New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-15
D., L. & W. GETS OFF
THE JURY DISAGREES.
Rebate Charges Nay Not Be
Brought Up Again.

After half days consideration of the evil
dence. the jury az o'clock last night reported
TO Judge Holt in the Criminal Branch of the
United States Circuit Court. that it could not
agree in the Delaware, Lackawanna & Western
Rotating cases. and was discharged. In all four
days were occupied with the taking Of evidence
and arguments Of counsel. Because OF the very
peculiar facts in connection with the alleged Civ
ing Of rebates to the Sugar Trust by the accused
railway. coupled with the fact that if convicted
the road would have been deemed guilty of only
a technical violation OF the Elkins act at best
it is believed exceedingly doubtful whether
United States Attorney Stimson ever calls the
case for a second trial It was apparent from
Mr. Stimson's statements toward the end
OF The trial that he was more anxious TO estab-
lish certain legal precedents and constructions
OF the Ellins act in conformity with the opinions
expressed in Judge Hollis decision on the Della
ware Laekawanna & Westerns demurrer to the
indictment than to obtain a conviction of the
corporation.
The road was charged with having granted
rebates 10 the Sugar Trust through the pay
ments OF certain lghterage charges to Lowell NJ.
Palmer, the owner Of PaImer's Docks and the
admitted traffic manager of the sugar company.
The defendant insisted that the payments were
bona fide lghterage charges to Mr.. Palmer to
compensate him for losses he sustained through
the roads Tightening being performed by the
Starin company under a contract Had the
sugars been shipped by any other trunk line
Palmer's Docks would have received Is cents
a hundred as lighterage. Losing this on all
Delaware. Lackawanna & Western shipments.
the road considered that in all equity It should
reimburse Mr.. Palmer for his losses, and al
lowed him the sum Of two cents on shipments
west of Buffalo and one cent on all invoices
to that point
In his charge yesterday morning Judge Holt
reviewed the evidence, dwelling considerably on
the question of criminal intent. It for the
jury to determine the court said whether the
money was paid as lighterage or in that guise
to cover rebates. Judge Holt pointed out that IN
usual violations OF the law there were custom
arily secret methods but that IN the existing
case nothing Of that kind had been shown. nor
had there been any proof that the money paid
ever reached the Sugar Trust. The court called
attention 10 the fact that President Truesdale
and Vice-President Caldwell Of the Delaware,
Lackawanna & Western had taken the stand
and denied the payments TO cover the
granting Of rebates. All Of the evidence showed
the actions of the defendant had been open and
above board. with not the slightest attempt at
secrecy. 1t was merely question of fact and
il was for the jury to determine whether the
the payments. The court also cautioned tho
jury that Mr.. Stimson had maintained that, even
assuming that the money never went past Mr.
Palmer as he swOre. the road had no right
as trustee of the freight. To grant even the pay
ments to him that it admittedly made
The jury, after remaining out about three
hours, came in with the announcement that II
could not agree. Asked if there were any points
the court might further enlighten the jurors
upon, juror No. said that some of the Jury
men were puzzled 10 whether the 4 10 cents
a hundred paid by the lines came out of the
fun Decent freight rate TO Buffalo Judge Holt
said the sugar company paid IS cents. and so
far as it was concerned that ended the matter
John B. Stanchfleld. acting for the road asked
that the jury be instructed that the road had
a right 10 do what IL pleased with the 16 cents
as long as il paid none OF il back 10 the ship
per in any form rebates or concessions Mr.
tending that the road. in accepting the IL cents
the Western shipments over. acted as a trustee
and legally had no right 10 pay Mr.. Palmer any
portion of II, and that any such payment, even
II the Sugar Trust never a penny Of il,
constituted a violation.
The jury remained out for an hour or so
longer and then came in and announced il could
not reach an agreement Judge Holt discharged
them.