New-York tribune., 1909-04-30
SUGAR co. SETTLES
T. S. GETS S2,195,486.
Criminal Prosecutions Viii BE
Pressed, Mr. StimsOn Says

The American Sugar Rehnlng company pdIu W
the United States goveTnment yesterday SSsoSs "a:
which sattIe5 the civil suits and the verdict OF
s134 III o. with Interest rendered by jury in the
suit for penalties false weights OF imports on
the ffaveneyer & Elder docks in brooklyn The
protest on payment Of 81 29 0S q reliQuidat-
cd bills made several weeks ago Withdrawn,
making the total received by the government &l3-
$50 81 Besides the penalty amount the sum repre-
sents hack duties OF about $2oo,0eo from 1901 to
November 1907. and about 100000 for duties back OF
.q11 40 Iss6 The Irregularities occurred before the
present mana cement of the company took control,
and President Thomas and his associates have
shown every disposition to arrive at settlement
satisfactory TO the government.
n L. Stmson, eX-United States Attorney VINO.
with a former assistant ". T. Denison, prosecuted
the cases, when giving out statement or the set
Element of the case said that ne regarded the
criminal prosecutions. still to be brought as OF
more Importance than the civil. Nj Stimson and
Mr Deuison syiI continue TO represent the govern
unent in the criminal proceedings, which VIII he
brought against persons charged with responsibility
fer the frauds weighing.
The American Sugar Refining Company settled
the civil suits and the verdict the advice Of its
counsel, John g Johnson, John B. Stanchheld,
James r. Sheffield and Henry Il, Closson In
communication to the board of directors these
counsel said April 26 after protracted negotia-
tiens with MI. Stmson and Mr.. Denison:
Having advised you that in our opinion your
company should compromise with the United states
the claim made by il in the matter of reliqudau2n
Of duties and enforcement OF forfettures by Tea-
q
what alleged 70 he the proper rate, and "A
eTnme1t has agreed To accept IN full OF its claim
against Tie company tn TIE sum Of i fud ; IN a4
viz Sl24O.o already entered think it proper, in
paid 10 put in writing the reasons which induced
US thus to advise
The communication tells Of the charge made by
the government in 1897. the letter the federal
counsel, with the consent Of the officers and di
rectors OF the sugar company. saying that the
facts were not known TO them. but that the books
aud papers Of the company We're open TO the
fullest inspection, and that the company was will
ing 10 pay whatever sum should be found, after
fun invest CATION to be by it due. The government
made an investigation. but suggestion of settle
ment was met the counsel say. in the way
proposed. and q forfeiture suit instituted. The
story Of the trial for penalties before Judge Holt,
which resulted the $I34G3 verdict against the
company. is told and the counsel said:
While We thought, and still think, that no for
feitUre could be sustained unless the company it
self or its board Of directors, its executive
officers had been aware OF the fraud, Judge Holt
entertained a different opinion, and charged the
jury that if the fraud was known TO the then
superintendent of the dock which were located
the scales the company responsible. The dock
superintendent had been previously tried by the
United States upon charge Of bribery in connec-
ton with the matter, and had been acquitted At
the trial before Judge Holt. although the evidence
would have warranted different verdict the jury
must have found the dock superintendent nau beeiI
aware of the false weighing. 1t is very much more
than probable that subsequent juries would follow
this finding The instructions Of the executive
officers TO counsel that effort should be
made 10 shield any employe of the company or
anv one else These instructions were fully carried
OUT
The counsel pointed out that the forfeiture claims
Of the government would have amounted 10 5000
90 altogether if the suits had been continued
and that while the points were exceedingly close
.'s11cl as We as lawyers, would have taken great
Measure in arguing the letter says, they fet COM
pelled however to advise the company to do what
they. the lawyers, if in the conpanys place would
have done. The letter ends:
Large as the sum paid seems TO be. you must
hear IN mind that il is considerably less than per
cerr of the amount actually paid by the company
10 the government during the period in question
rfhe secretary Of the company, Charles H. delhe'
gave out the foregoing letter yesterday, and also
letter from the board Of directors TO the stoch-
holders in which the board says:
The claim Of the government has been tilat laIse
ap{o1nfs Of imported sugar had through fraudueht
actjrss Of certain Of the companys employees
been underweighed by the government oIlce.S oi
whose duty il IS weigh them tor the a ascell4lll-
1renr of duties From the beginning the company
has EXPRESSED TO the government ITS WlSh 70 CO CO
0rsrate in al investigation to ascertain me aLoiIt
Z los he government and the SulltH paIllss'
and its pay 10 the government tlis -
OF any unpaid duties. The company mas however