The Washington herald., 1909-01-29
SENATE GETS. REPLY
President Submits Papers in
Sugar Trust" Deal.
CULBERsoN PROMISES SPEECH
IN Special Message, Mr.. Roosevelt
Transmits Mass of Correspondence
Relating to Refining COmpany's
Merger, Although MIR. BOuaPartc
Had Been Asked to DO SO.

President Roosevelt yesterday respond
ed TO the Senate resolution, introduced
! by Senator culberson. Of Texas, and
adopted January ., calling upon the At
torney General for information regarding
the alleged action Of the so-called sugar
trust in dominating the Pennsylvania
Sugar Refining Company.
In brief formal special message TO the
Senate the President transmitted mass
Of correspondence that had passed be
tween George H. Earle. jr., Of Philadel-
phis, receiver OF the Real Estate Trust
Company. and President Roosevelt, and
latter between Mr.. Earle and William H
Moody, then Attorney General. and, his
successor, Charles J. BOnaparte
/ The correspondence shows that Mr.
Earle first appealed TO the President IN
a letter dated September q. 1906. pointing
out what he conceived to be a criminal
conspiracy on the part OF officers OF the
American Sugar Refining Company. con-
monty known as the Sugar Trust 10
violate the Sherman Law by closing down
the plant OF the Pennsylvania refinery.
In Mr. Earle's opinion this action had
more to do with the failure Of the Real
Estate Trust Company than the loans
made to Adoiph segaI, the promoter
Turned over TO Moody.
The President turned the case over 10
the Department Of Justice. and the CORE
| spondence shows that after Mr.. Moody
had wrestled with it for line he passed
the matter on to Mr.. Bc-.apaTte, who took
! the ground that the Ia had not been viO-
lated. and cited the e,cision OF the United
States Supreme COuft in United States vs.
z. c. Knight Company
Mr. Earle insisted that the knight case
/ did not apply to the situation. but finally.
after quoting many authorities. ne closed
the incident in a letter dated April ..
1907. in which he declared ne would rest
the case with the people. The Attorney
/ General took no action IN the courts.
1 Il is evident from the Presidents mes
sage that ne intends TO adhere 10 the
/ position taken by him in answering the
Senate's inquiry for information about
the acquisition Of the Tennessee Coal and
Iron Company by the United States Steel
I Corporation, that he would determine
whether the Attorney General should
respond 10 Senate inquiries. IN the sugar
/ trust inquiry the President made the re-
| sponSe, although the Senate had called
on the Attorney General 70 do so. The
/ Presidents message follows
IN accordance with my direction. the
Attorney General has forwarded 10 me
the tncIosed papers in response 20 The
resolution OF the Senate Of January .
1863. in reference TO sending TO the Sen
ate copies Of ali correspondence in the
Department Of Justice relating to an al
/ legged violation OF the act OF July 2 1880
\ by the American Sugar Refining Com
( pany, and I herewith transmit them e
the Senate"
/ The message was ordered TO be printed
and lie upon the table Il Is expected
/ that Senator CulbersOn VIII call II VI
later and submit some remarks based
/ upon the information disclosed by the
! correspondence. II his letter 70 the Pres
ident transmitting the correspondence
/ Attorney General Bonaparte wrote: =
am aware OF no reason why the papers
should not be made public
Earle Asks Cooperation.
In asking Executive cooperation Mr
Earle suggested that the President had
/ "a plain duty" and then said: I write
you because the information satisfies N,
beyond doubt that these loans would
have been largely. Il not entirely. liqui-
dated but for the criminal conduct OF tbs
so-called sugar trust
1t is my deliberate conclusion. sfte,
weighing the evidence that I have col
/ Iected with the greatest care. that baC
II not been for a criminal conspiracy 0,
the most odious character. not OF Segai'S
or H;pple's president Of the Real Estate
/ Trust Company, but Of the sugar trust
/ this institution, and Segal himself, woulC
4 have been perfectly solvent to-day"
I The letter. which is long, IS a sweep
ing indictment OF the so-called sUgal
trust. which Earle declares permeate.
the financial life Of the country. Speak
ing of Segal. Mr. Earle said that hi:
1 enterprises we're real enterprises. fright
fully Overcapit2siZed and rarely com
/ nleteG