Bisbee daily review., 1913-12-10
WESTERN FUEL MAN
 HAILED ID COURT IN
 FAMOUS FRAUD CASE
High Officials of Company Will be Charged Today With Criminal Conspiracy in Custom Business

 SAN FRANCISCO. Dec s-The ease of the government against the officers and directors Of the Western Fuel company will come to trial to- day in the United States District Court before Judge Maurice T. Dool. fng. Those under indictment for criminal conspiracy to defraud the United States of customs dues and full weight on imported coal are John l. Howard. president: James E. Smith, manager and directog: !. l l.. Schmidt, treasurer and director Robert Bruce. director: Sidney Y. | smith. director; Frederick Mills. su- perintendent; F. H. Mayer, weigher: E1w. J. Smith, welgher The case leaped into national not oriety when John l.. McNab, then United States Attorney for the North ern District O. California, resigned, charging that improper evidence was being brought to bear at Washington to prevent the case from comluk toI trial. President Wilson accepted his resignation immediately but as yet has nameS no successor. The gov Hr'cc--4Ient's case is being prosecuted by Matt l. Sullivan and Theodore Roche. special counsel. who were also re- tained for the Diggs-Caminetti cases. On the evidence submitted to the grand jury. the government win seek to show that. by an elaborate system of short weights, a three-fold fraud was perpetrated.
 First. that on all coal imported. the government received less than the rightful customs dues.
 Second, that the government was cheated by short weight deliveries of coal sold to it for the army transport service and other uses.
 Third. that the company kept all engineers of the 1oyo Risen Kaisha (the Japanese line) and many engi- neers of the Pacific Mail s. s. Co.,. on a secret pay roll. in return for their consent to accept short weight fuel supplies, which the companies paid for at full weight
 In this way the government esti- mates that it bought coal which # never received worth S500.00o at MAiOltSz1iS PIEESte anu uiOTE Lfl3n Sl.OO0.000 at retail prices: that there were similar huge profits from pri- yate customers. and that on all coal. to whonsoeyer sold and whether at full weight or short weight. the gov ernment was cheated of a sizeabie share of it's customs dues.
 Testimony heard by the granss jury explained how these alleged frauds were accomplished. Summarized, this testimony was to the following effect: The company owned its own mines and colIiers. These colliers tied ur along the company's pier to dis charge. The coal was lifted from the hulls in mechanically operated scoop: and dumped into tram-cars which rat on a skeleton trestle to the scales.
 Each car was filled heaping full so full that large proportion of thu last bucket of coal always slipped of the heaped carload and slid througl the open trestle-woIk into the com pany's pockets. This spilth escape, duties.
 In continuing to the scales. the ca passed under jutting beam, adjust ed to such a height that it wiped of the load level with the car-sides; am again the spilth slipped into pocket below.
 Then, when the car finally reache the scales, there was a support be meath the scale platform whic checked its descent at a predetel mined level. In addition, it was ? sihle to shift the barrow of the ca backward or forward on the truck, z that only portion of its weigf would register.
 After the coal had all been dumpe for storage into the pockets, whic stood hign above tide level, 1t wa poured through chutes, as wanted, il to barges, which were lowed to tf transport docks or alongside whatev' shin was waiting to be eoaled. Fro the barges it was again hoisted | board by dredge buckets.
 i tally of these buckets was kep four out of every sixty were weighe and from these weights an avera; was struck which 1t was agree should be charged in the reckonif as one bucketful-
 But the government contends ths whenever a bucket to be weighed vi loaded. it was flied to the brim der the personal direction of Il foreman, whereas, between weighinl buckets often came so light that t bottom could be seen between iun of coal On each bucket, though. { purchaser. was paying fuii weight.
 Of course such bare faced frau could not pass unreported without | oonnivance of the purchasers e ployes. and the testimony heard
 the grand jury vas that the co pany paid a regular percentage of gains to the engineers who wink at them.
 A record of these oyercharges shown on the company's books. win be argued. and the directors a offices passed on statements showi the oyerrun on incoming cargoes a the underrun to army transports a American bottoms. On this showi