New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-12
D.. /. AND ". on TRIAL.
RENTING THE CHARGE.
CASE Similar to That Brought
against Ne7c York Central.

Tie trial % the Delaware, Lackawanna &
Western Railroad charged with having violated
the Elkins law in granting rebates on sugar
shipments to the American Sugar Refining Com
many was begun yesterday before Judge Hough
e7G fury I'm the Criminal Branch Of tie United
etajes circuit Court. The government alleges
ina. the rebates were paid 10 the Sugar Trust
n The form OF lighterage to Lowell NJ. Palmer,
she sugar companv's traffic manager The evil
deuce which it viii submit in this case IS Il
Yrany respects similar % that on which the
Sow York Central Railroad was convicted Of
like offence.
The jury. which was obtained with compare
lively little trouble. is headed by Alfred Nelson,
e tailor. John r. Stanch6eld. special counse! for
the Lackawanna. has admitted that the sugar
shipments named in the Indictment were shipped
on the defendant road charged, and has
thereby saved the government the trouble Of
calling witnesses TO prove This initial conten-
fIon ami has shortened the trial
Mr stanchheld. who is being helped in pre-
seuting the defence by ". s. Jenny general
counsel for the railroad, and Professor Collin,
formerly dean Of the Cornell Law School
opened The proceedings by asking that verdict
in the defendants favor be Immediately re-
turned. because the indictment did not say that
the alleged rebates had been paid knowingly"
a point the Flkins law required. he said. Judge
Hough denied the motion and Mr.. Stanchfeld
took exception.
The government is represented by United
States Attorney Stmson and Assistant United
States Attorneys Henry A Wise and J. ".
Grimm. Mr.. Wise made the opening argument
for the prosecution. After outlining the proyi-
sions Of the Elkins Law. he said that the evil
dence would show that the trust under the
guise Of lighterage fees. had obtained rebates
or CONT hind during 1907. 1898
and 1904 on all sugar shipment TO Buffalo, and
TWO cents a hundred pounds on all shipments
beyond that city. The contract had been made
Mr. Wise said with the knowledge Of President
Trucsdalc ce-PTesident Caldwell and Traffic
Manager Flynn. OF the accused roao' WIKI
Lowell NJ Palmer the sugar company $ recos-
nized traffic manager, and with h. o. Have
meyer.
According to a typewriter statement which
was handed out by counsel for the defence just
before the examination of the first witness, the
lackaWanUa. between lSlS, when the trunk
lines divided the westbound sugar traffic. and
1900. not allotted any of the sugar traffic
because il had no station facilities in New York
In the latter year. the statement says the road
acquired a Brooklyn terminal and received .
ger cent Of the traffic Mr.. Palmer carting the
shipments 10 the ROAD staiioh, a greater als-
lance than 10 his own piers. He sustained a
loss of lighteragc profits by this arrangement,
The defence contends, ana was therefore reim-
bursed by the railroad, which agreed 20 pay him
m extra lighterage Of TWO cents hundred on
business beyond Buffalo and cent a hun
ored on business 10 that city. These payments.
II IS asserted. were not made TO the sugar COM
pany. bur 10 Palmer's lighterage department,
and were therefore IN sense rebates the
sugar Trust.
Fred Hurst. former head Of the sugar
pany's sales department. the first witness,
and testified thar all orders for sugar shipments
were referred by the American Sugar Refining
Company 10 Mr.. Palmer's Office. where T. p.
RILEY gave instructions 20 how the shipments
should ne routed. The testimony of James a.
Trelaor, the next witness, who said he vas a
pay freight clerk" IN the employ Of the sugar
company: of William Edward Foster. auditor OF
the American Sugar Refining Company. and OF
Augustus j. Thompson the freight claim agan'
~ the LackaWanna. all tended show tina.
sir. Palmer's Office burdened with the
double duty of adjusting freight charges for
sugar shipments and OF receiving the lighterage
fees.