later the difference of cents per hundred pounds would be returned to if. Mir. Stimson charged that 19373,777 pounds of sugar had been shipped on these terms, and that rebate payments had been made on this account.
 MT. Stimson said that he wished it dis tinctly understood that all the alleged violations took place In or prior to 1904, so that the prosecution is not undertaken under the new railroad rebate law. He declared that the government would show T given back $26,141 in rebates to the sugar trust in discrimination against smaller shippers.
 George Roberts, assistant auditor of the interstate commerce commission was the first witness called by MT. Stin- son to prove the tariffs filed by the New York Central with the commission.
 Defense Admits Certain Facts.
 By the agreement of counsel, admis- sion of certain facts was made by the defense. This stipulation first relates to the identify of the New York Central and Michigan Central companies and their operation jointly of fast freight line known as the North Shore Despatch" from Brooklyn and Jersey City to De- troit. It further admits that the New York Central and Hudson River Railway company had filed with the interstate commerce commission a publishede joint tcriff of rates and that the Michigan Central had filed a concurrence of the tariff and the classifications. The joint tariff rate, the stipulation ayers, was 23 cents per hunored pounds for sugar in carload lots, according to first, second, third, fourth, fifth and seventh counts of the joint indictment against the de- fendants and that at all times mentioned in the sixth count of the indictment, the rate was 21 cents per hundred pounds for sugar in carload lots from Palmers docks to Detroit The stipuiation next ayers that the American Sugar Refining conl- pany, Is a New Jersey corporation and the American Sugar Refining company of New York is a New York corporation; that Nathan Guilford, at the time men, toned in the indictment, was the traf- fic manager of the New York Central and Hudson River railway and Fred l. Pom' eroy was the assistant general traffic manager, and that as such they had con- trol and charge of the freight traffic of the defendant line of railways.
 That on April 26 1906, a letter was sent to Lowell M Palmer, by defendant Iomeroy, naming rate for sugar ship ments less than the published tariff rates, viz. Is cents per 100 pounds. That there- after varied shipments of sugar were made in car load lots on through way bills ai alleged in the indictment and the full tariff rates thereon and no more were paid The final paragraph of the stipulation reads At the times and rlaces mentioned In the indictment claims for the difference between the full tariff lates so priced on the sugar and the rates named in the last mentioned letter QS oents) which difference amounted to the terms specified in the indictments were filed with the New York Central and Hudson River railway by Lowell M. Pal nler, claiming to act on behalf of w. H. Edgar & Son, the persons named in the letter."
 Shipments All Prepaid.
 Fred Hurst, who has charge of the general sales agency of the American Sugar Refining company, of New Jersey and th;. American Sugar Refining com rany of New York, testified that during tbe year 1904 all of the shipments of the Sugar company to the firm of w. H. Edgar 6 Son in Detroit had been prepaid. MT. Hurst said that orders for routing were received from the office of Lowell M. Palmer.
 Lowell MT. Palmer said that at his of flee the rate was named and the route selected for American Sugar Refining company, shipments. Tn 99 per cent of cases, the regular rate was stipulated" aid Nil. Palmer, "and in a very small number of cases at a lower rate, and we ramed the rate"
 Personal Letter Is Offered.
 A letter written by MT. Palmer to MT. pomeroy was offered in evidence. The letter which is marked personal and con fdential' bears the date of April Il, 1901, and reads "A very serious state of af- fairs seem to threaten in regard to ship ments of sugar to w. H. Edgar & Son. MT Edgars son called on me last week with a proposition to the effect that they would like this season to have New York by canal to Buffalo. We pre- owing charges up to that point only. They state that they have an arrange ment with the Detroit and Buffalo line to take the sugars at Buffalo for dis ,ribution to Detroit and Edgar's other points in Michigan. They figure that they can land sugars in Detroit via canal to Buffalo and thence via D. and P. line for, say 13 cents per hundred. This would give Edgar a through rate to Grand Rapids for instance, of F 1-2 cents.
 Edgar is in a very trying position in the state of Michigan, with the severe competition that he Is experiencing with the Michigan beet sugars and with Ar buckle Bros, and 1t seems quite certain CONTINUED ON PAGE 21