The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-07-01
American Refining Co. and
Its Agents Are Hit by
Grand Jury.
is VIOLATION
OF ANTITRUST ACT
Bills Result Of Loan to and Crush
ing of Pennsylvania
Concern.

NEW YORK, July IA blanket
indictment in fourteen counts chary-
ing the American Sugar Refining
Company, its officers and directors.
and certain agents with conspiring to
restrain the trade in raw and refined
sugar, were returned to Federal
Judge Hand today by the grand
jury.
The Indictment charges that the
defendants conspired to prevent the
Pennsylvania Sugar Refining Com
pany from competing with the trust.
and accomplished that purpose
through a loan of sf,25o,ooo TO
Adolph Segal, which was secured by
10000 shares of the stock of the
Pennsylvania Company, giving the
trust vote control of the concern.
Result of Investigation.
The Indictment today is the result Of
an investigation by the grand Jury ex-
tending over many weeks. brouesif
about By the settlement Of .. suit or ~.
fennSylVania Company against the
so 600, 0Oe.
The opening paragraphs OF the indIct-
Ts1ents which is the most vol;lminous re-
turned By the New York FeIeraI grand
Jury IN many years. set forth that the
american Sugar Refining Company con-
uoLs aneut ~ per cent of the trade and
coIlfnerce In raw and refined sugar IA
the United States and is engaged IN
trade and commerce within the meaning
or the Sherman antitrust act under
Wnleh the Indictment Is found
Then follows the statement that the
FennSylvania Company was organized
SIX years prior 10 the finding OF the fT1-
e.l aIctnlent. ana history OF the concern
10 the present time.
After setting forth that the Peunsvi-
Eania Company equipped a zisnt IN
FnliaGelphia 70 engage in the business
OF OF fehnlng a. ana %, marketing laa sugar, at
charges that: The American Sugar Re-
inning Company and the individuals
herein indicted with it were then en-
saged IN a corrupt and unlawful con-
spiraey. that Is;
Conspiracy to Restrain"
"A conspiracy unreasonably to re-
strain and eliminate free competition
and TO prevent ali competition with the
defendant corporation by the said Penn
sylVania Sugar Refining Company, to
the very great injury and detriment.
financial and moral. OF the people Of the
United Etates. and this by and through
unfair, deceitfuls unlawful and corrunt
means OF said corporation defendant
and the individuals indicted with il.
ne indictment then goes or to show
t!ll 5nal Ssgei was the treasurer OF the
Champion Construction Company. which
controlled 26.000 shares Of stock, a ma
lOrity. in the Pennsylvania concern, that
5egel borrowed from Gustave E. Kissel.
as agent for an undisclosed lender
81 ,2c0, ,0Jo, giving as security the n 0s1
shares OF Pennsylvania stock: that Kis-
sci had no reason TO suppose that the
1ndiscIosed lender desired anything
more than the payment of interest on
and the repayment of the amount
loaned, or had any motive for prevent
ng the Pennsylvania Sugar Refining
Company from carrying on its business.
that Adolph Segal at that time. as the
defendant web knew, was dependent
upon the dividends upon the Pennsvi-
vania stock for the payment of interest
and principal of the loan; and that the
suspension Of the business OF the Penn
sylvania company would result in plac-
ng segefs finances ia ruinous condi-
ion
II is then set forth that the defend
ants. with this end in view, and know
ng that the closing of the plant would
prevent Sega2 from repaying the loan
and give the defendants complete con-
-rol, used every means in their power
10 extend the time Of said loan origin
ally given for one year. It Is CHARGED
hat they refused arbitrarily to accent
payment Of these obligations from hirn.
either before or at the time Of their
thereby gaining control of tne
Pennsylvania company.
The said defendants used their con-
rol OF the Pennsylvania Sugar Refin-
ng Company to prevent the said Penn
'ylyania Sugar Refining Company FROM
carrying on. or engaging in. the busi-
ness Tor which i was organized, pre-
Jared, and intended. thereby con triv-
ng 10 bring about the ruin OF the
Dennsylvania Sugar Refining Company
through lnaction, the destruction OF its
property, and the decay OF its facilities
ion"
None Of the men indicted appeared in
court when the bin was returned
Thomas McIlvain, law partner of John
2. Parsons, one of the indicted men.
Who was formerly chief counsel for the
rust, appeared for the corporation and
IS officers, and John M Bowers ap-
1eared as personal counsel for Par
ions- William D. Guthrie appeared
or Kissel, and Harmed was not repre-
Assistant District Attorney Grim. for
he Government. asked that the men be
lrdered to appear 10 plead next Tues
lay, and that date was set.
Departments Statement.