The Detroit times., 1909-01-29
bONAPARTE TELLS
WHY He DID NOT
PROSECUTE
PAPERS REGARDING RUIN or
REAL ESTATE TRUST co. BY
SUGAR TRUST ARE SENT TO
SENATE.

WASHINGTON, Jan. 29-President
Roosevelt sent to the senate yesterday
\ snecial message and the correspond
ence regarding the alleged violation OF
the Sherman law by the so-eaiied
"sugar trust" in Connection with the
fainre of the Real Estate Trust 60,
OF Philadelphia.
THE encouragement has forward
ed me the enclosed papers, saiu
president Roosevelt. relating 10 an
alleged violation of the act OF July =
$50 by the American Sugar ana nc
timing Co, i'm connection with an VI
laged loan by that company to one
Saeal. in which was pledged as ST.
curity therefor majority OF IN"
,srital stock of the pennsylvania
sugar Refining Co.. with voting pow
a., thereon, and under when 1t Il
,lieeed an agreement was entered III
IN that the Pennsylvania Sugar ne
fning co. should not engage IN Dusi
uess and | herewith transmit them W
the senate. ,,.,a
The message was ordered printed
ood 10 lie upon the table. IL IL
expected that Senator CulDersoh WIZ
cali II up later and submit some
remarks based upon the correSt'olu
once In his letter 10 the presldel'l
transmitting the correspondence Az
tornev.General Bonaparte wrote
am aware of no reason why the pa
pers should not be made pubnc.
The correspondence includes letters
that passed between George IL. Fare
In receiver Of the Real Estate lru"t
90. of Philadelphia, which Iaileu
IN 1906. and the president. ana pe-
tween Earle and Former Attorney
General Moody, and between Earlc
and Acknowledgement Bonaparte-
Earle first wrote President Roose-
Welt under date OF Sept 2l 1906 cal
;np attention to the failure or the
Real Estate Trust Co, OF Philadel-
phia. and suggesting that he may nave
! cen misled as TO the most potent
eause of that calamity by the pub
,ished explanation that loans 10
Adolph Segal, a promoter. by Presi-
dent Hipple, OF the institution were
responsible Earle told the president
that this explanation was the truth
but not the whole truth
CHARGES Criminal Conspiracy.
Earle suggested that the president
mad "a plain duty" and then salo
Il write YOU because the information
| before me satisfies me beyond DOUBT
that these loans would nave Deeh
| largely. If not entirely, liquidated'
| hut for the criminal conduct OF the
so.called sugar trust II Is my de-
. rberate conclusion that had II not
been for a criminal conspiracy OF the
most odiOus character, not OF Segal
or Hipples, but of the sugar trust,
this institution, and Segal himself
would have been perfectly solvent TO-
day"
The letter was a sweeping indict-
ment OF the sugar trust. winch
Earle declared permeates the financial
life of the country.
Earle said that the American Sugar
Refining Co had become Interested
IN some OF Segal's enterprises through
ne construction by Segal of a mod
crn sugar refinery. The trust gained
nossession Of the plant through loan
10 Segal to promote other enterprises.
and he learned too late that the re-
Emery was not to be operated. Earle
declared that repayment Of the loan
was attempted by Segal and the trust
declined to receive the money and
adds: mo honest lender ever declined
such proposition"
The correspondence showed that
President Roosevelt referred the
whole subject 10 Former Attorney
General Moody and later it was sur
rendered TO Acknowledgement Bona
parte, and that both OF these officers
correspondent at great length with
Earle looking to prosecution of the
so-called sugar trust.
Earle took the position that there
lad been n violation Of the Sherman
law and suggested that the assistant
encouragement seemed perfectly
satisfied the Knight case had no re
lation to ours. and as I have under
stood him has always been confident
that he could send these conspirators
10 Jail"
Stfled Competition
The Encouragement In his letters
had quoted the decision In the case
W the United States against f. G..
knight Co. as his reason for not pro-
ceeding against the sugar trust. Com
menting on the governments atti-
tude, Earle wrote:
you will see from the marshaled
facts that your assumption that the
/ sugar trust In this case acquired q
controlling interest, as was found in
the knight case. does not exist here
at all. II never lawfully acquired any
interest In the property nor In any
stock controlling the property, as in
the Knight case.
IF. by fraud. merely obtained con
troll over trustee To prevent his ex.
ercising trust, whose expressed pur-
pose was To prevent the very sitting
Of the competition which II accom-.
plshed by its base conspiracy here 4"
II appeared from the last of the
correspondence, letter from Earle
TO the encouragement. dated April
Is. 1907. that the joint issue on che
question as to whether the knight
case applied. and Earle finally con
cluded with the statement that he
would leave the matter with the
people"
I'm In Drln No n