New-York tribune., 1909-12-16
MORE SUGAR MONEY
HEAVY BACK DUTIES
FROM 1RBUCKLES.
Government Collects Nearly
800, ,OOO-Firm' Books Ap-
proceed an 1905.


New York for a good many years. and
of the extent to which the government
suffered by this looseness. was given
yesterday with the announcement that
the firm of ArbuckIe Brothers had paid
over 10 the government $695.573 ~.
This amount, which represents a
shortage in payment Of duties for
period OF less than ten years. or about
$4,000 a year that the government
failed to collect from the firm since it
started the refining of sugar in competi-
tion with the Sugar Trust in 1898 to No
vember. 1907. was paid IN cash at the
Sub-Treasury in this city last Monday.
Added to the S2.O00.O90 in back duties
and the Sl35,O0O penalty for under
weighing which the American Sugar Re-
fining Company has paid over. the settle
ment by the Arbuckle Brothers repre-
sents total of almost S3O00.OOO. which.
either through gross carelessness or de-
sign. the investigation now being con-
Quoted by Messrs. Stimson and Denison
has disclosed. was held back from the
government
GAVE ACCESS TO BOOKS.
In accordance with their instructions
10 make a thorough investigation of
sugar importatiOns at this port. Messrs
Stimson and Denison began last June an
examination OF the sugar impOrtations
of the trusts chief rivals In this they
were aided by the members of the firm,
John Arbuckle and William A. Jamison.
who voluntarily gave the investigators
free access to the books of the firm. AS
soon as the total shortages were dis
covered last month they were reported to
the firm, who offered to pay the entire
sum over to the government. With the
concurrence Of the Attorney General the
payment has been accepted by the Sec
retary of the Treasury in full payment
of all civil claims against the firm.
Ihe payment, however. does not pre-
clude the possibility OF criminal prose-
cutlons against any individual who. il
may be proved. was responsible for the
commission Of the frauds by which the
government stood to lose annually a to-
tai OF $4,000. In announcing the set
'iement yesterday Messrs. Stimson and
Demson made it plain instead that no
stone would be left unturned to bring
10 justice those who are responsible for
the frauds
When the firm of ArbucIxIe Brothers
began refining sugar. eleven years ago.
ITS members were John ArbuckIe. Will
lam a. Jamison. James y. Jarvie and
William V. r. Smith Messrs. Jarvie
and Smith withdrew from the firm in
1906 but the offer to settle the claims of
the government without recourse to the
courts was made on behalf of all four
men. Dykman, Oeland & Kuhn repre-
sented Messrs. Arbuckle and Jamison.
the present members of she firm. and
Joline. Larkin & Rathbone were the
lawyers for Messrs. Jarvie and Smith in
the negotiations with the cPunsel for the
government.
ARBUCKLES PROTEST INNOCENJF
The offer of settlement was submitted
10 the Secretary OF the Treasury on de-
cember .. IL declared that ArbIckle
Brothers were entirely unaware OF the
underweighing Of sugar importatnns.
In their letter to the Secretary Of the
and Joline, Larkin & Rathbone. repre-
senting the former members of the firm.
have this to say:
The amount (S695.573 1el offered Z; e..
amount aScertained by accountants rem
resenting the United States after full ex-
animation or our bookeS, freely arcorde5
10 the United States upOn re,1ueSt -
Henry l.. StimSOn. representing fbe 90
erhlnent. This examination. for the first
made Al Z . fha
raw sugars imported by them Were under.
weighed by representatives OF the govern
n,enE III Inc Undersigned in entries made
al Ihe New York custom House of everv
cargo imported by them. gave the fuII and
true weights of all sugars anu
We desire To take this oppor-3Iptt,. oe -
forming you that in the wear I9N5 yo,Ir AZ an
partinent requested an eXamEnatio1 81 ~
books OF this firm for the purpose of t'Ie ine
portattOn of sugars. This resnIest - III 7.
once acceded 10 and our books 80 80 al
amlned by Your representative Your ren-
resentatlYe- made q cOmplece studv of -
impOrtatlonS of sugars ami rnade No @ O,-r
gestions or criticisms IN resnect t6a,ois
From this VIC naturally assumed ~, eVi sp
government did not question our JeaIinas
10 that date e"i prior
M99twithstanding this examination. this
settlement covers the period hack Ia tSaS
! when We commenced the importat a. io'N,
sugar. We do this In order that the So,l
| ernment may receive every nenny IS sUN
| duties on every pound OF sugar ipDorttnn ~, tns
| by us imported
william y. Dykman. of counsel for
! Arbuckle Brothers, said yesterday tho,
while the firm regretted the effect tba,
/ the announcement of the goverr,rer,
counsel might leave on the public mind
II had stated its case fairly i'm its ofrer
! 70 the government. There had baer no
intention to keep anything back from the
! government he said. as was cIcarI,,
shown by the firms action in giving the
government Investigators full permissio,
| 10 go through fits books
The amount itself appears Iare,. ., 60 Il,
/ Mr.. Dykman. but it must be remen-
bered that the shortage represents only
something over per cent Of the total
importations made by the company dur-
! ing the period referred to-"
AFTER OTHER SUGAR FIRNS
The special counsel for the govern
ment yesterday declined 10 discuss the
rumor that the Investigation into the
weighing of sugar ON Arbuckle brothers.
docks was prompted by competitors. The
instructions from the Department 80
Justice were to make thorough inyes-
| tigation into all sugar importations at
/ this port. and IL may be said thar tbis
| investigation has not ceased with tho