Daily press. [volume] (Newport News, Va.) 1896-current, 1909-11-13
HIS RESIGNATION WAS
ANNOUNCED THURSDAY
Following Statement That American
Sugar Refining Company viii Re
organize Force. Comes News That
Arbuckle Company Wants to Pay
Government Duties Claimed.
(Dy Associated Press,.

(Dy Associated Press.
NEW YORK Nov l2.e-After
months Of quiet work behind the
scenes by the government investiga-
tors. who have been scrntinizing the
ins and ours Of the complicated sugar
import frauds. there came sudden
! ~ today the indictment ana arrest
cf an important former officer OF the
| American Sugar Refining Company.
charged with conspiracy to defraud
he government by false weighing of
sugar.
The man arrested is James +. Ben
dernagel. for more than thirty years
superintendent of the Havemeyer and
Elder Refinery In Williamsburg, the
largest plant of the American Sugar
Refining Company.
Resignation Announced Thursday.
1t was regarded as significant that
Bendernagels resignation from this
| responsible position was announced
by the company only yesterday. When
| arraigned before United States Com
| missioner Benedict and asked 10 give
! 5000 bail for his appearance at an
examination set for next Monday, he
produced a rcll of bills from a waist
coat pocket and counted out the re-
/ Quired amount.
The indictment returned against
| Bendernagel is of the blanket variety,
| including in its terms also the So
called big six"-Oliver Splitter,
Thomas Kehoe, Edward A Boyle.
Jean NJ yoelker. John r. Coyle and
Patrick J. Hennessy. all OF whom
have been previously indicted on
similar charges.
Specific Charges.
/ The specific charges against Ben
dernagel are that ne defrauded the
| government cut OF duty TO the amount
of 1854 in connection with the false
| entry of the nine million pounds cargo
| Of the steamer Eva, which arrived
from Cuba on August /. 1907.
A little more than hundred thous-
and pounds. were clipped of the real
weighi Of the cargo when the customs
charges were computed. according to
the allegations Of the Indictment
At one point the indictment relates
the old charges made against four
members OF the so-calfed big six,
alleging the use Of fraudulent devices
on the scales used at the docks to
short weight sugar. for the purpose
Of avoiding customs charges.
| II was in connection with these
charges that the government las
spring recovered S2.lS5.0 900 in duties
and penalties.
Ar5uckle Company Brought In.
Following fast upon the announce
ment OF the American Sugar Rein
ing Company that n reorganization of
'the entire working force Of the vii
IliamsDurE Refinery would be affected
as a result Of the weighing frauds dis
covered under the regime Of Henry l..
Stimscn. a. United States district at
torney. came the Development today
that another large sugar importing
iconcorn. the Arbuckie Brothers Com
pany. had begun negotiations with
VT Stimson fer the purpose Of paying
INTO the United states treasury duties
on sugar imports which the govern
mont authorities claim should have
been T1id on past wcighments.
The d -eatcst secrecy j. being main
tanned b. 10th 80 government prose
rutors ana t.ir representative 81 the
companies. but there IS a persistent
report % the effect that Indictment.
have already been found.
No definite estimate q the amount
involved could BE- gained. but II q
generally believed that the refund
contemplated aggregates several hun
dred thousand dollars.