Omaha daily bee., 1909-11-17
SUGAR FRAUDS EXTENSIVE
Short Weights in Boston and Phila-
delphia Being Investigated.
ALL OFFICIALS ARE RET1CENT
collector Loeb Says He Talked Matter
over with President Roosevelt
Before He Took
office.

the air OF uncertainty which surrounds the
so-called sugar fraud cases is interpreted
By those who have followed the progress
Of corporation investigation in this country
to foreshadow an inquiry which may rank
with the insurance u%pheaval Of los.
Boston and Philadelphia were brought
within the scope OF the investigation today
with the report that the government would
probably attempt to obtain back duties due
on sugar in those cities, while the investiga-
ton went on in New York, with repeated
rumors Of reaching the men up higher"
Henry l.. Stimson, acting as special attor-
ney for the government in the case, de-
clined to talk Of prosecuting men.
William Loeb, jr., was also inclined to be
~retfcent, but he repeated that II was
through the determination and influence
Of Theodore Roosevelt that the investiga-
ton and prosecution of the sugar frauds
was undertaken. According to Mr.. Loeb,
he had talked over the matter with Mr..
Roosevelt before he QOeb) took charge Of
the customs house here.
BendernageI Pleads Today.
The few outward developments in the
situation in New York today was the trans
fer Of one Of the most important cases set
for trial in the federal jurisdiction In Brook
Ign to Manhattan. Accordingly, James f.
Bendernagel, former general superintendent
Of the American Sugar Refining company
in Williamsburg, will plead tomorrow in
the United States district court in New
York proper. He gave bail Immediately
after his arrest last Friday.
His trial, together with others Included
in a blanket Indictment, will begin on
November %. Bendernagel is charged with
d~efrauding the government by means Of
false weights.
Declines in stocks Of the American Sugar
Refining company, the great corporation
under fire, were recorded today as the
investigation proceeded. This same COM
pany not long ago paid back to the gov
eminent more than 5000 900, as recon-
pense for short weights, while later it
settled out of court a civil suit brought by
the Pennsylvania Sugar Refining company,
a small rival, which it put out of business,
This settlement is now undergoing final ad-
justment and it was upon strength of
evidence produced at the trial that the
government brought an antitrust suit only
to be checked by a ruling on the statute
of limitations.
There is an added feature in the situa-
ton in that the city of New York now
has pending against the company a suit
CndIBluB lldN ne SOiROA dliOh buAACpA1AbtSAs
took water in great quantities from the
city mains.
Reynolds Replies to PRrr.
WASHINGTON, Nov. 16.-James B. Rey-
nolds, formerly assistant secretary of the
treasury and now a member of the new
tariff board, today declared that there
never had been any attempt on the part
Of the so-caIled sugar trust" to influeRe
| -. A. "a "a 90 -. 4ANI,,z-aoa H,J
been issued by him having any OBJECT in
view beyond good administration and fair
dealing to all concerned.
Mr.. Reynolds statements were made as
the result of publications to the effect
that the treasury department under the
administration Of President Roosevelt dis.
played apparent Indifference in procuring
evidence in connection with alleged
sugar trust" frauds and that Richard
Parr, a special agent of the department, in
his Investigations had encountered OBJ
stacles from the outset.
1T should be remembered" Mr.. ReynoId,
said, that it was while 1 was assistant
secretary of the treasury that the investi
cation Of the sugar trust was made and tn,
trial held which resulted in the conviction
Of the company in court. During all tn,
time 1 held that office there never was t
my knOWleuEt a SluBAe 6llOTl HlduS TO III
fluence my judgment in any way by thu
sugar trust,
80 far as I know, the first specific in
formation In regard to such fraud was II
September, 1907, when a letter came from
a New York man stating that he coult
I prove that the government was beinI
swindled. I at once wrote to him tina
I the department would be glad to do any
thing in it's power to see that such a condi
8 ton of affairs as you describe is stoppe
{ at once, and IL there is guilt anywher
s along the line, to see that there is prope
punishment
; Motive Back of Charge.
The gentleman who sent the letter cam
. to the department later and gave informa
ton which was at once sent to the specis
officers at New York for investigation.
There is one thing TO keep in MIND 1
order to give proper weight to the state
ments that have been made. Mr.. Parr
\ now and has been for some time a claim
ant for a share Of the $1,000, 900 turned owe
Il to the department by the Sugar trust.
rule which / made as assistant secretar,
and which 1 rigidly enforced, stood betwee
him and the money reward he desires Il
his services as a government agent.
Mr.. Parr knows that should the order
n be rescinded in this particular case /
n would still be compelled to prove that h
was the original Information on which II
In department acted in making investigation
with the subsequent results. He natural
does not minimize, to say the least, h
Ie own part in the proceedings.
ID Mr.. PARIS official Career.
~ $50 far as the department in Washiugt,
Is is concerned, It had no knowledge tn
Mr.. Parr was acquainted with matte
pertaining to sugar frauds until informs
lis tion reached here was sent to New YoI
for investigation. He was appointed
IN special employee of the department
lsO5-not SO far as the department WI
or concerned, TO make any special invest
es cations Of any kind, but to general wor
TO II was stationed a Portland, Ne, al
after a time he was transferred to Ne
York and assigned TO the office OF the sp
81 cial agent at the customs house.
OF The first connection the department n;
e. with Mr.. Parr as a sugar investigator, w
II after Information had been lodged heI
Mr.. Parr himself In a letter written to Il
/. department during the present year stare
~ Officially the Investigation of the illeg