New-York tribune., 1906-05-05
SUGAR TRUST INDICTED
NEW YORK CENTRAL also.
Federal Grand Jalry Finds Rebating
-AdUises Further Tnquirv.


which several scores OF witnesses were exam
ined. the April federal grand fury Yesterday
completed its investigation in the sugar rebat
ing matter and handed down seven indictments
and presentation United States Commissioner
Shields. Clerk Of the United States Circuit
Court, received the indictments personally. To-
gether with the pnesentment, and under the or
ders Of the court sealed them until the defend
ants named IN the indictments had been ar
raigned. Henry L. Stimson United States Dis
trict Attorney. also present in court. when
asked il indictments had been returned against
officials for alleged rebating. smiled and replied
II have nothing TO say"
II is known, however, that seven indictments
were returned, the first against the New York
Central & Hudson River Railroad Company, the
second against the American. Sugar Refining
Company. the third against the New York Central
& Hudson River Railroad Company. together
with Nathan Guiford. its vice-president: the
fourth against the American Sugar Refining
Company Of New York. together with c. GoOdloe,
Edgar and Edwin Earle wholesale sugar dealers
OF Detroit; the fifth against the New York
Central & Hudson River Railroad Company
and Nathan Guilford. its vice-president, and
F I. Pomeroy general traffic manager: the
sixth against the American Sugar Refining Com
pany # New York and the American Sugar Re
hning Company and c. Goodloe Edgar and Ed
win Earle. These indictments were found un-
der Section $40 Of the United States Revised
Statutes, commonly known as the "Elkins Anti
Trust Law" which provides a penalty OF fine
not exceeding $4,000 or Imprisonment not ex-
ceeding two years for the giving granting. ap-
plying for or accepting any rebats con-
oession from the regular freight rates. as pub
lished by railway company common car
rier
The seventh indictment was found against
Nathan GuiIford, F. L. Pomeroy. c. Goodloe
Edgar and Edwin Earle. and charges them with
having collectively conspired TO violate the pro-
visions Of the Ekns antitrust law.
j IS not probable, however that any Of the
defendants viii be arrested on a warrant, but
viii be informed by the federal authorities that
an indictment has been found, and requested
voluntarily to appear and give bail for an ap-
pearance at the next term of the Federal Court,
IN June. In the case Of a corporation it is
presumed that the president or some other
important executive officer of the company viii
appear and answer 10 the indictment
IN view Of the Importance in the commercial
world Of the accused companies and persons. it
is not expected that United States Marshal
Henkel viii have any difficulty in arraigning
them for preliminary ball. prior TO the formal
arraignment for pleading. These are the first
indictments for alleged violation Of the
antitrust law found in this district. and the
grand jury deems the situation only huVriedly
canvassed. II recommends that the investiga-
tion be continued by its successor, intimating
that indications point to other common carriers
being equally culpable with the Vanderbilt roads
which it indicts with the so-called Sugar Trust.
il is understood that to-day the federal
authorities viii communicate with either those
mentioned in the indictments their counsel.
and that arrangements will be made for their
preliminary appearance before United States
Commissioner Shields, although some Of those
best informed believe that United States Dis
trict Attorney Stimson viii waive that formal
fly and only ask for the appearance OF those
indicted before the Criminal Division Of the
United States Circuit Court the first day OF
its June term. Neither Mr.. Stimson, Commis-
sioner Shields, nor United States Marshal Hen
5el would discuss that phase of the situation.
nor in fact anything else connected with the
indictments when seen yesterday afternoon.
The presentment said:
During this this grand jury has considered
q very large amount OF evidence bearing on this
- re ~ - most most ifcuiy II i6voIves MOI
Only a consideration OF the Eolumlnous records.
papers otner complex instruments used in
ern Taroad hut il also becomes necessary pene-
Irate various skilfui DISCUSSES thrown about the
transaction by parties concerned.
These difficulties necessarily limit the number OF
cases in which any grand jury can within its term
oI once sILt ule eEIueI5CS uCHn ~ tS poAt u PIe
pairing and finding Indictments But the evidence
I.esIe6 - 1s me I1rofa he exisferee ~ So many
general and systematic policy. pursued by certain
large shippers Of eXtOrtng from the different rail-
leasl questionable. The evidence before US has re-
Iated mainly shipments OF sugar from various
-e1nerles IN this locality 10 Western markets
In addition 10 the cases Ia which indictments
have been handed down. this evidence has indicated
rebates have been regularly given 10 sugar re-
Iners and ther customers by several other inter-
state lines that regular allowance OF TWO cents
r0a
carriage. an allowance which. though usually pub
lshe0 tariffs often represents no labor actu-
etls 80 70 % sG,,iiaT ,.oI11I1odittee and tl,st 0tber
SPECIAL of various kinds have been regularly
5- "a ,te2~lelyes oT "a +1ti- o445cers or seents
t.raI instances and mas Indicated IL 10 be a fact
the giving Of rebates has been disregarded since
we fully appreciate that the difficulties of nvestI
CATION heretofore mentioned and the skifu devices
;inder which discrimination is often veed may
,-erSer Tba detection and proof of this class OF
crime difficult and welnigh impossible, in spite OF
The most conscientious and untiring effort on the
part of prosecuting officers and federal grand
iuries Nevertheless we deem it our duty to call
the attention of this honorable court and the sue
of continued investigation into the state Of facts
are based. the end that further indictments OF
a like nature may be found and other steps taken
TO mitigate the evils which we believe 20 De gen.
erally prevalent. and which cause great injury and
oppression 10 small shippers thus denied equal ac
cess 10 markets in interstate commerce
The presentment is signed by Robert N Boil
ton. foreman: Edward N. Cutler. secretary. and
seventeen other members Of the grand jury.
In view Of the recommendations OF the grand
fury Just finishing its labors. it is understood
that United States District Attorney Stimson
viii continue his investigation into the alleged
practice Of rebating with the incoming grand