The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1907-01-17
ASK S2O,0OO,OO0
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 a few days to defend
actions for damages aggregating 500
! 100000, and to answer in the federal
courts the direct charge that by con-
spracy and fraud they brought about
the financial ruin of a competitor,
wrecked the Real Estate Trust company
of Philadelphia last summer, and drove
its president, Frank X. Nipple, to sui
eide.
H. o. Havemeyer Named
II. o. Havemeycr. president of, and
John Il. Parsons, general counsel Tor the
American Sugar Refining company, are
among the officers named in the legal
papers already drawn up by the attor-
neys for George H. Earle, Jr., Phiadel-
phia's great organizer, who is receiver
for the Pennsylvania Sugar Refining
company.
Mr.. Earle has laid the allegations of
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 fully equipped modern SUI
gar refinery i'll Shackamaxon street, on
the Delaware river, in Philadelphia,
which has 4 capacity for turning out
1000 barrels 4 day, but which has never
been operated since it was built in 1908.
1t is charged by Receiver Earle that the
sugar trust, by chicanery obtained con
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 Scgal, who
projected it, and along with him sew
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 Segal. financial schcmer,
'bunkoed" the sugar trust, it is alleged,
out of more than Sl,OOOOOO by selling
them a refinery in Camden which was
so worthless that it can only be used
as soap factG"y, and with the profits
he received started 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 Segal, and it be-
colNes-tragic when the great financial in
stituton of Philadelphia, with its thou
sands of depOsitors and its $4,000 600
of trust funds, closes it doors and its
president is buried in a suicides grave.
Calls Havemeyer Humorist.
Al the annual meeting of the stock.
holders of the American Sugar Refining
company in Jersey City last Wednes-
day President Havemeyer told his
stockholders that there is no legal
foundation for Receiver Earle's threat
eucd proceedings. but ut the same time
he got the stockholders to agree 60 in
indemnify the officers against loss in any
such actions When h!r. Earle learned
this he laughed and declared President
Havcmeyer was Il humorist.
When Adolph ScGal was at the height
of his successful financial operations in
Philadelphia he built a large sugar re-
fnCry in Camden. with wharfage on
mud flats so persistent that continuous
dredging alone would make it accessible
to ships. The American Sugar Refining
company, in pursuance of its policy of
sitting competition, took it off Scgal $
hands, giving him a profit Of more than
Sl,OOO,OO0 before the plant had started
up.
Suicides Path Revealed.
Sogal got President Nipple Of the Real
Estate Trust company Of Philadelphia
to back him in erecting the Pennsyl-
yania refinery on ShackamaxOn street,
with wharfage on the Delaware river
The company had been incorporated in
1883. Segal and Nipple revived it and
hoated S3,OOOO0O 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 e.. tie Trust com
pauy individually.
Scgal at this TIM 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
avenue and is making money. 1t has no
compeer even i'll 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
n Spectator i'll 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 as
Frank *. Nipple would have made into
cash. if time enough had been given.
Mrs. Segal had a single purpose-to pro-
cure entrance into an assembly hall
the paradise of Philadelphia society.
Segal projected the Majestic on the
most magnificent scale, The pipe organ.
which is played in the house today, cost
100000. Paintings by Nandyke. Rem
brandt and Whistler adorn the walls.
In Mrs Sega's own apartment is her
husbands birthday present, piano
which cost $4,000 to import from Wen
ma.