The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1907-03-16
SUGAR TRUST SUED
FORTY MILLIONS ASKED BY PENN.
SYLYANIA REFINERY.
Complaint Alleges Violation of
Sherman Act and Conspiracy
to Prevent Plaintiff From En-
gaging in Sugar Refining Bust
ness--Receiver Behind Action.

NOW OTk, U16ICu IA 6ulU deAluS
for $40, 600, 600 actual and $50. 600, 900
tentative damages has been COM
menced in the United States circuit
court by the Pennsylvania Sugar Re-
fining Company against the American
Sugar Refining Company, Fl. O. Hav-
emeyer, it's president, John c. Par
sons, the corporations general coun-
sci, and q. E. Kissel, Walter D. Rob-
inson, George L. Trigg and Morris J.
Werner. The action grows out OF
the failure ONT Adolph Segal, in Phil
adelphia, whose bankruptcy, involving
millions, was one of the financial SEN
sations of last year, coupled as it was
with the death of Bunk President
Frank r. Nipple, of Philadelphia.
The complaint alleges that the defend
ants, in violation of the Sherman anti
trust act, conspired to prevent the
plaintiff corporation from engaging in
the refining of sugar, and actually did
succeed in preventing it from operat-
ing it's plant. Because of this, it is
claimed, the plaintiff suffered an ac-
tual monetary loss of $40, 900, 900.
The federal statutes permit the plain
tiff to sue for treble damages.
The Allegations
The complaint states that the plain
tiff was capitalized at 100000 and
had in December, 1908, erected in
Philadelphia sugar refinery and was
ready to begin operations. Deem
Der 20, 1902, the company alleges, a
meeting of the refinery's board Of di-
rectors was held, at which the defen-
dants, Kissel, Rabinson, Trigg and
Werner, who composed a majority Of
the board, we're present. A resolu-
ton was adopted, it was claimed, that
no proceedings looking toward the
commencement of operations should
be taken without further orders of the
board of directors. Through the COM
plets and absolute control of the board
which, it is charged, the defendant
directors had, the refinery had been
kept closed, and thereby prevented
from becoming a competitor of the
sugar trust.
Sesal Was Decoyed
The complaint alleges that Adolph
Segal, promoter of the Philadelphia
sugar refinery, was decoyed" into the
power Of the "trust" by Gusav R.
Kissel, of New York, who procured q
loan of 81. $50, 900 for Segal on con-
dition that Kissel have control of q
majority of the stock of the company
and be given power to name four Of
the seven directors. This having
been agreed to. Kissel, who, it is said,
was acting under the direction Of
John @. Parsons for the defendant
corporation. put four clerks in the
banking house and had them adopt
the resolution which kept the refinery
closed. When Segal finally awakened
to the true condition of affairs, it is
asserted, he went to Kissel with the
amount of the loan and offered him a
bonus of 500, 900 besides, but Kissel
would not receive 1t. Consequently
the new refinery in Philadelphia,
which was capable of putting out 4, 900
barrels of refined sugar a day, has
never turned wheel, it is declared.
George 81. Earle, receiver of the
Philadelphia company, it is said, is
the moving force behind the action.