The sun., 1910-05-27


Mr.. Thomas has been under subpgna
IN the present trial. bllt for aome reasou
the Government has decided not 10 call
him a. a witness
Another letter produced from one
of the 1000 letter press cupy books
containing the writings uf Charles X.
Heike and Rad To the jury was addressed
% AIR Gerbracht the manager oI the
Williamsburg refinery and one u the
defendants In the present casa. This
letter was dated September o. 1897, and
had 70 do With the adjustment Of an
insurance matter IN this letter Mr.
Heike wrote a. follows
no HARM m SHOWING THOsE WEIGHTS
pEAR M. CrEBUA,HI The clerk Of
the insuunce inspectors who went over 10
your refinery 10 see the weight book Of
the steamship Indiana came back with the
report that Inc weight books had all been
destroyed and when he expressed surprise
that they could not b. seen bv him he vas
told that II vOnld require "a special anneX
10 ne built IL w. we're 10 keep the weight
hooks for inapegtion A. the indiana did
rot arrive until September ~. which was
ten DAYS aRO. II seems az best that The
annex would be very small 10 Keep weight
books foF Ten davs. and a. there were no
duties paid on these sugars there could
under no circumstances he any harm IN
showing tho Weights ~ there could be no
comparison With custom hou~s weights
The cargo referred ~ In this letter
was a cargo ~ HaWEti-n sugar upon
which no duty hrd 10 he paid and hence
no Government weights were taken
An interesting paragraph in the same
letter. not. however, ~ do with weights.
had reference 10 an attempt 70 scuttle
~ Il. "a. II
Heike wrote that he was we'll aware that
such an attempt had been made but that
the captain had reported that the sugar
had not h~-n damaged - the wEter
did not teEC' IN 20 the dunnage The
protest whic. he iiied here la New NOrk
D. account fUs the dsmage.- wrote Mr.
Heike, -st.ted tRt IL was due ~ ex-
tremely rough weather On the passage
20 New York end that the water got In
through tho matches and along the masts
L. was ~ verify these etztements that
the insurance men ought 10 have seen
the ship. They asked me q see the weight
book because they thought that some
Of the duaughts might be lighter than
Others. which would indicrte that some
of the bags were empty Of stock and
washed out, which is ClWEys = good evi-
dence ~ salt wrtsr dam 20
NAMING rHE wFiyHTs PIT.
IN order 10 show that the accounts
Of the Company In the general clearing
house in Wall street did not baEuce until
figures representing the falss weights
were inserted the Governments put on the
stand an expert Hervey " Waters. Who
had reconstructed the sO-cslled technicri
statements. the originals having disRp-
peared from the books which the Govern
Inent had been eble to get hold o. Itl
was shown that in making up these tech
uiml statementa. showing the suGnr
received and tho sugar refined, the fiRae
Government weights had been used in
the csss Of Cn sugar from lava. The
company bought that sugar not on in
voice at point Of shipment. hut on its
landed weight. The sugar from Cuba
was bought on invoice weight, the weight
invoice weight was used in the technical
statement But the technical statements
using the FALSE weights for Java sugars
bad 70 be fixed up later by the insertion
Of the difference between the false weight
and the true weight which the COMPANY
RAID for. else they would not re-
IN behalf OF ar Heike, Mr. Stanch- |
held wanted 10 know how since the tech !
meal statement included both dutiahle |
and non-duiiahle sugar. Mr. Heiks could |
have been aware of the frauds they COW
cred. Mr. StimsOn replied that N the |
figures had beeu taken for dutiahls sugar |
alone without the others the results would /
have been more astonishing than they /
we're. The Court Overruled the Ohiet- I
ton OF Heike's counsel and admitted al /
of the statements 90 constructed from the /
years 1913 10 io0o.
MoRE REFNED suoAR THAN RAW
Following this evidence a chart full Of I
waving lines vas shown the jury. II had 4
been made up by Joseph Gatringer. an ]
other accountant. II was designed 20 4
show how absurd 10 any one Wers the |
figures based on the false weights for
sugar Il showed. for instance thai in /
every year from 1918 % 1877. the period /
covered by the chart the Williamsburg
refinery turned Out more refined sugar.
based on the figures on its hooks. than the
intake of raw material The percentage
Of gain. shown bv a waving line. rose and
tel IN each year. la the year 1873 II
reached lis high water marx The re-
hnery was then showing a gain at lines
Of per cent In 1913 IL went down some
what. Early In 1871 70 rose again The
items were segregated by lOts On no
lots were there great losses shown Asa
rule. up unt the fall Of 1907. when Parr ap-
peared on the dOcks and the game stopped.
gains were shown. not losses. BIt from
that time on. m los 10 1919. there were
20 gains az all. II was always loss then.
Raw sugar never made as much when
refined and instead OF gains there we're
losses frequently Of per cent
TIE RED INK AMENDuFNrs
Il was Joseph p Montgomery. a clerk
employed IN the Wall street oific. Vbo
told about the Insertion 0T hose r.d MI
figures az ~ Wall street 10 make the
books balance every month Mont goinerv
an oid employee. was known a. the lrplting
clerk. He handled all the figures FOR the
melting of sugar done in the v WILLIAMSBURG
refinery. and he idsntiiis,i books showing
those figures for the wears from IaBi to
190s. livery day he got from the refinery
lie melting report. showing the raw sugar
u had received. its grade quality, work
ingH. value and weight. For Java sugar
they were ihe false Government weights
Montgomery said that every day he ,
showed these figures to Mr. Heike. Then
81 the end Of a month he collected them
IN q monthly statement Then Otto Il
Sohmelters. a ledger clerk in Mr Heikes
Ofice. Montgomery said. would give him
. set of additional monthly figures OF
weights on each lot in the different carRoar
and he would then write in these wei ghfs
and the values they represented 10 ned
ink on bis statement. Schmelters. whom
the Government expected 20 have as
one OF 10 most important witnesses. has
been very ~ for two months. tie testified
a. the trial in which the sugar trust A.
corporation was convicted of rObbing the
Government y
The Insertions which Mont gonery had
made for tbs Java sugar were shown In
statement which he Identified
These we're some u the figures for 1907
a. about the time that The frauds were
discovered
u~gfT