New-York tribune., 1910-01-03
SUGAR CONFESSION
NOTHING OF FRAUDS
NOW UNKNOWN.
Details Furnished by Former
Weigher to AUoid In
dictment.
dctnlent.

Henry L. Stimson, special prosecutor
for The government in the investigation
Of the sugar companies in this city, and
his assistants succeeded in getting
confession last week regarding condi-
iions on the Havemeyer & Elder docks
Of the American Sugar Refining Com
pany for several years prior to the sum-
mer of 1907 that added greatly to the
strength of the federal case against the
men convicted on December IL and
those who have been or still are to be
indicted.
This confession was followed by a. pro-
ionged session of the grand jury in the
Posteflice Building, and on Friday some
OF Mr. Stimson's assistants spent several
hours in the Offices of the American
Sugar Refining Company, at No. III
Wall street 1t was reported that an
other Indictment had been found. and
that very little regarding the frauds on
The docks. first discovered in the raid of
November 20, 1907. remained to be
cleared Up.
A former company checker, familiar
a-ith the affairs connected with the
weighing of the sugar cargoes by the
government employees, consented to aid
The government He was not living IN
this city when the Secret Service men
aiding Mr.. Stimson learned that he had
a story to tell a long journey was nee
essary into a snowbound county to the
north. The choice for the former en-
ploye OF the sugar company lay between
he chose
the former.
So that the proceedings might not be
ATTENDED by publicity, United States
Commissioner Shields was sent for, and
in his presence. in an office at No 81
Nassau street. the story of the consplr-
acy TO defraud the government was told
This new evidence will be used if the
men convicted on December IL obtain
new trial, as well as at the retrial OF
James F. Bendernagel. former cashier
Of the company, on whose guilt or IN
nocence TIE jury could not agree.
Rv reason of this confession, 1t was
said yesterday, the government prosecu-
tors have determined to oppose strehu-
ouslv the attempt for a, new trial Tor the
convicted men, former employees OF the
American Sugar Refining Company
Oliver Spitzer. former superintendent OF
the docks. and the former checkers
Thomas Kehoe. John r. Coyle, Edward
4. BOYLE and Patrick ]. Hennessey.
81 The argument for a rehearing or the
case was set down for January .. The
prosecutors feel that they viii be able 10
show that the case was decided on ITS
merits, and also that the additional evil
dence will make another conviction
matter Of course. Judge James L. Mar
lin. who presided, viii hear the argu-
ments.
II was learned yesterday that should
Judge Martin refuse TO grant new trial
Mr.. Stirnson would endeavor to get the
court TO impose the limit of the penalty
prescribed by law for those of the con-
victed men who have not confessed. The
conviction was on two counts, and the
maximum penalty that may be imposed
is four years in prison and $1,000 fine
The jury recommended mercy, but Judge
Martin did not mold out much hope OF
needing this on the morning after the
decision. He clearly invited confession.
1t was pointed out by a federal law
yer that Judge Martin made it clear
that the scapegoat plea would have no
effect unless confessions were forthcom-
ing Overtures have been made by
friends Of the convicted men, generally
with the purpose of learning what the
attitude of the prosecution would be as
TO suspension of sentence in the event
or d confession, but it was said that no
definite promises were made.
From a federal source it was learned
Yesterday that the greatest leniency
would be shown to the five men, or any
one of them, in the event of a frank
statement of who was responsible for the
short weighing frauds on the Williams
burg docks. This leniency might be in
the shape Of suspension of sentence or a
very light fine-rnore probably the lat
ter-but, of course, this would rest with
the court Judge Martin. in view of his
remarks and the jury's recommendation,
would, II was said, be likely to heed the
requests Of the government counsel