New-York tribune., 1909-06-20
HASTEN SUGAR HEARING
GRAND JURORS EXAMINE
TRUSTS" SECRETARY.
Prosecutions Under Sherman act
Ndy FoIo1C Mr. H'ise'S
Investigation.

Surrounded by books and reams Of the testI-
mony taken in the recent suit of the Pennsyl-
vania Sugar Refining Company against the
American Sugar Refining COMPANY John W H.
Grim. assistant to United States Attorney Wise
was preparing yesterday for the government in
vestigaton to determine whether the American
company had violated the Sherman act The
call of the perfect June day was not needed and
1t vas late in the evening before the work was
temporarily suspended.
It had been said that the grand jury would
consider the case morrow. SO it will, but the
investigation, with the usual federal caution was
begun on Friday. Then Charles r. Heike. sec
retary Of the American company was examined
by the jury 1t was learned from enc of the
counsel familiar with the recent civil suit that
Mr. Heike had a long session with the federal
inouisitors He vas wanted mainly to tell Of
the agreement of settlement between the two
companies by which the American concern
agreed to pay $3.50 600 in cash and cancel a loan
of S1250,o0o.
That settlement IT said, is going TO figure
prominently in the investigation There was
rumor that it contained provisions that in them
selves would constitute a violation of the Sher-
man act. One of the counsel for the defendant
company told a reporter for The Tribune that
the counsel and officers Of the companies were
under bond to keep the settlement secret
That bond it was learned. would not be an OBJ
stacle to the government Investigators.
PAPERS IN SUIT IDENTIFIED.
Joseph De F. Junkin, counsel for George H.
Earle the receiver for the Pennsylvania. COM
pany. identified the papers IN the suit for the
grand jury. He and Mr.. Earle were subpoanaed
TO bring the transcript of the evidence and the
books. which were in Mr.. Earle's office in Phtia-
delphia to this city. NIT Earle. it was said, had
been excused from coming on, as Mr.. Junktn
was able 10 satisfy the government Neither
may be called before the grand jury in the en-
suing investigation.
Henry A Wise the United states attorney.
with his assistant. Mr.. Grim, has full charge Of
the investigation. and should indictments be
found will conduct the prosecutions. No spe-
cial United States Assistant Attorney General
will be sent on from Washington or elsewhere
to take control. Attorney General WickeTsham
chose Mr. Wise because Of his record as al
sistant 10 the former United States attorney.
H. L. Stimson- Mr.. Wise at that time also
had experience in a prosecution of the Ameri-
can company winning the rebate cases for the
government. Mr.. Grim aided Mr.. Wise IN those
proceedings.
J. Hsrwood Graves. an attorney from the
Department OF Justice. and Victor n Road
| prosscutioa should Indictments be found. Mr..
Graves is familiar with the routine in such
great cases. and assisted Frank B. Kellogg in
the proceedings against the Standard Oil Com
pany. Mr.. Graves is at present aiding IN the
prosecution OF the Du Pont de Nemours Pow
der Company Roadstrum is a financial expert
The whole Organization for the prosecution has
been rounded out ready for quick work
MAY END BY JULY l.
That little time will be lost in the grand Jury
roon1 was shown in the Immediate beginning Of
work on Friday It may be that despite the
fact that many persons have been subppnaed
few will be called upon 10 testify The records
OF the Pennsylvania case are complete. 1t was
said Yesterday that, having been identified these
records may be used before the grand jury TO
stablish the government case. II this should
be 50 the investigation may be concluded in a
comparatively short time. possibly before
July l.
Mr. Wise's experience in the suit against the
so-caHed Paper Trust will stand him in good
stead and this case may be used precedent
in the mode of procedure. Then the president OF
the combination was indicted. This was fol-
lowed bv criminal proceedings against the sub
sidiarv companies, which were each fined $1,000
The association was dissolved, 1t was said II
this plan is pursued individual officers of the
American company may be indicted, and the
fifty cane and twenty beet sugar subsidiary
companies may also be prosecuted criminally.
AS Mr. Wise is busy with the Heinze-United
Copper cases. the grand jury hearings will be
conducted in the main by Mr. Grim. assisted by
Mr. Graves and Mr.. Roadstrum- The jury will
sit on the fourth floor. and the proceedings, Of
course will be behind closed doors. Witnesses
will be cautioned not to divulge their testimony.
and the result of the deliberations will be given
out by Mr.. Wise. 1t was said yesterday that
the American company would not depart from
its expressed policy of putting no obstacle in the
way of the government in its efforts to get at
the facts of the companys management before
W B. Thomas assumed the presidency