Republican news item. [volume] (Laport, Pa.) 1896-19??, 1910-12-02
Government Moves Against
American Company.
MANY CONCERNS INVOLVED
Havemeyer Accused of Accepting $1o,-
100000 Gift In Violation of Fran
chise-Long Legal Battle Expected.

The federal government began in
New York one of it's most important
actions against great corporations
which are said to have violated the
Sherman antitrust law.
Henry A. Wise, United States dis
trict attorney, filed in the United
States district court for the southern
district of New York a petition asking
for the dissolution of the American
Sugar Refining company and twenty
nine other corporations which compose
the so-called sugar trust.
The petition charges an illegal COM
bination in restraint of trade and asks
from the court relief in whatever form
may be necessary, including a receiv
ership, if deemed advisable.
The thirty companies composing the
sugar combine have an aggregate cap
italization of $230,000,0OO and control
large percentage of the output of
sugar in this country. The petition
charges that for years the companies
have violated the law, and have op-
pressed competitors and ground them
out of existence. Railroad rebates and
customs frauds are mentioned as de-
vices which were employed to raise
the combine to the commanding posi-
tion which it occupies.
The present suit, which, it is esti-
mated, will be in the courts for two
years before final adjudication is
reached, is expected to rank in i'm
portance with those of the government
against the Standard Oil company and
the American Tobacco company, which
are now pending in the supreme court
Opposed to the government in the
struggle will be some of the most
memorable corporation lawyers of the
country. James M. Beck, formerly of
Philadelphia, former assistant United
States attorney general and now coun-
sci for the American Sugar Refining
company, will lead the attack on the
governments position. Mr.. Beck said
that the sugar combine was not a mo-
nopoly, but that if it appeared, when
the supreme court interpreted the
Sherman law in the tobacco and oil
cases, that the sugar company was in
any respect violating the law, steps
would be taken Immediately to COM
ply with the law as thus interpreted.
The governments petition is a
lengthy one, occupying 221 printed
pages, and is sweeping arraignment
of the defendant companies.
One of the allegations is that the
late H. o. Havemeyer, of New York,
long the head of the sugar combine,
received $10,000000 common stock of
the National Sugar Refining Company
of New Jersey, as a gift at the time
the corporation was formed to take
into the combine four independent
concerns-the National Sugar Refining
company, run by B. H. Howells Son &
Co.; the New York Sugar Refining
company, of Long Island City, N. Y,
operated by Claus Dosher; the Mollen-
hauer Sugar Refining company, Of
Brooklyn, and the w. j. McCahan SUI
gar Refining company, Of Philadelphia.
These companies up to 1900 were
Independent, and, it is said, the Amer
lean company was determined to ac-
quire them. Under plan inaugurated
by Mr.. Havemeyer, John E. Parsons
and James H. Post, the National COM
pany was formed and took over the
four plants, Mr.. Post obtaining options
on them. When the new stock was de-
livered. the petition sets forth. Post