The Washington herald., 1909-05-08
SEVEN SUGAR TRUST
EMPLOYEES INDICTED
Checkers Are Held for False
Weighing to Save Duty.
MEN ALWAYS GET EXTRA PAY
Corps Who Defrauded Government
Rewarded by Finding Bonus in
Their Envelopes on Pay Day-DOck
superintendent Long In the En-
pIoy OF the Havemeyers.

New York. Nay Indictments against
seven Of those responsible for the false
weighing OF sugar at the Williamsburg
refneries Of the American Sugar Rein
ing Company. which enabled that com
pany 20 save in duties for many years
a SUE the equivalent OF anywhere from
81 10 81 per cent annually on its cap
ital stock. were brought in to-day Oh ths
Federal grand jury IN this district
All but enc Of the men indicted are
the company's checkers. the men who
actually worked the contrivance by which
the reading Of the scales was changed
10 give a false weight. These men were
Thomas KeIsoe. J. ". voelker. Edw. A.
Boyle. J. r Coyle. J. B. Hanigan. jr..
and Patrick J. Hennessey. Kelsoe was
indicted also in Brooklyn few days ago.
Oliver Splitter. the dock superintendent
OF the company, under whose direction
all OF the men worked. was the seventh
man indicted he has been employed
by the company an1 by the old Have
meyers & Elder firm. which preceded
the present company. for thirty years,
was a personal friend and trusted en-
ploye Of H o. Havemeyer. and for most
OF that time has superintended all OF
the Weighing OF sugar. in docks.
offered 10 Bribe Detective.
Splitter Is the man who. according 10
the testimony given IN the civil case
against the company. personally directed
one OF the governments witnesses TO tx
the scales, and who also offered one Of
the governments detectives who IN
earthed the fraud any amount Of money
Il he would fix it, and say nothing
about H.
Splitter was indicted for attempted
bribery in Brooklyn soon afterward. but
the jury acquitted him. Since then the
prosecution OF all persons involved in
the fraud has been turned over 10 Henry
l. StimsOn and " 7. Dennison. as spe-
cial assistant attorneys general. and
Spitzer's reindictment Is the result.
The six checkers indicted were known
generally as the Big Six" There were
seventeen scales on which the sugar was
weighed. all equipped with the spring
Ike device by which a slight pressure
would lessen the real weight Of sugar
anywhere from twelve to fifteen pounds.
sometimes the sugar was weighed on one
scale, and sometimes on another. but if
It was being weighed for the govern
ment one or more Of these six men were
assigned 10 act as checker for the com
pany on the scales on which II was be
ing weighed. The regular pay Of the
checkers is S13 week.
Each Got So Extra.
On the trial Of the cases against the
trust. testimony was introduced 70 show
that this corps Of nfen received their
pay in envelopes on the outside OF which
vas marked Sl3. but which contained an
additional So In one or two cases the
bonus vas raised to s.. making so the
men received instead OF s12 II has not
yet appeared who audited the pav ron
nor has It yet appeared whether apv
OF the important officials OF the companv
were aware that the company was nav
ing duty year IN and year out on millions
Of pounds less sugar than its own ac-
count showed had been bought from,
importers who were paid according TO
the real weight Of the sugar.
The men indicted II was pointed out
to-day, made s. week extra while the
company made. az the lowest figures.
Sl4o,0e0 year. There was no way. an
parently. by which the savings represent
ed could be diverted from the company's 5
treasury, and no pecuniary advantage 10
be gained by any Of its employees. save
In tie fern represented by the extra
amount. authorized by somebody. which
appeared each week in the pay envelopes
Immediately after the indictments had
been handed in to-day Henry 3. Closson.
OF Parsons. McIlvaine & Closson. gen
eral counsel for the sugar trust. an
nounced for the company that the seven
men indicted had been summarily dis
charged.