The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1909-07-02
SUGAR TRUST
IS INDICTED
Conspiracy to Restrain
Trade.
FEDERAL GRAND JURY ACTS
Eight Prominent Men Must Answer
Charge.
DesenAants WIN Apsear IN Court Next
Week and n Convicted rAey
Nay Pay Heavy Pen-
allies.


tors and two prominent lawyers.
The defendant company and the in
dividuals were charged with conspi-
racy In restraints Of trade under q
criminal clause Of the Sherman anti
trust law, which provides a. . penalty
upon conviction . nne Of not more than
5000 or imprisonment for not more
than one year. or both, In the case Of
the individuals, and . fine OF not more
than $1,000 in the case Of corpora
fion.
4 The individuals Indicted are: wash
1ngton b. Thomas, President OF the
american Sugar Reflning Company; Ar
thur Bonner and Charles H Semi and
John 3. Parsons. all Of New York, and
John Mayer Of Morristown. N. j.. and
George Frazier Of Philadelphia. All
are directors of the company.
The others indicted are Gustav l..
Kissel and Thomas b. Hernett, coun-
sci for Adoiph Segal. whose plant, the
Pennsylvania Sugar Refining Company,
twas shut down by the trust. and whose
tight In retaliation with the testimony
brought out In his suit for $50. ooo. 900
damages recently settled out Of court.
largely furnished the basis for the
Government prosecutor. The defend
ants will answer to the indictments
in the United States District Court
on Tuesday next.
Contains Fourteen Counts.
Bulky and in blanket form, the In
dictment contains fourteen counts. al
Deging conspiracy and restraint of
trade. The closing OF the Segal plant.
the details OF the s1.250.000 loan by
which this was accomplished and va
rtous details OF the transaction are re-
cited fully.
The defendant company. IL 10 assert
~ n 4tx rQ
trade In the United States.
| A gist Of the charges. most of which
nave been brought out heretofore In
the Segai investigation. 10 that the
american Sugar Refining Company and
the individuals Jointly indicted with
IT. accomplished the control Of the
Pennsyisana Refining Company by In
hcting az . broker. and the agent for
b lender unknown at the time the
boan was made, whereas. the lender was
khe defendant corporation, to borrow
H1.2B0,000 and to transfer to Kissel
with q majority stock o voting power
bs the holder Of $4,000 shares OF stock
pr the Pennsylvania Company.
4 II IL further stated that 6egai was
mot aware that the American Sugar
Refining Company was the real lender
Ind that he did not suspect the designs
bf the rival corporation.
y Segai. a. the defendants then wen
knew, the Indictment continues, would
be dependent upon the dividends from
khe business OF the Pennsylvania Com
Bany TO pay such interest and repay
khe borrowed principal and In case the
business of that company was shut
down, Sesars financial afrairs would
be put in o "ruinous condition." and
khs hold ON both Segal and the COM
bany by the defendant would be con-
tinued and greatly strengthened.
1 Kissel. Il 10 charged in pursuance
of this power, attended stockholders
meeting OF the Pennsylvania Company
bn Dec. 90, 1908, ct Philadelphia. and
koted as Q director in favor OF the
adoption Of resolution closing up
that company's business.
plicates the AFFAIRS of the American
Sugar Refining Company. which was
recently forced to settle the suit
brought by Segal, and only Q short
kline before was heavily hned by the
Government in the false Weighing
eases. The action also dispels all
doubt as to the Government's attitude.
which was considered uncertain when
United States District Attorney Wise
sailed for Europe recently.
The Accused Men.
/ The accused men are all prominent
In financial circles.
i John q. Parsons, counsel for the
American Sugar Refining Company,
twas formerly President Of the Bar AS
sociation of New York city. has been
president of the City Club, reform
Organization, President OF Cooper
Union and was q member Of an inter-
national conference on marriage and
hiycrce.
| Mr.. Parsons has taken q very prom
1nent part In religious and philan-
khropic aHairs.
{ Gustav A. Kissel In senior member
OF the banking irm Of Kissel Kinne-
quit and Company. 9 director Of four
trust companies, President OF the Peo-
ple's Symphony Concert Society, a d.
rector Of the American Geographical
Society. and OF the New York Institu-
kion for the Blind; Is q member OF the
Chamber OF Commerce and many prom
hnent clubs.
washington b. Thomas has been
president OF the American Sugar Re-
lining Company since the death Of
Henry o. Havemeyer. about two years
ago.
The thread OF events leading up to
koday's indictments may be traced back
10 1895 when Adoiph Segal. Of Phila-
helphia, sold to the American Sugar
Refining Company sugar refinery
which he had built and for time op-
hrated at Camden. N. ]. Some years
kater Segal took over the old Pennsyl-
Hania Sugar Refining Company. Of
philadelphia. which had suspended
business In 1898. BY 1908 Segal had
started q new plant to compete IN SUI
gar refining. Meantime he had en-
Gagged extensively in other real estate
promotions and became pressed for
funds.
Just at this time 0ustave Kissel. a
wall Street broker, turned up with an
offer to secure for Segal loan of al
$4,000, which was accepted. 1t after
wards developed that the loan came
from the treasury of the American SUI
agar Refining Company, but Segal
claims he did not know this then.
History of Case.
To secure the loan for his real es-
tate operations Segal entered into a
bond with Kissel by which the borrow
or turned over, along with other secu-
rifles. 26, 900 OF the $4,000 shares of the
Pennsylvania Refining Company and
agreed that the sugar securities should
be put in a voting trust, which gave
Kissell or whoever he represented,
control of Segaps sugar company. The
new controlling interest in the Penn
pylvania Sugar Refining Company in
4erest in the Pennsylvania Sugar RE-
inning Company forthwith elected a
ne W board OF directors and this board
boon afterwards passed a resolution
shat the Segal refinery should not be
operated Segal also borrowed heav-
lily from the Real Estate Trust Conn
many OF Philadelphia. with whom he
-. - all