Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1911-12-09
Grand Jury Recommends Action
TO Recover Unpaid Duties.
LOSSES HAVE BEEN HEAVY
Special Investigators for Government
Find Statute of Limitions Pre-.
cludes Criminal Prosecution.

The two special grand 1uries that
nave been considering the alleged
frauds in the local customs service
In reference TO the weighing. sam
pling and drawbacks of import sugar
at the port OF Philadelphia made their
reports to Judge Holland in the
United States circuit court.
In brief. they found that system
attic frauds had been perpetrated both
by under officials in the customs
service and employees Of three sugar
reineries. In the case OF weighing,
prosecution would be baked by the
statute of limitations. but in sam
ping and drawbacks the alleged
frauds covered later period, and the
jurors recommend that the treasury
and department of justice at Wash.
ington be advised and recommended
to take measures to collect the I'M
paid duties.
Judge Holland took the findings un.
der advisement. dismissed both spe
cial juries and announced that II he
needed any further recommendations
he would place them before the regu-
lar grand jury which will be drawn
next week.
The first special jury took up the
case of weighing in connection with
the w J. McCahan. Spreckles and
Franklin Sugar Refining companies.
period OF seventeen years. They
found that custom revenues had been
lost through Irregularities from both
sporadic sharp practices and system
attic frauds involving all three conf
panies.
They further find that the customs
service has served as a vehicle for
the dispensation of party privileges,
despite the civil service acts; that
the party in power would cause the
removal OF political opponents In the
classified service and in general de-
moralize the service. In this con-
nectiou they add that there was no
evidence OF conspira " between the
refneries and the higher officials OF
the customs service, but between en-
ployes of the refineries and lesser
official employees.
The second grand jury. which took
up the work of investigating sam
ping and drawbacks. found that sys.
tematic frauds had been perpetrated
in both. and particularly in draw
backs by the McCahan concern from
1902 to 1910.
In the case OF weighing. as
has been stated. the frauds are super.
seeded by the statute of limitations,
therefore no indictments were found.
In the latter cases. of sampling and
drawbacks. IT. is recommended that
the report be submitted to the treas.
ury department and the department
of justice nj Washington that the du-
ties which have been fraudulently
withheld may be recovered.
The main duty of the jury was to
consider whether the customs reve-
nues had suffered less through
fraudulent weighing. and If so. as to
whether any persons could be held
criminally responsible.
The jury decided the frst part Of
the question in the affirmative. and
declared that the evidence showed
that at various times there had been
irregularities in weighing. varying
In nature from sporadic sharp prac-
tices to systematic fraud in the three
renneries for the purpose OF lessen
ing duty on cargoes of raw sugar"
II was declared that no indict-
ments were returned because the
evidence of fraud was in period ex-
empt under the statute of limita-
tions
II was stated that the jury did not
find any dishonest practices in draw.
ing. mixing or testing. and the report
reads on this subject that the Gus
toms service has not suffered
any loss in this respect since 1897.
when the Wilson tariff law ceased TO
be In effect. Before that time. how
ever. IL was found that the govern
mantis loae had haan haayy"