The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-10-17
CLEAR CASE OF
GIVING REBATES
New York Central Allowed g.
Cent Refund on Sugar
Shipped to Detroit.
LETTERS PUT IN EVIDENCE
ALSO DRAFTS BY WHICH PAY
MENT WAS MADE.
LETTERS PUT IN EVIDENCE

New York Oct 16-When the hearing
was resumed today in the case against
the New York Central & Hudson River
Railroad company and Frederick Pome-
roy, traffic manager, on charges OF
granting rebates to the American Sugar
Refining company, United States Dis
trict Attorney StimsOn outlined the
prosecutions case. He said that the
government will show that on April 26,
1904, Lowell NJ. Palmer, acting for the
shippers and especially for the firm of
George H Edgar of Detroit, entered
into an agreement with the New YORK
Central and Mr. Pomeroy by which
sugar could be hauled to Detroit at the
rate of 1S cents a hundredweight, in
stead of the rate of % cents filed with
the Interstate commerce commission.
The agreement, said Mr.. Stimson, was
that the sugar company should pay the
regular rate of % cents and that later
the difference of cents per hundred
pounds would be returned TO it. Mr..
Stimson charged that 19,373.7U pounds
of sugar had been shipped on these
terms, and that rebate payments had
been made on this account.
Letter In Evidence.
A letter written by Mr.. Palmer to
Mr. Pomeroy was offered in evidence.
The letter which is. marked personal
and confidential" bears the date of
April II, 1904 The letter says that Mr..
Edgar's son had called on Mr.. Palmer
and proposed that their sugar ship
ments for the season be made from New
York by canal to Buffalo, as the Ed
CARS had arrangements with the De-
troit e. Buffalo line to take the sugar
at Buffalo for distribution to Detroit
II. ,SY,%e in Tfol1f ersar
This arrangement would give them
through rate of about ny cents. The
letter states that Edgar is in a very
trying position in Michigan with the
severe competition of the Michigan
beet sugars and the Arbuckles. and
something must be done for him in
the way of rates this season.
Threatened to Use Canal.
The letter continues that if this were
not done, Edgar's business would be
put on the canal.
The letter continues:
IF such a course is pursued it will
simply mean the disintegration of the
present understanding for the division
of the sugar traffic, as if a large ship
per like Edgar is permitted to make his
own rates it will only be very short
time before every large wholesale
house i'm the United States will want
the same privilege"
Mr.. POmerOy replied on April %,
1904:
This is to advise that, taking effect
Immediately, we will undertake to han
die Edgar's shipments for Detroit, and
such shipments as are to be forwarded
from there to points on the Michigan
Central railroad at the rate of IS cents
per 100 pounds. New York to Detroit,
all-rail shipments, to be billed at tariff
rates and refund to be made by vouch-
er."
Drafts Produced.
Mr.. StimSon produced number of
drafts which had apparently been en-
dorsed by stamp by Palmer. Some of
them were drawn by the National Bank
of Buffalo on the Chemical bank of this
city.
II wouldn't identify any such sigma
lures" said Mr.. Palmer.
The drafts are alleged to have been
the payment Of the rebate.
But that Is a stamp such as is used
in your office and by your authority"
There was such a stamp. l presume
this is an impression from it. / was
in Europe, anyway. when all this oc-
Cured" said the witness
Mr.. Palmer denied that he ever had
any correspondence with any official of
the New York Central concerning this
matter.