Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-18
FIND REBATERS GUILTY
NEW YORK CENTRAL AND ITS
TRAFFIC MANAGER CONVICTED.

A dispatch from New York says:
In the United States court yesterday the
New York Central Railroad Company was
convicted of granting rebates to the Ameri-
can Sugar Refining Company of New York,
known as the Sugar Trust.
According to the provisions Of the act to
regulate interstate commerce, the maximum
penalty is $4,000. AS both the railway
company and Frederick L. Pomeroy, as
sistant traffic manager, are found guilty,
each may be charged $4,000.
Mr.. Austen G. Fox conducted the case for
the railroad and declared after the verdict
had been rendered:
''Well, you can't defend rebate cases in
the present state of public opinion
There was much talk about the Federal
building as to what effect the verdict would
have on the coming election.
This whole case was based on the charge
that w. Fl. Edgar & Son of Detroit, Mich,
had been overcharged and that the so-called
Sugar Trust had received rebates on
charges against this concern for freight.
An Agreement Reached.
Mr.. Stinson, United States district attor-
ney, early showed that some sort of an
agreement had been made between agents
of the New York Central and the sugar
company. but it remained for him to show
that drafts from various railroad offices
actually reached the sugar company. He
put in evidence correspondence between
Frederick L. Pomeroy and Lowell M. Pal
mer. a director of the Sugar Trust, regard
ing claims. Letters from Mr.. Palmer ac-
knowledged the receipt of drafts amounting
to several thousands Of dollars, represent
ing it was alleged, cents a hundredWeight
on shipments of sugar to the Edgar concern
in Detroit.
One of the letters from Mr.. Pomeroy to
1oI ott ;ny,f n
Mr.. Palmer's claim for a rebate of almost
81 600 for shipments of sugar to w. II.
Edgar G. Son of Detroit had been reached
or a basis of tariff Of % cents hundred
weight, with a rebate of cents; whereas
the tariff during that month was q cents
hundred.
Other letters piled up cumulative evidence
in favor of the contention of the govern
ment that Mr. Pomeroy and Nathan Gull
ferd vice president of the N. Y. c. r. r.,
had granted rebates to the American Sugar
Refining Company and the American Sugar
Refining Company of New SSn York TX 1an
on behalf of the firm of w. H. Edgar q
Son of Detroit.
When Mr.. Stimson announced that the
government rested Mr.. Fox announced that
he would offer no defense.
"If we are going to have square deal
in this land, it's got to be square dea Il
for corporations as well as lndlVlouals,
said Mr.. Fox to the jury.
Settled In New I ok.
He declared that in spite of popular
clamor in New York city and throughout
the country, and in spite of the help that
had been given to the excitement from GER
tain high sources, he believed that the ques-
ton was going to be settled right here in
New York.
II believe that men under oath at least"
said Mr. Fox, will agree to the contention
we make that there has been no criminal
intention on the part of the corporation:
His plea was for the freeing OF Pres
ident Newman of the Central from any con-
nection with the case. He is not indicted,
except as the Central is indicted, said Mr..
Fox.
Mr. Stimson told the jury that the law
stated that any departure from the pub
lished rate of tariff should be presumed to
be discrimination, and that such discrimina-
ton was a punishable offense against the
law.
In his charge to the jury Judge Holt re-
viewed the interstate commerce act and the
amendatory law of 1903, known as the Ell
kins act. This statute provided for the pun
ishment Judge Holt said, of the corpora
ton as well as it's agents and officials for a
violation of acts regulating commerce.
The jury was in consultation for about
one hour. While the foreman of the jury.
Mr. Taylor, and the other members of 1t
refused absolutely to discuss their delibera-
tons, it can be stated authoritatively that
at no time was there any question that the
twelve men would agree on verdict
against the Central and Mr.. Pomeroy.