New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-09
SUGAR REBATESINQUIRY
US. GRAND JURY At WORK
Charges of agreement Among All
Railroads. Entering City.

The Federal Grand Jury in this city yesterday
began 10 take evidence in regard TO charges laid
before Attorney General Moody that the railroads
having terminals in New-Yo-k and Jersey City
were concerned IN a definite agreement I'm regard
20 q division OF the sugar freight business and
also had been paying rebates 10 the Sugar Trust
The charges. which brought by W. r. Hearst
allege that the agreement has extended over a
long term of years and that large sums have been
paid in rebates.
The evidence collected I'm the case was laid be-
fore Attorney. General Moody come weeks ago. and
after an investigation the Department of Justice
has determined that the cases shall be pushed
vigorously at
The Delaware. Lsckawanna & Western Railroad
Company Lowell M. Palmer. of Havemeyer &
Elder; a Brooklyn dock company and others are
defendants in the principal rebate action, while
the other railroad companies centering in and around
NewYork appear in other cases Ii is believed that
United States Attorney Henry l.. Burnett, will
represent the government in the cases. II
understood when Mr.. Burnett went out OF office
that he was TO act for the government IN rebate
and trust cases. He is now special assistant At
torney General Henry F. Stimson the United
States attorney. in Washington yesterday in
consultation with the Department ofyJustice.
The subp6nas in the present cases were served
before the proceedings made public, and it
is expected that large number OF well known
railroad and Sugar Trust men WIN appear before
the Federal Grand Jury. though most OF them
denied yesterday that they had been served
knew anything about the cases. The witnesses who
appeared denied that they connected with
either the railroad Sugar Trust This leaves the
dock company possible employer of them.
Representatives OF W. r. Hearst said that the
government had been placed in possession OF docu-
mentary evidence every point charged. An as
sistant in the United States Attorneys Office said
The prosecution thinks sufficiently we'll Of the
evidence TO go ahead with the case. From the
time ana attention which have been put upon it's
at I is
tart proceeding
Clarence J. Shearn. counsel for NJ Hearst said
The railroad companies are caught req banded
law an Ia ou- coaI Tr ,nTestsston at the time
OF The strike al we were ebie 70 prove was a sort
What the soveTnInents attorneys hsss now IS shown
hard and fast agreement for the division of spoil.
pressed with tie evidence laid before him that he
Snfsrstte oInmes onnssion hut likes II d.
ments.
Mr. shearn ADDED that he thought the case
against the Network Central the strongest
OF all The law makes the violation OF the act a
Inisdeneanor. punishable by a fine.
Washington, March s,-When he saw the article
in 'The New-Yors American" OF to-day regarding
the alleged granting Of rebates thestransporta-
ton Of sugar Attorney General Moody said:
Some weeks sgo a representative of that paper
called Upon me, and said that Information wac in
fhs pcsSeSS.gn OF tn&L paper tSnc.rg 10 snow tnat
large rebates the transportation OF sugar had
been given 20 the American Sugar Refining Coin
papy by the trunk lines Of railroads running out
OF NewYoTk City. and asked ne 4 the Department
OF Justice desired TO use the information IN legal
proceedings. An examination Of the matter showed
clearly tia; II was highly Important and tended 10
show tee giving ana receiving OF large money
batez The subject wac then brought TO the stten-
ton OF Mr. St5rsoa. VINO had been selected by the
President. az District Attorney Ger the Southern
Following this or February /, which was the
date Of NJ. Stimsonfs taking Office conference
had in New-Yor6 between the Attorney Gen.
era. The assistant 20 the Aitor1ey General. Mr..
gone over with ve-y great care.
1t is the pl-rpCse Of she department 10 proceed
carefully, but with al possible expedition.
Il ought 10 be said thai. untl this information
was furDished the department by the representa-
i've Of The American" the deI5rtrnent had no
knowledge suspicion OF the facts, and that the
Representatives Of that paper have aidAd the cft-
ciais Ct the department IN all ways within their
power.
IN tie department at present the matter IS in
the stage OF investigation. No determination to
who should be indicted hns been arrived at, but
fui! evidence viii be laid before the grand Jury and
they Gtii determine against whom sufficient evil
dence exists q warrant Indictments II must be
any person unless there Is specific evidence of hts
Own personal participation IN violation OF the law
Mhie II - :TnpOssigsa 80 certainly what in
dtvGuals may aaFe participated IN the giving and
the department bt THE Nsw-York American IS
very important ana tends strongly to show that a
very extensive pr ct;ce OF giving rebates on ship
ments OF from New YORK has prevailed
The District Attorney g: New-York under the a.
TecuoH OF the Attorney General will act Nsprouslv
bQt ~ the mean time, II is more than fair that
Judgment be suspended until the whole matter has
been investigated and tried by the courts.