New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-18
SUGAR OFFICIAL ON TRIAL
Prosecution Says Heike Knew of
Weighing Frauds for Years.
SECRET SERVICE MEN SWARM
Trying to Trace Sources of Al
legged Approach of Talesman-
Parr May Testify To-day.

How the federal government is going to
try to connect Charles r. Heike, secretary
of the American Sugar Refining Company,
with the weighing frauds on the Havemeyer
& Elder docks came out at the trial of
Heike and the five former employees yes
terday. This was soon after the jury had
been chosen. in the presentation of the case
by Winfred T. Denison. who is assisting
Henry l. Stimson. special federal prose
| cutor. Mr.. Denison said:
We will try to show that these frauds,
by which the government lost many millions
of dollars, extended over a period of ten
years; that this structure of fraud was not
confined to the docks at Williamsburg, but
permeated the entire business to the office
of the trust in Wall street.
Then he declared that Heike, in indorsing
the checks paid to the government when
he had before him the false weights,
showed guilty knowledge. Mr.. Denison did
/ not go beyond the action of Heike.
/ The presentation, except in the foregoing
particular was the same in substance and
form in the other case, which resulted
in the conviction of former checkers of the
company and the former superintendent of
the docks, Oliver Splitter 1t told in detail
how the scales were tempered with up to
the time of the discovery Of the steel
spring.
There were several occurrences in the
choice of jury that put counsel for the
government and for the defence on edge.
J The first was report that one of the
talesmen had been approached, and this
man, upon being excused. was ordered to
appear next Monday. 1t was said that the
whole force of Secret Service men had
been put on the case.
Defence Uses Last Challenge.
The next incident occurred when George
Leask, broker, of No. 81 Wall street. one
of the provisional jurors, was examined.
! He said his firm owned stock of the COM
pany, and that while he had no feeling
| against the men trial he had a strong
dislike for the company. Mr.. Leask went
| further. He said he objected to the whole
! system of which the defendants were or
! had been employees, and also to the methods
| employed in bringing them into court.
The government was satisfied with Mr..
Leask. The counsel for the defence had
| one more challenge. He used it up on
Charles E. Bentley, of No. $50 Broadway,
and Mr.. Leask took his place in the box as
juror No 4.
In the questions put to the talesmen Mr..
| Stimson asked whether they had been zap
preached. This was supposed to have
been done the result of the story of the
juror who was excused, James Tole, presi-
dent of Typographical Union No. g. Not
one of the other men had been zap
preached.
Immediately after motions to dismiss the
| Indictment had been denied the government
called John J. Viele, acting Deputy Col
| lector of Customs to the stand He gave
the date of the arrival of the four cargoes
| of raw sugar which figure in the indict-
ment, and detailed the system employed by
the government in collecting the duty The
| steamship Olinda. from Cuba, which ar
| rived in April, 1907, was the first to be con-
! sidered.
| Other officials employed in Collector
! Loeb's department were examined regard
| ing the proceedings relating to imports. and
then George ]. smyth, acting Surveyor
who was an acting Deputy Surveyor. was
called to identify records of weights of
the cargoes in the Indictment and to tell
of the method of making the returns
Effort to Eliminate Fraud.
When John B. Stanchfield counsel for
Heike, took Mr.. Smyth in hand under cross
examination he had to explain more fully
! the system employed by the government.
and then Henry F. Cochrane, counsel for
| the former checkers, James F. HaIlisan
and Jean NJ. Voelker. and who has intimate
/ knowledge of the sugar dock conditions.
went at the witness
| Did he know that the weighers for the
company were paid by the weight. and that
| the greater the weight the higher their
/ pay? Did he know that the sugar com
pany's employees were forbidden to clean
the scales, and the machinery under the
| platform, thus making the scales weigh
! less than they should? These questions
| Mr. Smyth could not answer and Mr.
! Cochrane seemed much pleased.
II was apparent that the defence expect
ed to lay great stress upon the matters
contained in the questions in the cross
| examination of Mr. Smyth in an effort to
prove that the low government weights
| We're not due 10 fraud. They made the
same effort al the last trial Mr. Smvth
was the last witness for the day 1t was
| said that Richard Parr. who discovered the
| steel spring, would be called this morning
Throughout the day Heike seemed calm,
and was very attentive to the testimony
| James F. Bendernagel. who was cashier of
the Williamsburg plant, and who was dis
missed by the company soon as he was
/ indicted had aged perceptibly since his last
arraignment. when the jury disagreed.
The accused checker, Jean NJ VOelker,
who was i'll when the former trial was
called. had to be supported as he entered
the courtroom. Ernest Gerbracht who sat
next to Heike. was the superintendent of
| the williamsburg plant He, too was dis
missed by the company when he was in
dicted Despite the fact that all excepting
Heike were dismissed as soon as charged
with crime by the government. the counsel
for the defence acted as a unit in the case
! Following is the jury;
Ernest D. Terry, president, No. 10 Murray
street, foreman Robert T. Albertson, sta
toner, No. So Warren street; Percy Z. Will
hanson, advertising, No. 156 Fifth avenue;
! George Leask, banker. No. 81 Wall street;
Wilfred J. Stone secretary. No West 9th
street: Albert Tarlton, No. 43 West 126th
| street: Joseph r. Malone cashier, No. POS
Fifth avenue; l.. Edward Mueller, coal. No.
| III King street: Arthur +. Petit manager
| No "a Stone street; Walter II. Gantz, jr.,
/ clerk. No. 50 Wall street John o. Barnes,
| salesman. No. Sc Reade street, and Charles
| +. Laidlaw, jr.. broker. No is Broadway