Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-11-28
GREAT SUGAR TRUST
ATTACKED N COURTS
GOVERNMENT FILES PETITION
ASKING FOR DISSOLUTION OF
coM6INE.
SWEEPING ARRAIGNMENT
OF STOCK MANIPuLAToRs
Government Alleges That Competition
Has Been stifled by Either Purchase
of independent Plants or Price Cut
ting Methods-WaverIy, Iowa, Con-
Germ Involved.

ting Methods-Waverly, Iowa, Con-
Germ Involved.
New York, Nov. 2s-Attacking the
American Sugar Refining Company.
known as the sugar trust, as a lawless
comblna ton, the federal government
today filed suit for the dissolution Of
the corporation. The suit, which is
brought under the Sherman antitrust
law. is expected to be one of the most
important actions Of this kind ever un-
dertaken in this country.
The governments petition Is a
sweeping arraignment Of defendants.
The government alleges that when the
sugar combine was formed H. o. Have
meyer received 100000 common
stock as a gift for taking independent
refineries these shares, the petition all
leges, having been issued contrary to
law: that by purchase. by cutting
prices and other means the combine Sc
cured control Of other refineries until
they owned 72 per cent Of the entire
sugar producing companies, thus en-
abling them to fix prices, restrain out
put, monopolize all by-products of raw
sugar and suger beets, and obtain un-
fair advantages over competitors.
Iowa Concern Included.
Included among the defendants are
nav. Mich; the Iowa Sugar Company
Of Waverly. Iowa; the Carver Count
Sugar Company. Of Chaska, Mimi. and
the Menominee River Sugar Company
of Menominee, Mich.
Tho Governments Petition.
The government petitions the court
to decree:
That defendants have been engaged
IN an unlawful combination and con-
spiracy to restrain and monopolize
trade and that the officers and all 9TH
ers be perpetually enjoined from doing
any act to carry out the purposes OF
such unlawful combination.
That the court adjudge the American
Sugar Refining Company, Of New Jer-
sey and the Western Sugar Rcfinirrs
Company each in its unlawful COM
bination in restraint of trade, and that
each OF them be restrained from en-
gaging in interstate or foreign com
merce
That the court adjudge that the
shares on the capital stock OF each de-
fendant corporation heretofore acquired
by any other corporate defendant were
unlawfully acquired. and that each
such holder be enjoined from continu-
ing to hold such shares, and that the
issuing corporations be enjoined from
permitting the exercise of rights Incl
dent to the holding of such shares, and
"a
dends TO the holders.
Would Enjoin Executors.
That the shares OF capital stock OF
the National Sugar Refining Company
OF Utah. the Idaho Sugar Company, the
Great Western Sugar Company and the
Continental Sugar Company, formerly
held by the late H. o. Havemeyer. were
unlawfully acquired by him and are
now being unlawfully used by the exc
cutors and trustees under his will, who
are made defendants in the suit
The government asks that the exc
cutors and trustees be enjoined from,
further using powers incident to the
shares so held by them as to bring
about co-opera ton between the issuing
companies and the other defendant
corporations.
That defendants be enjoined from
to carry out the purposes
OF the unlawful combination and con-
spiracy, and be required to Withdraw
from all connection Herewith.
That the court grant each such gen.
eral relief as may be proper, by way
of injunction. receivership or otherwise.
History Of Combination.
The governments petition goes into
the history of the sugar combinat ton,
which originated in 1887 Two years
later, it is charged the combination
closed twelve refineries, and four Phila-
delphia concerns We're the only ones
outside Of the combine. The state of
New York attacked the crime and the
courts held 1t to be illegal. In January,
1891. the present American Sugar Re-
fning Company was formed and con-
tinued the business Of the combine.
Composition Stis1ed.
From 1892 to 1900 several independ-
ent refineries started and others tried
to. but by the time the plants were
ready to begin operations the combine
had secured control of the stock and
they were never allowed to open, the
government alleges. The Hawaii Sugar
IStlii1slS put OUS OK OGS-
mess, it Is alleged. by means of an
agreement by which the combine was
to pay 100000 per year for three years,
provided 1t retired from the field.
Relating Alleged.
Reference is made to customs prac-
ticed by the sugar men and rebates
from the railroads. A considerable por-
ton of the petition Is devoted to the
acquisition by the combine OF beet
sugar plants. when that industry began
to grow formidable. In 1901 all OF
these companies, except the Spreckles
company, which was beet sugar con.
Germ. were Independent.
GobbIins Sugar Beet Faeteriss.
The American, it Is charged. began
Its campaign by sending into the middle
west large quantities Of sugar on which
It had obtained rebates and free stor-
age during the summer. In the fall,
which Is the time the beet suga.. COM
panies began to sell their projects, the