The Elk Mountain pilot., 1909-07-08
OFFICERS OF THE GREAT MON.
OPOLY ARE INDICTED BY
THE GOVERNMENT.
UNDER RANT|-TRUSTLAW
EVIDENCE BROUGHT OUT IN PEN.
sYLvANiA SUGAR REFINING
coMPANY's SUIT.

| New Iork.-Through twelve men
smpaneled as federal grand jury. the
! United States government Thursday
laid the groundwork for another gI-
gantic antitrust suit in the indict-
ment OF the American Sugar Refin-
ing Company as corporation. six Of
Its directors and two prominent law
yers.
The defendant company and the in
dividuals were charged with conspir-
acy in restraint of trade under a Grim
inal clause of the Sherman antitrust
law which provides as a penalty upon
conviction a fine of not mere than S.
900, or Imprisonment for not more
than one year, or both. in the case of
individuals. and fine of not more
| than $4,000 in the case of corpora
ton.
The individuals indicted are Wash
ington B. Thomas. president of the
American Sugar Refining Company;
Arthur Donner. Charles II. Senff and
John E. Parsons. all Of New York;
John Mayer OF Morristown. n. j.. and
George II. Frazier of Philadelphia.
All are directors OF the company
The others indicted are Gustav ID. kis-
sci and Thos. b. Barnett. counsel for
Adolph Segal. whose plant, the Penn
sylvania Sugar Refining Company.
was shut down by the trust, and
whose fight in retaliation, with the
testimony brought out in this suit for
S30.o00.0o0 damages. recently settled
out OF court. largely furnished the ba-
al fpr he. m nrnRarnftnu
The defendants will answer TO the
indictments in the United States Dis
trict Court Tuesday next.
The Indictment contains fourteen
counts. alleging conspirtcy and re-
straint OF trade. The closing OF the
Segal plant, the details OF the 1880
900 loan by which this was accom-
plished and various details OF the
transaction are recited.
The defendant company. It is assert
ed. controls ninety per cent. OF the
sugar trade In the United States.
A gist OF the CHARGES. most of which
has been brought out heretofore in the
Segal investigation. is that the Ameri-
can Sugar Refining Company and the
individuals Jointly indicted with 1t ac-
complished the control Of the Pennsyl-
| vania Sugar Refining Company by In
ducing Segal to borrow from Kissel.
acting as a broker and the agent for
q lender unknown at the time the
loan was made, whereas the lender
] was the defendant corporation TO bor-
row 31.25o.0O0 and to transfer to Kis-
sci with a majority Of the stock vot-
ing power as the holder OF 10000
shares OF stock of the Pennsylvania
company. II was further stated that
Segal was not aware that the Ameri-
can Sugar Refining Company was the
real lender and that he did not sus-
pect the designs of the rival corpora
ton.
Segal, as the defendants then well
knew. the Indictment continues.
would be dependent upon the divi-
dends from the business of the Penn
sylvania company to pay such interest
and repay the borrowed principal and
in case the business of that company
was shut down, Segal's financial af-
fairs would be put in ruinous con-
dition and the hold upon both Segal
and the company by the defendant
would be continued and greatly
strengthened.
Kissel, it is charged. in pursuance
of this power. attended stockhold-
ers'. meeting of the Pennsylvania com
pany December 4, 1903 at Philadel-
phia and voted as a director in favor
of the adoption of a resolution clos
ing up that company's business.
The indictments further complicate
the affairs of the American Sugar Re-
filming Company which was recently
forced to settle the salt brought by
Segal and only short time before
was heavily fined by the government
In the false weighing cases.
The action also dispels all doubt as
to the governments attitude. which
was considered uncertain when Unit
ed States District Attorney Wise
| sailed for Europe recently.