The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-10-18

New York. oct. 1.-THE New York Cen
tral Railway Company and its general
traffic manager, Frederick Pomeroy, were
found guilty on six counts OF giving I'M
lawful rebates in 1904 tc the American
Sugar Refining Company by jury in the
United States Circuit Court, criminal
branch, to-day.
The conviction makes each OF the de
PENDANTS liable to a fine Of $4,000 for
each separate ohense, or a fine of $4,000
for the railroad. and the same amount
for its employee, an aggregate Of S2lOo0j
I'm all
The indictments. while indicating that
about $500 was secured by the Sugar
Trust in unlawful drawbacks on the
transactions brought forward. specifically
anegc the payment of not more than
$4,000 in the offenses Tor which the fines
can be imposed
Judge Holt did not fix the penalty AZ
orce, however. Immediately after the
jury brought in its verdict Austen 9.
Fox. I'm behalf of the defendants. asked
the court to fix Il date or which he could
hear argument on a motion for arrest OF
judgment before the sentence Of the court
Is imposed
VIII Fix Penalties Friday
This argument, the next step in the
fight. was set down for Friday morning
at 1920 After It is disposed of Judge
Holt will fix the penalties which are ex-
pccted by United States District Attorney
Henry l. Sumson and his assistants 20
be near the maximum.
These operate as civil judgments, and
the defendants. if they refuse 10 pay
them, cannot be imprisoned for their
action.
After the jury had returned their YER
dict. Austen c. Fox, counsel for the de-
Tense, said:
We'll. you can't defend rebate cases
in the present stage Of public opinion 20
Through Alexander McAIichael chief
clerk 10 Frederick I. POmerOy, traffic
manager of the New York Central. and
indicted with it. United States District
Attorney Stimson put in letters to prove
that thousands OF dollars In rebates were
paid by the Central to Lowell NJ Palmer.
traffic manager Of the sugar trust. On
shipments TO Detroit.
Austen q. Fox said he would offer no
evidence. and when Judge Holt refused
10 dismiss ON tho ground that the cor
poration could not be made Il co-defend-
ant with Mr.. Pomeroy, began his address
10 the jury.
Attorney Asks Square Deal
IF we are going to have a square deal
in this land. It's got to be square deal
for corporations as well as individuals %
said Mr.. Fox. I believe you viii agree
with US that there has been no criminal
intention on the part OF the corporation
in tnis case II you find a verdict Of
guilty in this case. you are taking money
out Of the pockets OF the stockholders. ~
in his charge 10 the jury, Judge Holt
reviewed the interstate commerce act and
the amendatory act Of 1903. known as the
El1ins act This statute provided for the
punishment. Judge Holt said. of both the
corporation as well as its agents and Off
GERS. for 4 violation of acts regulating
commerce.
The jury was less than an hour in
reaching u verdict.
The conviction which came after a trial
which lasted three days, only two of
which was consumed in putting the evil
dence before the jury, marks the success
full completion of the first prosecution Of
either a corporation or an individual for
infraction Of the Elkins law ever in
itiated in the Federal courts of this dis
trict.
The indictment on which the railroad
company and its sevarnt were convicted
charges the giving of rebates to the
wholesale sugar jObbing firm of Edgar &.
Earle, of Detroit on demand Of the sugar
trust. from April, 1904, until about the end
OF that year. The rebates were . cents off
the tarin rate Of . cents a hundred
pounds, paid by the railroad companies by
voucher.