The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1910-11-28
SUIT BROUGHT
TO DISSOLVE
SUGAR TRUST
Long Expected Action by the
Government Was Filed in
Federal Court
CHARGED THAT HAvEMEYER GOT
100000 IN STOCK As GIFT
Petition Asserts That This Gift Was
Contrary to Law and In Direct Vic.
lation of the Corporations Fran.
chise and Without Consideration.


New York, Nov. 28.-Attacking the
American Sugar Refining company,
familiarly known as the sugar trust,
as lawless combination, the federal
government today filed its long ex-
pected suit for the dissolution of the
corporation. The petition was filed
by Henry A. Wise, district attorney,
in the United States circuit court for
the southern district of New York and
the suit, which was brought under the
to be one of the most important ac-
this country.
The governments petition is a
lengthy one, occupying 221 printed
pages, and Is sweeping arraignment
Of the defendant company. One of the
allegations is that the late H. o. Have
meyer of New York, long the head of
the sugar combine, received $1O,000,-
600 of the common stock of the Ma
tional Sugar Refining company of
New Jersey as gift at the time the
corporation was formed to take into
the combine four independent con-
Germs, the National Sugar Refining
company, run by C. H. Howlellson and
company. the New York Sugar Refin-
ing company of Long Island City, N.
Y, operated by Clause Dosher; the
Mollenhauer Sugar Refining company
of Brooklyn, and the w. j. McCahan
Sugar Refining company of Philadel-
phia. These companies up to 1900
were Independent, and 1t is said the
American company was determined to
acquire them. Under the plan in
augurated by, Havemeyer, John E.
Parsons and James H. Post, the Ma
tional company was formed and took
over the four paints, Post obtaining
options on them. When the new stock
was delivered, the petition sets forth,
Post delivered 100000 shares of the
common stock, the entire issue, with
par value of $10,000,000, to Have
meyer. The petition says that those
shares "were issued in the first in
stance contrary to law and in viola
tion o fthe corporations franchise and
for no consideration, as both said
Post and Hevemeyer then we'll
knew"
The government also alleges that
when the American company took
over the four Philadelphia companies,
the Franklin Sugar Refining COM
pany, the Spreckles Sugar Refining
company. the Delaware Sugar House
and E. G. Knight company. Have
meyer and his brother, Theodore
Havemeyer, bought forty-five per cent
of the stock of the Spreckles company
and then sold it at large profit to
the American company of which both
were directors. In general, petition
charges that the defndants "for some
time past have been. and are now en-
gagged in an unlawful combination and
conspiracy to restrain trade and CON-
merce among and between the several
states and territories Of the United
States and with foreign nations in
raw sugar beets, refined sugar, mo-
lasses, syrups and other by-products
of raw sugar and sugar beets and to
monopolize the same. Such unlawful
combination and conspiracy is the re-
suit and outgrowth of series of
wrongful acts extending over period
of many years and participated in by
the defendants respectively, in the
manner and to the extent hereinafter
more fully set forth. In participating
in the various acts, agreements and
combinations by wrongful intent to
restrain said interstate and foreign
trade and commerce In raw and re-
fined sugar and related articles and
to monopolize the parts thereof