New-York tribune., 1906-10-20
BIG FINE FOR CENTRAL.
PENALTY FIXED At sos, 900
Pomeroy to Pay s6,000-Severe Ar-
rmgnment for Rebaters.

The New York Central Railroad and Frederick
l. Pomeroy. its traffic manager, were fined
SlOS.OOO and $4,000, respectively, yesterday for
granting rebates to the American Sugar Refining
Company. The maximum penalty provided by
the Elkins act is fine of $4,000. The railroad
company fined $4,000 and Mr.. Pomeroy
$1,000 on each of the six counts. Judge Holt. Of
the United States District Court, IN passing SEN
tence on the defendants who were found guilty
by jury in a criminal action last Wednesday,
said:
Such violation of law is much more heinous
than the ordinary common vulgar crimes usual
" brought before the criminal courts. Those
are crimes Of sudden passion and temptation.
These crimes we are dealing with were COM
mitted by men Of education, business experience
and standing in the community, and such
they should be expected to set an example of
obedience TO the law, the maintenance of
which the security of their property depends.
This corporation received large and valuable
public privileges 1t was under the highest
obligations to treat all citizens alike and not
70 grant any unjust determinations. This was
a secret crime the proof Of which was difficult
to obtain. The law was originally passed twenty
years ago. The complaints of the granting OF
rebates by railways were frequent and insistent.
Congress passed amendatory legislation. but so
difficult was the securing of the necessary proof
that this Is the first case brought in this court,
and, with the exception Of one recently In
Philadelphia, the only one in the East But
few have been tried in the West
Under these circumstances and for an offence
so clearly fragrant, il is the duty Of the court
TO impose a penalty commensurate with the
gravity Of the offence Between the two de-
PENDANTS the principal penalty should be i'm
posed upon the corporation. The fndfvfdua1 de-
| fendant acted without advantage to himself, in
| accordance with what he deemed to be the policy
and wishes Of his employers.
Judge Holt complinented the counsel in the
case. especially those for the defence IN assist
ing the prosecution to shorten the trial by CIV
Ing it certain necessary documentary data,
which. he said. entitled them to the courts
consideration. With thai exception. he declared,
he did not see a single extenuating circumstance
in the defendants favor Continuing he said:
| It is not too much to say that If the business
| had been carried on upon this basis and the
determinations continued in favor of ship
per it might have been that competitors would
have been driven out of business.
The fine imposed upon the railroad is much the
largest ever imposed in rebating cases. The
| largest before yesterday was one Of $4,000 I'M
posed in the West
! Before imposing the fines Judge Holt listened
/ to arguments made by Austen C. Fox and John
/ D. Lindsay, representing the defendants IN sup
port OF their motions for a new trial and for an
arrest of judgment. Both motions were denied
| A stay Of sixty days was granted however in
! which the defence might prepare its appeal
/ Mr. Fox read long plea for arrest OF judg-
/ ment. containing twenty-four articles, the chief
| of which that the defendant corporation
was not amenable 10 the laws Of the United
| States in the acts proved, that the acts alleged
| did not constitute a crime under the laws and
| finally that the EIkins act itself unconstttu-
tional. and that under its provisions the courts
had right TO mulct such corporation for in
! fringenent OF its provisions.
The defendant PomerOy." said Mr. Fox,
acted under circumstances by which he yielded
| he
not have been legally coercion, and I feel that
this fact should be taken into consideration al
though tho conscience of the court and not the
! opinion of the lawyer is 70 govern"
After the court had passed sentence Mr.. Fox
whispered to Mr.. Lindsay, at his side: II really
expected he would fine us $4,000 on each count
We really got off little bit lighter than had
! expected"
! United states Attorney Stinson who con-
Quoted the CASE for the prosecution said that as
/ New York was the centre for the great trunk
/ lines and for the large industrial interests he
thought the conviction would have marked eff
! feet upon the future recognition and observance
! of federal laws.
/ This case the first of series involving the re-
| ,ati0ns of the Sugar Trust with the common car
rers of the state. is regarded as test case. Ma
than GuiIford vice-president in charge of traffic
on the New York Central. has still to be tried on
! tbe six counts on which the railroad and Mr.
! Pomeroy were convicted. Though jointly in
| Cicted with the defendants In the present case
! Mr. Cuilfords trial postponed by Judge Holt
! because he was too Ill 10 appear in court
T1-sIIre counts still remain against the New
| work central Railroad charging it with grant
/ ing rebates to the Brooklyn Cooperage Company
| n Subsidiary concern OF the Sugar Trust.
The DeIaware Lackawanna & Western Rail-
| road and the Northern Steamship Company are
| also under indictments for granting rebates to
/ tha sugar Trust The American Sugar Refin-
/ inc C,omnany the American Sugar Refining
/ Counanv of New York, the Brooklyn Cooperage
| Company and the firm of W. II. Edgar Son
TlafT 81
| ceiytng rebates The trials OF these cases Will
! lie arranged for as quickly as possible