The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-20

Central halIroau company ana lS general
traffic manager. Frederick l.. Pomeroy,
$4,000 yesterday for giving some SIC, 900
rebates on westbound sugars to the Ameri-
can Sugar Refining Company in 1904. The
railroad itself is fined SiOs,O 600 and Pomeroy,
Indicted jointly with it. 5000. Judge
Holt in imposing the fines expressed his
opinion Of the case emphatically. His
remarks are considered by United States
District Attorney Henry l.. Stimson and
lawyers in general to be the most striking
expression of the attitude Of the Federal
Bench toward infraction OF the Federal
laws regarding corporation that has as yet
been delivered.
The indictment on which the two de-
PENDANTS we're found guilty on Wednesday
contained six counts, each alleging a sepa-
rate infraction of the Elkins law in 1904
in the payment of rebates OF Ave cents of
the tariff rate of % cents per hundred
pounds on sugar shipped from the New
York rfneries Of the trust to Edgar h
Earle, iobbers of Detroit. Judge Holt
fined the company sls,O 900 on each of these
counts a total of $l0S, 600, and POmeroy,
the traffic manager who personally granted
the rebates, 81 coo on each. 1t is expected
the road will have to pay this also, as Pom
eroy. it is understood, acted only as it's
agent. obtaining no benefit himself.
Counsel for the railroad began argu-
ment for the arrest Of judgment at the OPEN
ing Of court yesterday. Austen @. Fox
was present for both defendants, the road
being also represented by General Counsel
Albert II. Harris and Pomeroy, who was
present in person. by John ID. Lindsay.
Mr.. i'oX handed up a long typewriter
motion to arrest judgment upon a dozen
grounds. This having been denied, he
handed up another similar one for a new
trial for the corporation. Mr.. Lindsay
then did the same thing on behalf of
Pomeroy,
In addition TO this, Mr.. Fox made a long
oral argument against the imposition OF
the sentence. He commended that Pomeroy
had rot been authorized to grant any re-
bates and the compan therefore should
not he held responsible for his acts. ANY,
way. he should not be held for doing the
only thing possible to prevent the rail-
roads sugar shipments from being di-
verted 10 the all water competitive route.
The Flkirs law in not protecting the roads
from that competition, as it had no iuris-
diOtion over the all water routes, was I'M
constitutional, counse argued.
Judge Holt denied all the motions to
srrest and then imposed sentence. He said
in part
a large amount Of evidence was commend
able, and should be taken into some con-
slderatlon in passing upon the penalty
TO be- imposed. With this exception, | do
not see any e~Xtenuating circumstances
The case was a fragrant one. The trans
actions which took place under this illegal
contract were very large; the amounts of
rebates returned were considerable; and
the amount Of the rebate itself was large,
amounting TO more than one-hfth OF the
entire tariff charge for the transportation
of merchandise from thiS city TO Detroit.
II is not too much TO say, in my opinion,
that II this business was carried on for n
considerable time on that bash il,
II this Discrimination in favor of this par
tieular shipper was made with an IL in
stead of q 2S cent rate and the tarif rate
was maintained as against their competi-
tors-the result not improbably would be
that their competitors would be driven
ont of business. This crime IL one which
in its nature il deliberate and premeditated.
"Such a violation Of the law, in its essen
tlal nature, j. a very much more heinous act
than the ordinary COMMON, vulgar crimes
which come before criminal courts con-
stantly for punishment which arise from
sudden passion or temptation. The crime
in this case was committed by men Of edu-
cation and of large business experience
anu whose kLdIlullR III Inc community
was such that they might " been ex-
peCted TO set an example OF obedience to
law, pom the maintenance OF which alone
in this country the security of their prop
Nrty depends. IL was committed on be-
half of a great railroad corporation, which,
like other railroad corporations, has re-
ceived gratuitously from the State large
and valuable privileges for the publlc's
convenience and its own, which performs
quasi public functions and which ~ charged
upteI slNa ksUhnak AhItnaNfAn in the ira ma
action of it's business to treat the citizens
of this country alike, and not TO carry on
itA business with unjust determinations
between different citizens or different
classes Of citizens. This crime in its nature
is one usually done with secrecy, and proof
Of which it il very difficult to obtain. The
Interstate Commerce act wa passed i'll
1897, nearly twenty years ago. Ever since
that time complaints OF the granting OF
rebates by railroads has g common
urgent and insistent, and although Congress
has repeatedly passed legislation e~ndeavor-
ing to put a stop to this evil, the difficulty
of Obtaining proof upon which to bring
prosecution in these cases is 40 great that
this - the first case that has ever been
brought in this court. In fact, but few
case- of this kind have ever been brought
In this country, East or West.
"hs between the two defendants, in my
opinion, the principal penalty should be
imposed IN the corporation. The trafhc
manager in this case, presumably, acted
without any advantage 10 himself and
without any interest in the transaction,
either by the direct authority or in accord
ance with what he understood to be the
policy or the wishes Of his employer"
Mr.. Fox Immediately gave notice that
he would appeal. and Judge Holt granted
him the usual stay Of sixty days in execu-
ton of Judgment. Mr.. Harris, counsel for
the railroad company. was discussing the
Elkins law, under which the defendants
were fined and the more recent Hepburn
law. under which imprisonment could be
imposed.
The moral OF this legislation he said.
is 10 never put of until tomorrow N
YOU can do to-day. Under the new law Mr..
Pomeroy might have been sent TO jail"
Mr.. StimsOn and his assistants, Attorney
Henry A. Wise and Government Agent j.
". II. Grim. sta rted yesterday 70 prepare
for The trial Of the next indictment Of the
ak handed down against the road, the
sugar trust and several individuals n
corporations. There Is an enormous amount
Of technical work TO be done in each Of the
eases in order to get il 10 such complete
ness that the actual trial may be expe-
dited, az was the case with the inst ndtct
ment. which took only about ak hours.
The next trial will be ina~ugurated. fpossible.
within two weeks.