The Washington herald., 1912-07-31
RECOVER MONEY
FROM RBFINERIBS
Nearly $3.50, 900 Paid to the Gov
ernment By Philadelphia
Sugar Company.

Nearly s25o,0oo has been recovered by
the government from Philadelphia sugar
companies, as lthe result Of the inyesti-
CATION into the sugar frauds. The entire
shortage has been made good. and since
no criminal intent on the part Of oficials
Of the company has been found. there will
be no prosecutions This announcement
was made yesterday by Acting Secretary
OF the Treasury Curtis. following a con-
ference on the subject with Attorney
General wickersham- In the statement 1t
was said that the Investigations into
these frauds. which have been conducted
for more than a year by the two depart
ments. are now at an end. The investi-
CATION, which went back over the records
for a period of seventeen years. disclosed
claims against the Philadelphia sugar
companies for losses to the customs reve-
nues, which were caused. for the most
part. by the short weighing Of imported
raw sugars and by Illegal collections of
drawbacks upon expectations of sirups.
These claims have been settled by pay
ments into the Treasury and by releases
The W. J. McCahan Sugar Refining Com
pany paid 10000; the Franklin Sugar
Refining Company paid 1924. i.3s6.29. and a
release from liabilities arising from ex-
cess collections OF countervailing duties
on sugars imported at Philadelphia and
New York amounting to $1,000
The Franklin Sugar Refining Company
included in Its settlement the claims
against itself and the Spreckles Sugar
Refining Company. both companies hav-
ing operated virtually as one under the
so-called trust.
Lax Discipline Caused Fraud.
The investigation was conducted by II.
NJ. Arnold, Assistant United States At
torney OF New York. The investigators
went back In their records TO the time
Of the reimposition OF duty on raw sugar
by the Wilson act in 1894. The investi-
cation was conducted before two diff
ferent grand juries. neither OF which
found an Indictment. there being dis
closed no fraud warranting the insti-
tuition OF a criminal proceeding. The
short-weighing frauds at the McCahan
refinery were inconsiderable since 1893
and at the Spreckles refinery since 1895.
The Franklin refinery was closed down
in 1897, and has not since been operated.
The findings OF the grand jury failed TO
show evidence that the officers or d.
rectors OIL any Of the companies or any
OF the higher officials in the customs
service were participants in the frauds,
or that there was any bribery OF gov
eminent weighers. The frauds arc ac-
counted for largely because OF lax discip-
line. This. according to the Treasury
Department statement. made II possible
for the refinery employees to get the bet
ter OF the government agents. POSSIBLE
tiles for such further Irregularities have
been eliminated. The methods OF weigh
ing sugar will be improved by the in
stallation OF automatic electric scales.
Agents OF that department, under the
direction Of United States Attorney Wise
AT New York. had been in the field for
some time taking testimony at various
places. particularly on the Pacific Coast
in connection with this suit. One OF the
Spreclles companies. operating IN Cali
fornia. entered into voluntary dissolu-
ton some time ago, and Il is thought
that other subsidiary companies OF the
American Refining Company will do Ike
wise before proceedings are pushed
against them in court.