New-York tribune., 1906-10-17
SPECIAL RAT l. TO EDGAR
MADE By N. Y. CENTRAL.
Letter Tells of Sugar Shipments to
Detroit J0bber.

Before Judge Holt, in the United States Circuit
Court yesterday, hearing was resumed IN the
case against the New York Central Hauroao
Company and its traffic manager. Frederick L.
Pomeroy. charged with giving reoates 10 INC
American Sugar Refining Company
Lowell NJ. Palmer. called to the stano ov MI
strnson said that he was a director in the
American Sugar Refining Company OF Nc"
Jersey. II do not know whether was an ON
Ger in the New York corporation" he added he
said he had Office at No. 1S4 Front stree'
which covered multitude OF things
MI Fox. counsel for the railroad, asked IL tne
witness had said "a multitude of sins" Mr.
Palmer denied having done So and contlnueo'
In 90 per cent of It's traffic arrangements we
named the rate and selected the route Tor tne
American Sugar Refining Company at the resu-
late rate, and in very small number OF cases
at lower rate. and we named that rate
After objection on the part of the defence.
letter sent by Mr.. Palmer to Nathan Guilford'
vice-president IN charge OF traffic on the New
York Central, in which the rebates under dis
cussion were asked for. was admitted before the
court. The letter, marked personal and conf
Dental" was under the date of April II, 1904,
and read. in part:
very serious state of affairs seems TO
threaten in regard to shipments of sugar to
w. H Edgar & Son. Mr. Edgars son called on
me last week with proposition to the effect
that they would like this season to have their
shipments OF sugar made from New York by
canal to Buffalo, we prepaying charges up to
that point onlv They state thar theV have an
arrangement with the Detroit & Buffalo line
to take the sugars at Buffalo for distribution
to Detroit and Edgars other points in Michigan.
Edgar is in very trying position in the State
or Michigan with the severe competition that
us nc Is experiencing WIN the Michlgah peet
sugars and with Arbuckle Brothers, and il
seems quite certain from the position that he
has taken that something must be done for him
In the way of rates this season
L tn1nk Ihat II we could arrange to give him
net rate of all rail of Is cents d hundredweight
to Detroit, and the same relative basis to other
Michigan points, we could make arrange
ment with him whereby these shipments
could be confined strictly TO New York Central
and West Shore fast freight lines throughout the
entire year If some arrangement of this kind
cannot be made. it is quite certain that Edsar's
business VIII De put on the canaI ana rates ar
ranged on 1t by himself beyond Buffalo. If such
a course is pursued it will simply mean the dis
integratton of the present understanding for the
division of the sugar traffic, as if a large shipper
like Edgar is permitted TO make his own rates il
will only be very short time before every large
Wholesale house in the United States will want
the same privilege.
AS you can easily see, this is matter of the
most vital Importance, not only to US, but to the
railroad companies, and I sincerely trust that
you VIII see your way clear to giving us author
ity to make such an arrangement with Edgar
as will confine his business the all rail route.
Assistant Attorney Wise then read the reply
to this request from r. L. Pomeroy who was
then assistant traffic manager for the New York
Central. which follows:
This is to advise that taking effect irnmedi-
ately' we will undertake to handle Edgar's ship
ments for Detroit. and such shipments as are to
pc retorwarded from there TO points on the
Michigan Central Railroad, at the rate of Is
cents a hundred pounds New York to Detroit,
al! rail- shipments to be billed at tariff rates and
refund to be made by voucher.
AS ADVISED over the phone, 1 think II would
De well to conf1ne this arrangement to Edgar's
traffic, as outlined above leaving his traffic that
Is going TO points on the Grand Trunk, Pere
Marquette and G. r. & l. roads 70 move via sucn
tneS as ne may elect, with the understanding
or this company as far the haulage is
cerneo, ne will undertake to do so.
AT the opening Of the afternoon session Mr.
Palmer resumed the witness stand Mr.. Slim
son produced number OF drafts, alleged to
nave oeen In payment OF the rebates, which
had apparently been tndorsed by stamp by Mr.
falmer' Mr.. Palmer said that he could not
luent1y any such signatures, but that such a
stamp had been used in his office The drafts
had been deposited in the Fulton Market Bank
where Mr.. Palmer kept his account.
George r Wilson, the general manager OF the
New YORK Central and West Shore last freight
lines, was the next witness called He was
asked about the payment of claims against his
last freight lines, and if he had brought into
court the claims he had been subpoenaed to
bring. He said he could not produce these
claims, as in accordance with the custom of the
road, they had been destroyed three months
after they had been adjusted. The record of the
payment Of such claims were kept by John s
Embleton, who was in Texas at the TINA on a
vacation for his health. Mr.. Wilson said
w. +. Boardman. cashier of the New York
CenuaPS fast freight lines, was the next VIII
ness. Various drafts drawn by the Rank or
Buffalo, purchased by the witness and which
had gone through the New York Clearing House
TO the credit of Lowell NJ. Palmer and placed to
ms credit IN the Fulton Market Bank. were
placed in evidence
The hearing will be continued this morning At
1870 o'clock