New-York tribune., 1908-09-16
SUGARTRUST CENSURED
V5oe-ChonceIIor Walker, of \. D.
Condemns Deal 1rith Its h'00''
rFv Telegraph to The Tribune.

~ -esar-grH 10 The Tribune
Trenton Sept 15.-Ntce-ChsnCehoi :. - .,nari-
IN ,,r7iron to-day IN which he holos 't0, o-,te
= cs,s- Refining Company exceeded lls 'OltD,r. ,e5
=, =. +-9rssc-ions by which II aOSc
. H. Ea,nsylvania Sugar RenIlliie -,
- and r-evented its operation Dc IDS the
a. -be refining business The oiii-l i-, h,,+ holds
,-.,,ea--inns as Illegal ana reIi 7;c+ed ur,on
-, tho onI, penalty which couIu y - ,.-ou1d he
'-lNI - -. SUGAR Refining Company -
n -. Of IFS charter. q rna1tel
- ~, state only. Shoulo NV - -, -. -
- If the Pennsylvania conif'i'' =, -;
f II was obtained Se ultimately - C-srceIIor
rsn sugar Refining Company. 'IS .aao+;,-e
'ali eza-s ,,-bo authorized the tsihSActiollS
,5 ,,,doc,t,tedIv he liable as for Z "as'e u HIS
snnIication OF corporate funcs -z :
--La Iitigst ton in which these views were cap
80 hy George H. Earle. jr. as anclllary
"3S = -be insolvsnt Pennsylvania Sugar Re
=. ,-o-,,,s,7,- Mr Earle in investigating the al
- of that company discovered that large loans
- hon made by the American sugar fNeIiillfls
t - Through agents which with agreements
Ltob zrere entered into stipulated mat ule Penn
..1a,is nlant should not be run while these loans
.r+ar, Sing The receiver asked that the
.-;csr Sugar Refining Company, as trustee for
a.. PENNSYLVANIA company, make discovery OF an
oete acquired by IT by reason OF its action IN
p1,. the affairs and plant the Pennsylvania
,env He also asked that the defendant be
.-ered 10 account for all profits resulting from
- isct Of competition from keeping the Pennsyl-
,,oria company idle
-.e Pennsylvania plant completed in 1903,
=. bich time Adolph SegaI owned q ma 1or1ty of
- ,f the Champion Construction Company. which
r,snv owned a majority Of stock OF the Penn
,r,rss Sugar Company. In December Of 1898
[-r+sus Eissel requested John E. Parsons. direc-
-. - the American Sugar Refining Company. TO
.is,e loan air. SeEal amounting 10 Sl250. .0eo.
r., Kice-ChanceIlor expresses the belief that Mr..
-,;-.el 7erer was the agent Of Segal in any legal
,ss hit was always the agent Of the American
--nsrv He says the principal object in making
- loan was evidently prevent the operation of
.b Pennsylvania company, and that corporation
= mart of whose legitimate business the loan
,ue of money would ever have made such loan at
srsl interest unless lurking behind the transaction
there was some advantage of great Importance TO
.he lender. He says
ran was repaid il lost nothing and had the ad-
,srtsre OF no opposition from the Pennsylvania
sugar COMPANY during the running Of the loaH II
ne money borrowed not returned. then the
l5yantsEe from stifed competition was enduring
The vice-Chancellor says that If anything We're
rsutinE 10 show the real character Of Mr.. kissel
r4th reference 10 the transaction it is supplied
81 a letter OF Nj Havemeyer. Of the American
COMPANY in which Mr. Havenaeyer said:
Referring TO the loan made by you CHisseD
,gent for US 70 Mr.. SeEal under the agreement
n December 81 1873. We will hold you harmless
~ reason OF the execution Of that agreement and
II any action taken under it.