New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-09
SUGAR TRUST SUED.
ASKS s3O,OOO,OO0 D1MAGES.
Echo Of Nipple Suicide IN Indc-
pendent COmpaay,s -1ction.

In a SUIT brought yesterday by the PennsyI-
pRnia Sugar Refining Company. Of Philadelphia
against the American Sugar Refining Company.
Henry o. Havemyer and John Z. Parsons. presi-
dent and counsel Of the latter corporation and
custavo Z. Kissel and others there is an echo Of
the failure last summer Of Tie Real Estate Trust
Company. OF Philadelphia. and the suicide OF
Frank X Nipple, its president
The suit Is brought in the United States Cir
cult Court Of the Southern District New York
for the recovery Of S3000G 900 under section :
az the Sherman Antitrust act. which pro-
vices that any one injured IN his business
by unlawful acts in restraint OF trade may
recover treble the amount of the damages he
has suffered The complaint in the action was
filed yesterday by Battle & Marshall, attorneys
for the plaintiff. The action has been instigated
by George II. Earle, jr, as receiver for the Penn
sylvania Sugar Refining Company. Mr.. Earle is
the who as receiver for the Real Estate
Trust Company Of Philadelphia SO successfully
put that institution on its feet. He is its
president
A large port OF the stock and bonds OF the re-
hning company were held by the trust company,
ana II has been said that the tying-up Of the
money put into the refinery by the manipula-
lions OF the American Sugar. Refining Company,
which obtained control of il. was largely respon-
REFINERY NEVER OPERATED.
The complaint alleges that the defendants
''unlawfully combined and conspired to restrain
the plaintiff from engaging in business that
would be competitive with the business con-
Quoted by the American Sugar Refining Com
pany." It is alleged that Gustav L. Kissel, rep
resenting the American Sugar Refining Com
pany, although he denied his interest in that
connection, induced Adolph Segal. who had or
ganized the Pennsylvania Refinery Company to
accept a loan OF 100000. in part security for
which he exacted an agreement giving him and
shose for whom he was working a controlling
interest IN the company. The result that
refinery in shackamaxon street. Philadelphia,
which in December. 1903, ready to turn
out 1900 barrels Of sugar day. has never been
operated for an hour
In building the refinery Adolph Segal got
Frank K. Nipple TO back him. as he had done
In many other Of his enterprises Mr.. Nipple
took the securities Of the refinery and issued
trust certificates. AT the same time SegaI was
building the palatial Majestic apartment hotel
at Broad street and Grard avenue Segal
wanted TO get e loan of 100000 to carry on
this work. the complaint continues. He went 20
Gustav E Ilissel, a banker, at No. 1 Nassau
street. this city. who persuaded him that he
could Just well borrow 81, 10000. As part
1eived the right to the stock Of the Pennsylvania
Refining Company and all voting and other
rights that belonged TO It, and also forced Segal
TO agree that the lenders should name four OF
the seven directors Of the company. The agree
ment also stipulated that so long as anv part
q the loan shall remain unpaid the property OF
The Pennsylvania Sugar Refining Company shall
Re run or operated or do business as shall be
directed by such board OF directors.
SHARP TRICK ALLEGED.
In afidavits fled in Philadelphia when George
H. Earle applied for permission 10 bring suit
against the American Sugar Refining Company.
Mr Earle states that Segal went to the Office OF
Nh. Parsons when the ioan was being arranged
but was told that the latter was acting as coun-
sci fer some trust company which was making
the loan. As soon as the loan was made Mr.
kissel and three others named by him were put
into the directorate Of The Pennsylvania Sugar
Refining Company. Immediately they. as a ma
yority Of the directorate, put through a resolu-
ton that the refinery be not run.
In few months Segal realized that he was in
the power of the American Sugar Refining Com
Iany. He ,Tent 20 Mr. Parsons with a certified
check Tor Sl,25o,000 and one hundred $1,000 bills
told him he wanted 10 pay up the loan and Of
fered bonus of 100000 for permission TO cancel
the loan Nr Parsons explained that the loan
could not be cancelled as the agreement said it
should run until October 1904, at least.
II these ahidavits it Was also stated that when
the loan became due Segal could not get the
money, and that he paid TO Kissel many thou
sands Of dollars fer the of his influence in
preventing the selling of the securities ana e
foreclosure OF mortgage on the Majestic apart
inent hotel Tais and other large payments to
keep up the refinery. which brought in
turn. came ont Of the Real Estate Trust Com
pany OF Philadelphia. il Is understood.
The complaint filed yesterday directly charges
the American Sugar Refining Company with in
Etructing Kissel 70 get control Of the Pennsyl-
vania Refining Company through the agreement
referred 10, which is appended to the complaint
~1nf III . a csp
was borrowed, received or in any way used for
The beneht of the plaintiff" the Pennsylvania
Refining Company. William Howard Ramsay is
now president Of the latter company.