The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1907-03-14
WANTS DAMAGES
OF S30,00O,0OO
Sugar Trust Sued BY Philadelphia
Concern.
THE NIPPLE FAILURE RECALLED.
The Pennsylvania Sugar Refining Com
pany Claims That Its Works Were
Shut Down by Its New York Rival,
Which Wrongfully Obtained and Ex-
ercised Controlling Interest.

New York (Special) A suit for
$50, 100000, with costs and attor-
neys' fees, was fled in the United
States Circuit Court here against the
American Sugar Refining Company,
known as the Sugar Trust, by the
Pennsylvania Sugar Refining Com
pany, of Philadelphia. The latter is
the company in which Frank X. Hip
pie, president of the Real Estate
Trust Company, of Philadelphia, held
26, 900 shares of stock (the controll-
ing interest), and which in turn he
had placed in the hands of Adolph
Segel, the Philadelphia promoter.
Nipple killed himself when his en-
terprises failed about year ago.
The complaint in the suit, which
is brought through the law firm Of
Battle G. Marshall, of this city, al
leges that, through Segel's negotia-
tion q loan from Gustav E. Kissel,
the banker, who was acting as agent
for the American Sugar Refining
Company, the latter corporation Sc
cured 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 receipts for $4,000
shares in the Philadelphia company.
This was Nipples property that had
been placed with Segel as security.
Took Voting Power Also.
In an agreement made between
Kissel and Segel at the time that
Segel's loan (Which was for $1,250,-
000) was secured 1t was stipulated
that the lenders should have the vot-
ing power of that stock. An agree
ment alleged to have been drawn up
between Kissel and Segal setting
forth all these facts is annexed as
an exhibit in the suit filed. This
agreement, it is set forth, was made
on December 80, 1903.
The whole sum and substance of
the complaint is that the Sugar Trust
secured control over its Philadelphia
rival, elected 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 Refining Company as defend
ant, the complainant also names
Henry o. Havemeyer, John E. Par
sons, Gustav E. Kissel, Walter D.
Robinson, George l.. Trigg and
Morris ]. Werner as individual de-
PENDANTS.
Mr.. Havemeyer is the president
and director of the trust, Mr.. Par
sons a director and vice president.
and the other four are named
ed directors in the Philadelphia con-
cern and thus had control over that
corporations destinies. 1t is alleg-
ed in the suit that all of these in
dividual defendants conspired to put
an end to the activity of the Phila-
delphia corporation.
Conditions OF The Loan.
The complaint is sworn to by Will
liam Howard Ramsey, as president
of the Pennsylvania Sugar Refining
Company. It is shown by the COM
plant that Segal negotiated the loan
from Kissel for use in promoting his
Champion Construction Company.
Attached TO the papers in the suit
Is an agreement signed by Segal as
treasurer, Thomas B. Harmed as
president and William H. Whiteside
as secretary of the Champion Con-
struction Company, giving the lend
ers of the $1,25O,00O loan power to
use the 26,O00 shares of the Penn
sylvania Sugar Refining Company
according to the agreement drawn
up between Segal and Kissel.
In addition to this collateral Segal
gave 10000 first mortgage bonds of
$1,000 each on his Majestic House
Apartment Company of Philadelphia,
and also 500 first mortgage bonds
of $1,000 each that Segal held in
the Philadelphia sugar concern.