The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-17
SUGAR TRUST TRIAL BEGINS.
DIDN'T KNOW WHAT OTHER SHIP
PERS PAID. the DEFENCE.

Evidence Of Rebatlng Practically the same
~ In the New York Central Cases
Judge Holt TO Rule ON Legs Issues
o n Tuesday Hopeful letter Us Read.
There was a big crowd present yesterday
morning when the case of the Government
against the American Sugar Refining Com
pany for rebating was called for trial in
the Criminal Branch OF the United States
Circuit Court. Judge Holt presiding. The
case was the first in which a corporation
was placed on trial for violating the Ekins
act of 1903 by accepting or receiving re-
bates.
After q session lasting the GREATER part
of the day the case was adjourned until
Tuesday morning next, Judge. Holt prom
ising to decide then the legal issues raised
by the defence; First, the inapplicabilty
of the Elkins act TO alleged violations OF
that law, which were committed before II
vent into effect; and, secondly. the new
point brought out by Judge Parker in a
vigorously worded objection to the conten-
ton Of Mr.. Stimson and his assistants that
the American Sugar Refining Company
wal cognizant OF the fact that unfair dis
elimination was being employed by the
railroad company in its favor. II had not
not been shown, said Judge Parker. that
the sugar company had any knowledge
that the full rate OF 81 cents per 100 pounds
of sugar was being charged to other ship
pers on consignments from New York to
Cleveland.
On Tuesday morning, also, Joseph II.
Choate will make his argument on appeal
from the execution OF sentence on the New
York Central Railroad Company, which
was convicted Thursday Of giving rebates
amounting to about see, 900.
Az in the New York Central cases. United
States District Attorney Henry l.. Stimson
had the assistance yesterday in the presen-
tation Of the Governments case Of Henry
A. Wise and Felix Frankfurter and Spe ciaI
Agent OF the Department of Justice John
W. II. Grim. Tompkins B. McIlvaine of
Parsons, Gleason 4 Monvaine, general
counsel for the sugar trust. conducted the
defence. backed by former Chief Justice
Alton B. Parker. Joseph H. Choate was
on hand, too, but during the whole day
i~nterposed but one objection to a question
of the prosecution. John E. Parsons was
also in court but took no part in the pro-
ceedings.
The proceedings opened with a motion
on the part Of Mr.. McIlvaine to quash the
indictment against the company
on the ground that under the provisio ms
Of the Elkins act the court had no juris-
diction. After glancing over the type
written copy of the motion Judge Holt
promptly denied il, declaring that accord
ing TO his view there was nc doubt Of the
jurisdiction of the court. Mr.. MCIlvaine
hled an exception. 1t was the first Of a
series which Interrupted the trial almost
The oh{ar@inna vuora mazda
by Mr.. McIlvsine and Judge Parker and
were overruled lmost as fast as made
and exceptions recorded.
Next TO the constant fire of objections
the most notable incident of the trial was
the reading 10y United States District At
torney Stimson Of q letter written by Lowell
NJ. Palmer, dated March rs. 1903, and adj
dressed 10 Charles X. Heike. secretary Of
the American Sugar Refining Company:
Mr.. Palmer, who was on the stand, listened
70 the reading with a smile which broadened
into a laugh az the letter went on. and all
in the court room took to laughing at 1t.
This is the text OF the letter:
do not know whether you have given any
attention to the conditions Of the new klkins
law. but In case you have not ! would like
to call your especial attention to the enclosed
ummary OF the bill. which will show you
what we are going to have to contend with
In the future on all such arrangements which
VIC u n III wv lfeNh N1~N WV
with published tarin rates.
We hope to devise some means to enable
us to continue our freight matters with the
transportation companies satisfactorily, even
under the new provisions imposed by the
Elkins bill. but 1t may turn out that we can
not be taken care OF. in which event we will.
like all other shippers. have 10 take our medi-
cine and look pleasant.
The other witnesses examined were
Fred z. Hurst OF the sales department
of the American Sugar Refining Company,
George T. Roberts OF the Interstate Com
merce Commission, James $. Treloar,
freight clerk for the 9 trust for ten
or fifteen years past; William F.. Foster,
auditor Of the American Sugar Refining
Company; Henry T. Leeming, formerly
in the employ of Lowell NJ. Palmer; Lewis
H. Meyer, shipping clerk for the National
Sugar Refinery. YOnkers, and Samuel g.
Chase, freight agent for the New York
Contra Railroad Company at West Albany.
IL was the testimony of the two last
named that brought out Judge Parker's
declaration that the evidence offered by
the prosecution failed to show that the
sugar company knew anthing about
rates granted by the New York Central
TO other shippers or that the testimony
showed that the company was aware that