Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-05-24
SUGAR FRAUD Man
WAS PARDONED BY
PRESIDENT TAFT
Big Sensation Created by An
nouncement That President
Had Pardoned Oliver Splitter,
Convicted of UnderWeighing
is CALLED AS WITNESS.
FOR THE GOVERN MENT

NEW YORK. May 23.-The biggest
sensation of the trial of the American
Sugar Refining company was created
this morning by the announcement that
President Taft had pardoned Oliver
SpI,zer, superintendent Of the williams
burg docks OF tn company, who some
months ago was convicted of under
weighing and sentenced to two years in
the federal penitentiary at Atlanta
The trump card in the prosecution OF
Charles R. Heike, secre .ary Of the Amer
lean Sugar Refining company, was
played at the opening OF the sugar trust
underwe1ghfng conspiracy trial today.
when Prosecutor Stimson called Mr..
Splitter the governments first witness.
John B. Stanchteld, Tor the defense.
claimed that, un~er the federal statute,
Splitter. as a convicted man. coui- not
testify.
1t was then announcef in court that
Splitter had been pardoned by President
Tart.
CONSERVING TO DEFRAUD.
Heike is on trial in the United States
circuit court, with five former employees
of the American Sugar Refining COM
pany on the charge of conspiring to de-
fraud the government by underweighing
| cargoes of sugar imports. y
On evidence of Richard Parr, govern
ment inspector. Splitter was convicted
with four checkers employed under him
in connection with the conspiracy to per-
petrate frauds whereby the government
was cheated out of millions of dollars
in sugar duties. The four checkers, Boyle.
Coyle, Rehoe and Hennessey, were sent
to the Blackwells island penitentiary
for a year. Splitter protested ignorance
of frauds on the docks.
MEN HIGHER UP.
Men higher up" were sought and
Heike the secretary Of the trust anc-
Ernest F. Gerbracht, the refinery super
Intendent, were indicted. With them on
trial now, besides four other former COM
pany checkers, is James IF. Benderna-
gel, the refinery cashier, who was tried
with Splitter and the others. The jury
disagreed as to whether Bendernagel had
a part in the conspiracy and 1t was de-
cided to retry him.
PARDONED MAY 1s.
AS Splitter testified today It developed
that President Taft granted him an un-
conditional pardon on May 10 last.
It was reported that Splitter would
make a clean breast of the alleged
| frauds. -.-s -----.--A.
He described the use. about 1894 and
1895, of small bags of lead on the beams
of the scales causing the recorded
weights to be sometimes 40 pounds short
to a draft, and also the stuf1ng of news
papers underneath the floors of the scales
for the same purpose.
A NEW DEVELOPMENT.
This use of paper was an absolutely
new development in the fraud 1nvesnga-
tion Heike listened to Spitzer's testi-
mony with tense interest. Splitter denlon-
strate1 in the court the use Of bags or
lead and testified about the steel springs,
saying that first heavy ones were used
and later light ones. The springs, ne
said, were substituted for lead and paper
when the Deputy Surveyor OF Customs
Vail took office, while the use OF springs
was abandoned after the sugar trust had
paid the rebate to the government as
result of the federal suit.
Did you arrange a system OF slgnai
lights in the scale houses" suddenly
asked the prosecutor.
yes, sir" replied Splitter, who then
related that the signals were usec TO
warn the /weighers of any sudden dan
ger.
How were the lights worked?'
by a switch in my office, replied
Splitter. who said that the switch was
turned whenever a government official
was seen TO approach.
Splitter said that an electric light had
been used in the scale houses for many
years, but that he made a change in the
signal system by installing the lights.
In reply to an Interrogation of the pros
secutor IL he had ever reported the
weighing frauds to any one, Splitter re.
piled that he had informed a man named
Leroy, who worked in the Wall street
office of the sugar trust.
TOLD THE CASHIER.
The witness said when he wanted to
raise any of the checkers wages he was
obliged to put the matter before Cashier
James and Frank W. Gerbracht.
The checkers of the government weigh
ers were favorites over those of the city
weighers in the matter of wages, he said,
and every effort possible was made 10
conceal this from the other workers on
the dock
Splitter said that in the fau of 1906 he
received a telephone message from an
| unknown person warning him to be care
full of the wire springs, as the govern
ment was watching the docks. This
| caused a letting up in the fra ids
WWEIGHERS TAKEN CARE OF.
Following the raid in November, 1907.
by the government, the witness said he
was informed by Mr.. Gerbracht that the
weighers and himself would be taken
care of.
when the six weighers were dis
charged what happened?'
II paid them the same wages every
week at my home" replied Mr.. Splitter,
adding that the money was given him
each week by Mr.. Gerbracht, who left
| it in a package at his garage.
| when did this money cease?'s
when 1 was sentenced last Febru-
ary," answered Mr.. Splitter.
Splitter said he knew Secretary HeikA>
but did not connect him in aSy s~~
with knowledge OF me false weighing.
Cross-examination of the witness waa
daferrad-