New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-11-15
FRAUDS ON THE REVENUE.
AUTHORIZATIONS IN SUGARS.

INTO ALLEGED FRAUDS IN SUGAho bOA E-A JIM
ANALYSIS OF THE PRODUCT OF NEw-YoRK
SUGAR NEUTRALITY-SUSPICIOUS. SUBSTANCES
FOUND IN EVERY SAMPLE THUS FAR ANALYzED.
Tho investigation into the alleged sugar frauds is
being prosecuted by Special Treasury Agents sent
here from other cities. 1t is understood that the
Government is In possession Of q strong chain OF
eyidsnce which shows that refined sugars are largely
adulterated with substances injurious to health.
and thus IN the case Of sugars for export. resulting
IN q direct fraud upon the Government. Importers
claim that the loss to the United States revenue by
these aud kindred frauds in importations of sugars
amounts to $5,O0O,OOO year
HISTORY OF The INVESTIGATIONS
STATEMENTS or THE PERSONS OFFICIALLY con-
NECtED WITH rHEM-ALLEGED VIOLATIONS OF
THEIR OATHs BY RxBoRTERs AND REFINERs-
COLLECTING EVIDENCE FOR PROBABLE GOVERN
MENT SUITS.
The Jay Commission in its report upon frauds
the revenue referred TO the loose manner OF sam
ping, weighing aud classifying sugars. and this, it Is
said, led to an investigation by the Treasury
Department which has thus r resulted In the arrest OF
the Pennies and suits for large amounts against
YOungs & Co., and other firms. IL was stated
yesterday by a Special Treasury Agent that an
official letter written TO Secretary Sherman
several months ago, calling the attention OF the
Treasury Department to the fact that frauds were
believed TO exist in drawbacks sugars which had paid
duty In the state and afterward reexported as
rened II charged In the ettertha coffee sugars,
which the state polarzed at so. there was
a raising in the process OF refining By which difference
10 per would be effected in favor Of the reners,
drawbacks being claimed and paid on the
high grade of the sugars as refined. The rate,
1t was stated, on refined sugars varies, being 3l3
cents "a pound on hard sugar 2.48 soft refined
sugar above No 90 Dutch standard and % cents on
that below No. 20, and that the temptation ex-
listed raise the reported grade for export to lower
the original import.
Special Treasury Agents Tyngle, Ayres and Chamber
to this city, and they spent several we ks
in investigating the matter being called of. 1t Is
SAID, TO attend to the Demerars cOlored sugar
trial now progressing nj Baltimore. III untIme II
IA reported that several large importers and
bank officials aided by reners who claim 10 nave oeen
driven out OF business by OF losses resulting
from possessing tho secrets OF adulteraon' en-
ploved counsel made the result Of their nVesf-
cations TO Secretary Sherman. ami special agents
were furnished to aid them In exposing the
alleged frauds The evideuce already secured Is SAID on
GOOD authority Of the most positive character,
showing that glucose, mur1atlc acld' uh ""u
nne enter largely into tho Manufacture o.
refined sugars. Where such SUGARS are Tor nome
consumption Special AGENTS state that the OoVefhmeh
IL pueress to act Boards OF Health alone having the
where these sugars used for export the Government
"a hound 10 protect It's revenue and ~ take den
mite action The law provides" said Special Agent
that rrilners shall make an oalh Oh eacu eAporl%
t settnz prth tnat the reued descr bed IN tho
certeste which ia cd manufactured at spec
I'D rrdnsry Wh0Ity o! raw sugar Of tee growth aud pro-
duci,,n 0 fore IN country. Imported ana on Heh Ie
aiis nave been paid fursn Ia the custom hOnse
"u'ry he ntl o. It's xp0T. Of Il different nature
but he also must testify that the cargo was WHY
inanufactuled ~ raw sugar imported: III q refined
cOmIOsru o. iOftiGu eupchhhtOsy
ineludco the raw SUGAR VI Hui.H ~
IS IN do the rchaer would be gui ~ OF an evasion VI
n ,ath and he could be prosecuted Tor PERJURY me
exporter mIgnt make his 0atn, not knowing that tne
in suel immunity The great difficulty thus far has
BEEN 10 get 90 the sugars tbat uaVe oern
exported o. test thu quality as it requires . ened,,n
,ience on this branch OF the sugar controversy upoh
which 10 base legal proceedings
FACTS ABOUT THE ALLEGED FRAUDS.
A nrinted pamphlet has been freely circulated among
me ,ar trade which claims to furnish facts and hg
mrs ON the alleged frauds tue sugar trade IL was
cumpiled by Henry A Brown OF SaxOnVlhe' Mass VINO
Wa ior many years Special Treasury Agent he
charges, that there evidence TO show that aduteratlon
of refined sugars and syrup Is praetsed; In the case
OF refined sugars exported to o6an drawback IN excess
of the actual sugar product and In the ease
NJ both SUGAR and syrups, 70 drifanh con-
suners IN Ihis country by paminS upon them poor su
gsrs and syrups, ghened up 10 appear OF hghr grade
Inv the NO OF murae OF tin" Ia support OF THIS quo
fnLlo made from the eFlueucc VI W. l. Ao"t"'
the firm OF Booth & Edgar taken before the Committee
of ga,s and Means In which DR.. Booth SAYS tBat he
knows that III, so frauds and authorizations exist to
great extent As further proof OF these charges Mr.
Brown says:
The evidence preponderates that so far as imported
dry suEas enter into consumption IN tnl, country tue
cinal average Grade thereof measured by the Duteh
standard Is above No. 10; consequently ne ne
be Gxcd AZ less than 2.sl25 CENTS per pound
without stsm21as the S'a sr bg prr Is a
ale I'm gland and o,Ler countries. inelud ng the active
urniuceIs consume the better g"aies; inc lOlIOWng
result am satisfied. is below actual facts MS
rards duty eyIsions on diy sugars Imported and en-:
rrd into consumption tho two fiscal years 1877 aud
1876.
Sumption fSn qy s sSG g gaS
sol7. POS. $50 lbs s7l.9el.Il4 sis67.4s5
ur, giascd vraEsss paid Ne. g. %gty , 5cSsy'd
sfl.So1ll% s4'oo''A9' F"''o'"'-"
Entered into con. Rate of duty, Proper duty
s.oIs rs, 800 lbs 2.sl-5c., sS4s8467S
Duties received less drawback pad........ G7O9h9-9
Duty discrepancy in two years 1915 and 1877 siSs5Iss
Less back paId in 1876 and 1871 4eobiSo
Net duty discrepancies 1876 and 1877 ... sl2s0s26a
RESULTS OF TIE INVESTIGATIONS.
II ia understood that in the investigation by the
Special Treasury Agents at the request or many import
ers and reners. that tho product of many OF the New
York and Brooklyn renercs has sampled and that
Professor Chandler aud other well known CHEMISTS are
engaged In making annly ses OF fhem In one ihsaheo
IA stated that six samples drawn from one barrel
OF sugar. and that they were sent to as many
different chemists for inspection, to secure euniu-
latiye evidence of the adulteratons. Five or
six analyses have already been made, all OF
which, it "a reported, show that glucose.
ac,d and Tin have used In the manufacture OF the
refined sugars. glucose predomnatinx Ihose wac are
In these facts decline TO MAKE them pnDc
AZ present, maintaining thtt TO puDlish the va
rious analyses would he TO exi ose TO those
vLo may vet become drtendantB the particular
evidence that they will be called upon TO
confront AT the same time they claim that the VI