Omaha daily bee., 1910-05-24
MANY DEVICES
FOR CHEATING
Government Plays It's Trump Card in
Prosecution of Sugar
0fficiels.
OLIVER sPITzER IS CALLED
Man Convicted Last February Par
doned bv President.
FRAUDS COMMENCED IN 1894
Bag of Lead First Used to Manipu-
late Scales.
TWO KINDS OF sPRN, q 7ER
y
Witness Paid Wages to ID d
weighers with Money Fur =
him by Mr.. Gesbracht, G -
of the Defendants.
Man Convicted Last February Par
doned bv President.
TWO KINDS OF sPR1N, |

iu the prosecution Of Charles II.
secretary of the American Sugar Refining
Company. was played at the opening of
the Sugar trust underweighing conspiracy
trial today when Prosecutor Stimson
called as the governments first witness
Oliver spitzer, superintendent of the VII
llamsburg docks who some months ago
was convicted OF underweighing and SEN
tenecd to two years in the federal peni-
tentlary at Atlanta.
When spitzer took the stand. John B.
stanshfleld for the defense claimed that
under the federal statute Splitter, as a
convicted man. could not testify.
The sensation of the trial was then
created by the declaration in court that
Spltzer had been pardoned by President
Taft
Helke Is on trial in the United States cir
cult court, with five former employees OF
the American Sugar Refining company, on
the charge of consplring to defraud the
government by underwelghlng cargoes of
sugar imports Witnesses have testified to
the discovery Of fraudulent devices on the
sugar docks at Williamsburg. whereby, it
was alleged, employees of the so-called
Sugar trust manipulated me scales so as
to bring about underweights
on evidence OF Richard Parr, a govern
ment Inspector. who made a raid on the
sugar docks in November, 1907. and others.
Splitter, who was the dock superintendent
at the time and for some years previous
was convicted with four checkers en-
ployed under him. OF connection with the
conspiracy to perpetrate frauds whereby
the government was cheated out of mil
lions OF dollars in sugar duties.
The four checkers-Boyle Coyla Kehoe
md 81 AL
well Island penltentiary for year Splitter
got two years in Atlanta. He protested
ignorance of frauds on the doolA
Men higher up" were sought and
Heike, the secretary of the trust, and
Ernest r. Gerbreuilt the refinery superip-
tendent were indicted. With them on trial
now, besides four other former company
checkers, is James r. Bendernagel the re-
flnery cashier who was tried with Spitser
and the others. The jury disagreed as to
whether Bendernagel had a part in the
conspiracy, and It was decided TO retry
him.
Bag of Lead First Device.
As Spltzer testified to the underweaEhine
frauds on the docks It was developed tha'
President Taft granted him an uncondi
tlonal pardon on May Ia
Spltzer went back to the years 1894 anC
1895, when, no said, an investigation hi
made developed the fact that the check
ers were affecting the weights on raw
sugar by placing small bags of lead oil
the beams of the scales. causing the rec
orded weights to drop below the actual
often as much as forty pounds on eacl
draft
In addition, Splitter said II was also tn
practice to stuff paper underneath tn
floors OF the scales for the same purpose
lie said that when Deputy Surveyor o
Customs Vail took office, these device
were abandoned and the use of the stee
corset spring was begun and continued.
Spitzer demonstrated in court the use o
the bags of lead He walked over to tn
sample scale, which is one OF the govern
ments exhibits in the case. and indicate,
on the beam the place where the bag wa
NNiApended- Testifying regarding the us
6f the wire spring. which superseded tn
bag OF lead. Splitter said that two style
OF springs were used. a heavy one firs
and then spring considerably lighter /
weight
Spetzers testimony regarding the weight
Iessening device OF the newspapers under
meath the scale was a new development
Heike listened to Spitzer's testimony wit
tense interest.
SpitEer talked freely about the frauds b
which the government was robbed of mi
lions OF dollars. lie said the use of tn
steel springs was stopped after the suga
trust had paid the rebate to the govern
ment as a result OF the federal court.
In reply to an Interrogation of the pros,
cutlon II ne had ever reported the weigl
ing frauds to anyone Splitter replied
had informed man named Leroy, wi
worked in the Wall street office of II
sugar trust.
Splitter told OF conversations he had wi
former cashier Jones f. Bendernagel al
superintendent Frank w. Gerbracht tv
OF the defendants. The witness said VIII,
he wanted to raise any of the checker
wages he was obliged to put the matt
before Bendernagel and Gerbracht. It
government welghers were favortes ov
those Of the city weighers in the matt
of wages. He said every effort possible W
made to conceal this from the other wor
ers on the dock.
Frauds stopped by Telephone.
Splitter said that in the fan of 1906 he
oeived telephone message which caus
a letting up In the frauds. lie said he
b know who sent the message. viii
Narned him to be careful OF the wi
springs as the government was watchl
tho docks.
hsSpitEer said that following the raid
November. 1907, by the government he W
informed by Mr. Gerhracht that the weis
ers and himself would be taken care of
When the six weighers We're discharg,
what happened?'
II paid them the same wages every We
at my home" replied Mr.. Splitter, who -
= the money was given I i'm each week
Mr. Gerbracht who left II in a package
his garage.
i"When did this money cease"
when l was sentenced last Februnr!
/. Answered Mr.. Spitzer.
itzer said he knew Secretary Heike,