New-York tribune., 1910-06-04
TFron The Tribune Bureau

TFrom The Tribune Bureau.j
Washington. June 3.
BIG TRUST PROSECUTIoN.-Prose
tion of the American Sugar Refining Com
pany for violation of the Sherman anti
trust law will be instituted under the di-
rection of the Attorney General in the i'm
mediate future. The government will seek
to show that this concern is engaged In
monopolizing the entire sugar trade OF the
country. and is. therefore, q combination
In restraint of trade within the meaning
of the Sherman law. The investigation OF
the affairs of this company, made with
view TO instituting this prosecution, was
begun last December. and is now approach
ing completion This suit will be wholly
independent of the prosecution growing out
of the case of George IL. Earle, jr', as re-
ceiver of the Real Estate Company OF
Philadelphia, against the American Sugar
Refining Company and of the prosecution of
the Sugar Trust for violation of the Gus
toms laws both of which are now pending
i'm the courts. The so-eaIled Philadelphia
suit is now before the Supreme Court on
appeal with the argument set for the Oc-
tober term, and the prosecution for viola
ton OF the customs laws is going on in the
federal court at New York. II is the belief
Of the officials of the Department of JUS
tice that it can be shown that the Ameri-
can Sugar Refining Company is an unlaw-
ful monopoly. and that il can be compelled
to resolve itself into its component corpo-
rations or forced into the hands OF re-
ceiyer OF course, there has long been
popular belief that this company consti-
tuted monopoly, or trust, but there is a
wide difference between a popular belief
and legal proof. The Department of Justice
will not await the decisions in the Supreme
Court of the cases pending against the
American Tobacco Company and the Stand
ard Oil Company before instituting the
Sugar Trust prosecution but, with the evil
dence in hand, will begin vigorous prose-
cution as soon as the investigation now
being made can be completed, probably
within two weeks.
THE RECORD.-The preparation of the
ease against the Sugar Trust has entailed
an examination of the history Of more than
one hundred corporations, and the ramifi-
cations of the inquiry have led from New
York to Colorado and California. 1t has
teen found that the trust had its inception
in the combination in 1887 of eighteen of
the twenty-one sugar factories in the United
States The effort TO create a monopoly IS
alleged 20 have proceeded without inter-
mission until 1892, when the knight case
was instituted and decided against the
United States. That decision. il is now be-
Ueved. was an inevitable result of the de-
fective preparation of the case of the gov
ernment and it is expected that with
wider Indictment a wholly different outcome
may be looked for. In that case. it will be
recalled, no effort was made TO establish
the interstate character Of the monopoly,
So the court was compelled to decide
that il was without jurisdiction, the busl-
ness of sugar refining as presented for its
consideration being a purely intrastate
transaction
ONE IMPORTANT REsULT.-One i'm
rortant result has already been attained
through this prosecution. The directors OF
the Sugar Trust, having attempted 10 re-
sist subpaanas or TO secure immunity from
criminal prosecution through Information
furnished in a civil suit. the government
resorted 10 the novel expedient OF issuing
subpnnas duces tecum addressed 10 the
corpcration as such, thus requiring OH
GERS of the corporations TO appear IN court
or before the grand Jury, bringing WIN
.rar, the hooks and records of the cor
noret;on Resistance of this process result
cd in a decision in favor of the goN erninene'
and thus was established novel method OF
procedure which IS destined 10 be of the at
most value to the government IN >rust
prosecutions. When decision was rem
dered in favor Of the government ire OF
dered in favor Of the government the Of
rested and fined for contempt Of court,
with the warning that they would be ar
rested and fined every hour until they COM
plied with the demand of -he court. This
brought the comnany to time, and, while
it sued out a writ Of error, it obeyed the
mandate of the court
A STRONG CASE-In the opinion OF the
officials of the Department of Justice, the
governments case against the American
Sugar Refining Company constitutes one Of
the strongest antitrust prosecutions thus
far instituted. An immense mass of testi-
mony has been taken, not only in New
York, but elsewhere. Copies Of the original