The New York herald., 1877-09-10
THE SUGAR FRAUDS.

INVESTIGATION OF THE DARK WAYS OF RE-
OUT OF MILLIONS OF DOLLARS ON coLoRED
SUGARS THE CHANGES RECOMMENDED BY
THE JAY COMMISSION.
Tho recent action OF the Treasury Department in
employing exports to Investigate tho charges that
sugar Importers artlHcialy color their commodity tor
the purpose of derauding the government has caused
considerable anxiety among not few downtown sugar
rchners. The recent business difficulties of we'll known
rm OF sugar renners In this city is mentioned
roborative evidence that these sharp practices
common among sugar Importers. The house referred
to was well known, and enjoyed reputation lor busi-
ness integrity until Custom House inspector exposed
their sharp practices, put tho Treasury officers
on their track and, alleged, got kicked out
of oli:e Tor his pains. The alleged dishonest
firm, however, took the alarm, and the partnership
was speedily dissolved. the several members oil the
firm agreeing TO separation. The secretary OF the
company, for reasons best known TO himself Or his
employers, fled to parts unknown. carrying away the
private books and papers OF the firm. Those who pre-
tend to be well informed on the subject do,are. how
ever that the missing secretary Is still in the city but
is being Kept Of the by those who have great
financial interests involved and who fear tho gov
ernment may take proceedings against the alleged dis
ION the ragged edge" lest they too, should be sum.
moned to give account Of their stewardship
THE TRICK IS PLAYED.
The colored sugar fraud as il ia popularity called,
consists in certain devices to cheat the government
out of an important branch OF its revenue. The law
spcc6es that duty must be paid sugar according 10
the Dutch Standard that s colcr, not quality, being
the criterion. This standard has given TO great
abuses and afforded an opportunity for deraudng the
government which dishonest dealers wcro not slow in
taking advantage Of but until recently tho govern
rnent officials took measures to stop those abuses
notwithstanding tho fact that the wbacks sugar
far exceeded tho import duties. The attention OF the
Jay Commission drawn to these significant
facts, ard acting upon tho data obtained by
the commission, Secretary Sherman recently
promulgated order that IN no case should the re-
liners receive money for drawbacks than they
had paid in duty But this plan Is considered only
calculated to oconomIze the spiggo while the waste
continues at the bunghoic. However 1t Is regarded
a step in the right direction IL Is well known
That certain rcners send chemicals from this city
10 Cuba and PernamDuco 10 color sugars oi a high
grade which their arrival hcre arc entered at the
lowest dutablc grade. by a process OF refining the
which OF course enhances It's value, and on ex-
port receives the highest rate Of drawback,
thereby receiving from the government tw ice as much
was originally paid on the same grade OF sugar by
the importer to the government. In other words,
sugars containing from 96 to 9Si per cent oil what is
termed fright hand sugaar are chemically colored, so
that according the established Ouch Standard they
rated rs No. and pay but lac per pound duty
This same quality IS pnricd by centrifugal process
and then exported as No. 20, which there is draw
back OF 06-l0Oc por pound thereby cheating the
Treasury out OF millions OF dollars annually
COLOSSAL FORTUNES MADY.
u s alleged that IN this way colossal fortunes have
becn made and tho wealth amasscd by dcfraudng tho
honest legislation and prevent tue proper consiruc
ton OF the law. The suspected relncrs arc making
cvc up the gios, without struggle. It IS rumored
IN Wall street that secret organization hos been
formed among several OF the Leading rencrs TO hight
on It's recent ruling regarding colored
sugar Interesting developments arc expected daily.
There is also another method scarcely less iormida-
bic and effective by which importers OF sugar, II is
alleged, have swcllcd their income at the expense OF
the govcrnment-that Is, collusion with the Custom
House weghers. Each district wcighcr has control oil
particular district for a series OF years, and If cor
rupi he can, by certifying TO false returns, cheat the
government out OF considerable portion OF us reve-
nue. 30 that as may, II said that tho system OF
district wcghers bescts collusion with tho
importers and leads to earins abuses. Tno
his district, his position beins a sinecurc.
but his Jurisdiction lar reaching and his patronage
con siderable According TO tho testimony OF hts own
assistant weiger before the Jay Commission, Colonel
Thorpe, OF Greenpont, had not visited MS district
during term OF years, although regularly drawing
81 800 "a year. not to mention pcrquisltes. AS in the
ca SO OF tho late firm ofDe Castro Donncr, who IL was
ascortanod used their own private scales contrary 10
law, In weighing their corsignmcnts OF sugar, the
weigher leaves the weight OF the sugar to DO deter
mined by the importer. The Secretary has also
placed his veto this suspicious proceeding ana has
condemned the use OF private scales
ABOLITION THE DISTRICT SYSTEM.
lie has also wisely concluded TO abolish tho district
system Of weishers ana to place them on the Same
footing AZ Custom House inspectors by assigning
them, ut brief intervals, TO different districts They
are determined however, to die hard; and as they
have plenty OF money they are using their influence
TO defeat hese reforms. IL Is stated that
General McCook, member OF Congress elect has
been retained by the wcighcrs 10 preserve them IN
power ana 10 use his influence with the administration
TO keep the prcsen, district system unchanged. But
II conclusvcy demonstrated That the abolition Of
the district system public necessity, IN the re-
port ex Inspector Grace 10 the secretary OF the
Treasury The system has been condomnedlby the Jay
Commission and Il u furthermore aush0riiatively,