Every evening, Wilmington daily commercial., 1906-05-05

New York, May H-The Federal
Grand jury, which has been investi-
eating the charges that rebates were
secured By the American Sugar Refin-
ing Company from the trunk lines
running out OF New York and from
other railroads, yesterday appeared
before United States Circuit Judge
Holt and handed down seven indict-
ments against corporations and indi-
vidnals and q presentment recommend
ing q continuance Of the investigation.
The indictments were sealed and placed
IN the custody Of John A. Shields,
clerk Of the court.
Six Of the indictments are for giving
or receiving rebates in violation Of the
Elkins law and other provisions Of the
Interstate commerce laws against dis
elimination IN freight rates. One each
Is against the New York Central and
Hudson River Railroad Company and
the American Sugar Refining Com
pany. A third charges the New York
Central and Nathan l.. Guilford,
vice president Of the railroad with
giving rebates. The American Sugar
Refining Company Of New York, q
subsidiary concern of the trust, s ne
cused in the fourth, along with g.
Goodloe Edgar and Edwin Earle, large
wholesale sugar dealers in Detroit.
The fifth and sixth indiet the New
York Central, Vice President Guilford
and General Traffic Manager Il. l..
Pomeroy, and also the American Sugar
Refining Company, the American Sugar
Refining Company Of New York and
Edgar a Earle Of Detroit.
The seventh indictment charges con-
spiracy to violate the interstate COM
meree law on the part of Guilford,
Pomeroy and Edgar \ Earle. This is
the most serious indictment Of the
seven. The penalty for rebating ia
fixed at fine OF from 81, 900 to $40, 600
for each violation. The penalty for
conspiracy to violate Federal law
falls under Section 5440 of the Revised
Statutes, which imposes imprisonment
of not more than two years, or a fine
of not more than IS, 600, or both, for
each violation.
The charges which culminated in
the indictments were filed with At
torney- General Moody at Washington
in February. The charges Of rebatina
were madoagainst several Of the differ
entail lines as we'll as all Of the trunk
lines running out Of New York. II was
shown that the relations between the
roads and the sugar trust were So
close thatathe trunk lines divided up
the entire through westbound traffic
Of the trust oniH pooling arrangement
which had exfHtedlHinoe 1900. sBy this
the Central got nearly 25 per cent Of
the trust traffic, the I Pennsylvania
came next with 20 per cent and SO on
down.
The trust got the rebates in return
Tor monopoly Of Its freight. The diff
ferential lines, II was alleged, gave
their rebates during period in 1903
when the trunk lines refused TO be
held up by the trust. 1t took the
trunk lines six months OF seeing their
cars 80 west empty and the slow.
roundabout differential lines loaded
down with lucrative sugar shipments
70 induce them TO give in and accede
to the trusts term.
4. +. Riley, the big traffic manager.
who cracked the whip over-the rail
roads Tor the sugar trust for five years,
was forced to appear before the Grand
Jury and testify, as were also Lowell
~. Palmer, president OF the Brooklyn
Uooperage Company, trust concern
X. W. Parker, present traffic manaper
for the trust; II. H. LeeminR, a traffic
expert, formerly in the employ Of the
trust; officers Of the New York Central
fast freight lines and traffic and sugar
men from all over the country.
The strongest case was developed
against the Central All the indfct
ments returned are based on a chain
Of transactions whereby the trust has
been shipping sugar from New York
20 the Detroit sugar wholesalers over
the Central fast freight lines. These
men were really a subsidiary part 81
the trust la Detroit, it is alleged.
The president of each corporatior
indicted has been notified to appear
for trial at the next term Of the United
States circuit Court, Criminal Branch.
as have also the individuals indicted
All are expected 90 appear Voluntarily
The April Grand Jury will be dis
charged on Tuesday. Its recommenda
tion TO its successor in regard TO IN,
rebate inquiry, after commenting n
me difficulty Of securing evidence
says.
These difficulties necessarily limi
the number Of cases in which AN
grand jury can within its term of Office
sift the evidence down to the point 4
preparing and finding indictments
But the evidence thus Investigated i
us bearing upon the Indictment
which we have found has inoidentaU
revealed to us the probable existenc
Of SO many other instances Of simila
offences as to indicate general an
systematic policy, pursued by certai
large shippers, Of extorting from th
different railroad companies favors IN