New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-30
SUGAR REF|NERS SETTLE
II s. Ends Fraud Probe on Pay
ment of S250,000.
HIGH OFFICIALS BLAMELESS
,rrerularities Due to Laxity of
discipline in Customs Depart
ment, Says Investigator.

,rosh;ngton, July 29.-Alleged sugar
...rds at Philadelphia, under investiga-
A., nv Secretary MacVeagh and Attor-
CAV General Wickersham for the last
lar have been settled by the payment
- nearly $4,000 TO the United States
government by the sugar refining COM
oonjes involved This announcement was
made by the Treasury Department to-day.
investigation of alleged sugar frauds at
New York and New orleans, ii was re-
norted. are approaching conclusion.
These constitute the final act of the
nationwide inquiry that resulted I'm the
revelations of abuses in sugar importa-
tions at New York several years ago
Philadelphia. July 29.-The alleged sugar
fraud at this port. which was settled to-
day by the payment of almost $4,000
has been under investigation here since
last summer. Two federal grand juries
investigated the subject. but found no
Indictment, the disclosures not warrant
ing criminal prosecutions. in the opinion
OF the government officials.
The terms Of the settlement announced
to-day by Henry y. Arnold special as
sistant United States Attorney General
who was in charge of the investigation.
include the payment of 100000 by the
". ]. McCahan Sugar Refining Company
and s124Ss6 % by the Franklin Sugar Re
fning Company in settlement OF the
claims both against itself and the
spreckels Refining Company, the two
companies having been operated virtually
as one, under the control of the so-called
trust. In addition, the latter COM
panies have released the government from
liabilities arising from excess collections
Of countervailing duties on sugar i'm
ported at Philadelphia and New York,
amounting TO about $1,000
The investigation covered a period Of
more than seventeen years from the time
OF the reimposition of duty on raw
sugar by the Wilson act in August. 1894.
In announcing the terms of the settle
ment, Mr.. Arnold said:
As indicated by the written findings re-
turned last fall by the grand Jury which
Investigated the subject of weighing. an
exhaustive examination failed TO show
evidence TO justify the belief that the
officers or directors of the sugar COM
toms service were participants IN the
frauds nor was there any bribery OF gov
eminent weighers. The frauds We're to
be accounted for largely because discipline
was lax, making il possible for the re-
fnery employees to get the better Of the
government agents.
Speaking Of the drawback claims. Mr..
Arnold says:
An improper system for the Identified
ton Of the raw sugars used in the manu-
featuring of syrup exported with benefit
Of drawbacks has been in use since 1895
at both refneries operated here. The
system was inexact rather than vicious
at the time of its inception, but was
made worse by changes i'm the tariff. but
the evidence did not prove deliberate
intent by the companies 70 defraud the
customs revenues.
The Irregularities. IGr. Arnold de-
clares. have been eliminated The
methods of weighing, corrected and i'm
proved. will be further improved by the
installation of automatic electric scales
and no further legal action Is called for