The Montgomery advertiser., 1906-11-15
HUGE SUMS
 WERE PAID Second Trial of N. Y. (.
 is On. $26,OOO TO SUGAR COMPANY Railroa9 Charged With Violating
 Elkins Act. ,Dcfense Admits Returning Money to Refining CorpOrnaion bat Refuses to Admit Rebating-choate
 Retained as ComnseI

New York, Nov. i4.--The second trial of the New York Central and Hudson River Railroad Company. charged with violations of the Elkins antitrust law, was begun in the Uni- ted States Circuit Court today.
 Assistant United States listrict Att torney Henry A. B. Wise addressing the jury said, that the government would show that the New York cen- trai entered into an agreement with the socalled sugar trust in 1902. just prior to the passage of the Elkins afa- ti-rebating act to ship sugars vest ward for the trust at six cents less per 100 pounds than lthe tariff rate, twenty-one cents per 100 'sounds. Over 70.0oO,o0O pounds of sugar were ship ped under this agreement, Mir. Wiss said. The government also would show that just after the passage of the FL kins act the defendant returned to the sugar trust as rebates but in he form of demurrage charges the sum of $26.O00,
 During tho examination of several important witnesses, it developed that the defense has admitted in signed stipulation, that the company paid $26,0O0 to the sugar company in the form of demurrage charges This Is practically an admission on the part of the defense of all the charges ex- cept that the s2s,OoO was paid as re- bates.
 Lowell NJ Palmer formerly traffic manager for the sugar 7apany. ap- peared as a witness for the prosecu- tion. He was shown letter which figured In the last trial of the New York Central This letter refers to an agreement entered into by General Traffic Manager Pomeroy, of the Gen. tral to ship the sugar con1pany's su- gar at a less rate than named in the public tariff.
 MT Palmer denied he possessed any right to make rates while handling the sugar company,a business. It came out that the witness had kept q sep arate account in the Market and Full ton National Banks for the trafFic de- partmert and that out Of tho sum on depesis thero. ths SaIarias ok hfs vHS rious assistants and office force were paid.
 It Is said the Federal authorities ex- pect to show before the trial is over that the money deposited fin his ac- count came entirely from rebates, and that the sugar company practically paid the expenses of It's great traflc department out of the rebates 1t re-. ceived.
 It was said in the Federal building that the legal force of the American Sugar Refining Company, which Is to be placed on trial for the acceptance of rebates at the conclusion of the present trial, Is to be headed by Alton B. Parker.
 The taking of evidence ended late today, when the government rested after the testimony of Lowell M. Palm CT, its chief witness. had been heard At that juncture 1t developed that the defense would call no witnesses, but base it's argument upon the plea that the overt acts alleged in the indict- ments do not come within the mean ing of the Elkins law, and that their plea would likewise be raised in de- fense of the American Sugar Refining Company. which is charged with ac- cepting the rebates specifically cited in the case. It also developed that Joseph Choate, former Ambassador to Great Britain, has been retained by the sugar company especially to argue this point, which he will do tomor- row.