The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-12-17
LOEB HURRIES To
CONFER WITH TAFT
Latest Developments in New
York Sugar Frauds Become
More Sensational.
NAY REACH SOME MAN
WHO IS HIGHER Up"
Trial of the Six Employees Now
Under Indictment May Prove
Only Incident.

NEW YORK. Dec. I6,-William Loeb
Jr., collector of the port Of New York
lett suddenly for Washington today
Taft and Secretary MacVeagh concern
ing the evcr-increasing sugar scandals
With the Arbuckles and the Ma.
tional Sugar Refining company now in.
Nolved, new avenues of investigation
have been opened. paving tho way for
future criminal procedure.
Counsel argued /Dll DAY at the trial
OF SIX employees of the American Sugar
hohnlng company, now drawing 10 a
close here, but arguments had not been
concluded when adjournment was taken.
The ease will 90 TO the jury tomor.
row.
End Is Not Yet
Sensational developments in the sugar
scandal following thick and fast upon
one another were supplemented today
by rumors Of other important disclos-
ures impending
One of these related TO the reported
finding of an indictment against a man
higher up IN the councils Of the
American Sugar Refining company and
the further report that the Official prob
crs into the upderwcigbing frauds
through which the government has
been cheated out of millions were about
prepared for a disclosure that would
fix responsibility in still higher quar-
tcrs.
Others Ready to Settle.
Developments, following yesterday s
payment by the Arbucklos of nearly
100000 to reimburse the United States
treasury for deficits due to false weight,
lad hn
Of thc big sugar refining companies was
prepared to settle with the government,
as the Arhucklcs had done as soon as
1T had been officially informed Of the
amount tho government claimed To he
due. This company was the National
Sugar Refining company, next 10 the
American Sugar Refining company in
the extent Of its operations. The Ma
tional president, James H.fpost, stated
that the government Investigators had
been going over the company for
months and recently had Informed him
that the company owed the government
more than 100000 In uncollectcd du-
ties.
No demand for restitution had been
made on the officials of the National
company up 10 today. President Post
stated however. that at Il conference
with the government 8 special counsel
today II was probable au agreement
would be reached on an amount which
the company would turn over 10 meet
The claims Of the investigators.
1t was learned today that Ernest w
Gcrheracht, former superintendent of
the American Sugar Refining company's
plant, whore the alleged underwcighng
frauds were committed. was arrested
Tuesday night, arraigncd before United
States Commissioner Hitchcock. and re-
leased on $4,000 bail.
The arrest was kept secret. it WAS
said, for fear the judgment of the jury
in the case of the six employees Of the
sugar company now on trial might be
affected. Gerberacht. held position
directly superior to james r Bender,
nagel. n cashier. who Is one of the de,
PENDANTS now being tried, and Bender
nagcl testified that he notified Ger.
bcracht of the discrepancies In the
weights and sought otherwise 10 shift
the responsibility 10 his superior