The Detroit times., 1909-01-29
b0NAPARTE 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 yesierua!
a special message and the corresponds
ence regarding the alleged violation OF
the Sherman law by the so'cahe'
sugar trust" I'm connection with the
failure OF the Real Estate Trust Co.,
OF Philadelphia.
"The attorney-general has forward
ed me the enclosed papers. said
President Roosevelt, relating 10 an
alleged violation or the act OF July z
1890 by the American Sugar ana TIC
hning Co. In connection with an al
legged loan by that company to one
segal. In which was pledged as Sc
cnritv therefor a majority OF tho
carital stock OF the pennsylvania
Sugar Refining Co, with Young pow
eg thereon, and under which u
alleged an agreement was entereu IN
20 that the Pennsylvania Sugar he'
fning Co. should not engage IN pusr
nees. and herewith transmit them 10
the senate" s
The message was ordered printed
and TO lie upon the table. IL "
expected that Senator Culberson WIN
cali II up later and submit Some
remarks based upon the correspond
ence. In his letter to the president
Transmitting the correspondence Al,
torney.General Bonaparte wrote
am aware OF no reason why the pa
ners should not be made public
The correspondence includes letters
that passed between George H. Ear'c'
Jr.. receiver OF the Real Estate trust
Co, OF Philadelphia, which ialied
In 1906, and the president, ana oe-
tween Earle and Former Attorney
General Moody, and between Earle
end Attorney General Bonaparie.
Earle first wrote President Roose'
Welt under date OF Sept 81 1906 cal
ing attention to the failure of the
Real Estate Trust Co, OF Philadel'
phia, and suggesting that he may have
been misled as TO the most potent
cause of that calamity by the pub
lished explanation that loans 10
Adolph Segal, "a promoter. by fresl'
dent Nipple, 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
had "a plain duty" and then said;
II write you because the Information
before me satisfies me beyond doubt
that these loans would have been
largely. If not entirely, liquidated,
but for the criminal conduct OF the
so-ealled sugar trust Ii Is my dc
liberate conclusion that had Ii not
been for criminal conspiracy OF the
most odious character, not OF Segals
or Nipples, 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" which
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
the construction by Segal of mod.
ern sugar refinery. The trust gained
possession OF the plant through loan
10 Segai 10 promote other enterprises.
and he learned too late that the re-
fnery was not 10 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 TO Former Attorney
General Moody and later 1t was sur
rendered to Acknowledgement Bona.
parte, and that both OF these officers
correspondent at great length with
Earle looking 20 prosecution OF the
so-called sugar trust.
Earle took the position that there
had been a violation OF the Sherman
law and suggested that the assistant
encouragement seemed perfectly
satisfied the Knight case had no re.
lation 10 ours. and as | have under
stood him has always been confident
that he could send these conspirators
10 jail"
Stifled Competition.
The Encouragement in his letters
had quoted the decision in the case
OF the United States against +. c.
Knight Co. as his reason for not pro-
ceeding against the sugar trust Com.