The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-09-29
STIMSON AS PROSECUTOR
IN THE SUGAR TRUST CASE

New York. Sept &.-Henry Lewis
Stimson, the nominee for governor, at
tanned prominence as United States at
torney for southern New York TO which
he was appointed BY President Roosevelt
in January, 1906. He resigned soon after
President Taft was iuauglrated. but
agreed 10 prosecute the customs frauds
against the the sugar trust as special
counsel after he retired.
Mr. Stimson had not been in Office
over a month when the payment OF re-
bates by the New York Central and other
railroad companies was brought 10 his
attention and he began prosecution. Mr..
Stimson proceeded both against the
railroads and the sugar trust. The New
York Central. Great Northern, Rock ISL
and, St Paul, and Central Vermont roads
were all either convicted or pleaded
guilty Of giving rebates. and the total
fines amounted 20 $4,000 The sugar
trust alone was fined $4,000 during 1906
for accepting the rebates,
Early in 1907 Mr.. Stimson began his in
vestigation into the underweighing
frauds, and this investigation resulted
In suit in which a judgment for Sl34.-
81 was recovered In year or so, based
on frauds between 1901 and 1907 The
government then started out 20 collect
on extensive frauds revealed by the evil
dence in the suit tried and the sugar
trust company promised all of It's civil
liabilities 10 the government for weigh
ing frauds by the payment OF $2.Go00o0.
In March, 1907. suit was brought in the
Federal court by the Philadelphia Sugar
Refining Company 10 recover 81, 00o, 600
from the sugar trust on the gTVund that
the plaintiff had lost control OF its COM
pany 10 the American Sugar Refining
Company, and had been damaged 80 -
Oo0006 through the closing Of its plant.
and asked for triple damages The suit
was compromised last year by the re-
turn 10 the Philadelphia company OF its
property held by the trust. The evidence
offered in this suit had been presented
to Attorney General Bcnaparte before
he left office, but he declined 10 prose-
cute on the ground that a case for viO-
lation of the sherman anti trust law
would not lie, because Of the Supreme
Courts decision in the knight case.
District Attorney Stimson used the tes-
timony brought out in this case 10 obtain
Indictments against the sugar trust direc-
tors. charging an attempt 10 monopolize
Interstate and foreign commerce in raw
and refined sugar Several OF the direc-
tors pleaded immunity and were sus-
tanned by the United States Circuit Court
OF Appeals. but John f. Parsons did not
claim that protection. and the case
against him is still pending.
Mr. Stimson has successfully conduct
ed the prosecution Of Charles R. Heike
former secretary, and lesser officials and
employees in connection with the customs
frauds. and his work is now at an end
In addition TO the sugar cases, Mr.. Slim
son conducted the prosecution of Charles
w. Morse, whose counsel he had been
some years ago. when Morse was presi-
dent of the National Bank Of North
America.
Mr. Stimson is forty-seven years old
He was graduated from Yale as an honor
man in lSSS, and studied law at Harvard
He became a law clerk Tor Senator Root
in the firm of Root and Clark in 1881, and
in two years became a member OF the
firm. Mr.. Stimson was in the firm of
Winthrop & Stimson IN 1906, when Sena-
tor Root brought him to the attention Of
President Roosevelt as good material for
district attorney.
Mr.. Stimson married Mabel Wellington
White, Of New Haven, in 1899 He lives
at 275 Lexington avenue