New-York tribune., 1909-12-20
BIG SUGAR REV ARD
P4RRS CLAIM is 4P-
PROVED HERE.
Prise for Unearthing Weigh-
ing Frauds May BE
81 900, 900.

William Loeb. jr., Collector OF the Port,
has approved the claim TO moiety by
Richard Parr on the s2,135,4 ,4S6 80 paid
into the United States Treasury by the
American Sugar Refining Company as
restitution on customs duties evaded ny
means Of fraud on the docks of :he
Havemeyer & Elder plant in Williams
burg. This was done after an exhaust
i've examination by Harrison Osborne.
solicitor Of customs. The largest sum
that could be awarded would be about
s1OOO.OOO.
The finding by Mr. Osborne that the
claim was a valid one was based on
the result of the raid on the docks on
November 20, 1907, when Mr. Parr. a
special employe of the Treasury at that
time, discovered the steel spring which
was used by the companys checkers TO
influence the weight of drafts OF sugar
adversely. This laid bare the scheme
TO defraud, and it was due TO the
evidence obtained as the consequence
of the events of November 90 that the
jury in the civil suit against the COM
pany last spring gave a verdict for the
government. which was followed by the
paying of the penalty, s1S5,4S6 80. and
the restitution of 100000 following.
WASHINGTON TO PASS ON IT.
There are other claimants. among
them Edwin l. Anderson. but none has
taken the course prescribed by law. sub
mission of the matter 10 the Collector
IL was said yesterday that there was
added significance TO Mr. Loeb's action
owing TO the recent restitutions made by
other sugar companies. amounting to
nearly S1,500 900. Mr. PARIS claim will
now go TO Washington to be passed on
by the Secretary of the Treasury.
Mr. Parr, on whose evidence largely
the five former employees of the American
Sugar Company were convicted last
week, is now an acting deputy collector
of the port He has charge of the
Weighing department This duty was
assigned to him after Mr.. Loeb assumed
the collectorship. 1t was through Mr..
Loeb that Mr.. Parr was appointed
special enploye of the Treasury and
enabled 70 begin his Investigations His
claim is based upon being the "detecter
and seizer" of the fraud and the cargo
which at the time was in the process of
weighing.
Section of the Revised Statutes, act
Of June 90. 1874. covers the legal right
to a moiety. It says:
PRIZE MONEY LAW.
That whenever any officer of the GUS
toms or other person shall detect and
seize goods, wares, or merchandise in
the act of being smUggled or which have
been smuggIed. he shall be entitled to
such compensation therefor as the Sec
retary Of the Treasury shall award, not
exceeding in amount ne-half of the net
proceeds. If any, resulting from such
seizure. after deducting all duties. costs
and charges connected Herewith"
AS late as 1908 regulation of the law
was placed in the Customs Regulations,
which follows:
After all such deductions have been
made informers whose claims have been
clearly established will be awarded %
per cent. and detecters and seizers will
be awarded 35 per cent of such net pro-
ceeds, except where in special cases the
department. may deem it expedient to
either increase or decrease the percent
ages specified"
There are other regulations. among
them one that the claimant must be both
the detecter and seizer TO entitle him to
compensation Another says that The
claim of a detecter and seizer shall not
be prejudiced by any claim an informer
may set up legally, but that the Joint
compensation in such cases shall not OK
ceed one-half of the net proceeds of the
seizure
TWO MORE CLAIMS PENDING.
Richard Whalley, who was on the
docks aiding Parr; Edwin l. Anderson.
who informed the government that
frauds were being committed. and c NJ.
Daily, who acted as Anderson's inter
medary in his communications To the
Treasury Department, have been mem
toned as claimants on the ground of
being informers. WhalIey has with
drawn his claim. Anderson and Daily
still expect 10 get mOiety of the money
collected from the American Sugar Com
pany Anderson. Whaley and Daily
have acknowledged that they knew moth
ing about the steel spring which Mr.. Parr
found on the day of the raid
A lawyer familiar with federal prac-
tiCe said yesterday that the Secretary of
the Treasury, if a statute does not cover
a point. can issue regulations if they do
not conflict with the law as interpreted
by the courts. When James Burton Rev
nolds was Assistant Secretary of the
Treasury ne abolished moiety payments.
u was said yesterday that under the law
he had no authority To abrogate the
statute Power to issue regulations was
vested in the Secretary of the Treasury.
il was said.
II was reported several months ago
that Mr.. Reynolds had refused to allow
Mr.. PARIS claim. but il was learned yes
terday that the former never had an op-
pcrtunity To pass on it. There is a
new assistant secretary in Washington