New-York tribune., 1909-12-18
FIVE SUGAR MEN
FOUND GUILTY
JURY DIS4GREES rs
TO BENDERN4GEL.
Mercy Recommended for Those
COnUicted-Look for Ne5c
Indictments Soon. y

Soon after II o'clock last night, after
deliberations lasting more than eight
hours, the jury in the trial Of the SIX
former employees Of the American Sugar
Refining Company on charges of con-
spiracy to defrsud the government OUT
OF customs duties, announced disagree
rnent as TO James :. 8endernageI; guilty
as charged, with Recommendation 70
mercy as 70 the former dock superin-
tendent, oliver Spitzsr, and the four
former checkers, Thomas Kehoe. John
r. coyIe. Edward A. Boyle and Patrick
J. Hennessey.
The federal grand Jury began an in
Vestigaticn yesterday Of the Arbuckls
Brothers sugar concern affairs, and IN
the evening il was reported that several
OF the employees had been indicted as
responsible for the frauds for which the
owners OF the business had made nearly
s700.Go0 restitution TO the government.
From an authentic source il was
learned yesterday that the Federal
Sugar Company, an independent con-
Germ, would soon be called upon to pay
to the government duties amounting to
nearly s7oo.ooo as the result OF an inVes-
tigation of the com npany's books begun
several months ago.
The verdict in the case OF the six for
mer employees was disappointment 10
the counsel and friends OF James F.
Pendernagel. who was cashier of the
Havemeyer & Elder plant Of the Ameri-
can Sugar Refining Company Instead
of disagreement an acquittaI was ex-
pected. The jury came in at 11.1O
o'clock last night CASTOR Plaintiff. the
foreman. lead the twelve men as they
filed into the courtroom. where Judge
James L Martin sat, all ready 10 re-
ceive them Mr. Plaintiff read the ind
irg. as follows:
We find the defendants, Splitter.
Boyle, CoyIe KehOe and Hennessey.
guilty as charged in the Indictment. but
cannot come to an agreement on the de-
fendant Bendernagel- We recommend
the five defendants found guilty TO the
mercy of the court
BENDERNAGEL CAUSE OF DELAY.
That was all The cause OF the long
delay in reaching decision was due TO
tAAC OAALCACAACCS u VHAAiAtAl ACedAtAAAi5 tic
gUilt or innocence OF Bendernagel. He
had produced before tie court a remark
able array OF character witnesses, and it
was said that this had had marked
effect on the twelve mon in whose hands
the fate Of the defendants rested. Ben
dernageI received the announcement
with stoicism- The five men found
guilty seemed Indifferent Judge Martin
discharged the jury after cOmpIimentins
it upon its careful consideration of the
case
There was a large gathering in the
courtroom considering the hour Each
OF the defendants had several friends
who kept the long vigil in the corridors.
Judge Martin was in the Office OF the
United States Man 1shul with Henry L
Stfmson, SPECIAL prosecutor for the gov
ernment; Winfred T. Deuisou and Felix
Frankfurter, his assistants, and Marshal
HenkeL Word was received that the
jury was ready to report soon after II
o'clock, and the party repaired at once
TO the courtroom
DEFENDANTS AWAIT VERDICT.
The accused men were in the places
before the jury box where they had sat
throughout the fifteen days of the trial
They were tense with expectation as the
foreman arose and announced that he
was ready TO report As he read the
verdict there was a brief silence and
then hum. which was quickly stilled as
the court discharged the jury. The dis
agreement as 10 BendernageI was a dis
appointment 10 The counsel for the gov
ernment- A conviction had been ex-
pected. II was said that BenGernageI
would be tried again
The verdict finds the five defendants
guilty on all three counts OF the indict-
ment. but the penalty can be imposed on
two counts only. as the third count is a
mere recital of the overt acts. on each
OF the two counts the penalty is two
years or 5000 fine. or both The SEN
tence. therefore. may be for four years
and $4,000 fine. 1t was believed that.
owing TO the recommendation 10 mercy.
the full penalty would not be imposed.
Mr.. Stimson moved that the in1ict-
ment of BendernageI be severed from
that of the other defendants. and this
was granted. NJ new bail was asked
for in the case Of BendernageL, but Mr..
Stimson. when Judge Martin set this
morning fer the hearing OF motion for
the fixing of date for a new trial for
the convicted men. said that their bail
should be renewed.
More depended upon a conviction in
this case than appeared on the surface.
Mr.. Stimson had said in his sum
ming up: -
II these men are acquitted there is
not the ghost of a show OF getting the
men higher up"
Acquittal meant the destruction OF the
foundation OF the whole prosecution The
six former employees 'of the American
company were indicted on charges that
were based upon the evidence that i'm
PEELED the company 10 make restitution
TO the government OF S2.O10 OOO in duties
II was this kind Of evidence. in the
main. that has caused the payment to
the government Of S1j0aO0O by two
other sugar companies and is expected
10 compel third 10 settle for a large
sum rather than risk prosecution
Some evidence introduced in the civtl
suit against the American company was
not brought out in this case But there
vas new evidence given bv Iohn II