Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-09
SUGAR TRUST IS SUED
Philadelphia Concern Wants
$4,000, 600 Damages.
LIKE SCHEME OF NIPPLE
Claim That Works We're Shut Down
by New York Rival.
PUT IN POWER OF TRUST
Complaint Sets Forth That Pennsyl-
vania Refining Company Has
Been Maltreated.

NEW YORK, March "a suit for $50,
900, coo, with costs and attorneys fees. was
filed in the United States circuit court yes
terdaS against the American Sugar Refining
Company, known as the Sugar Trust, by the
PENNSYLVANIA Sugar Refining Company OF
Philadelphia The latter is the company In
which Frank X. Nipple, president Of the
Real Estate Trust Company of Philadelphia,
held 10000 shares of stock the controlling
interesD, and which in turn he had placed
in the hands of Adoiph Segel, the Phila-
delphia promoter.
Nipple killed himself when his enterprises
failed, about a year ago, and the trust
company of which he was president is now
in the hands of receiver.
The complaint in the suit, which Is
brought through the law firm of Battle &
Marshall of this city, alleges that, through
Segels negotiating a loan from Gustav E.
Kissel, the banker, who was acting as
agent for the American Sugar Refining
Company, the latter corporation secured
control of the Philadelphia company, by
reason of the fact that the voting power
in this company had been placed with the
American Sugar Refining Company when
Segel turned over, among other collateral
for his loan, the receipt for $4,000 shares IN
the Philadelphia company. This was HIP
pies property that had been placed with
SeSel DIS StCuIltS.
Took Voting Power Also.
In an agreement made between Kissel
and Segel at the time that SegeIs loan
(Which was for s1,250,O09 was secured it
was stipulated that the lenders should have
the voting power of that stock An agree
ment alleged to have been drawn up be-
tween >Kissel and Segel setting forth all
these facts is annexed as an exhibit in the
9ln1 c
was made on December 30, 1903
The whole sum and substance of the COM
plant is that the sugar trust secured con-
troll over its Philadelphia rival, elected a
controlling number of directors, and thus
were able to shut down the plant and put
an end to its manufacturing.
Besides naming the American Sugar Re-
timing Company defendant, the complain
ant also, names Henry o. Havemeyer, John
E. Parsons, Gustav E. Kissel, Walter D.
Robinson, George J.. Trigg and Morris ].
Werner as Individual defendants.
Mr.. Havemeyer is the president and d.
rector Of the trust, Mr. Parsons director
and vice president, and the other four are
named through the fact that they were
elected directors in the Philadelphia con-
Germ and thus had control over that corpo-
ration's destinies 1t is alleged in the suit
that all of these individual defendants con-
spired to put an end to the activity of the
Philadelphia corporation.
Conditions of the Loan.
The complaint is sworn to by William
Howard Ramsay as president of the Penn
sylvania Sugar Refining Company. 1t is
shown by the complaint that Segel nego-
tiated the loan from Kissel for use in pro-
noting his Champion Construction Com
pany. Attached to the papers in the suit is
agreement signed by Segal as treasurer,
Thomas B. Harmed as president and Will
liam II. Whiteside secretary of the
Champion Construction Company, giving
the lenders of the $1.2JO,OOO loan power
to use the $4,000 shares of the Pennsylva-
MIA Sugar Refining Company according to
the agreement drawn up between Segel and
Kissel.
In addition to this collateral Segel gave
10000 first mortgage bonds of 81, 600 each
on his Majestic House Apartment Com
pany of Philadelphia. and also 500 first
mortgage bonds of ST 600 each that Segel
held in the Philadelphia sugar concern.
The complaint sets forth that the Penn
syivania Sugar Refining Company had
total authorized capital stock of 81, 600 900
in $1,000 shares of 500 par value EACH
and that the stock was issued and outstand-
ing in the hands of various parties. The
complaint sets forth that the corporation
held a valuable tract of land in Philadel-
pha, a wharf on the Delaware river rail-
road sdings and plant erected and COM
pleted for operation.
The papers in the suit were filed late yes
terday afternoon and all of the defendants
had not been served last night