Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1909-07-08
SUGAR TRUST
Is Mhbb.JttE[D
CONSPIRACY IN RESTRAINT OF
TRADE is FEDERAL CHARGE
AGAINST THEM.
CHOkfD OFF A COMPETITOR
AdoIph segals Fight Against Ameri-
can Refining Company Is Recalled
Officers and Corporations
Indicted Separately.

New York, july 2.-The American
Sugar Refining Company, six of it's
directors and two other individuals,
were indicted by federal grand jury
today on charge of conspiracy in
restraint of trade and violation of the
Sherman antitrust law.
The individuals indicted are Wash
fngton 9. Thomas, president of the
American Sugar Refining Company;
Arthur Bonner and Charles H. Senff
and John e. Parsons, of New York;
John Mayer, Of Morristown, N j., and
George H. Frazier, of Philadelphia, all
of whom are directors of the com
pany.
Indictments also were found ageinst
Gustave E. Kissel and Thomas B.
Harnett, counsel for Adolph Segal
There were fourteen counts in the in
dictment.
The defendants will answer to the
indictments in court next Tuesday.
Dates Back Thirteen Years.
The thread of events leading I'D to
today's indictments may be traced
back to 1896, when Adolph Segal, of
Philadelphia, sold to the American
Sugar Refining Company a sugar re-
tinery, which he had built and for
time operated at Camden, N. ]. Some
years later Segal took over the old
Pennsylvania Sugar Refining Com
pany, of Philadelphia, whoch had sus-
pended business in 1898. By 1903 Sc
gal had new plant nearly completed
and was ready to compete in sugar
refining. Meantime, however, he i,as
engaged extensively In other real
estate promotions and became pressed
for funds.
JUST at this time Gustave Kissel, a
Wall street broker, turned up with an
offer to secure for Segal a loan of
S1,250,000, which was accepted. 1t
afterwards developed that loans came
from the treasury of the American
Sugar Refining Company, but Segal
claims that at that time he did not
know this.
To secure the loan for his real es-
tate operations, Segal entered into
bond with kissel, by which the Dor
rover turned over, along with other
securities, 26,e00 of the $4,000 shares
of the Pennsylvania Refining Com
pany and agreed that the sugar secu-
rites should be put in voting trust,
which gave Kissel, or whoever he rep
resented, control of Segal's sugar COM
pany. The new controlling interests
in the Pennsylvania Sugar Refining
Company forthwith elected a new
board Of directors, and this board
soon afterward passed a resolution
that the Segal factory should not be
operated at that time.
Suit was brought in the United
States district court at New York, the
Pennsylvania Sugar Refining Com
pany seeking damages of $3O,OOO,O0O
from the American Sugar Refining
Company.
Compromise Is Effected.
After trial of two weeks, COM
promise was effected on June g. The
exact terms Of the settlement have
not been made public, but it is under
stood that the sugar trust" Cancelled
the Kissel note Of $1,125,oOO paid Sc
gal $2,000,000 in cash in lieu Of losses
which he claimed he had sustained
through the idleness of his refinery,
and returned to him the 10000 shares
of the PENNSYLVANIA company which
had been deposited as security for
the loan of 1903. 1t was this victory
over the American Sugar Refining
Company which seemed to open the
way for federal suit.