The Birmingham age-herald., 1909-07-02
FIGHT AGAINST
 THE SUGAR TRUST Grand Jury lndicls Members of Sugar Company MATTER IS COMPLICATED Suit Is Ably Supported By Independent Sugar Men Whose Affairs
 Were Affected by
 the Trust.
MATTER IS C0MPLICATE D

New York, July 1-Through 12 men,
 empanelled as a federal grand jury, the United States government today laid the ground for another gigantic antitrust suit in the indictment of the American Sugar Refining company as a corporation,
 six of its directors and two prominent lawyers The defendant company aud the Individuals were charged with conspiracy in restraint of trade under criminal clause of the Sherman antitrust law, which provides as a penalty upon con- viction a fine of not more than $5000 or Imprisonment for not more than one year. or both, In the case of the individ- uals, and a fine of not more than s5000 in the case of a corporation.
 The individuals indicted are:
 Washington B. Thomas, president of the American Sugar Refining company; Ar thur Donner and Charles H. Senff and John E. 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 Thom- as B. Harnett, counsel for 'Adolph Segal. whose plant. the Pennsylvania Sugar Renfning company was shu, down by the trust and whose fight in retaliation with the testimony brought out in his suit for $3o,OO0,0OO damages, recently set tied out of court, largely furnished the basis for the government prosecutor. The defendants will answer to the indictments in the United States district court on Tuesday next.
 in ment containsN14 counts, alleging con- spiracy in restraint of trade. The clos ing of the Segal plant, the details of the $1,250,0O0 loan by which this was acconl- plished, and various details of the trans action are recited fully
 The defendant company, it is asserted, controls 90 per cent of the sugar trade in the United States.
 A gist of the charges, most of which have been brought out heretofore in the Segal investigation, Is that the American Sugar Refining company and the individuals jointly indicted with it, accomplished the control of the Penn sylvania Refining company by induc- ing Segal to borrow from Kissel act ing as a broker, and the agent for a lender unknown at the time the loan was made, whereas the lender was the defendant corporation, to borrow s1, 250,- 900 an dto transfer to Kissel, with a majority stock, a voting power as the holder of 26.O0O shares of stock of the Pennsylvania company.
 It Is further stated that Segal was not aware that the American Sugar Re- fining company was the real lender, and that he did not suspect the de-
 signs of the rival corporation. Segal, as the defendants then well knew, the indictment continues, would be dependent upon the dividends from the business of the Pennsylvania com
 pany to pay such interest and repay the borrowed principal, and in case the
 business of that company was shut down, Segal's financial affairs would be put in a "ruinous condition" and the hold on, both Segal and the company by the defendant would be continued and greatly strengthened.
 Kissel. it is charged, in pursuance of this power attended stockholders meeting of the Pennsylvania company on December 80, 1903, at Philadelph ia, and voted as a director in favor of the adoption of a resolution closing up that company's business.
 The indictments today further com plicates the affairs of the American Sugar Refining company. which was re- gently forced to settle the suit brought by Segal and only short time before was heavily fined by the government In the false weighing cases. The action also dispels all doubht as to the gov ernment's. attitude, which was consid- cred uncertain when United States Dis- trict Attorney Wise sailed for Europe recently.