Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-11-17
SUGAR TRUST
PLACED ON TRIAL
Charged With Violating the EIkins
Act in Accepting Rebates
From N. Y. Central.
AMOUNT INVOLVED is $4,000.
Mr., Mcllyainc and Judge Parker
Make Many Objections for
Defense.

New York, NOV. 16.--The trial OF the
American Sugar Refining company,
charged by indictment with having vio-
lated the Elkins act in the acceptance
Of rebates from the New York Central
railroad in the spring of 1903 amount
ing TO $4,000 was begun today before
Judge Holt In the United States circuit
court
Lowell NJ. Palmer who was for many
wears AZ the head OF the sugar trusts
traffic department, was n witness to-
day.
The examination OF Mr. Palmer
which was conducted along the same
lines as In the recent New York Centrai
trial was frequently interrupted by the
affections of Judge Parker ana Mn
.ucIlyalne. Mr. Palmer testified that ne
Kent a separate book account for the
traffic department, but he was not per-
mitted TO explain how the clerks IN his
department were paid, the court sus-
tanning Judge Parker's objection on
that point 1t IL said TO be the cohteh-
ton OF the government that all the eS-
penses of the traffic department were
pald from this bank account ana that
all the deposits came from REBATES re-
turned TO and received BY the detehd-
ant company.
Mr. Palmer said he had consulted
with General Traffic Manager Pome-
row OF the New York Central and Vice
President Nathan Gullford OF the same
road concerning rates 70. sugar ship
ments to the west.
When Mr.. Stimsou questioned the
witness concerning the contracts ne
had made with various companies, both
Mr., McIyaine and Judge Parker were
on their feet with a series or ob1ec-
tons. What contract be may have
made had nothing TO do with the real
issues, they insisted. Mr.. Stimson held
that II would show the general author
ity under which the witness acted.
Judge Parker said that the defense
would willingly admit that the witness
had acted with the due authority Of the
defendant corporation. Tho agreement
made by the witness and General Trat-
nc Manager Pomer0y OF the New YORK
Central introduced In yesterdays trial
against the Central, was put In evil
dence. Under 1t the rate between
Brooklyn and Cleveland was reduced
10 cents from the published tariff rate
Of q cents and 10 cents. A letter writ
ten by Mr. Palmer to Nathan s. Gull
ford then traffic manager OF the Gem
trial. concerning the reduction OF rates,
was offered in evidence over the objec-
lions OF the defense. The general pur-
mort OF the letter showed that the re-
auctions or rebates were allowed with
the knowledge OF Vice President Gull
ford. Following this a letter from G.
n. Relcke, then secretary of the Ameri-
can Sugar Refining company. was read.
This was in reply to one asking where
and how the cents to be returned as
an oyercharge was to be collected
Mr.. Reckless letter said that the
money would be paid into the defend
ants commission account and finally to
thc credit OF the Brooklyn Transports
tlon company. The latter corporation
did all the trucking for the sugar COM
pany
The check for $4,000, drawn by a
bank IN Buffalo and paid TO Mr. PALM
er, representing the alleged rebates,
was introduced In evidence despite Mr..
McIlvaine's attempt to prevent its read
ing BY admitting its existence. To al!
of this evidence counsel for the defense
continued to object and to have their
exceptions noted when overruled.
w. Il. Foster, an employee IN the au-
liting department OF the sugar COM
pany testified that he had handled
some Of the claims upon which the re-
bates were based. one of these claims,
which he identified, he had forwarded
TO II. o. Havemeyer president OF the
defendant corporation. After further
testimony court adjourned until Tues
day.