The sun., 1909-06-30
SUGAR CASE IS NOT DROPPED
PLEA or IMMUNITY OF INDI-
JIDUALS IS THE hitch.
proposition OF the Defence That Parsons.
Ihomas and kissel Are Immune He
cause Of Testimony They Gave in
Ihli suit Put Up to Attorney General.

cause OF Testimony They Gave in
lhiI suit Put Up to Attorney General.
The case against the American Sugar
Refining Company involving its dealings
with the Pennsylvania Sugar Refining
Company has not been dropped by the
Governments attorneys. Authoritative
denial was made yesterday at the Federal
building of the truth of publications to
the opposite effect. The delay in bringing
in indictments in the case was due. 1t
was said, to the desire of the Governments
representatives here 10 have Attorney
General Wickersham pass upon one of
The points raised by the lawyers repre-
senting the defendants which had nothing
10 do with the statute Of limitations.
In addition to the arguments made by
John NJ Bowers. John @. Milburn and
william D. Guthrie before District Attor-
ney Wise on Monday. brief by Mr..
Guthrie was submitted in which three
points were raised as to why no proseou-
lion would lie. These three, as enum-
Grated, we're the statute Of limitations.
immunity as a result Of testimony in the
civil case in the Federal courts and the
controlling effect of the decision in the
knight case, one of the earlier cases in
volving the Sherman law passed upon
by the Supreme Court.
Only one of these points was deemed
novel, that being the contention that
through their testimony in the civil cases
certain Of the individuals involved-in-
dividuals and the company are both in
voved-had earned immunity from pros
ecuton in a criminal case. 1t is this
pont which Attorney General Wicker
sham is to pass upon.
Mr. Guthrie pointed out that John E.
Parsons, President w. B. Thomas of the
sugar trust and Gustave Z. Kissel who
as agent of the trust made the 81. $50 900
loan to Adolph Segal. had been subppnaed
as witnesses in the civh suit against the
sugar company brought in the Circuit
Court and that under such subp9nas
had been called upon to produce important
documents. Mr.. Thomas produced the
minutes Of the stockholders and directors
meeting by which full authority was given
10 Mr.. Parsons and the late H. o. Have
meyer to arrange the loan through Kissel.
Mr.. Parsons was called upon to produce
the correspondence that passed betw cen
himself and Samuel Untermyer. then coun-
sci for Segal, at a time when Mr.. Inter
myer was seeking to pay of part Of the
loan and by so doing secure the release
of the stock of the Pennsylvania Sugar
Refining Company. Kissel produced the
original contract Of December 80. 1908,
providing for the loan Of s., ,250 .0O0 and
he also produced the original proxies
in respect to the 2e.OOO shares of the Penn
eylvania stock turned over to him as part
Of the security.
Under these circumstances says the
Guthrie brief, none Of the documents
go produced in the said judicial proceed
ing can be used against these several
Witnesses. v
At was said yesterday that the question
whether or not testimony In a civil suit
Cetween private parties in the Federal
courts se ured immunity for the witness
from a criminal prosecution by the Gov
.rnment, based largely on such testimony,
had never been passed upon by the higher
ourts. but that the Governments attor-
neys took the view that 1t should be
threshed out on demurrer
Oliver Pagan, the Governments expert
at drawing indictments, went to Wash
ington on Monday night. carrying with
him the Guthrie brief and resume OF the
arguments Of the lawyers and Is to lay the
matter before Mr.. Wicxersham.
50 far as the other points in the brief
ere concerned, it is the understanding
that they have already been passed upon
as not controlling the Government 8
action. The decision in the Knight case
was made good many years ago in suit
brought to test the right OF the American
Sugar Refining Company to buy up the
stock OF four competing companies, the
ellesstion being that this was in restraint
ot trade. The decision was IN favor OF
the sugar company and has been referred
10 o:tentimes since. 1t is eontended that
the Northern Securities case and other
subsequent decisions have practically
nulli3ed the effect OF this decision. One
of the reasons given by Attorney General
Bonaparte to Receiver Earle for the
Governments refusal to prosecute the
decision stood in the way, but from the
fact that Mr.. Wickersharn. his successor
ordered the present investi CATION, 1t has
been assumed that he has differed with
Mr.. Bonaparte on this point.
Assistant District Attorney. John W.
Grim. in charge of the case in the absence
of Mr.. Wise, who sailed for Paris yester-
day, said yesterday that he was still
going ahead with the case and that wit
nesses would be called before the Grand
Jury in day or two to fill in the testi-
nony. =,
We are assuming that the law IS all
right" said Mr.. Grim. @and are simply
going ahead to bring out the facts
Mr.. Grim thought it was likely that the
Grand Jury would resume the sugar case
Tomorrow. 1t is understood that Mr..
Wise tried to postpone his departure until
Saturday, pending the decision OF the
Washington authorities, but found that
II would be impossible, the date for the
examination of witnesses in Paris in the
Panama libel case having already been set.
John G. Milburn, who appeared as coun-
sci for the sugar company, is to sail this
morning also. Gustav Z. Kissel was down
to sail with Mr.. Milburn on the Lusitania,
but has changed his plans.
WASHINGTON, June 20 Officials OF the
Department OF Justice absolutely decline
to discuss inquiries now in progress
bearing upon a proposed prosecution OF
the American Sugar Refining Company,
more popularity known as the sugar trust.
Attorney General Wickersham has this
case in his own hands and he has eau
toned his subordinates to refrain from
making any comment on information
relative to the matter that may come
into their possession in the course OF the
routine business OF the Department.
1t is known, however, that the Govern
ment has not abandoned hope OF securing
evidence that will justify prosecution and
that officials Of the Department of Justice
are busy collecting information which is
placed in the hands OF Attorney General
Wickersham in the form Of Official reports
from time to time.
There Is a good deal OF mystery about
this particular case and authentic informa-
ton upon any phase Of II Is difficult to