Watertown weekly leader. [volume] (Watertown, Jefferson County, Wis.) 1906-1908, 1906-05-11
AMERICAN SUGAR
MEN INDICTED,
New York Grand Jury Has Seven Bills
Against Railways and In
diyidualS

NEW YORK, May 5.-The federal
grand jury, which has been investigating
charges that rebates were secured by the
American Sugar company from trunk
lines running out of New York and from
other railroads, today appeared before
United States Circuit Judge Holt and
handed down seven indictments against
corpora tons and individuals and pre-
sentiment recommending the continuance
of the investigation.
Those Who Are Accused.
The indictments are against the fol-
lowing:
New York Central railroad.
American Sugar Refining company.
New York Central and Hudson River rail
road company and Nathan Guilford, vice
president of the company.
American Sugar Refining company Of New
York, subsidiary concern Of the trust, and
G. Goodlee Edgar and Edwin Earle, whole
sale sugar dealers of Detroit, Mich.
New York Central & Hudson River rail.
road company and Nathan Guilford, vice
president, and F. L. Pomeroy, general traf,
tic manager.
American Sugar Refining company and
the American Sugar Refining company of
New York and c. Goodlee Edgar and Ed
win Earle
Nathan Guilford, F. L. Pomeroy, C. Good
lee Edgar, and Edwin Earle. charged col
lectively with conspiring to violate the in
terstate commerce law.
Coincidence in Jury's Action.
By a curious coincidence the action of
the grand jury timed almost exactly with
the reading of President Roosevelts mes
sage to Congress, submitting the Garfield
report.
Ii seemed probable that the men
named would be requested voluntarily to
appear and give bail for an appearance
c+t Of hn foIn ,,,< sy
June. In the case of corporation it is
presumed that the president or some 9TH
er important executive officer of the com
pany will appear and answer to the in
dictment
Heavy Penalties Provided.
The first six indictments were found
under the ''Elkins antitrust law" which
provides penalties of q fine not exceeding
$4,000, or imprisonment not exceeding
two years. for giving, granting, apply
ing for, or accepting any rebate or COM
cession from the regular freight rates,
as published by railway company as
a common carrier.
The seventh indictment, found against
Guilford, Pomeroy, Edgar & Earle, is
the most serious. The penalty for con-
spiracy to violate federal law falls I'M
der section $40 of the revised statutes,
which imposes Imprisonment of not more
tlldll l"o sedlS VI Lie VI uOl
than $1,000. or both, for each violation.
Other Rebates Found.
In recommending that the investiga-
ton be continued by its successor the
grand jury's report says:
In addition to cases in which indictments
have been handed down, the evidence has
indicated that rebates have been regularly
given to sugar refiners and their customers
by several other interstate lines; that q
oil ,,fO
pounds has been made by various railroad
companies to sugar refinerS to cover alleged
carriage, an allowance which is not made 20
other shippers and that other special fay
yorS of various kinds have been regularly
made in regard to sugar shipments, either
TO the refners themselves or to their Off
GERS or agents.
The evidence before US has shown clearly
in several instances and has indicated it to
be a fact quite generally that the Elkins
law as 70 the giving of rebates has been
disregarded since the day of its enactment.
Moody Fued the Charges.
The charges which eliminated in these
indictments were filed with Attorney
General Moody at Washington in Febru-
airy. Charles of rebating were made
against several differential lines, as well
as all the trunk lines, which divided up
the entire through west-bound traffic Of
the sugar trust on a pooling arrangement
which had existed since 1900. BY this
the New York Central got nearly % per
cent of the traffic. the Pennsylvania
came next with 20 per cent, and so on
down.
The trust got the rebates in return for
a monopoly of its freight. The differen-
tial lines. it was alleged. gave their re-
bates during period in 1903. when the
trunk lines refused to be held up by the
trust. 1t took the trunk lines six months
of seeing their cars go west empty aid
slow. and roundabout differential lines
loaded down with lucrative sugar ship
ments to induce them to give in and ac-
cede to the trusts terms.