The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1909-11-16
SUGAR COMBINE
GOES ON GRILL
Inquiry May Equal Insurance
UpheavaL
SEEK FOR CUSTOMS FRAUD
4lIea Hsher Up Nay Be n
Net.
ps.ss ,. Rsynosds, Former Assistant
Secretary IF Treasury Denies
sssry rAat He Opposed Iaves-
sisatien--scepe Of Inquiry
sGsy Ne Far-Resehi.s.


New York, Nov. 15.--While the le-
: Kai machinery Of the government
moves slowly. the air OF uncertainty
which surrounds the so-called sugar
fraud cases IL interpreted BY those
who have followed the progress of
corporation Investigations In this
country to foreshadow an inquiry
which may rank with the Insurance.
iupheaval of 1906.
Bosten and Philadelphia were
brought within the scope OF the in
-vestigstion today with the report that
the government would probably at
j. tempt to obtain back duties on sugar
sn those cities while the investigation
went on in New York with repeated
rumors OF reaching the men higher
up" Henry l.. Stimson. acting as
special attorney for the government in
the cases decline to discuss this talk
of prosecuting bigger men. nor would
he comment on any developments In
this city.
William Loeb, Jr, collector Of the
port. was also inclined to be reticent,
but he repeated that II was through
the determination and influence Of
Theodore Roosevelt that the investiga-
ton and prosecution of the sugar
frauds were undertaken. According to
Mr.. Loeb, he had talked over the mat
ter with Mr. Roosevelt thoroughly be-
3
customs house here and consequently
he had a well defined policy mapped
out when he assumed office.
Reynolds Denies Charge.
When James B. Reynolds. former
assistant secretary of the treasury de-
MED today In a statement from WASH
tngton. that he had in any way OPP
posed the investigation while in Of
1fce, an announcement was made in
New York by Richard Parr. through
whose statements Mr.. Reynolds ac-
4ions and motives were placed open
20 criticism but had been misquoted
ind misunderstood. Parr. who is stiil
engaged at the customs house. issued
the following statement:
g@,S In regard to@the statement that Mr..
.. B. Reynolds. former assistant secre-
tary Of the treasury department order
ed Special Agent Parr to Cuba and
then to San Francisco for the purpose
Of preventing Parr from pursuing the
sugar investigation further. Mr.. Parr
stated that there was a niisapprehen-
sion; that he did not charge Mr., Rey-
holds with ordering him to Cuba or
10 San Francisco for any improper
purposes and that the reporters had
misunderstood his statement.
The trip to san Francisco was or
dered by Mr.. Reynolds. but II was so
ordered at the request of United States
District Attorney Stimson. who fear
ed that PARIS health was being un-
dermined by the continued strain of
the investigation. AS to the remaind-
er OF the interview Mr.. Parr states
that II is absolutely true and correct
as printed ana thatrhe will produce
the necessary evidence in support
thereof at the proper moment
Transfer Federal Case.
One of the few outward develop
ments in the situation in New York
toda was the transfer of one of the
most important cases set for trial
from Federal jurisdiction in Brooklyn
20 Manhattan. Accordingly, James r.
Bendernagel. former general superin-
tendent Of the American Sugar Refin-
ing Company in Williamsburg. win
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 blanket indict-
ment, VIII begin on November 20.
Bendernagel is charged with defraud-
ing 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 company not long ago paid
back to the government more than 81.
100000. as recompense for short
weights. while later 1t settled out of
court civil suit. brought against the
Sugar Refining Company, by a small
rival which It put out of business ;.
The settlement Is now undergoing fin!
al adjustment and It was upon the
strength of evidence produced at tho
trial that the government brought an
antitrust suit only to be checked by
ruling to the effect that the STATUE
Of limitations barred the action.
Inaslnuch as everybody--or so great
majority as to make this statement
substantially correct--is a consumer Of
sugar, the public has followed the
progress of the case with more than
passing interest. There is an added
feature in the situation in that the
city OF New York now has pending
against the company a suit charging
that the corporation surreptitfously
took water in great quantities from
Reynolds Makes statement.
Washington. Nov. l5--James B. Rey-
nolds. formerly assistant secretary of
the treasury and now a member of the
new tariff board. today declared there
never has been any attempt on the
part OF so-called sugar trust" to In
fluence any action of his and no in
having any object beyond good adj
ministration and fair dealing to all
concerned.
Mr.. Reynolds's statements were made
as the result of publications that the
treasury department. under the admin
astration of President Roosevelt. dis
played apparent indifference In procur-.
ing evidence of alleged. sugar trust,
frauds and that Richard Parr, a special
agent of the department in his in
designations. had encountered obstacles
from the outset.
A formal statement made by Mr..
Reynolds was In part as follows:
TT should be remembered that IL
was while was assistant secretary
of the treasury the Investigation OF
the sugar trust was made and-the trial
held which resulted in the conviction
OF the company in court. During ali
the time held that office there never
was to my knowledge alsingIe effort
made to influence my Judgment IN any
sway by the sugar trust.
so far as know, the first specific