The Montgomery advertiser., 1909-12-16
ARBUCEIES HAD TO PAY
LARGE SUM WAS TURNED OVER TO
 GOVERNMENT.
Jamcs F. BendernageI Gives Startling
 Testimony at the Sugar Hear s.F Ing of the Corrupt s Practices.

New York. Dec. 16.--Arbuckie Broth CTS said to be the largest independent rivals of the American Sugar Refining Company. have acknowledged that from 1898 to 1907. they. too. failed to pay to the Goverinment all the money due as customs charges on imported sugar. In settlement of all civil claims a,soinst lthem, the Arbuckles have offered and ' the Treasury Department with the concurrence of the Attorns General, has accepted payment of $695.573. but criminal prosecution of those responsi- ble will in no wise be hampersd or conditioned by this acceptance.
 The Governmert has now received the following restitutions and fines from importers of raw sugars:
 The American Sugar Refining Con- pany. (voluntary). $2,00o.o0o The American Sugar Refining Company. t(fne imposed by the court). $135,000; Arbuck1e Brothers (voluntary), $685. b7s. Total recovered. $2.sS0.s73.
 Today's announcement of new irrcg- charities in the sugar industry. rami- flying Into quarters never suspected by the public, was made during rscess of the criminal trial of six employees of the American Sugar Refining Com pany. Messrs Stimson and Den1lson. special counsel for the Government, then gave out statement in part us follows:
 Last June we commenced an inves- tigation as to the weights on which duties were paid on sugar landed at the docks of sugar refinery of Messrs. Arbuckle Brothers in the port of New York. The members of that firm yol- untarily gave us access to their hook s and thorough Investigation was made of those books and of the customs house records.
 "As a result shortage was reported to the members of the firm, ma as soon as they had verified the Government figures they voluntarily offered io ray this sum, without suit, into the trt as- ury of the United States Government
 This statement purposeiy omits any reference to the methods by which the frauds disclosed were effected.
 ssThe matter is now pending before the grand jury" was the only reply MT. Stimson would vouchsafe to all in- auiries.
 Tn the trial of James F. BendernageL Thomas Kehoe and four other employees of the American Sugar Refining com pany for their alleged share Tn siIniiar Frauds, both prosecution and defense rested their cases today and sdmriing up will begin tomorrow. The case probably will go to the jury Friday.
 Richard whalley. formerly In em- ploye on the sugar company's docks. but who Is .testifying for the prose- cution, swore today that he and John E. Coyie. one of the defendants. lad the following conversation in a ss!con shortly after the raid on the docks made by Richard Parr, the special treasury agent.
 Coyle-They got Kehoe with the goods; I would not mind if 1t was sny one else, but Kehoe will squeal and we will all go up the river.
 Whaley--Are you sure thsy got goods on him?
 coyIe--Yes, Parr has 1t in his pocket
 q had to take the orders of Super lntendent Ernest Gebracht and pay out what he instructed" was James +. Ben- dernageHs reply on the witness stand today to the prosecution's questions re- garding the compensation of the check CTS of the williamsburg docks of the American Sugar Refining Company.
 The Government has charged that the men now on trial for alleged conspiracy to defraud, received larger pay than other employees performing similar ser vice because Of the surreptitious work they stand charged with doing.
 Bendernagel, cashier of the plant, iT- dicted with them, defended himself url- der cross examination today from the inttmation that he was in any way re- sponsible for the fixing of these ern- pioyes wages and stated that the or ders came from higher up"
 s.sThe wages of the checkers were def- lnftely fixed In the offices of the com