convicted of perjury and also served a term in prison, he
having changed his testimony, in the trial of Spitzer for the attempted
bribery of Parr, from that which he gave before the Grand Jury. For his
extraordinary services in connection with this investigation Parr was
granted an award of $100,000 by the Treasury Department.
District-Attorney Stimson, of New York, assisted by Denison,
Frankfurter, Wise, and other employees of the Department of Justice,
took charge of the case, and carried on both civil and criminal
proceedings. The trial in the action against the Sugar Trust, for the
recovery of duties on the cargo of sugar, which was being sent over the
scales at the time of the discovery of the steel spring by Parr, was
begun in 1908; judgment was rendered against the defendants on March
5, 1909, the day after I left office. Over four million dollars were
recovered and paid back into the United States Treasury by the sugar
companies which had perpetrated the various forms of fraud. These frauds
were unearthed by Parr, Loeb, Stimson, Frankfurter, and the other men
mentioned and their associates, and it was to them that the people owed
the refunding of the huge sum of money mentioned. We had already secured
heavy fines from the Sugar Trust, and from various big railways, and
private individuals, such as Edwin Earle, for unlawful rebates. In the
case of the chief offender, the American Sugar Refining Company (the
Sugar Trust), criminal prosecutions were carried on against every living
man whose position was such that he would naturally know about the
fraud. All of them were indicted, and the biggest and most responsible
ones were convicted. The evidence showed that the president of the
company, Henry O. Havemeyer, virtually ran the entire company, and was
responsible for all the details of the management. He died two weeks
after the fraud was discovered, just as proceedings were being begun.
Next to him in importance was the secretary and treasurer, Charles R.
Heike, who was convicted. Various other officials and employees of the
Trust, and various Government employees, were indicted, and most of
them convicted. Ernest W. Gerbracht, the superintendent of one of the
refineries, was convicted, but his sentence was commuted to a short
jail imprisonment, because he became a Government witness and greatly
assisted the Government in the suits.
Heike's sentence was commuted so as to excuse him from going to the
penitentia
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