The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-12-01
HE WON'T BE A GOAT.
Bendernagel Threatens to Tell Whole
Truth About Sugar Frauds.

New York, Dec. with the re-
sumption today of the trial in the
United States circuit court of James f.
Bendernagel, Oliver Splitter and four
other former employees of the American
kugar Refining company, charged with
conspiracy to defraud, there were in
Cications that the government counsel
Intended in the present action to PROBE
deep into occurrences of series OF
years on and about the. Williamsburg
sugar docks.
Further evidence to support the
prosecutions charges that men In the
sugar company's employment had been
systema tically defrauding the govern
Inent out of duties on sugar was pre-
sented today.
James F. Bendernagel declines to be
made the goat by the American
Sugar Refining company the socalled
trust, and if the word of his counsel
is correctly interpreted, he may testify
for the government before his trial,
together with five erstwilile company
employees, all charged with defraudlng
the government by underweighing
sugar is concluded in the United
States circuit court.
This development came when a wit
ness testified that fifteen dollars a
Week-sometimes a little more-was
what employees of the American Sugar
company were paid to be crooked.
end the man who had in some in
stances paid this alleged corruption
money, according to the testimony,
was Bendernagel, one time superin-
tendent of the companys plant in
Williamsburg (Brook1yn.9 49,
In the face of this testimony Ben
dernagel conferred with his lawyer,
George w. Beattie, who made this an
nouncement:
"Mr. Bendernagel will not be the
goat in this case. He was an en-
ploye, and what he did he did under
orders.
Will Tell 1t All.
"The idea that has gone forth that
the sugar trust is putting up for his
defense is wrong. The company is not
contributing a cent for it. Mr.. Ben
dernagel did not receive a salary of
$4,000 per year. He got a few thous-
ands-much less than the2ss figures
given. When he takes the stand. he
will conceal nothing.
1.-THE evidence which caused this
turn was given by Andrew ]. Mallen,
who UP to 1907 was employed in the
cashiers office of the Havemyer &
Elder refinery in Williamsburg. Ben
dernagel. he said, was in charge of
the office"
did you ever seen Bendernagel pay
cash to men in the uniform of the
customs house, who came to his Of
fce?" asked Winifred t. Dennison,
government counsel.
eyes"
what form was this money in %
at was in bank notes taken from
the safe in the office. / never saw
vouchers for it nor heard of any," NAL
len replied.
Mallen testified John r. Coyle, Ed
ward A Boyle, Patrick Hennessy and
Jean Voelker, weighers and checkers,
among the men accused, were paid in
envelopes marked $12 for the week.
But their envelopes contained SIS.
Later, when the salaries of this class
of men were raised to SIS. they got
SIS in their envelopes, though the
regular pay for their positions was
marked on the outside of the en-
velope at $15.
The government sought to show that
this unexplained increase in salary was
reward for manipulating the scales to
show false weights on sugar; Bender
nagel's counsel maintaining if there
was anything irregular about the pay
lnents the defendant was not respon-
Sible.
1t Began in 1900.
Andrew ]. Mallen. who testified yes
terday that he had seen Bendernagel
who was in charge of the cashiers Of
flee of the Williamsburg plant, pay
cash to the men in the uniform of the
customs service. was subjected to a
lengthy cross examination. Mallen was
asked if the custom of marking on the
envelopes containing the pay of some
of the accused weighers a smaller
amount than the envelopes really con-
tanned did not follow q strike in which
a private settlement was made with
these men on the basis of a salary in
crease.
Mallen did not think the strike af-
fected the: e men at all. He had no
means of knowing. he said, If Bender
nagers payments to customs service
men were for overtime. The practice OF
undertaking on the envelope the
amount actually paid to certain sugar
company employees began in 1900, Nal
len said