The citizen. (Honesdale, Pa.) 1908-1914, 1909-12-17
ARBUCKLES PAY UP
Uncle Sam Gets $695,573
For Sugar Frauds.
NATIONAL TO PAY $7OO.OOO.
Special Counsel For Government
Makes Discoveries - Criminal
Prosecution to Be Pushed In
Spite of Settlement.

New York, Dec. 16.-Arbuckle Bros.
rivals Of the sugar trust, have admit
ted that sugar imported by them has
been underweighed for nine years, and
they have paid $695,573 to the govern
ment, initiating in this respect the sug-
ar trust, which paid to Uncle Sam un-
der similar circumstances the sum Of
$2,134,OOO.
Henry L. Stimson, special govern
ment prosecutor in the sugar Weighing
In June last Messrs Stimson and w. T.
Denison as special counsel for the gov
ernment commenced an investigation as
to the weights on which duties were paid
on sugar landed on the docks of the
sugar refinery of Messrs Arbuckle Bros.
In the port Of New York. The members
of that firm voluntarily gave them ac-
cess to their books, and thorough in
vestigation was made of those books and
Of the custom house records.
AS result 1t was aScertained that
there had been shortage in the pay
ment of duties on importations Of sugar
made by that firm between 1898, when
their refinery commenced operation, and
November, 1907, amounting to $695,573.
This shortage was reported to the men1-
berS of the firm, and as soon as they
had verified the governments figures they
Voluntarily offered to pay this sum with
o,,t suit into the treasury Of the United
etates government. This payment has
bden accepted by the secretary of the
TREASURY, with the concurrence of the
attorney general, in full payment OF all
civil claims against Messrs. Arbuckle
Bros.
This settlement in nowise affects the
criminal prosecution of any individuals
who may be shown to have been respon-
s.tle for the commission 0ea[1sSs.laAs II. .ar
spect to any 'ef these matters, and the
investigation and prosecution Of any such
persons VIII be vigorously pushed. x
Mr.. Stimson added that the $685., ,6T3
had been paid in cash into the sub
treasury in this city.
,Arbuckle Bros, the head Of which is
John Arbuckle, were for long time
supposed to be the strongest opponents
of the sugar trust. ~
John Arbuckle, who won fame kHG
wealth by fighting the sugar trust
years ago and underselling it in its
own line, formerly owned a 5000
acre farm, the "P. o." ranch, near
Cheyenne. The government in 1907
discovered that he had put his wire
fencing, forty-five miles of it, around
adjoining public land. He was ordered
to remove his fence from the govern
ment property. The action of the gov
ernment annoyed him so that he di-
rected his ranch sold out at once.
James H. Post, president Of the Ma
tional Sugar Refining company, the
$2O,O00,O00 corporation in which the
o1,
his company may have to restore to
the United States treasury In satisfac-
.tion of duties on underweighted sugar
an amount of money approximating
what Arbuckle Bros. have just re-
stored.
President Post said that the govern
ment's special counsel in customs
cases have been going over the Ma
tionaps books and that they have
made demand upon him and his fel-
low officials for more than 100000.
The National Sugar Refining COM
pany is the most important refining
company in the east outside of the
trust itself. 1t imports annually about
6O0OOO,OOO pounds Of sugar, upon
which the duty, is about a cent and a
quarter pound.
Associated with Mr.. Post In the Ma
tional are Frederick d. Mollenhauer,
George r. Bunker, Arthur Donner,
John Mayer, Harry f. Mollenhauer
and George H. Frazier. All of these
men are directors. Mr.. Donner is the
sugar trusts representative in the di-
rectorate, and the sugar trust has
minority stock interest in the National.