The Washington herald., 1906-10-20
ROAD FINED 100000
New York Central Is Mulcted
for Rebates on Sugar.
JUDGE REBUKEs vIoLATORs
Traffic Manager PomerOy Also As
sessed $6,0OO-MOtiOnS to Arrest
Judgment Denied and Notice of
Appeal Is GIven-Attorney De-
nOunces the EIxins Law.

New York. Oct. 19.-Judge Holt. in the
United States Circuit Court, criminal
branch, to-day fined the New York Cen
tral Railroad Company and its general
traffic manager, Frederick L. Pomeroy
Sii4,Oo9 for giving some $4,000 rebates on
west-bOund sugars to the American Sugar
Refining Company in 1894 The railroad
itself is fined s1oS.000. and Pomeroy. in
dicted jointly with it. $1,000.
Judge Holt, in imposing the fines, de-
livered an oral opinion, which is con-
sidered by United States District At
torney Harry L. Stimson and lawyers in
general to be the most striking express
sion of the attitude Of the Federal bench
toward infraction Of the Federal law re-
garding corporations that has yet been
delivered.
Judge Holt Arraigns Road.
Judge Hollis arraignment Of the meth
DDS employed by the company was also
an arraignment Of Mr.. Pomeroy. He
said the only extenuating circumstance
which entitled the defendants to the
courts consideration was the fact their
counsel had apparently used every means
to shorten the trial by the introduction
Of certain documentary data.
Judge Holt said the guilt of the de-
PENDANT had been established clearly and
indisputabiy. The rebates granted by
the defendants amounted to large sums.
being one-fifth Of the entire freight rates
on sugar from Detroit 10 New York
The crime had been committed delib-
erately and premeditatively. said Judge
Holt Two weeks had passed between the
sending Of the letter requesting the re-
bates and the time OF the reply adyis-
ing the shipper Of the granting of the
rebates. The claims for the payments
of the rebates had been presented and
paid monthly.
The Indictment on which the two de-
PENDANTS were found guilty Wednesday
contained six counts. each alleging a sep
arate infraction of the Elkns law in
1904. in the payment of rebates Of 5 cents
on the tariff rate of o cents a hundred
pounds on sugars from the New York
refineries of the trust to Edgar d Earle.
jObbers. Of Detroit. Judge Holt fined the
company $4,000 on each count. a total
Of SlOS.o00 and Pomeroy. the traffic man
ager who personally granted the rebates,
s.. 900 on each count. making $500 more.
Arrest of Judgment Refused.
Counsel for the railroad began argu-
ment for the arrest of judgment at the
opening OF court to-day. Austen c. Fox
was present for both defendants, the road
being also represented by General Coun-
sci Albert r. Harris. and Pomeroy, who
was present IN person. by John d. Lind
say. Mr.. Fox handed up a long type
written motion TO arrest judgment upon
dozen grounds.
In addition to this. Mr. Fox made a
long oral argument against the imposi-
ton Of sentence He c0ntended that
Pomeroy had not been authorized TO
grant rebates. and the company. there
fore. should not be held for his action
Anyway, IL should not be held for doing
the only thing possible 10 prevent the
railroad sugar shipments from being
diverted TO the all-water competitive
route The Elklns law, he said, in not
protecting the roads from that competi-
ton, as IL had no jurisdiction over the
allwater rates, is unconstitutional
Judge Holt denied all the motions to
arrest. and then imposed sentence.
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.