New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-27
SUGAR MEN WIN
DEMURRERS UPHELD
BY JUDGE HOLT.
KiSSeL and Harmed Had Plead
cd the Statute of Limitations
May affect Others.


Judge Holt, sitting in the United
States Circuit Court, rendered decision
yesterday that in effect, it was said,
yyould wipe cut the indictment found on
July I against the American Sugar Re-
fning Company, It's officers and four di-
rectors. The court sustained the de-
murrers filed by Gustav Z. Kissel and
Thomas r. Harmed, who pleaded the
statute OF limitations. The statute pre-
cludes prosecution after three years have
elapsed from the time of the commission
of the alleged crime.
AS the indictment was of the blanket
variety including all the accused men IN
it's findings and making the charges ap-
pIicabe to all. the finding of the court
applies to the case as a whole, ii was
said by lawyer familiar with federal
practice.
In addition to the men freed yesterday
there were included in the same indict-
ment the American Sugar Refining Com
pany, Washington B. Thomas. president
and director; Arthur Donner, treasurer
and director, and the following directors:
John E. Parsons, George II. Frazier, John
Mayer and Charles H. Senff They
pleaded not guilty.
The decision, which comprises about
twenty-five hundred words, declares that
the overt act upoI. which the conspiracy
in restraint of trade under the Sherman
act was based was committed before
January ), 1904 and that the conspiracy
was then concluded. The overt acts al
legged to have occurred in 1907, the court
says, had no tendency to accomplish the
object of the alleged conspiracy. Coun-
sci for the government had put forward
that argument to sustain their demurrer
to the Kissel and Harmed pleas.
STATUTE A BAR.
The indictment charged that the fore
going conspired to prevent the Penn
sylvania Sugar Refining Company from
doing business through the making of a
loan to Adolph Segal for $1.2J0.O00. which
was secured by collateral giving the con-
troll of the company to the defendants
The latter elected a new board of direct
ors and il voted to close the refinery of
the Pennsylvania company, which was
done. This occurred prior to 1904, as
was shown at the time of the suit of the
Pennsylvania company against the
American Company for $3OOO0OO0
which was later settled for S150,000 in
cash, the cancellation of the note for the
loan and the return of the collateral.
Judge Holt says:
The offence alleged in this indictment
was complete. and this Indictment might
hnN hr6 an 20 hn
Indictment was not filed until July !, 1909,
more than five years after the time when
the alleged conspiracy was catered into
and it's object entirely accomplished OBJ
vlously therefore, the statute of Hmita-
tions is bar to this prosecution unless
the crime charged In the Indictment is
continuing offence. or acts have occurred
which have renewed the offence and start
ed again the running of the statute.
Judge Holt said that under the Sher-
man act no overt act was necessary to
the commission of an offence. 1t provided
that every person engaging in CON
ssiracy I'm restraint of trade or COM
merce, or to monopolize trade. was guilty
of the offence. The whole question in the
case. he declared. was when the statute
of limitations began to run in an indict-
ment for conspiracy under the Sherman
act. Judge Holt mentioned authorities,
said that it was impossible to harmonize
them and continued:
think that the offence was complete in
this case when the contract between Kis-
sci and Segal was made. 1t was unques-
titonaby complete before January ), 1894
before which date the contract was carried
out In ali respects, and the object OF the
alleged conspiracy accomplished. If. how
ever the doctrine of that class of cases
which hold that It each new overt act to;,1 G3nsti;
I'm this case. the overt acts alleged to
have occurred within three years, neces-
sary to constitute new offense, must be
acts which have a tendency to carry out
he object of the conspiracy, or i'm some
way tend to make II effectual
DEMURRANTS ABSOLVED
Judge Holt said that so far as Harmed
was concerned he had nothing to do with
any overt act after December 80. 1908.
and as to Mr. Kissel. the overt acts al
legged to have occurred within three
wears before the Indictment was filed
were not acts which tended to carry out
the object of the conspiracy or to make
IL effectuaL Judge Holt says:
The overt acts so alleged are certain
resolutions adopted by the directors OF the
American Sugar Refining company agree
inc to Indemnify the president and counsel
for any liability in the Segal matter. GER
tain letters written by one OF the defend
ans to the secretary of the American
sugar Refining Company, and a bin fof lis
iuiTsements render ed by the defendant Kis-
sci 10 the American Sugar Refining Com
pauy- all i'm the year 1907.
In my opinion these alleged overt acts
rad no tendency to accomplish the ,biect
OF the conspiracy. The object was com
pIetely accomplished before January 0, 1901
one of the letters dated January u. 1907,
alleged i'm the indictment as an overt act.
shows that the question whether criminal
proceedings should be brought had hon
Under consideration by the Department of
Justice before that time. but It took 40 ae-
tton until this indictment was filed.
An opinion Of Justice Miller. of the