American Sugar Frauds

Horowhenua Chronicle, 24 September 1910, Page 4

American Sugar Frauds

AMAZING REVELATIONS

Oliver Spitzon, formc-rly a <I)oek siipoi'iiitoiulciifc emplo.yocl by the Suiiar Trust, gavo evidence in the Unitod .States Supremo Court today, stated tilie New York cwnrospondont of the Daily Tolcgrn,ph on 23rd 3[ay, In the trial of six defendants, who are alleged to have boon concerned in frauds ,y which it Is estimated that the American Customs lost hundreds of thousands of pounds on import duties. Spitzen, in return for bis promise that he would make a full confession of the methods used in defrauding the Government of duties on sugar, svas released fmm gaol by President Tafi and his sentence of two years' imprisonment for weighing frauds wa.s rescinded. It was'not' known thnt Hpitzen had bof'ii pardoned, and when tho former superintendent, who declared that illo had been made a scapegoat by the Sugar Trust, appeared in the witness box, there was such a scene of demoralisation amongst the counsel for tho Trust defence as might have been caused by the suddou .'['■■ scent of a- bomb inti a. priwler magazine.

Wihicss told tlio court that lie lta-1 been in t'iio H \<-!r Trust's employ for ahout tJiirfv vears. niifl decla>red Hint tlit , fir.sh f;;rir!. s wore porpotrat-o-l on ii'o Govprnment in 189-1. The first device \v:is to hang n bag of shot (in. l.'io scale lover, which undprwoiVhed every bag by alioufc _181! i. Tlrs system, however, \v:is ns'-ovo!f"] abmil' -;i\- years a<lo by a Customs insiirHor. who ordp'rc! the s-.ilo !»..-;.;■■-: (o ho boxed in to prevent i':o ;';■:;a:!. " i ill , !!. *•■<! i ! •■;■ i--'i';.|l('S';. ,( \\■(> n\ppri!iK'iil:>:i ;;;::iin :in.l ;ri:iin to fuul a !hm\ - device l for nivfr-rwoipihiii.y;, niul finally it i\\y\\ l!:r> s licnio "of a s-'-orc-t spring !i\o I |:i tho sr-alcs. This spnii il; \v;\< lixc! !>y Triist euvployoos in siii h a way (.-lint tlie ltau;s woii e mrlonvoicliod by many pounds, and i::o (JovrrninonL <!.ofrniii.do:l of many milli'ins of dollars in Customs (hil.ifs nn snp;nr cmports " "Did, yon n systeni ol sional lights in tlio .scalo-lionso to give warning of tlio approach ol danger suddoulv " tho prosecutor.

"Yes, sir," replied Kpitzcr, unabashed. "We installed red electric lights so that we could sign a i the checkers when necessary. The\ were worked from a .switch in mv office."

Rpitzer added that lio and the checkers were paid regularly until his conviction. After the raid on the sugar docks in November, 1907, some of the chokers, snid Spitzon, asked if they would lose their jobs, but Gabrncht. then the Sugar Trust cashier, told him to say 'that the checkers would be cared for, "and, , ' he added, "f also understood thai T should not be abandoned."

[Gabracht was conviced, and sentenced to undergo two years' imprisonment and pay a fine of oOOC dollars.]