New-York tribune., 1909-11-20
MORE EV4DED DUTIES
TO BE COLLECTED.
Loeb Dismiss6s Nineteen More,
4mong Them His Deputy,
James T.. TmI.


fairs. the Department Of Justice at
Washington was working out plan 10
collect more Of the evaded duties on
sugar importations.
To do this effectively. II was said. u
might be necessary to apply 10 the
courts that a receiver be appointed; at
ali events TO ask for legal action Of sons
kind that would enable the government
u control the situation so far as the
American company was concerned
The government is estOpped from re-
opening the case Cf short weighing hy
the agreement Of settlement. made in the
spring. resulting in the payment Of 81
G0O.OO0 But IL VS. learned yesterday
that there had been disclosures that
would enable the federal authorities to
ask for heavy penalties or fines on other
grounds. To get ct the figures. il ws5
said that control Of the company might
be asked i'm the courts.
Especial significance was given % the
foregoing rumor by the utterances Of At
tOrney General Wickersham, in Kansas
City yesterday. we are going TO re-
cover. as far as possible. all the back
NuNAtS utAt N4lt 1Df'A i4AAt'+4er ++- 'fe-
quoted as saving. "and We are going 10
ascertain who were guilty Of frauds.
wherever they may be, that they may be
punished There is not much 10 be said
about the investigation now because II
is still going on, and we do not know
where il viii end. But 7 can tell YOU
that il is going 70 be as thorough and as
effective as the machinery at my dis
posal can make it,"
ATTITUDE OF GOVERNMENT
When Mr.. Wickersham was asked
what the attitude of the government
would be toward wealthy malefactors, IL
there we're any. he said:
"A maIefactor is malefactor. AMI
anybody who is found To- be implicated
in any fraud against the government
will be prosecuted. no matter how high
up he may be"
Henry l.. StimsOn, special counsel for
the government in the prosecution Of
the American company, said recently
that the government had not finished its
efforts 70 get it's full due. From an
other source il was learned that similar
action was cOnssrupiate,f~ in July. 1906.
in the prosecution of all sO-called
trusts" The American Tobacco Com
pany was under inv-stigatio1. and
James &. McReynoids. special Asststant
Attorney General. and Milton Purdy.
Assistant Attorney General. evolved the
receivership plan and "A receiver was
actually asked for in court.
IL was rumorcd yesterday that the
Z.
the seizure of the sugar plants and
their operation under government ofIi-
Cial until all the facts in new revela-
tions had been disclosed. A federal
lawyer said that would be a rather radi-
cal proceeding but that the scheme OF
Mr.. McReynolds and Mr.. Purdy might.
with additions. be applied. Their plan
was for the complaint to include a re-
quest To the court that "A receiver oe
appointed If. in it's Judgment. the facts
as disclosed demanded such action. the
receiver To administer the business in
harmony with the law.
BREAKING UP a MONGFOLY.
The receiver would be expected To sell
and dispose Of the different units com
posing the monopoly in such way as
To preserve the essential interests of the
stockholders. and at the same time al
timately give 10 the public the benefit
OF competition between separate and IN
dependent corporations or businesses.
1t was pointed out that the govern
ment prosecutors would have 10 show
the court 70 its satisfaction that an in
junction would not be- effectual. or that
other means could not be used 10 OBJ
tain the things Tor which the federal
counsel We're COntending. In the event
of the government deciding upon drastic
action the situation regarding the Am
erican company is entirely different
fcm that which confronted Mr.. Mercy
nolds and Mr.. Purdy.
Every avenue of approach 20 a solution
of the problem as To the means Of get
ting adequate returns for the 234 IT
more cargoes Of sugar which We're said
20 have been tampered with is being eX-
amined by the Department of Justice
corps OF legal experts ard solution, II
was said. was rot far away.
one of the government counsel said
last night that the Treasury Depart
ment might collect back duties because
of the sampling frauds and the draw
backs should the investigation show
that suit for these reasons had a reason
able show OF success. tie had not heard
of the Department of Justice probing
the situation with view % taking dras-
tic action looking L. the complete con-
troll Of the company. In the tobacco
suit the United States Circuit Court had
decided. he said. not % grant the appIi-
cation for "A rece.vership. as the facts
did not seem 20 warrant such pro-
cedure
There was a report that the govern
ment was not sure thar the United
states Supreme Court would reverse
Judge Holt. who sustained the demur-
rers To the indictments against the men
arrested In connection with the closing
cf the Pennsylvania Sugar Refining
Company. The statute of limitations.
Judge Holt said. applied 20 the ALLEGED
action for which the American com
pany's directors and officials and the
company itself We're indicted " Judge
Holt should be upheld. IL was intimate,l
that an entirely new tack would be
taken by the government
When the fines and penalties were i'm
/ posed on the American company the rec-
I ords OF short weighing We're shown to
/ extend hack for MANY ,-aars rs