Watertown weekly leader. [volume] (Watertown, Jefferson County, Wis.) 1906-1908, 1907-01-18
ASK S2O,OOO,OOO
OF SUGAR TRUST
RECEIVER OF SEGAL TRUST COM
PANY WILL CLAIM FRAUD
AND CONSPIRACY.
COMEDY IN DEADLY RUIN.
Woman's Pride Factor in Operations of
the Bankers Competition Of
Havemeyer Pool

NEW YORK, Jan. 1.-THE sugar
trust and its principal officers will be
called upon within few days to defend
actions for damages aggregating 500
100000 and to answer in the federal
courts the direct charge that by CON
spiracy and fraud they brought about
the financial ruin of competitor,
wrecked the itea Estate Trust company
Of Philadelphia last summer, and drove
its president Frank X. Nipple, to sui
eide.
H. o. Havemeyer Named.
II. o. Havemeyer, president of, and
John +. Parsons. general counsel for the
American Sugar Refining company, are
among the officers named in the legal
papers already drawn up by the attOr-
neys for George II. Earle. Jr., Philadel-
phia's great organizer. who is receiver
for the Pennsylvania Sugar Refining
company.
Mr. Earle has laid the allegations of
the conspiracy. with his evidence. be
fore the attorney generals department
at Washington. and criminal actions by
the federal government under the Sher-
man antitrust law are expected.
Plot to Keep Plant Idle?
There is a fully equipped modern Sll-
gar refinery i'll ShackamaXon street. on
the Delaware river, i'll Philadelphia,
which has I capacity for turning ont
| 1000 barrels day, but which has never
been operated since it was built i'll 1903
1t is charged by Receiver Earle that the
sugar trust, by chicanery. obtained con
I troll of this refinery and has kept it idle
with the intent not only of sitting the
competition the refinery was built to
create but of running Adolph Segal. who
projected it. and along with him sev-
eral thousand innocent holders of stock
and bonds
The story, which will be brought out
when the actions are tried in the United
States courts i'll this city, involves the
elements of opera bouife as well as
tragedy.
How Scgal, financial schemer.
"bunkOed' the sugar trust. il is alleged,
out of more than 81 100000 by selling
them a refinery in Camden which was
SO worthless that it can only be used
as Il soap factcry, and with the profits
he received st2:-2d what he intended
to be an endless chain Of sugar refiner-
les, is the humorous opening of the
! story
| 1t grows grim when the machinery of
the all powerful trust is put into opera
/ ton to ruin and crush SegaI and ii be-
colNeS-tragic when the great financial in
stitutlon of Philadelphia, with its thou
sands Of dcpoSitOrs and its S26,0OO.0OO
OF trust funds, closes it doors and its
president is buried in a suicides grave.
Calls Havemeyer Humorist.
At the annual meeting of the stock
holders Of the American Sugar Refining
company in Jersey City last Wednes-
day President Hayemeyer told his
| stockholders that there is no legal
foundation for Receiver Earle's threat
| ened proceedings, but ut the same time
he got the stockholders to agree to in
/ indemnify the officers against loss in any
such actions. When Mr.. Earle learned
/ this he laughed and declared President
| Havemeycr was 4 hum0riSt
/ When Adolph Segal was at the height
! Of his successful financial operations in
Philadelphia he built large sugar re-
iinery III Camden. with wharfage on
mud flats persistent that continuous
! dredging alone would make it accessible
to ships. The American Sugar Refining
| company, i'll pursuance of its policy of
sitting competition. took it off Segal's
| hands. giving him Il profit of more than
S10Oo.000 before the plant had started
! up.
Suicides Path Revealed.
| Segal got President Nipple of the Real
! Estate Trust company of Philadelphia
! to back him in erecting the Pennsyl-
vania refinery on ShackamaXon street.
! with wharfage on the Delaware river
Tie company had been Incorporated in
1883 Segal and Nipple revived it and
| foatcd S3,0O0,OOO of bonds and $1,000
! 900 of stock.
For the express purpose of preventing
| the sugar trust from obtaining control
| Of the big new Philadelphia refinery. the
! owners placed the control in President
! Nipple of the Real Estate Trust com
pany individually.
! Segal at this time was building the
! Majestic. the most colossal hotel and
apartment house enterprise which Staid
! and conservative Philadelphia ever wit
messed. Today the Majestic occupies an
! entire block at Broad street and Girard
! compeer even in the city of magnificent
hotels.
Built Majestic to Satisfy Wife
| 1t was to satisfy the social cravings of
| his wife that Segal in 1901 decided TO
! build this dreamland. He had not been
I 4 Spectator in stocks and bonds bu. in
! brick and stones and mortar and he
! had made millions that showed ON paper.
! and in which such believers in him az
! Frank X. Hippie would have made into
cash. if time enough had been given
! Mrs. Segal had 4 single purpose-to pro-
! cure entrance into an assembly hall
/ the paradise of Philadelphia society
! Segal projected the Majestic on the
most magnificent scale Tie pipe organ.
! which is played III the house today. cost
! 100000. Paintings by Nandyke, Rem
! brandt and Whistler adOrn the walls.
| In Mrs. Segars own apartment is her
! husbands birthday present. piano
! which cost $4,000 to import from Wen
ma.