Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-01-07
Winfred 7. 0enison Lays
Blame for Sugar Frauds.
ADDRESSES BALTIMOREANS
Explains Reason for Government
Loss at New York and Philadelphia.
SURVEYOR NOT RESPONSIBLE
But Appointment in 1902, He De-
clares. Perpetrated Those Frauds
at Former City.

BALTlM MORE Md. January 6.-Ad-
dressing a meeting held here this even
Ing under Pie auspices OF the Women's
Auxiliary of the Maryland Civil Service
Reform Association. Winfred L. Den.son,
assistant United States attorney general,
asserted that the sugar frauds in the
customs service at New York and Phila-
delphia were due TO politics.
Mr.. Denison also declared that the po-
litical appointment made in l.hE To the
Office Of surveyor at the port of New
York .'perpetuates those frauds tat New
York; untrammeled and costs the gov
eminent over 81 .O0O.nOO on sugar alone
In further reference TO this loss he
said: THAT cannot have been more than
a fraction OF the total financial loss on
all classes of importations.'
Mr.. Denison was, however. emphatic
in saying that he did not believe the
surveyor in question was corrupt.
There was not scintilla OF reason to
suppose--and ] do not believe for mo-
ment-that the surveyor in question was
corrupt. Let us have no doubt on that
point" he said.
Reasons for Statements.
In support OF his statements the assist
ant attorney general cites the following
points:
Il The confession made TO Collector
Loeb by the New York deputy surveyor
in charge of the weighing division that
the sugar frauds were due to politics.
'@ The fact that the political appoint
ment made in 1902 to the office OF sur
veyor at the port of New York. and
which at the time was bitterly opposed
by the civil service reformers. perpetu-
ated those frauds untra.mmeled and cost
the government over S1,OOO,00O on sugar
alone.
"The Philadelphia sugar frauds have
just been reported by the special federal
grand jury there as having been due 10
politics.
when Collector Loeb began his Gus
misunderstanding in pursuance of Sec
rotary Macveagh's policy, consequent
upon the revelations in the sugar cases.
the assistant attorney general continued.
charge of the weighing division and asked
why he should not be dismissed.
1.-THE officer protested that he had been
honest and had never taken a cent.
Collector Loeb asked how 1t was pos
sible that all of those frauds should have
gone on for all those years without his
taking any effective steps to stop them,
or at least to report them TO his SUI
periors.
Official Feared Removal.
".Well. Mr.. Collector said the officer,
Il was helpless. II had taken any steps
to stop those frauds the politicians would
have had me removed and 1 would have
been without any means to support my
family Suppose. for example, one OF the
sugar superintendent called me up on
the telephone and told me that a govern
ment assistant weigher was unsatisfac-
tory. If refused to transfer him, he would
go to the political organization, and the
orders would come around through the
surveyor to detail some other man to that
position. 1t would be on some plea that
the weigher objected to was too slow. or
that the new man lived near by and
wanted the detail. In that way the sugar
people could get whatever weighers they
needed
This experience of the practical effect
Of practical politics was not by any
means limited to New York. At Phila :
delphia. as well as at New York that
has been determined officially.
Frauds at Philadelphia.
The special federal grand jury which
has just made its report over there
found that the frauds and quasi fraud
ulent sharp practices resulting in loss
of revenue to this government had
been unrestrained there in Philadel-
phia, at the McCahan sugar refinery
ever since 1904. at the Franklin re-
finery during it's operation from 1895
to 1897. and at the Spreckels refinery.
up to 1905. but not since.
They founG no instance of bribery
or attempted bribery. In their formal
report they directly stated that the
patronage system and the violations
and evasions of the civil service laws
were the real causes of the govern
ment's loss.
For years the grand jury found that
custom house had been treated as a
trough at which the politicians might
feed the men engaged in doing their
political work.
THE grand jury also found that the
concerns whose importations the en-
ployes were to watch were of great
financial Importance to the republican
political organization, and made heavy
campaign contributions to it,