The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-18
The CENTRAL FOUND GUILTY.
RAILROAD 60. AND POMEROY MAY
BE FINED SKeO, 900 EACH.

speedy Ending OF the Trial Of the Corpora
ton and It's Trafhc Manager for AC-
ceptink debates From the American
sugar Rennlns Company Appeal Sure
The New, York Central Railroad Company
add lie general traffic manager, Frederick
L. Pomeroy, were each found guilty on SIX
count Of giving unlawful rebates In lSOA
to the American Sugar Refining Company
by a jury in the United States Circuit Court
Criminal Branch, yesterday.
The conviction makes each Of the defend
ants liable to a fine Of &c. 900 for each sepa-
rate offence, or fne of si2 900 for the rail-
road and the same amount for its employees,
The indictment, while indicating that about
$40 900 was secured by the sugar trust In
unlawful drawbacks on the transactions
set UP. specifically alleges the payment OF
not more than $40 900 in the offences Tor
which the fines can be imposed.
Judge Holt did not AZ the penalty at once.
Immediately after the jury brought In It's
verdict Austen @. Fox On behalf Of the
defendants asked the Court to Ak a date on
which he could hear argument on q motion
for arrest OF judgment. This argument,
the next step in the fight, was set down
for Friday morning at 1880. After 1t Is
disposed Of Judge Holt will hx the penalties.
which, it Is expected by United States Dis
trict Attorney Henry L. Stimson and his
assistants, will be near the maximum.
These operate only as civil Judgments. and
the defendants II they refuse to pay them
cannot be imprisoned for their action.
The conviction, which came after a trial
N--Al- - 49,. 1ava h,N tUrO nf which
were consumed in putting the evidence
before the jury. marks the successful COM
pletion OF the first prosecution OF either a
corporation or an individual for infractlon
Of the Elkins law ever initiated In the ed
eraI courts Of this district.
The indictment on which the railroad
| company and its servant were convicted
charged the giving OF rebates to the whole
sale sugar jobbing firm Of Edgar q Earle
Of Detroit on demand Of the sugar trust
The rebates were five cents of the tarifi
rate of % cents a hundred pounds paid by
the railroad company by voucher.
By the opening of the morning session
Yesterday the prosecution had shown the
granting of the rebates on the demand oil
| Lowell NJ. Palmer, the aflc general ofthe
American Sugar Refining Company. II
seems that in the spring Of 1904 Edgar a
Earle had received a consignment OF 10000
barrels of sugar by water from the sea-
board at a rate Of Is cents a hundred. They
threatened to get all their sugar that way.
The trust, in order to hold their trade
compelled the railroad to give them the in
| ducement Of the hve-cent rebate with the
quick haul as comparedwith the water haul
Counsel for the dafendants- yesterday
continued to show at every turn their lnten
ton Of fighting the case on technica
grounds. The morning session was con-
sumed by Mr.. Stimson in putting into evi'
dence the drafts, letters, &c, sent by the
railroad o to the trust in payment
Of the rebates. Mr.. Fox admitted that the
Central eventually paid the rebate claims
to the sugar company OIL the Detroit ship
ments. No defence whatever was put IN
by the accused, full reliance being put
apparently on objections upon which latel
to upset the conviction in an appeal agains'
the constitutionality Of the Elhns law.
John d. Lindsay moved to dismiss the
complaint on the grounds that there was Z
misjoinder Of the corporation and the EN-
ployee in the indictment for the same offence
that in granting claims for overcharge
the railroad made no unlawful refunds
and that the Elkins law was ~unconstitu
tional in discriminating against the rail
roads by allowing a competing all waite
route to carry sugars at almost half the
rate of the railroads. After Judge Hol
had denied all the motions, Mr., Fox summed
up for the two defendants, saying:
There is no evidence to show that the
corporation, through its president OF any
OF its directors, can be guilty OF the ofenc'
charged. asst was not informed that an EN-
ployee was giving any rebates. EverybOdy
concerned in the directorate Of the roaC
thought that the money was being paid OF
merely for overcharges arising out OF tn
mistakes in the course Of the railroads
regular business. The agents Of the roao
have merely lone the only thing they
thought could be done to get business
which would otherwise have zone to thu
water routes, immune from the regulation
OF the. interstate laws for carrying freight.
Mr.. Stimson then summed up for the Gov
eminent. No member Of the jury coulC
fail to see, he said, that the system Of givinI
the rebates must have been known to ths
president Of the road, and the Elkins Law
plainly made the illegal act OF an agen
OF the corporation the act Of the corpora
ton itself.
ut Ia no excuse at all for the railroad
TO say that. it had to give secret rebates
TO the American Sugar Refining Company
although not to Arbuckle Bros, OF
the plea that otherwise the freight woul'
20 by water said Mr.. Stimson. -Th'
real reason why the railroad has not pa
in a defence is that 10 has none. Its clerl
who paid the rebates did not send then
in the form Of checks, but bought drafts
When the railroads audit accounts wer'
destroyed every three months no trac
Of the transactions was left. They forgot
however. that We could subpoena the bank
to produce the telltale drafts"
The jury was out about three-quarter
OF an hour, coming bach once for supple
mentary instructions taken from a Lis