It was on the advice of my secretary, William Loeb, Jr., afterward head of the New York Custom-House, that the action was taken which started the uncovering of the frauds perpetrated by the Sugar Trust and other companies in connection with the importing of sugar. Loeb had from time to time told me that he was sure that there was fraud in connection with the importations by the Sugar Trust through the New York Custom-House. Finally, some time toward the end of 1904, he informed me that Richard Parr, a sampler at the New York Appraisers’ Stores (whose duties took him almost continually on the docks in connection with the sampling of merchandise), had called on him, and had stated that in his belief the sugar companies were defrauding the Government in the matter of weights, and had stated that if he could be made an investigating officer of the Treasury Department, he was confident that he could show there was wrongdoing. Parr had been a former school fellow of Loeb in Albany, and Loeb believed him to be loyal, honest, and efficient. He thereupon laid the matter before me, and advised the appointment of Parr as a special employee of the Treasury Department, for the specific purpose of investigating the alleged sugar frauds. I instructed the Treasury Department accordingly, and was informed that there was no vacancy in the force of special employees, but that Parr would be given the first place that opened up. Early in the spring of 1905 Parr came to Loeb again, and said that he had received additional information about the sugar frauds, and was anxious to begin the investigation. Loeb again discussed the matter with me; and I notified the Treasury Department to appoint Parr immediately. On June 1, 1905, he received his appointment, and was assigned to the port of Boston for the purpose of gaining some experience as an investigating officer. During the month he was transferred to the Maine District, with headquarters at Portland, where he remained until March, 1907. During his service in Maine he uncovered extensive wool smuggling frauds. At the conclusion of the wool case, he appealed to Loeb to have him transferred to New York, so that he might undertake the investigation of the sugar underweighing frauds. I now called the attention of Secretary Cortelyou personally to the matter, so that he would be able to keep a check over any subordinates who might try to interfere with Parr, for the conspiracy was evidently widespread, the wealth of the offenders great, and the corruption in the service far-reaching—while moreover as always happens with “respectable” offenders, there were many good men who sincerely disbelieved in the possibility of corruption on the part of men of such high financial standing. Parr was assigned to New York early in March, 1907, and at once began an active investigation of the conditions existing on the sugar docks. This terminated in the discovery of a steel spring in one of the scales of the Havemeyer & Elder docks in Brooklyn, November 20, 1907, which