Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-10-17
n. Y. CENTRAL
GAVE REBATES
It Allowed a Refund on Sugar
That Was Shipped to
Michigan.
FACT PROVEN BY A LETTER.
was Written by Roads Traffic Man
agcr to Friend OF the
Beneficiary

New York, oct 16.--When the hearing
was resumed today In the case against
the New York Central & Hudson River
Railroad company and Frederick fotho-
row traffic manager, on charges. OF
granting rebates to the American sugar
lReflning company, United states plst'
Atty. StImson outlined the prose-
cut,on's case. He said that the gov
eminent will show that on April ~
1904, Lowell NJ. Palmer, acting Tor inc
shippers and especially for the nrin .,
,,earuo IL. Edgar of Detroit, ehlercu
INTO an agreement with the Ne" ioih
rantraI ana Mr.. Pomer0y By winch
auear could be hauled 10 Detroit at the
rafe OF Is cents a hunjredwelgnt, m
atead OF the rate of 20 cents He'd with
the Interstate commerce cohlmlssioli,
The agreement said Mr.. Stimson, was
that the sugar company should pay .ho
regular rate OF % cents ana that latss
the difference OF cents per nuhuteu
pounds would be returned TO H. Mr.
Stinson charged that l9,5'o,nH poullua
~ sugar had been shipped on these
terms, and that rebate payments han
been made on this account.
A letter written by MIR. Palmer TO
Mr.. Pomeroy was offered In evidence.
The letter. which ls marked personal
and CONFIDENTIAL" bears the date OF
Aprii II. 1904 The letter says that Mr'
Edgars son had called on Mr.. Palmer
and proposed that their sugar snip
ments for the season be made from
New York by canal to Buffalo, as the
Edgars had arrangements with the De-
AN e Buffalo line to take the sugar
81 buffalo for distribution to Detroit
and Edgar's others points in Michigan.
This arrangement would give them
through rate OF about l7lh cents. The
letter states that Edgar Is In very
trying position In Michigan with the
severe competition OF the Michigan
beet sugars and tho Arbuckles, ana
something must be done for MIN III
the way OF rates this season.
The letter continues that IL this were
not DONE Edgars business would DE
put on tho canal.
The letter continues:
IF such course Is pursued 1t VIII
simply mean the disintegration OF the
present understanding for the division
Of sugar traffic. as IL n large ship
per like Edgar Is permitted TO make his
own rates II will only be a very short
time before every large wholesale
house IN the United States viii want
the same privilege"
Mr.. Pomeroy replied on April 20,
1904:
This is 70 advise that, taking effect
Immediately, we will undertake 10 han
die Edgars 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 bihed at tariff
rates and refund TO be made by vouch-
err"
Mr.. Stimson produced n 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
tures," 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 q stamp. l presume
this js an impression from II. l 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.