New-York tribune., 1909-11-13
SUGAR FRAUDS UP
Continued from drst page

In the investigation OF the sugar frauds
had been from the bottom upward Be-
cause there was not immediate and san
sational proceedings ~ Old not follow
that the government was not active In
the work. he said.
The same official said that President
Taft, Secretary Macyeagh OF the Treas
ury and Attorney General Wicker
sham were back OF the prosecution here.
and that nothing would be left undone TO
lay bare all the facts In connection with
the customs frauds. There could be
nothing done. IL was said. without elao-
crate investigation and preparation. and.
further. that the work under the direc-
tion OF Mr.. Stimson. since a special force
OF Secret Servics men was put under his
charge. had been as rapid as any similar
action ever undertaken.
"One thing at time" was Mr.. Stim-
sons answer 10 questions regarding the
possible prosecution Of other alleged
violators Of the customs laws. All OF
the sugar companies are under investi-
cation. but 1t was said that did not mean
they had been guilty Of wrongdoing-
Rumors have been current that the Ar
buckle company has been asked 20 set
tie for back duties. but this was denied
yesterday. 1t was not denied. however.
that there might be proceedings against
another sugar company
DoNNER's STATEMENT.
In the Offices Of the American Sugar
Refining Company the stories of the
duties cut Of which the government had
been defrauded. amounting 20 $4,000
600. were vigorously denied. Arthur
Donner. the treasurer. who said the day
before that the company was helping
Tie government in it's work TO unveil
the frauds. which Mr.. stimson verified.
issued a statement In which he said:
In regard to the payment of back duties
otner than the 100000 already paid over
TO the government, would respectfully re-
Ier 20 Henry L. StlmSon and his assistant
Mr. Denison. Both have said we have
made restitution in full Should the gov
ernment present any evidence that the
gladly pay H. We were Of the Opinion, that
We had struck an honest balance with the
government IL we still owe anything. IL
us We are still I'm It's Debt
by the statement Of the lawyers for the
company thar the settlement for 10000
was good thing for the company in view
of the fact that the government might have
collected Sdcne1. they meant not only the
back duties. but the penalties which the
ing the 10000 nxed by the govsrnpe1t
the company avoided the payrnent of nen-
slues As IL was. the company did pay
aS5oeo in penalties.
Over in the refneries in Williamsburg
there are many new faces. So Far as
was known yesterday seven men have
resigned. They are BendernageI. Ernest
Gehracht. superintendent; Frank wenzeI,
confidential clerk: Henry Faulkenstein
and William Mulhearn. clerks; Arthur
Gebracht. son of Ernest ana william
Fleming. chief of construction. Oliver
spitzer was dropped last spring. He
is not client of Mr.. Cochrane. who was
one of the company's counsel in the gov
ernment suit resulting in the settlement.
Spftzer's counsel are Lexov. Macksuar
& Wells.
WHAT HAPPENED IN BOSTON.
Wilbur F. Wakeman. sx-Aprraiser at
this port. now treasurer and general
manager Of the American Protective
Tariff League. told yesterday OF his ex-
periences while Appraiser with sugar
samplers who were said to have been
concerned in scheme 20 defraud the
government by the doctcring of samples
He said that instructions sent 70 him BY
the government were known on the docks
Of the sugar company twenty-four hours
before he received them. He knew OF an
instance, he said. where supervising
special agent had been engaged BY the
sugar company, had returned TO Wash
ington as in the employ OF the company
and had a desk in the once % the new
supervisor. II was easy in that way 70
counteract any orders sent out BY CIV
Ing advance information. he said.
Mr. Waheman told a story. Of which
he said he had the evidence Of an ex-
periencs IN the times Of the prosecutions
OF sugar frauds in Boston. man with
evidence furnished by five men employed
BY the government ar Boston Went 20
Washington and laid the facts before the
then Secretary Of the Treasury, Charles
S. Fairchild. The man said he would
get the men 10 testify II he was assured
that they would not be dismissed Sec
retary Fairchild was astonished that it
should he supposed the men would be
dismissed for doing the government a
service. but readily gave the assurance.
But the man also wanted Mr.. Cleve-
lands promise. and when he saw the
President this was also given.
The five men gave up the evidence
they had. and much 10 the mans aston
ishment they were dismissed soon there
after. lie went at once to see President
Cleveland. He sent for Secretary Fair
child and learned that the five men had
been dismissed under charges. Mfr.
Cleveland ordered their reinstatement at
once. Mr. Fairchild had consented 10
the dismissal by indorslng request of