New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-13
CALDWELL'S DEFENCE.
Payments to L. ". Palmer Not for
Sugar Trust, lie Says.

The trial Of the Delaware. Lackawanna &
western Railroad, charged with granting
bates 10 the American Sugar Refining Com
pany ia violation OF the Ekins law. was
sulned yesterday before Judge Holt and a jury
IN ;he United States Circuit Court. In the
morning session the prosecution called several
witnessec connected with Lowell n. Palmers
Office. Nho testified 10 the sugar shipments and
the receigt Of ughterage fees as charged in the
Indictment and finally rested fits case.
Vice-Prssident Caldwell. Of the defendant
road. was the principal witness for the defence
IN The afternoon session. He was ready TO adj
mir the validity of the proof elected from the
witnesses for the prosecution. but emphatically
denied that the lighterage fees were paid in the
forn OF rebates or ever reached the Sugar Trust.
being laid to Mr.. Palmer in his capacity as
owner o. the Palmer Docks. and not as traffic
manager Of the sugar company.
The examination OF A. b. Foster. the freight
CLAIMS agent Of The Lackawanna was contin-
ued By the prosecution which had in court
great stacks Of freight books and records OF
claims paid by the railroad. One by one the
witness testified 10 the shipments of sugar and
Subsequent payments Of lighterage bills to Mr..
Palmer, all Of them named in the Indictment.
In his cross-eXamination Nj Stanchfed OF
counsel for The defence, brought out that the
Laekawanna had no terminal facilities I'm Brook
lyn or Williamsburg such as were enjoyed by
the other trunk lines; that Mr. Palmer owned
ana operated the Palmer Docks in Brooklyn
ana handled the sugar company's consignments
II suga1 routed over the Lackawanna. and that
il was only through lghterage that the de-
fen1ant road could ger its pro rata % sugar
traffic. Ii. I. Leeming and William ]. Whit
;aAeT, both employees Of Palmers Office in Front
street slvore 10 the payment Of the Lackawanna
ighlera2e claims but said they had nothing TO
DO with the payment Of such claims other than
those Of the Lackawanna
lifted States District Attorney Stinson then
rested his case. saying that the government had
piUved the allegations in the Indictment
Following the noon recess Mr. Stanchfield
moved that the indictment be dismissed because
as he insisted. the government had not shown
mat the liehteTage claims. alleged to have been
paid N the shape Of rebates. had ever reached
the American Sugar Refining Company. He was
oNeIruled ny Judge Holt, and then made his
opening address
Mr. Caldwell. he said. had made an arrange
ment with M Palmer by which the road should
get instead Of per cent of the westbound
sugar traffic; that the road lad a contract with
the Starin L-ghterage Company al thai time
ana That The lighterage Of the sugar from the
Tefneries in Brooklyn TO the defendant road
was All done under this contract But as this
caused M Palmer 10 lose money. Mr.. Stanch-
neld said, the other roads all giving him their
iighterage, they thought il only fair to reirl-
The transaction were all open and above
board he continued. we had no deposits up-
state Tor the purpose % cheating or deceiving
any one ihis remark made in reference
10 the evidence that the New York Central
Raliroad had kept an account in a Buffalo bank
ioI me express purpose of paying the alleged
Sugar Trust. "
Fice-President Caldwell of the Lackawarna.
sald mat The Lackawanna had not been able
obtain terminal facilities at-the Palmer Docks
IKE the otheR@ roads. that ne foad's Hghterage
was theHeforsa4ione by the StaTfn company for
two cents hundred that the other roads 'yero
ma king Mr.. Palmer liEilterage allowance q
=" cents hundred on sugar shipments and
lnat in granting him an extra lighterage fee If
TWO cents hundred on business be,-ond Ruefalo
ana one cent on Buffalo business his road was
Sun left with margin He had no intention
ne said. OF paying the money 10 Mr. Palmer as
rebate or concession Of any kind or idea Of
violating any law.